Hmmm... Mortgage Rates.

P · Jan 25, 2009

Been hearing, and looking at the rates man its UNREAL how low they are right now, average on a 30 yr fixed is 5%

Thats awesome , Im gonna have to look into a re-fi and see if its going to be worth the effort for me. Pretty awesome rates though :woot:

caglezxj · Jan 25, 2009

P said:
Been hearing, and looking at the rates man its UNREAL how low they are right now, average on a 30 yr fixed is 5%

Thats awesome , Im gonna have to look into a re-fi and see if its going to be worth the effort for me. Pretty awesome rates though

I did a couple months ago and got my shop and house under 1 mortgage. I am saving 100-120 a month by doing it.

BamaTJ · Jan 25, 2009

They have been low for a while. I hope they go lower so I can re-finance and make it worth my while

P · Jan 25, 2009

I was told rule of thumb was to drop a minimum of at least 1 point otherwise it's not worth it. I hope it drop's some more too. My rate is 6.5% , that was with zero money put in out of pocket . :woot:

draggbody · Jan 25, 2009

i am checking on a commercial property loan, 15yrs, 6.77% and they want 20% down....

Willymutt · Jan 26, 2009

I think that is where you'll get caught now P. They want money down unless you have enough equity in your house. We are also at 6.5% due to some shitty credit issues on my part. Still was pretty low when I bought though and no money out of pocket either.

Toddy · Jan 26, 2009

I was told 2 points, but i am in the process of it now. Mine is at 6.25 and I am getting 4.75 on a 30. I can get almost 20,000 back and pay closing cost and my payment stay the same. Or I can just get what I need a my payment drop $150 a month. I am thinking take no money and keep paying the extra $150. I figured it and I can get out in 15 years if I keep paying the extra. Gonna be hard to turn down the money when it is time to sign though.

What gets me is closing cost. Mine will be almost 5 grand. What cost 5 grand to do some paper work? I mean they are gonna make double what I am barrowing in the long run. Eat a little of that up front. I can see $1000 or so for the title search and such but $5000 :

. And I had to pay the $350 for them to come appraise it.

Most places will refinace up to 80% of the value of the home. Had a good friend build mine 3 years ago and he didnt charge me anything to build it so i am in grat shape. Bit appraisels are down 15% to 20%. If you are really intersted and dont know what your house is worth find a realitor. If it is a friend just ask or tell them you are thinking about selling and ask what you should ask.

Toddy

Bones · Jan 26, 2009

P said:
I was told rule of thumb was to drop a minimum of at least 1 point otherwise it's not worth it. I hope it drop's some more too. My rate is 6.5% , that was with zero money put in out of pocket .

Similar boat as you and little equity, so to get th4 low low rates, they want equity or $$ down which I don't have yet. Looking into an 80% first and 15% second and seeing if that would work. Waiting on Uncle sam's cheddar to pay off some bills and get them off my credit first.

BamaTJ · Jan 26, 2009

Yeah re-financing costs a few grand. if you don't have the equity in your home yet, you will come out of pocket on that. 1 point is not really worth the cost of refinance. The other big problem with this is that the value of homes are in the crapper and I have heard that a lot are not appraising.

Bones · Jan 26, 2009

Matt O. said:
Yeah re-financing costs a few grand. if you don't have the equity in your home yet, you will come out of pocket on that. 1 point is not really worth the cost of refinance. The other big problem with this is that the value of homes are in the crapper and I have heard that a lot are not appraising.

zactly my reasoning behind not being able to do it. My house a year and a half ago was 122k, I bet now it's 115-120 if I was lucky. The bottom has not fallen out here due to the flood and people still needing/buying homes. Still 6.5 is nothing to cry about.

P · Jan 26, 2009

Matt O. said:
Yeah re-financing costs a few grand. if you don't have the equity in your home yet, you will come out of pocket on that. 1 point is not really worth the cost of refinance. The other big problem with this is that the value of homes are in the crapper and I have heard that a lot are not appraising.

