Home refinance

[Pony_Driver]

and that way of thinking are the reason banks are in business and have big tall buildings
it isn't rocket science, it is a simple as a budget and sticking to it
Got to remember the banks aren't there for you, they are there for them

He can make 15 year payments on a 30 year note and have the flexibility if something comes up unexpectedly.

 

[RusM]

Screenshot_20201227-135217.png Screenshot_20201227-135217.png

If you refi 58k for 15 years @ 2.65%

New Monthly Payment $ 390.85

Refi for 30 years @ 2.65%

New Monthly Payment $ 233.72

Goddamnit multiquote! SomeGuyFromOlympia

You don't think for a dude making $10/hr the ability to drop his mortgage payment down in a bad month is a huge fucking deal? You've been rich longer than me then! Super simple extra payment every month right around what dudes been paying, pays off in less than 10 years..... You must've went to Evergreen!

 

[Mr Stubs]

but if you don't need to spend that money on something else you can put it towards your mortgage and pay it down quicker. The sooner you pay extra towards principle on a mortgage the more you save in the long run.

If you can swing it, get the 30 year note and pay $400 a month right out of the gate.

I just refinanced and this is what I did.

I decided that a 30 year was smarter in my situation than a 15.

My payment went from $1236 down to $835.
The beauty is that I was already paying $400 extra per month to principal. So I now continue to pay $1600 but my extra principal payment has turned into $800.

Paying $400 extra on a 15 year had me paying it off in around 12 years (and a larger than $1600 per month payment)

Paying $800 extra on a 30 year has me paying it off in around ten years (with the same $1600 per month payment)

 

[ConwayMuddy]

Goddamnit multiquote! SomeGuyFromOlympia

You don't think for a dude making $10/hr the ability to drop his mortgage payment down in a bad month is a huge fucking deal? You've been rich longer than me then! Super simple extra payment every month right around what dudes been paying, pays off in less than 10 years..... You must've went to Evergreen!

I mean, I'm making a bit more than 10 an hour now, but when I got the mortgage that was half the battle. Even at 15 years I would still be paying much less than I am now. If I could have a payment less than the current that I can overpay on I can still stash cash.

 

[SomeGuyFromOlympia]

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Goddamnit multiquote! SomeGuyFromOlympia

You don't think for a dude making $10/hr the ability to drop his mortgage payment down in a bad month is a huge fucking deal? You've been rich longer than me then! Super simple extra payment every month right around what dudes been paying, pays off in less than 10 years..... You must've went to Evergreen!

Sure, give yourself the room to drop a payment, but there is a point in life that you have to tell yourself that setting a mortgage on your shoulders at a 10.00/hr point in life can go wrong, wrong in a big way.
If you can swing it, great. I just don't like to see people putting themselves in a potentially bad situation. You will see when things do go bad that the bank see's you as a account number, nothing more. That nice person at the bank isn't the one that is going to repo your house with no shits given if that time comes.

 

[Weasel]

I just refinanced and this is what I did.

I decided that a 30 year was smarter in my situation than a 15.

My payment went from $1236 down to $835.
The beauty is that I was already paying $400 extra per month to principal. So I now continue to pay $1600 but my extra principal payment has turned into $800.

Paying $400 extra on a 15 year had me paying it off in around 12 years (and a larger than $1600 per month payment)

Paying $800 extra on a 30 year has me paying it off in around ten years (with the same $1600 per month payment)

along with this rates might be less for a 30yr then a 15. They were for me.

 

[ConwayMuddy]

I just refinanced and this is what I did.

I decided that a 30 year was smarter in my situation than a 15.

My payment went from $1236 down to $835.
The beauty is that I was already paying $400 extra per month to principal. So I now continue to pay $1600 but my extra principal payment has turned into $800.

Paying $400 extra on a 15 year had me paying it off in around 12 years (and a larger than $1600 per month payment)

Paying $800 extra on a 30 year has me paying it off in around ten years (with the same $1600 per month payment)

In trying to wrap my warped little mind around this, the lower the overall payment, the more I can put toward principal. Interest rate becomes less of an issue as I will be paying the loan off earlier.

that sound correct?

 

[Pony_Driver]

Sure, give yourself the room to drop a payment, but there is a point in life that you have to tell yourself that setting a mortgage on your shoulders at a 10.00/hr point in life can go wrong, wrong in a big way.
If you can swing it, great. I just don't like to see people putting themselves in a potentially bad situation. You will see when things do go bad that the bank see's you as a account number, nothing more. That nice person at the bank isn't the one that is going to repo your house with no shits given if that time comes.

"and that way of thinking are the reason banks are in business and have big tall buildings
it isn't rocket science, it is a simple as a budget and sticking to it
Got to remember the banks aren't there for you, they are there for them"

Please explain how the advice we gave puts OP in a bad situation. We showed him how to reduce his monthly payment and to shorten the overall loan when he is able to pay extra.

