R3V home owners, now is the time to refinance......

[M-technik-3]

Maybe I can use some advice here. Here are some details.

-bought home @ ~210k
-purchase may 2011
-30 year fha loan through USAA, which forwarded me to military family home loans, who sold the loan to wells fucking fargo.. a whole another issue I'm pissed about
-rate = 4.75%

I know it hasnt been a year yet but perhaps a refi with today's rates would benefit me.

USAA sold your Home Loan to Wells Fargo? Arg they (W-F) are as bad as BoA.

Yes off topic but what did USAA say about that? I was thinking of redoing mine with them to get out from under BoA.

[blefevre]

USAA sold your Home Loan to Wells Fargo? Arg they (W-F) are as bad as BoA.

Yes off topic but what did USAA say about that? I was thinking of redoing mine with them to get out from under BoA.

What is so bad about Wells Fargo or BoA? If you make all of your payments and have a fixed rate I don't see what could possibly go wrong. I am just curious because I have mine with Wells Fargo which has been a great bank/helpful for me and I want to know what I could be in for.

[rwh11385]

saving you $60k in interest? holy shit. how much did your house cost?

forgive me, i dont know anything about housing loans. i've just recently started considering buying a bachelor pad/small house. looking at spending $100-150k.

5.75% interest on around a million is $60k. i know im fucking failing here. what am i missing? or did you really spend a million on your house?

lol, kids. It's not your fault but I think we need to educate people more about the time value of money (and compounding interest). It's basically how banks make so much off of people who are naive of finance. But then again, before business classes and buying a home, I didn't understand as much about it.

Take a $125K house with 20% down, so borrowing $100K, with 6% interest over 30 years. Your mortgage payment would be $600, plus home owners insurance. Total of payments would be $215,800. (Total paid for $125L house would be $240K with the down payment) Interest paid would be be $115,800.

If you refinanced to 4% at 15 years, the payment would be $740 (paying $140 extra a month). The total of payments would be $133,100 (Total paid for $125K would be $158 with down payment). Interest paid would be $33,100.

Interest saved over the life of the loan would be $82,700... by paying $140 a month, or under $1700 a year difference.

I went with the 30 year, like most do, because it seemed to make sense... but most people go that way to get the most house for what one can afford (or pretend to...) but now the "smart move" is 15 year and a smaller house. Mine is under 1600 sq ft 4/2 on 1/3 acre in the city limits and a very conservative purchase compared to what the banks told me I could get.

[rwh11385]

Then again, looking at interest over the life of the loan is pretty extreme as most people don't see it through. People upsize with kids, downsize with retirement, and refinance along the way (either saving with a lower rate or borrowing against their equity to buy more stuff). But 5 years is a good window and bankrate shows that figure.

Like z31, I'll probably use the equity in the house down the road as a down payment for a larger house, as the median house size a few decades ago (1400 sq ft) is considered too small in our culture and we expect a rarely-used basement and 4 bathrooms to suffice with 2.5 kids.

[Jorgen]

Depending on when you got your loan, refinancing could be a huge +++ for you right now.

I bought our house about 2.5 years ago, got a decent 5.675% rate at the time on a 30yr mortgage.

If you were smart and didn't buy way more house than you could afford, refinancing to a 15yr note is the way to go. That's what I'm getting ready to do.

Locked in yesterday at 2.875% on a 15yr mortgage. Thanks to changes in the PMI structure, our payment is only going up about $50/month. Add in the extra we are currently paying, and we should have the house paid off in less than 10 years from now.

How the F are you pulling in 2.875%. I am working with a guy right now who I did my original mortgage with years ago, refi'd with after that and now refiing again. (made sense went from 6.5 when I bought the house to 5 about 3 years ago). I have equity on the range of 30-40% and a credit score so good its rediculous and I am only looking at numbers around 3.5% on 15 and 4.00% on 30 years. If I could pull in 2.875 or even 3% I would lock in a 15 year right now and close this beotch out just in time to cash flow my daughters college education.

[z31maniac]

Yeah, the only reason I even want a larger house (not planning to have kids), is a proper kitchen with storage for the wife and an oversized 3 car garage for me.

[M-technik-3]

Wells fargo and BoA have been playing sit on the check for up to ten days before cashing a electronic transfer aka let interest build on loan.

They both have been slapped with Class Actions. We had State Attorney General on them too because of other BS involved with them. Saying we were in foreclosure when we hadn't missed a payment.

Yeah, the only reason I even want a larger house (not planning to have kids), is a proper kitchen with storage for the wife and an oversized 3 car garage for me.

Interior just takes doing some labor and a small addition but garage is a zoning issue. Trying to get our piece of land zoned so we can do a new garage. Not bigger we just like a second level or a higher ceiling for a better lift since the structure will not support a new cantilevered beams for ceiling issues

[z31maniac]

How the F are you pulling in 2.875%. I am working with a guy right now who I did my original mortgage with years ago, refi'd with after that and now refiing again. (made sense went from 6.5 when I bought the house to 5 about 3 years ago). I have equity on the range of 30-40% and a credit score so good its rediculous and I am only looking at numbers around 3.5% on 15 and 4.00% on 30 years. If I could pull in 2.875 or even 3% I would lock in a 15 year right now and close this beotch out just in time to cash flow my daughters college education.

