15yr Mortgage... Where to begin? | TigerDroppings.com
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Zephyrius
LSU Fan
Covington, La.
Member since Dec 2004
3243 posts

15yr Mortgage... Where to begin?

I think I'm ready to do this...

I last refinanced in 2003. BoA recently sold my mortgage to Everhome Mortgage. I have no idea who they are accept they are a Fannie Mae servicer.

So... where do I begin to refinance to 15yr? Any info will help(credit score recently moved over 700 and pay balance of credit card each month. No car notes)


lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
139 posts

re: 15yr Mortgage... Where to begin?
what is the balance to your mtg and if home was appraised today what do you thinks the value would be. 740 is the true magic number on a bank refi but you can with 700 and above. whats your current rate, rates have shot thru the roof over the last 30 plus days.


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Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
38044 posts

re: 15yr Mortgage... Where to begin?
quote:

So... where do I begin to refinance to 15yr? Any info will help(credit score recently moved over 700 and pay balance of credit card each month. No car notes)


I hate to suggest the unorthodox approach, but you can just adjust your amortization schedule yourself.

Figure out what the 15 year note would be - subtract your current PI&E note from that hypothetical 15 year amortization amount, and pay that difference to your mortgage holder - with the specification, both in writing and on the check that second check is to be applied directly to the principal.

It's just crazy enough to work, and it won't cost you a dime. If your company will do a streamline for you AND you get a point or so drop, it might be worth it to do the paperwork.

Good luck.


Zephyrius
LSU Fan
Covington, La.
Member since Dec 2004
3243 posts

re: 15yr Mortgage... Where to begin?
quote:

what is the balance to your mtg and if home was appraised today what do you thinks the value would be. 740 is the true magic number on a bank refi but you can with 700 and above. whats your current rate, rates have shot thru the roof over the last 30 plus days.

Balance is 156k... value I would guess is 270k - 290k(comparable house same neighborhood went 305k after Katrina). I'm at 7.5% currently(I know... high).


hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2038 posts

re: 15yr Mortgage... Where to begin?
current rate this morning on a 15yr refinance is 3.25%. with your current rate being so high you will probally save money with 15yr refinance


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Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
38044 posts

re: 15yr Mortgage... Where to begin?
quote:

Balance is 156k... value I would guess is 270k - 290k(comparable house same neighborhood went 305k after Katrina). I'm at 7.5% currently(I know... high).


Forget what I said - you should definitely refi - even a modest drop to 5% will pay back your closing costs in less then 30 months - DON'T take money out and you'll avoid PMI.

No reason for you not to be in a 15-year, and, if you get paid biweekly, I would pay bi-weekly - that has taken the drama out of payday for me.
This post was edited on 6/24 at 1:03 pm


Zephyrius
LSU Fan
Covington, La.
Member since Dec 2004
3243 posts

re: 15yr Mortgage... Where to begin?
quote:

current rate this morning on a 15yr refinance is 3.25%. with your current rate being so high you will probally save money with 15yr refinance

Yeah I would hope so...
quote:

No reason for you not to be in a 15-year, and, if you get paid biweekly, I would pay bi-weekly - that has taken the drama out of payday for me.

That's the biggest wrench for my refi... I'm 1099 independent contractor. I have a good income history(taxes) the last 3 or 4yrs but 2012 I'm negative but average is solid for the loan amount and comparable with what I've earned so far in 2013. Wifey has consistent income history though.

In any case... should I go to "my" bank first, local broker, online?


BayouBengal
LSU Fan
München
Member since Nov 2003
26816 posts

re: 15yr Mortgage... Where to begin?
quote:

(comparable house same neighborhood went 305k after Katrina)


A bit old for a comparable. Find a sale within the past 12 months.


