"XJDano" (xjdano)
04/08/2015 at 13:01 • Filed to: Houseloplnik
3
27|
"XJDano" (xjdano)
04/08/2015 at 13:01 • Filed to: Houseloplnik | 3
| 27 |
Extreamly long story short, my first house I will finally be able to refinance it from 6.125% down to 4.125%. I am super happy about this, payments will drop from $923 to $650. This house I rent to my inlaws for $750 for the last 4 years. I finally get to make money on it, although I will still be spending money on it because needs a new roof and a bunch of other house stuffs.
But it's like getting a $2700 raise!
Party-vi
> XJDano
04/08/2015 at 13:03 |
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Please excuse, what is meaning to "refinance"? What benefit is there besides a reduced monthly payment?
For Sweden
> Party-vi
04/08/2015 at 13:03 |
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That's not enough benefit for you?
Stapleface-Now Hyphenated!
> For Sweden
04/08/2015 at 13:05 |
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While it is nice, the smart thing to do would probably be to roll that extra that he's saving right into principal. That way you pay off the loan sooner and will end up paying less over the life of the loan.
EL_ULY
> XJDano
04/08/2015 at 13:05 |
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dude awesome!!! I have mine at 4.00% and it makes a world of a difference!
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Party-vi
> For Sweden
04/08/2015 at 13:08 |
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Not if I have to start the loan over and lose equity.
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For Sweden
> Stapleface-Now Hyphenated!
04/08/2015 at 13:09 |
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How is that better than slashing the interest rate?
Saracen
> XJDano
04/08/2015 at 13:09 |
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923. I'd kill to pay that little on my next mortgage. I'll be dropping from 5.25 to 3.875. My mortgage will still be over $2k per month.
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Stapleface-Now Hyphenated!
> For Sweden
04/08/2015 at 13:12 |
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He has reduced his monthly payment and interest rate, which is always a good thing. I'm just saying make the same payments he was already making to the mortgage company, and the difference between the new loan payment and the old loan payment will go right into principal and paying down the loan. Assuming there's no penalties for early payment, of course.
MontegoMan562 is a Capri RS Owner
> XJDano
04/08/2015 at 13:12 |
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I just closed on my 2nd house the last week of August, was on the phone with the bank about the taxes just a few days ago and they were like - looks like you're approved to re-finance! I was like really? Not right now, no thanks....
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For Sweden
> Stapleface-Now Hyphenated!
04/08/2015 at 13:12 |
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That I would agree with
Sam
> Saracen
04/08/2015 at 14:00 |
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Life is tough when you're livin' large.
Mattbob
> XJDano
04/08/2015 at 14:03 |
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that reminds me, I have some nasty student loans to refinance, the highest are over 10% interest... hopefully I save a lot per month
McMike
> Party-vi
04/08/2015 at 14:08 |
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My first mortgage was around 8%.
A few years later, the rates dropped to 5-6% and it was worth it to get the payments down.
I refinanced one more time about 10 years ago (when my MoCo came offering free refi) SWEET! FREE LOWER PAYMENT! I thought. Then I realized I was pushing the note out every time and now my 30 year note had just been reset.
Then five years ago, the free MoCo ReFi came knocking again, and they offered an even lower rate for 15 year fixed and I'm back on track to finish this shit on time.
I would never ReFi again unless the rate dropped, like, at least three points.
The Gray Adder
> Party-vi
04/08/2015 at 14:09 |
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(1) You only lose equity if you pull money out (rolling over closing costs counts as pulling out money).
(2) Not everyone starts over with a new 30-year loan. Lots of people go to 20 or 15, depending on how long they've held the mortgage.
Excuse me if I'm testy. I just had a guy call me a eco-Nazi for suggesting that people would most likely prefer to plug in their hybrid cars in the evening after work.
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Party-vi
> McMike
04/08/2015 at 14:10 |
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I'm at 4.75%.
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Party-vi
> The Gray Adder
04/08/2015 at 14:11 |
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1) Did not know that.
2) Also did not know that
I would most likely plug in my hybrid (if I had one) after work.
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The Gray Adder
> Party-vi
04/08/2015 at 14:13 |
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Yeah, baby. I'm rocking a 2.75% 15 year from my credit union. I get to literally watch my principal melt before my eyes.
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McMike
> Party-vi
04/08/2015 at 14:16 |
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That's not a bad place to be. I can't imagine it getting much lower than that to make it worth doing a ReFi.
To be honest, with my previous one that was around 5%, I probably wouldn't have done it if it wasn't free and they weren't offering the 15 year option.
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Party-vi
> The Gray Adder
04/08/2015 at 14:24 |
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You suck.
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The Gray Adder
> Party-vi
04/08/2015 at 14:27 |
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I know.
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XJDano
> Party-vi
04/08/2015 at 18:35 |
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I think your main question was answered already, but I'll shed some light as to why I am doing this, and a quick background of owning 2 houses.
First house 2008 , $114,000 6.625% interest for 30 years
Brilliant idea to have wife's aunt from California move in & pay the rent at around $920-940. We buy second house in our names after we got married in '10
$146,000 5% for 30 years / refinanced that about a year later to 3%.
About 4-6 months later wife's aunt has been spending a lot of time with boyfriend and he wants her to move in blah blah, my wife's sister is living with her son(3) and boyfriend (not the dad), in his one bedroom apt. that's got moldy closets and just nasty.
They rent first house for what they can afford at $750/month. (MY payments are still above $900)
Until now where I can get that house down in interest where I'm not paying $175/month for her family.
After all I have a nice house now but it's been a LONG 4 years. Plus putting $ into that house at about $1000/year for maintenance or whatever.
If I could go back I'd still be living there, or likely somewhere else entirely.
So I think even though it's resetting my loan but we will have some breathing room in cash flow monthly as opposed to scraping by helping them. I'll let them pay that house as long as I'm breaking even, or they want to buy it themselves.
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XJDano
> Stapleface-Now Hyphenated!
04/08/2015 at 18:46 |
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Yes this is the plan in about 5 years, there are things that will need attention like new roof, patio, replace main clay sewer line that need attention in the next few years that the extra money I'm paying out plus the little extra I'll be getting per month will go to. I'm barely treading water as it is even though it looks like I'm rich and all with 2 houses.
Some bad life choices have got me where I am now, but I think we are on the right track to being in control of our finances.
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XJDano
> McMike
04/08/2015 at 18:53 |
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My memory was bad earlier I'm actually dropping 2.5% instead of 2.
I am a bit bummed I'm resetting the loan at 30 years, but I'm ok with it for the fact that the money saved will go back into the house & prep to sell in about 5 years, or less if inlaws want to purchase it, but I don't see them getting froggy.
I also refinanced my main house after about a year from 5% down to 3%.
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Party-vi
> XJDano
04/09/2015 at 06:19 |
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I need to live where you live. My place was $202k for one less garage and what looks like less living space. sigh .
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XJDano
> Party-vi
04/09/2015 at 08:03 |
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Just west of St. Louis. The construction market is pretty strong and so is the "Union Brotherhood"
I'm not hardcore Union, but I wouldn't be making $29.58 + insurance without it.
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Party-vi
> XJDano
04/09/2015 at 08:16 |
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Fak. I'm a PM (actual title Field Engineer) and I make less than that.
Dr. Zoidberg - RIP Oppo
> XJDano
04/11/2015 at 01:00 |
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"This house I rent to my inlaws for $750 for the last 4 years."
Could you inlaws have not afforded to at least match the mortgage? :/