No idea, he originally said it would be 3.0%, then emailed me and said 2.875. I think I get a small discount since I'm going through the bank I've had accounts with for 11+ years.

My credit/income are strong as well.

[priapism]

2.875?! Holy crap. That's FHA conforming right? I'm at 4.75 I think, but it's non-conforming.

I was conservative and did a big down payment, now my place is worth way less than I'll get out of it :(

[z31maniac]

Interior just takes doing some labor and a small addition but garage is a zoning issue. Trying to get our piece of land zoned so we can do a new garage. Not bigger we just like a second level or a higher ceiling for a better lift since the structure will not support a new cantilevered beams for ceiling issues

We also want a bigger lot, but making our kitchen larger (old 70s galley kitch, would require moving load bearing walls and such.

I don't think the ROI would be there, considering the neighborhood.

[M-technik-3]

Depends on how long you plan to be in the home. ROI sometimes doesn't apply, if you turn it into a rental.

[drumad]

Depends, did you put any money down? Could you part with the closing costs on a refi?

The avg homeowner stays in their home 7-8 years, so you have to see if the payback makes sense in your situation.

On my first loan I put approx 10 Gs down as my down payment. I'm pretty sure I have more than enough to part with in order to do the closing costs on a refi.

I'll be staying at my place for another 5 to 6 years. I was thinking that refinancing with an interest rate anywhere near a 3% vs my current 4.75% on a 30 year would help me tremendously on my monthly payments. I'm not saying I'm struggling, but it'd be nice to save more money vs throwing it at interest costs.

USAA sold your Home Loan to Wells Fargo? Arg they (W-F) are as bad as BoA.

Yes off topic but what did USAA say about that? I was thinking of redoing mine with them to get out from under BoA.

Well, if you want to get a standard home loan direct from USAA then go for it. I wanted to do an FHA loan and USAA "did" FHA loans but through another company (Military Family Home Loans). When I was looking to finance, USAA at the time actually just started assisting people who wanted to do an FHA loan and I was one of the first. Like I said, they didnt directly handle it but it was outsourced I guess you can say.

The company then in turn sold my loan to Wells Fargo. Although I don't have any issues with Wells Fargo, I'd much rather be paying USAA my home loan payments as it's just easier to have it all under one bank.

I should talk to them about it as I haven't yet.

[blefevre]

lol, kids. It's not your fault but I think we need to educate people more about the time value of money (and compounding interest). It's basically how banks make so much off of people who are naive of finance. But then again, before business classes and buying a home, I didn't understand as much about it.

Take a $125K house with 20% down, so borrowing $100K, with 6% interest over 30 years. Your mortgage payment would be $600, plus home owners insurance. Total of payments would be $215,800. (Total paid for $125L house would be $240K with the down payment) Interest paid would be be $115,800.

If you refinanced to 4% at 15 years, the payment would be $740 (paying $140 extra a month). The total of payments would be $133,100 (Total paid for $125K would be $158 with down payment). Interest paid would be $33,100.

Interest saved over the life of the loan would be $82,700... by paying $140 a month, or under $1700 a year difference.

I went with the 30 year, like most do, because it seemed to make sense... but most people go that way to get the most house for what one can afford (or pretend to...) but now the "smart move" is 15 year and a smaller house. Mine is under 1600 sq ft 4/2 on 1/3 acre in the city limits and a very conservative purchase compared to what the banks told me I could get.

Yes, interest is crazy and I try not to think about it too much. One nice thing you can do is bi-monthly payments. That is saving about 60-80k of interest over my 30 year loan, and I pay it off 6 years sooner. That's on a 265k house.

[delatlanta1281]

Me, we did a 30year for 3.6% @ 6 years ago. We won't be able to make up a percent, and closing costs will negate the savings of re-financing.
I guess the good news is that we got in at 3.6% with no closing costs at $12,000 less than the po's asking price. So we have enjoyed a large savings for a while now.

[mrmckie]

Keep in mind, I'm not living in a McMansion or anything. A 1200sq ft house 3 bed, 1 bath, 2 garage on 1/3 acre in the burbs 15 minutes from downtown Tulsa (metro area of about 1 million).

Tulsa's current unemployment rate is less than 1/2 the national avg for educated people 22-40.

The neighborhood I'd like to be in about mile away is 1 acre lots, 2400sf ft home, 4/2.5/ 3 car garage.........$265k. lol

man i need to move to OK or down south, $100k here will get you maybe 800sq ft and no garage. The houses i've looked at have the same specs as yours, sq footage doesn't include the basments though and they are in the $160k-$175k range.