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post #1 of 34 (permalink) Old 08-21-2007, 01:27 PM Thread Starter
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mortgage questions/refi

ok, I wanted to understand it a bit better,


I am considering a refi on my two loans to get the apr lower and prefer to consolidate into one loan.

But I started to investigate and started seeing that they roll in 3K of fees into the mortgage so its no different if I keep paying the same amount now, except I dont need to have to pay any fees to get it done.


anyone have any tips adivce tricks?

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post #2 of 34 (permalink) Old 08-21-2007, 01:30 PM
 
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Originally Posted by FiReBReTHa View Post
ok, I wanted to understand it a bit better,


I am considering a refi on my two loans to get the apr lower and prefer to consolidate into one loan.

But I started to investigate and started seeing that they roll in 3K of fees into the mortgage so its no different if I keep paying the same amount now, except I dont need to have to pay any fees to get it done.


anyone have any tips adivce tricks?
No closing cost refi, and grab some equity ftw!

Watch out for the new % rate, if it jacks up your payment too much, then you are better off not refinancing.
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post #3 of 34 (permalink) Old 08-21-2007, 01:44 PM

 
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post #4 of 34 (permalink) Old 08-21-2007, 01:48 PM
 
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make sure they tell you closing costs up front and get it in writing they will screw you on closing costs if they can.
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post #5 of 34 (permalink) Old 08-21-2007, 01:54 PM
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and make sure you get a variable rate so that they really get to give it to you in the pooper

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post #6 of 34 (permalink) Old 08-21-2007, 02:25 PM
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Is it a bad financial decision to take equity out of your house to buy a 1098?
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post #7 of 34 (permalink) Old 08-21-2007, 02:26 PM
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Is it a bad financial decision to take equity out of your house to buy a 1098?
Nope.
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post #8 of 34 (permalink) Old 08-21-2007, 02:26 PM
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Is it a bad financial decision to take equity out of your house to buy a 1098?
Is the 1098 going to appreciate in value over time???

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post #9 of 34 (permalink) Old 08-21-2007, 03:21 PM
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3K in closing costs? I'm refinancing now to get the ex off the house and get a lower interest rate and it's only costing me like $1500.
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post #10 of 34 (permalink) Old 08-21-2007, 04:03 PM
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No closing cost refi, and grab some equity ftw!

Watch out for the new % rate, if it jacks up your payment too much, then you are better off not refinancing.
No closing cost refi with a lower FIXED interest rate. Can't go wrong.

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post #11 of 34 (permalink) Old 08-21-2007, 04:24 PM
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Is it a bad financial decision to take equity out of your house to buy a 1098?
60% of the time 100% of the people will say not a bad decision.

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Is the 1098 going to appreciate in value over time???
Like a fine scotch!

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post #12 of 34 (permalink) Old 08-21-2007, 04:44 PM
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There is also a 90% chance you will enjoy that more than the house.

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post #13 of 34 (permalink) Old 08-21-2007, 06:00 PM
 
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how can he be the man, when i am the man?
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post #14 of 34 (permalink) Old 08-21-2007, 06:00 PM
 
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make sure they tell you closing costs up front and get it in writing they will screw you on closing costs if they can.
oh you must be an expert...
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post #15 of 34 (permalink) Old 08-21-2007, 06:02 PM
 
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3K in closing costs? I'm refinancing now to get the ex off the house and get a lower interest rate and it's only costing me like $1500.
you are paying to much... my costs are 950
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post #16 of 34 (permalink) Old 08-21-2007, 06:03 PM
 
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No closing cost refi with a lower FIXED interest rate. Can't go wrong.
6.5 today 950 in costs... may be able to sqeeze 6.375 tomorrow... fixed of course... dont buy a ducati with your home... and if you refi with me i will throw in a copy of rich dad poor dad...
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post #17 of 34 (permalink) Old 08-21-2007, 06:12 PM
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Oh boy, here we go again.
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post #18 of 34 (permalink) Old 08-21-2007, 08:02 PM
 
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Oh boy, here we go again.
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post #19 of 34 (permalink) Old 08-21-2007, 08:17 PM
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Did my refi earlier this year and it was truly 0 cost to me, and they did not hide or roll the cost into my loan. When I asked how the hell he is making money from doing this for me he simply said that the bank gives him a certain amount of $$ for every loan he sets up with them. I literally walked in his office and did not have to grab my wallet at all and have a very reputable bank now owning my home (Wells Fargo) until I have it paid off or move. Since it was 100% no cost to me or added to my loan he said if the % ever drops 1/2 feel free to come in and do the whole refi thing again.