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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
139 posts

re: 15yr Mortgage... Where to begin?
the number one thing that needs to be done is to review your tax returns for the last 2 yrs., it will be averaged out to see what your income will look like. i'm a broker here in baton rouge, if you want call me anytime, no need to pull credit -225.291.7901 x 224.
secondly rates are high even on the 15 yr term, I just priced all my lenders, just for scores above 740, you are maybe looking at 3.75 and above, below 740 score you may get a little bit harder but one thing you have going for you is the equity, no price adjustment.
rates are ugly, 30 yr they are at 5% and getting nastier


hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2038 posts

re: 15yr Mortgage... Where to begin?
they will take a 2 yr average of your adjusted income being that you are a 1099 wage earner. my suggestion is to stay local at first you put your info online and you will get 10 calls a day for 2 weeks.


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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2038 posts

re: 15yr Mortgage... Where to begin?
note the difference in a bank(me) and the other poster with a rate of 3.75%..banks will be a lender 90% of the time on a rate..sorry OP


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31726 posts

re: 15yr Mortgage... Where to begin?
Rates are climbing high enough now that doing the 15 may be worth looking at again.

Bear in mind though that just because a rate is lower doesn't mean it is better if you have to pay a higher note. The sweet spot is the rate of inflation. If you are paying a lower rate than that you are losing money.

If the rate on your loan is the rate of inflation you should never pay extra to reduce the rate.


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Sigma_
Wake Forest Fan
Member since Jun 2013
46 posts

re: 15yr Mortgage... Where to begin?
If you are at 7.5% right now that is pretty high. Just go with a 30-year and pay it each month like it is a 15-year. The difference in interest won't be that much, but you will have flexibility in case an issue with your income or expenses pops up any time in the next 15 years.


lsu xman
Member since Oct 2006
10220 posts
Online

re: 15yr Mortgage... Where to begin?
Also important is your income to debt ratio.


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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7464 posts

re: 15yr Mortgage... Where to begin?
quote:

If you are at 7.5% right now that is pretty high. Just go with a 30-year and pay it each month like it is a 15-year. The difference in interest won't be that much, but you will have flexibility in case an issue with your income or expenses pops up any time in the next 15 years.


30 yr yesterday was 4.75%. On such a small refi, i'd lean more towards the 15yr at the moment.

I do think 30 year moves down closer to 4-4.25, but I believe sub 4 days for conventional may have gone way of the dinosaur.

With new lending laws the 1099'ers need to learn not to write everything off if they are considering home loan/refi
This post was edited on 6/25 at 7:27 am


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DawgCountry
Kennesaw St. Fan
Burger Inn
Member since Sep 2012
14062 posts

re: 15yr Mortgage... Where to begin?
quote:

if you get paid biweekly, I would pay bi-weekly


same here


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Kingwood Tiger
LSU Fan
Katy, TX
Member since Jul 2005
13346 posts
Online

re: 15yr Mortgage... Where to begin?
We've been thinking of redoing ours. Only been in the house 2 years, and have good rate at 4.5 for 30 years.

We owe 240k, but house is valued at probably 350k.


hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2038 posts

re: 15yr Mortgage... Where to begin?
you better do it sooner than later


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Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
38044 posts

re: 15yr Mortgage... Where to begin?
quote:

I just priced all my lenders, just for scores above 740, you are maybe looking at 3.75 and above, below 740 score you may get a little bit harder but one thing you have going for you is the equity, no price adjustment.
rates are ugly, 30 yr they are at 5% and getting nastier


I appreciate your input as a insider, too, man. Having said what you just said, is this the beginning of the end of the "American Dream"? What percentage of people can come in and pull a 740? About 20%? And, if they don't pull a 740, how many can even afford 10% down on a $185k house, much less the mortgage payments?

I know the housing crisis and tough new laws are driving this, versus a desire to loan money, but credit scores rise and fall with the economy, so we could be looking at a death spiral for home ownership.


Cold Cous Cous
LSU Fan
Member since Oct 2003
14040 posts

re: 15yr Mortgage... Where to begin?
5% is, historically, a good rate.


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