That would probably be the case in point for me. No equity and it wouldnt appraise for ****. All part of the equation, I doubt I do anything more than watch the rate's and go... Dayum sure would be nice to be at that laughing1

muchado · Jan 26, 2009

werd... my house appraised for 20k more than I paid when I bought it this fall and I've spent $10k plus alot of our own labor in improvements so maybe it could happen :dunno:

that would be nice to go from 6.5% to 5% just over some paperwork..

question though since I'm a newbie homeowner...
So let's say I owe 110k now on my house and it appraises about 130(assume no improvement in value from Sept to now even with the improvements I've made due to this market)... Would I be able to just take out my 110 + the paperwork fees ($5k) so like $115k on 5% instead of current balance of $110k on a 6.5%?

BamaTJ · Jan 26, 2009

MUCHADO said:
werd... my house appraised for 20k more than I paid when I bought it this fall and I've spent $10k plus alot of our own labor in improvements so maybe it could happen that would be nice to go from 6.5% to 5% just over some paperwork..

question though since I'm a newbie homeowner...
So let's say I owe 110k now on my house and it appraises about 130(assume no improvement in value from Sept to now even with the improvements I've made due to this market)... Would I be able to just take out my 110 + the paperwork fees ($5k) so like $115k on 5% instead of current balance of $110k on a 6.5%?

Yeah Rob, just because it appraises for more does not mean you have to take out a loan for that amount. You can basically just lower your monthly payment, or choose to take all the it appraised for and have more principal at a lower rate and pocket the cash. Lots of ways you can do it

muchado · Jan 26, 2009

Matt O. said:
Yeah Rob, just because it appraises for more does not mean you have to take out a loan for that amount. You can basically just lower your monthly payment, or choose to take all the it appraised for and have more principal at a lower rate and pocket the cash. Lots of ways you can do it

Damn. I am going to talk to my friend's mom who does mortgages for a living. See if she can help me run the #'s to see if it is worth it. I'd be down to lower my payment. I don't want to increase my loan amount just to have cash now---but if I lower my payment then I could just pay the difference in paying extra principal each month :dblthumb:

P · Jan 26, 2009

MUCHADO said:
Damn. I am going to talk to my friend's mom who does mortgages for a living. See if she can help me run the #'s to see if it is worth it. I'd be down to lower my payment. I don't want to increase my loan amount just to have cash now---but if I lower my payment then I could just pay the difference in paying extra principal each month

That was my motivation as well... :dblthumb:

muchado · Jan 26, 2009

P said:
That was my motivation as well...

There's bound to be some catch though!!! + I hate paperwork

uke:

P · Jan 26, 2009

You do your tax's yet and look into that 7500 thing you told me about back in the day when we were buyin homes this year. Thats a hot topic on my radar but I really dont understand nor have I really looked into it.. Amber is taking all our stuff to the lady that has done our taxes ( family friend but does own a tax service ) since we moved here and I have nagged her with "remember to ask her about that new home buyers/ first time whatever it is deal " laughing1

BamaTJ · Jan 26, 2009

We went to dinner on Saturday and Jamie and Amie said they asked a CPA firm about the $7,500 "credit" for first time home buyers. It is not a credit, it is a loan that you can get from the fed that you have 15 years to re-pay. The rate is pretty low I think, but it is not "free money".

muchado · Jan 26, 2009

P said:
You do your tax's yet and look into that 7500 thing you told me about back in the day when we were buyin homes this year. Thats a hot topic on my radar but I really dont understand nor have I really looked into it.. Amber is taking all our stuff to the lady that has done our taxes ( family friend but does own a tax service ) since we moved here and I have nagged her with "remember to ask her about that new home buyers/ first time whatever it is deal " laughing1

EDIT: Matt beat me to it but yep it's a "refundable credit" which means $$$ but it has to be paid back...

Yup dude I looked into it and it's a interest-free loan basically...(you're taxes an extra $500 per year for 15 years unless you sell your home before then).... Fugg I think it's worth it... INTEREST FREE.

I do my own taxes thru turbotax and I'm sure it'll ask "did you buy a home from X day to X day" then pop up all the form stuff to fill out. We'll see though. If it doesnt then I will make sure I find out what form to fill out.

Between that plus the extra $$$ I paid in this year that I'll be getting back I am going to be sitting alot better and possibly grab something on 2 wheels...

I'm still waiting on the paperwork from work to be distributed so I can get started. I guess I could just look at my last pay stub to estimate then go in and hammer it down once I have my official docs..