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post #20 of 34 (permalink) Old 08-21-2007, 11:55 PM
 
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Did my refi earlier this year and it was truly 0 cost to me, and they did not hide or roll the cost into my loan. When I asked how the hell he is making money from doing this for me he simply said that the bank gives him a certain amount of $$ for every loan he sets up with them. I literally walked in his office and did not have to grab my wallet at all and have a very reputable bank now owning my home (Wells Fargo) until I have it paid off or move. Since it was 100% no cost to me or added to my loan he said if the % ever drops 1/2 feel free to come in and do the whole refi thing again.

Under200
you dont get it...

a par rate is 6.125 and the broker makes 0 on a par rate
if the broker gives a rate of 6.75 he gets a yeild spread of 2.25% of your loan amount.... So if your loan is 200k and he is making 2.25 from the bank, he is making 4500.00 on your loan. If his compnay charges 2k in closing costs, and he pays them out of the yeild spread, he is still making 2.5k... So you are paying for it in the rate, over 30 years, instead of just paying it up front... Tou payed the closing costs... trust me... u just didnt see it... And of course he will do it again, he will make another 2500 on you. It isnt in the loan, its in the rate.

By the way, these numbers are just examples, not actuall...
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post #21 of 34 (permalink) Old 08-22-2007, 01:06 AM Thread Starter
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all I know is that it is a crappy biz.

and I say that because of my last experiance, and my first experiance.

was promised allot, got screwed allot, and nothing was ever fixed.

was told no fees, later found out they were rolled in.

was told a lower apr, wasnt at closing and was never corrected.

= my family screwed.

thats why I am trying to find out as much as possible.

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post #22 of 34 (permalink) Old 08-22-2007, 06:47 AM
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Quote:
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you dont get it...

a par rate is 6.125 and the broker makes 0 on a par rate
if the broker gives a rate of 6.75 he gets a yeild spread of 2.25% of your loan amount.... So if your loan is 200k and he is making 2.25 from the bank, he is making 4500.00 on your loan. If his compnay charges 2k in closing costs, and he pays them out of the yeild spread, he is still making 2.5k... So you are paying for it in the rate, over 30 years, instead of just paying it up front... Tou payed the closing costs... trust me... u just didnt see it... And of course he will do it again, he will make another 2500 on you. It isnt in the loan, its in the rate.

By the way, these numbers are just examples, not actuall...
Very true. Everyone will make money one way or another, that's how they stay in business. No matter how much you try to keep people from making a profit, they will or they won't do your loan. Simple American logistics. But I did the same thing as under200. Got a new loan and all my fees were paid. I could care less how much money this guy made worked into the loan because I had no fees, my APR was much lower than what I was paying now, and my payment is lower. I shopped around for the best rates also and did the math too. Some had a lower rate with me paying the fees and others had no fees with a higher rate. You can verify the fees on the HUD statement or Truth in Lending disclosure when you close. Ask your lender to see a sample of what it will look like when you close so you are not surprised. The only fees you might see depending on how they work it are some title fees (few hundred bucks) and your lawyer fees. That should be it. If it is different be prepared to walk away or make the changes right there. It can be a win win situation for both if you structure it right which mine was. Pretty happy with how it went down.

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post #23 of 34 (permalink) Old 08-23-2007, 03:11 PM
 
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all I know is that it is a crappy biz.

and I say that because of my last experiance, and my first experiance.

was promised allot, got screwed allot, and nothing was ever fixed.

was told no fees, later found out they were rolled in.

was told a lower apr, wasnt at closing and was never corrected.

= my family screwed.

thats why I am trying to find out as much as possible.

Then maybe you should be smarter about who you choose as a company... You get a truth in lending at signing and at close, and you have 3 days on a refi to get out of it... Sorry about your bad luck with the broker, but you saying its a crappy biz just because of your dealing with one loan officer, at one broker... Thats like you saying that your whole family sucks because one dude stole something...
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post #24 of 34 (permalink) Old 08-23-2007, 04:22 PM
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Quote:
Originally Posted by FiReBReTHa View Post
all I know is that it is a crappy biz.

and I say that because of my last experiance, and my first experiance.

was promised allot, got screwed allot, and nothing was ever fixed.

was told no fees, later found out they were rolled in.

was told a lower apr, wasnt at closing and was never corrected.

= my family screwed.

thats why I am trying to find out as much as possible.