In trying to wrap my warped little mind around this, the lower the overall payment, the more I can put toward principal. Interest rate becomes less of an issue as I will be paying the loan off earlier.

that sound correct?

Yes, that is correct.

 

[Mr Stubs]

In trying to wrap my warped little mind around this, the lower the overall payment, the more I can put toward principal. Interest rate becomes less of an issue as I will be paying the loan off earlier.

that sound correct?

Interest is based off the over all amount of principal.

The faster you can pay down the principal, the less you pay in interest.

 

[SomeGuyFromOlympia]

Please explain how the advice we gave puts OP in a bad situation. We showed him how to reduce his monthly payment and to shorten the overall loan when he is able to pay extra.

The part where you have a mortgage with an income of 10.00/hr ?
OP, I'm not knocking the go-get-em attitude, that will get them far in life, it just isn't the stage in life get a mortgage payment, my opinion that's it
Its a risk/reward thing
when is the roof going to need replaced? Driveway Maintained? Paint? Property taxes? Transmissions fail? Covid happens and surprise you are now unemployed. This person probably wants to eat at some point , and have some electricity powering a heater at in there too. How does the OP save for all of those events that will come up. Every one of those things happen at some point

So, yes 10.00/hr is a high risk in my eyes thats all

 

[Pony_Driver]

Please explain how the advice we gave puts OP in a bad situation. We showed him how to reduce his monthly payment and to shorten the overall loan when he is able to pay extra.

The part where you have a mortgage with an income of 10.00/hr ?
OP, I'm not knocking the go-get-em attitude, that will get them far in life, it just isn't the stage in life get a mortgage payment, my opinion that's it
Its a risk/reward thing
when is the roof going to need replaced? Driveway Maintained? Paint? Property taxes? Transmissions fail? Covid happens and surprise you are now unemployed. This person probably wants to eat at some point , and have some electricity powering a heater at in there too. How does the OP save for all of those events that will come up. Every one of those things happen at some point

So, yes 10.00/hr is a high risk in my eyes thats all

Please pay attention to the details, the OP obtained the initial mortgage for $75,000 when he made $15 an hour. He has paid that amount down to 58k and also makes more than $10 an hour. He can refinance the remaining balance and be in a better financial position than he is currently in.

 

[ConwayMuddy]

Please pay attention to the details, the OP obtained the initial mortgage for $75,000 when he made $15 an hour. He has paid that amount down to 58k and also makes more than $10 an hour. He can refinance the remaining balance and be in a better financial position than he is currently in.

Close. Got the mortgage when I was making $9.75 an hour there was a lot of careful budgeting and hustling to find a better job.

 

[ConwayMuddy]

Its a risk/reward thing
when is the roof going to need replaced? Driveway Maintained? Paint? Property taxes? Transmissions fail? Covid happens and surprise you are now unemployed. This person probably wants to eat at some point , and have some electricity powering a heater at in there too. How does the OP save for all of those events that will come up. Every one of those things happen at some point

So, yes 10.00/hr is a high risk in my eyes thats all

These are reasons I'd like to refinance. I stick what I can away for emergencies, try not to piss away cash on stupid shit too often, put things off and generally do without. If I can lower the payment while still paying more, I should be able to stash more away.


if I look up, I can see the poverty line

 

[Pony_Driver]

Close. Got the mortgage when I was making $9.75 an hour there was a lot of careful budgeting and hustling to find a better job.

Fat fingered that one, I did know the difference.

 

[Wilson]

I mean, I'm making a bit more than 10 an hour now, but when I got the mortgage that was half the battle. Even at 15 years I would still be paying much less than I am now. If I could have a payment less than the current that I can overpay on I can still stash cash.

This was why I said you would be done in less than 10. Maybe you’re dedicated enough to commit to it on a 30yr note, maybe it would only encourage you to “stash cash” or “buy this or that.” You’re so close and with such a small mortgage, knock that fucker out and then do whatever you want.

 

[Firstram]

OP, I'm not knocking the go-get-em attitude, that will get them far in life, it just isn't the stage in life get a mortgage payment, my opinion that's it
Its a risk/reward thing

Gotta be in it to win it
Props to you Conway

 

[ConwayMuddy]

This was why I said you would be done in less than 10. Maybe you’re dedicated enough to commit to it on a 30yr note, maybe it would only encourage you to “stash cash” or “buy this or that.” You’re so close and with such a small mortgage, knock that fucker out and then do whatever you want.

not knowing what the actual numbers are, I think I could probably probably knock out a 15 or 30 in under 15. I'm pretty use to going without and back burnering things. It's hard to believe I've been here this long.

