In order to participate in the GunBroker Member forums, you must be logged in with your GunBroker.com account. Click the sign-in button at the top right of the forums page to get connected.
Refinancing the house....finally!
Locust Fork
Member Posts: 32,056 ✭✭✭✭
It has been the BIGGEST pain in the rump to try and take advantage of the lower interest rates and save a little money on the house.
We tried to have it appraised and that was a HUGE waste of time and money.
I wish I knew more about this king of thing, but I just don't understand all of it and how this works......but GOOD NEWS!!!
We spoke with someone at our bank. We have to pay $1700 and the payments will be $30 more, but we can take 15 years off of our mortgage.
FINALLY.....something nice happens!
Every once in a while some good news is wonderful.
We tried to have it appraised and that was a HUGE waste of time and money.
I wish I knew more about this king of thing, but I just don't understand all of it and how this works......but GOOD NEWS!!!
We spoke with someone at our bank. We have to pay $1700 and the payments will be $30 more, but we can take 15 years off of our mortgage.
FINALLY.....something nice happens!
Every once in a while some good news is wonderful.
LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
Comments
This is the first house we are buying....it has been a real learning experience.
You banker won't tell you this unless you ask.
Too old to live...too young to die...
Never pay off your house,with interest rates so low,borrow all you can,and use that money to make money,you never own your home anyway.Taxes,insurance and maintenance always eats into cost of living...Your just a steward of the land....nothing more...[;)]
Seems to be the prevaling wisdom of a large portion of America. I say BS.
Remember this: She will always have to pay taxes, home ownership or not. She will always have to pay maintenance or upkeep. If things go right, here's how she makes out:
1. She's making money now, so when the house is paid off, when she retires, and doesn't have the income, she wont have the burden of the house payment.
2. The interest is deductable, so while it does add up, it also provides a deduction that she can use, especially when she's working.
3. Assuming that she's got the money to purchase the house right now outright - What if she takes that money and invests it, and gets 4% on her investment? Will the house value go up 4% every year over the next 15 years?
Actually, not BS. Locust Fork is doing VERY WELL with this arrangement.
Remember this: She will always have to pay taxes, home ownership or not. She will always have to pay maintenance or upkeep. If things go right, here's how she makes out:
1. She's making money now, so when the house is paid off, when she retires, and doesn't have the income, she wont have the burden of the house payment.
2. The interest is deductable, so while it does add up, it also provides a deduction that she can use, especially when she's working.
3. Assuming that she's got the money to purchase the house right now outright - What if she takes that money and invests it, and gets 4% on her investment? Will the house value go up 4% every year over the next 15 years?
Didn't call BS on what LF is doing.
My apologies...[B)]
No apology necessary, my response may sound somewhat rude. My apologies if it does, that wasn't my intent at all. I was calling BS on pwillie's "Never pay off your house" statement.
What's that? Your money making idea ISN'T 100% guaranteed to work? In that case make sure you are OK with losing your house and ruining your credit.
I say being debt free is best. Period. My 30 year note will be paid off in another 3-4 months. After 8 years.
Too old to live...too young to die...
My wife & I built our house for cash in 1990-91.
There's not a better feeling in the world than to be out from under that debt.
Yesterday we went to the courthouse & paid $3473.54 in prop. taxes.
Oh, if I could only figure out a way to get out from under that one!!
[8D]barto[8D]
There's not a better feeling in the world than to be out from under that debt.
[8D]barto[8D]
Oh, I don't know about that.
Reckless spending, putting off the bills for "later", certainly has a degree of immediate gratification. [:o)]
If you buy a house for $100K at 4% interest, your payment schedule will be $477.41 for interest and principal. Your first payment will pay $333.33 in interest and the principal will be reduced by $144.08. Your next payment distribution is calculated on the balance after the first payment, etc. for 360 payments.
If you don't have a "prepayment penalty" in the mortgage, any amount you pay extra will reduce the principal by that amount, dollar for dollar. If you could kick in an extra $144.08 on the first payment, you have knocked one month off your mortgage. More would be better, less would even be helpful.
On the first payment you can make two mortgage payments for $621.49, NOT $954.82.
Of course this will make an enemy of a bank clerk, but they have better computers than you do.
Never pay off your house,with interest rates so low,borrow all you can,and use that money to make money,you never own your home anyway.Taxes,insurance and maintenance always eats into cost of living...Your just a steward of the land....nothing more...[;)]
if you dont have kids and can afford to pay the note in perpetuity until you die, what you've just said makes sense. kind of. in a sort of crooked way.
essentially what you're doing is drawing all the equity out every time you need or want it by refinancing and leaving the house to the bank. you end up never truly owning the house, as you die with a mortgage that needs to be settled and, if you've played chicken with the debt and refi process well enough, no equity in the property.
in a way, this idea is similar to a reverse mortgage. kind of. if the situation allows for you to leave the estate possibly hundreds of thousands in debt(with the house to pay for it) then fine.
its not the worst idea ive ever heard, as long as you can swing the note payments, forever. that might suck a tad bit if you live to be ninety and are still firing checks to the bank to pay a mortgage...
I do LOVE Smith Lake.
I have been tucking a little bit back so that I can make the $1200 payment that I have to in order to do this little refi thing. I'll be glad to think that we will taking 15 years of payments off this place.