Same thing happened to me. Three days before closing on a new house, the LO told me my interest rate was going to be 2% more then it was in the truth on lending statement, he promised he would get me a better rate after closing. I could back out of it but I would surely lose my earnest money and a house I wanted. I informed my real estate atty, and he put it very nicely to the LO at closing. We are going through with it but if he doesn't find me a better rate with no cost to me, he was going to report him the the Dept. of Bank or something like that. The LO was able to come through and get me a lower rate, in fact it was 2% lower then the original rate.

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Originally Posted by chiperf View Post
Very true. Everyone will make money one way or another, that's how they stay in business. No matter how much you try to keep people from making a profit, they will or they won't do your loan. Simple American logistics. But I did the same thing as under200. Got a new loan and all my fees were paid. I could care less how much money this guy made worked into the loan because I had no fees, my APR was much lower than what I was paying now, and my payment is lower. I shopped around for the best rates also and did the math too. Some had a lower rate with me paying the fees and others had no fees with a higher rate. You can verify the fees on the HUD statement or Truth in Lending disclosure when you close. Ask your lender to see a sample of what it will look like when you close so you are not surprised. The only fees you might see depending on how they work it are some title fees (few hundred bucks) and your lawyer fees. That should be it. If it is different be prepared to walk away or make the changes right there. It can be a win win situation for both if you structure it right which mine was. Pretty happy with how it went down.
Exactly, as long as its a better rate to you, who cares what the loan officer or broker gets. He earned it. Everyone is happy.

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post #25 of 34 (permalink) Old 08-23-2007, 05:14 PM
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you are paying to much... my costs are 950
The $1500 is what the whole thing will cost me, total. That's including the appraisal and whatever other costs there are. I've never done a refinance so I don't know if I have to pay a lawyer or any of that stuff? My mortgage guy is a family member so he talks to me on the phone pretty casual and I haven't sat down and gone over everything with him yet. What he told me was "the whole refi is gonna cost you about $1500 total, for everything."
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post #26 of 34 (permalink) Old 08-23-2007, 05:51 PM
 
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The $1500 is what the whole thing will cost me, total. That's including the appraisal and whatever other costs there are. I've never done a refinance so I don't know if I have to pay a lawyer or any of that stuff? My mortgage guy is a family member so he talks to me on the phone pretty casual and I haven't sat down and gone over everything with him yet. What he told me was "the whole refi is gonna cost you about $1500 total, for everything."
I tell ya what... do it throug him and email me your good faithe estimate to keep him honest... No harm no foul... I wont try to get your biz, but i will tell you good and bad...
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post #27 of 34 (permalink) Old 08-23-2007, 06:20 PM
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Quote:
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Is it a bad financial decision to take equity out of your house to buy a 1098?
if you want one that bad then that is the best way to do it.

say you get financed through the dealer, your apr will be about 7-8% you pay all that interest, take it in the ass and get nothing but a bike at the end.

refi and pay the bike cash, you will get some money back every year on your taxes from mortgage interest. and you will proly get a low 6.## apr much better that way if you ask me
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post #28 of 34 (permalink) Old 08-23-2007, 06:35 PM
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I tell ya what... do it throug him and email me your good faithe estimate to keep him honest... No harm no foul... I wont try to get your biz, but i will tell you good and bad...
Will do, thanks for the offer.
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post #29 of 34 (permalink) Old 08-23-2007, 06:37 PM
 
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if you want one that bad then that is the best way to do it.

say you get financed through the dealer, your apr will be about 7-8% you pay all that interest, take it in the ass and get nothing but a bike at the end.

refi and pay the bike cash, you will get some money back every year on your taxes from mortgage interest. and you will proly get a low 6.## apr much better that way if you ask me
Dude you are nuts... Property is losing value right now, and you are telling this guy to refi his home for a bike... In other words more debt as long as it is deductable? Why not save what equity you might have for something like i dont know... Your next home, or retirement? If you cant afford a payment on a bike, over 4 years why would you decide to pay over 30?
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post #30 of 34 (permalink) Old 08-23-2007, 08:20 PM
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Dude you are nuts... Property is losing value right now, and you are telling this guy to refi his home for a bike... In other words more debt as long as it is deductable? Why not save what equity you might have for something like i dont know... Your next home, or retirement? If you cant afford a payment on a bike, over 4 years why would you decide to pay over 30?
read what i wrote again, i said "if you want one that bad" meaning that is the lesser of the two evils. it is common knowledge that property value will come back.

if you are saving for retirement or a new home then you shouldn’t be buying a new bike. that is common sense……
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