Gotta be in it to win it
Props to you Conway

Thanks. I was shitting bricks when I signed my life away on this place. I dont let myself get comfortable about it. I've failed at many things, I refuse to fail at owning this dump.

 

[Firstram]

not knowing what the actual numbers are, I think I could probably probably knock out a 15 or 30 in under 15. I'm pretty use to going without and back burnering things. It's hard to believe I've been here this long.



Thanks. I was shitting bricks when I signed my life away on this place. I dont let myself get comfortable about it. I've failed at many things, I refuse to fail at owning this dump.

You will be fine, I was stressed when we bought our house too. Financed for 30, paid it off in 20 by adding 25% extra every month.

 

[shortbus4x4]

Go for the loan with the lowest interest rate. If they are the same then go for the 30 year and pay it off as quick as you can.

 

[2big bronco]

This is why we should just raise the minimum wage to $20/hr

 

[SomeGuyFromOlympia]

Please pay attention to the details, the OP obtained the initial mortgage for $75,000 when he made $15 an hour. He has paid that amount down to 58k and also makes more than $10 an hour. He can refinance the remaining balance and be in a better financial position than he is currently in.

again, you pay attention to the details, its the risk that I am referring to

I lived it, actually I purchased a house at 20 making 7.50/hr. Looking back, I wished I had some parents that would have pointed out the risks. Now at 46 and at the extreme other end of the game, I realize how one flub would have ruined all that hard work.
OP sound like he is grabbing this pay-off by the balls, I am nothing but a cheerleader for him...just be careful.

Looking back, I got the house as more as a finger to my parents, probably wouldn't have listened anyway lol. It did work out for me in the long run, I hope it works out for this guy too.

 

[grumpy356]

My partner at work just got a 1.86 15year through owning.com. he has said nothing but good stuff about them

Did he buy points? Because I’ve heard rumors of rates that low, but never saw it.

I closed at 2.25 points about 8 weeks ago and thought that was good.

 

[2big bronco]

Did he buy points? Because I’ve heard rumors of rates that low, but never saw it.

I closed at 2.25 points about 8 weeks ago and thought that was good.

I'm not sure exactly what he paid for but the loan cost him $3500 one way or another

 

[Wilson]

I'm not sure exactly what he paid for but the loan cost him $3500 one way or another

probably not, that is stupid low any way you slice it

 

[ConwayMuddy]

Am I correct that I want to avoid buying points unless I plan to sell before they are paid off? I can't say I plan to sell any time soon.

work is shutdown this week but I'm going to try and sneak in. If I get thrown out or only work a few hours a day I plan to start on this. Am i correct in my thinking that wells Fargo probably wont be inclined to offer me the best rates as my current rates will benefit them more? I want to see if I can get into my local bank, then look at rocket, owning, any others I should check out?

 

[ConwayMuddy]

This is why we should just raise the minimum wage to $20/hr

Do I dare? I dare, I dare!

whys that?

 

[Wilson]

Am I correct that I want to avoid buying points unless I plan to sell before they are paid off? I can't say I plan to sell any time soon.

work is shutdown this week but I'm going to try and sneak in. If I get thrown out or only work a few hours a day I plan to start on this. Am i correct in my thinking that wells Fargo probably wont be inclined to offer me the best rates as my current rates will benefit them more? I want to see if I can get into my local bank, then look at rocket, owning, any others I should check out?

That is/ was my mentality regarding shopping rates with your current holder. Buying points depends upon how long you plan to pay. There is a point where it helps reduce your overall vs. not penciling out.

 

[grumpy356]

In trying to wrap my warped little mind around this, the lower the overall payment, the more I can put toward principal. Interest rate becomes less of an issue as I will be paying the loan off earlier.

that sound correct?

It’s 2% money. Why would you ever pay it off early?

Even I can make over 2% on the money in dang near ANY other investment.

 

[SurfnSnow]

Just did it.

Went through Rocket Mortgage. Quick and about easy as it gets. Closed in 12 days.

I also had Wells Fargo at 4.125 and went to 2.5%. I had to buy that down but that was fine with me. I had 23 left on a 30 yr. and went to a 15. Payment increased about $125 and my payments are like 68% principal now when they were 22% or something like that. I can't remember exactly.

I don't get anything but the guy I dealt with was super cool and easy to deal with. If interested PM me and I will send you his email. Again, I don't get anything. I just liked the guy

Pretty much the same thing with Rocket Mortgage, pretty quick and about to close in a week or so. Also the dude we worked with was really cool, professional and easy to work with.

 

[ConwayMuddy]

It’s 2% money. Why would you ever pay it off early?

Even I can make over 2% on the money in dang near ANY other investment.

Is this the same argument as having the cash to buy a 80k truck outright but financing anyway.

if I can pay more toward it now while having less of a payment, I'll have more I can try to have making money. Basically paying less to pay it off faster, and using what I'm not paying to add to what I invest now