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re: Just refinanced my 30 year to a 15 year......
Posted on 3/30/16 at 4:12 pm to TigerDeBaiter
Posted on 3/30/16 at 4:12 pm to TigerDeBaiter
quote:
But that's MY insurance and protects me.
Your health insurance is in a risk pool as well.
Actually, mines not, but that's a technicality, and I get your point. But I still say my health insurance primarily benefits me, while PMI primarily benefits the lender.
0
Posted on 3/30/16 at 4:19 pm to L S Usetheforce
quote:
lost 13 years of loan payments......seemed like a no brainer.
At 2.875%, assuming you are in a 25% tax bracket your post-tax rate is really only about 2%. That is the historical long-term rate of inflation in the US, the loan is essentially free money so it is not a good idea financially to pay it off early.
A 30 year costs about a percent more, it might have been better to pay the percent in order to have someone else's money for 30 years.
Posted on 3/30/16 at 5:02 pm to MSMHater
quote:
So that's THEIR insurance that protects them...that I pay for.
If you put <20% down on a home, you are more likely to result in a foreclosure and the lender is less likely to recoup the mortgage balance in a foreclosure sale.
It is you that is causing the increased risk so the bank passes that cost on to you. Otherwise it would be impossible for them to do business in the the <20% downpayment market
This post was edited on 3/30/16 at 5:14 pm
Posted on 3/30/16 at 7:00 pm to foshizzle
I'm in the 33% next year and realistically I want it paid off in 10....the calculator says I'd be crazy to not refi @ 2.875 and 15
This post was edited on 3/30/16 at 7:02 pm
Posted on 3/30/16 at 7:06 pm to L S Usetheforce
There are people here who find it challenging to use their TD bifocals. Not every situation needs to or can be viewed through the TD Political Talk lenses. Some must be focused on using the TD Money Talk glasses...and they are rarely the same strength prescription.
Posted on 3/30/16 at 7:57 pm to L S Usetheforce
I did the same thing. Refinanced from a 30 to a 15 about 3 years into my house. Then paid off the 15 year loan in 7 years. Haven't had a house payment for 5 years now. It's awesome! 
Posted on 3/31/16 at 10:59 am to GenesChin
so your lender did the loan for free?
Posted on 3/31/16 at 2:45 pm to L S Usetheforce
I might look into this. Looks like we are around the same time in my loan as well.
Posted on 3/31/16 at 6:00 pm to L S Usetheforce
How big was your loan?
Glad you got out of the big racket from the banks of a 30yr fix
Glad you got out of the big racket from the banks of a 30yr fix
Posted on 4/1/16 at 10:16 am to SDVTiger
The original loan or the new? Original was 275k new is 248k
Posted on 4/1/16 at 10:38 am to hawkeye007
quote:
so your lender did the loan for free?
No of course not. These volume lenders have a pretty interesting profit model from my understanding
They make most of their money on retaining servicing rights on mortgages. They sell the mortgage but by keeping servicing, they get paid annual fees for essentially making sure you pay your bill /escrows.
They not only want volume but long time mortgage payers. It is in their interest to have the lowest rate and lowest fees. The mortgage itself they sell at razor thin margins in the secondary loan purchasing market.
Posted on 4/1/16 at 10:54 am to GenesChin
I know how it works I have been a mortgage loan officer for 15yrs now. I was being sarcastic since you listed a lender credit and not a lender fee.
Posted on 4/1/16 at 11:29 am to L S Usetheforce
Yeah those fees seem high for that loan size
Does LA have a large tax?
4900 is like 2pts
What did escrow and title charge you?
Does LA have a large tax?
4900 is like 2pts
What did escrow and title charge you?
Posted on 4/1/16 at 11:34 am to SDVTiger
I'll have to look this is college station.
Posted on 4/1/16 at 1:22 pm to L S Usetheforce
So Tejas? Texas does have weird fees but if you went back to the same people they should have done it for about 1500 total between escrow and title on that size loan amount
In Cali a 500k loan amount the fees are about 2500 for a refi or less
In Cali a 500k loan amount the fees are about 2500 for a refi or less
Posted on 4/1/16 at 9:09 pm to L S Usetheforce
quote:
..but I went from 4.5%(2013) to 2.875% and lost PMI under the new loan........and lost 13 years of loan payments......seemed like a no brainer.
I refinanced in July, similar fact pattern except we're at 3.5% on the new loan. The best part will be once you are one year in and see how much more you've paid off relative to 1 year on 30 year note.
We are also putting extra $250/month so seeing an extra $3k reduction annually on the principle.
Posted on 4/2/16 at 6:57 am to Larry Gooseman
quote:
We are also putting extra $250/month so seeing an extra $3k reduction annually on the principle.
Should be aware that most mortgage contracts don't apply extra principal payments until it equals one full payment.
As in, that $250 chills out until it add up to a payment.
Posted on 4/2/16 at 7:01 am to SDVTiger
quote:
Does LA have a large tax?
4900 is like 2pts
I just refi a 270k loan
Escrow was 2100, recording 500, appraisal 500 +prepaid interest
If the loan closed beginning of the month, origination fees and processing /underwriting fees that doesn't seem unreasonable
Posted on 4/2/16 at 7:45 am to GenesChin
quote:
As in, that $250 chills out until it add up to a payment.
Ours gets applied once our 2nd bi-monthly payment is made.
Posted on 4/2/16 at 9:49 am to L S Usetheforce
When you refinance do you not have to put another 20% down?
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