Is it a profit if you have to put your money into a similar house?
crazy low interest rates
- Thread starter gouch
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Elkmagnet
Well-known member
How long do you plan to stay?
Most consider a 1% change worthwhile but it depends how long you are staying.
Google an amortization calculator and compare rates and time frames.
If i were you assuming 760 + credit
Look at a 15 year loan at about 2.75% would be a win win scenario.
I just roughed the numbers It looks like you will have a very similar payment but would pay the home off 7 years earlier.
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ShootsManyBullets
Well-known member
Hoard a little cash and be ready to scoop up a deal if the markets get soft. If that means refi now to get some cash out while your property values are still high, do it.
If this continues there will be discounted real estate along with all sorts of trailers, quads, trucks, etc.
If this continues there will be discounted real estate along with all sorts of trailers, quads, trucks, etc.
RobG
Well-known member
If you can show the house has appreciated enough that the equity is more than 20% of the loan value they should drop the PMI.I'm weighing it as well... I'm at 4.15 on a 30... but thinking of possibly selling within 2 years. But a refi would eliminate my PMI....
RobG
Well-known member
Talk to a CPA about the tax implications of renting out your home. If your house has appreciated the tax implications of renting vs selling are bigly.
D
Deleted member 28227
Guest
Like the fact that the appraised value for property taxes has literally doubled since we purchased it....
Steiny
Well-known member
I think the only way re-fi makes sense is if you get a lower fixed rate at enough difference so that the savings in interest eats up any fees they charge for the re-fi work, and if you re-fi without extending the duration of your loan.
This way you pay it off with a little less out of pocket each month, and don't pay any longer.
I know people do it every day, but paying off misc. debt, buying toys, remodeling, etc. and rolling it into a new mortgage is just playing games and preventing you from getting your house paid off.
This way you pay it off with a little less out of pocket each month, and don't pay any longer.
I know people do it every day, but paying off misc. debt, buying toys, remodeling, etc. and rolling it into a new mortgage is just playing games and preventing you from getting your house paid off.
Elkmagnet
Well-known member
Probably need a licensed appraisal to the tune of $500-700 in my area. It's hard to justify doing anything if you are going to be selling.
KB_
Well-known member
Just bought our place, And we pay extra every month on it no matter what. Planning to have it paid off in 10 years. but we are on a 30 year fixed VA loan. Got an emergency fund in place currently, Our current budget can get me to save 23k a year. Based off of what we should have paid down in 10 years plus how much I save in 10 years at 23k a year we can pay off our house in 10 years. Now what im hoping for is the market continues to grow and my house is worth 500k, but we'll see. But as wages go up thru-out the years I'll be able to save more an more every year. No car payments no debt, Just the new house, and life is good right now.
RobG
Well-known member
It’s been twenty years since I did it and I don’t remember what they require, probably an appraisal. A brief look at the web indicates the lender is required to drop PMI if LTV can be shown to be less than 80%.
https://www.investopedia.com/mortgage/insurance/outsmart-pmi/
brushcreek
Active member
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it varies with each situation. with rates at historical lows in some situations you could save a substantial amount of interest
I don't know if anyone has already mentioned this, but the Fed is meeting again on March 17-18 and there is talk of the prime rate dropping another 25 basis points. If you are considering a refi, maybe wait to lock the rate until after that meeting. Just a thought. Mortgage rates aren't specifically tied to Fed prime rate, but Prime rate dropping again will definitely create a change in mortgage rates, just like earlier this week.
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SAJ-99
Well-known member
10 yr Treasury trades at about 0.70% this morning. Locking in a mortgage rate is the homeowner equivalent of day trading. Fun and stressful exercise driven by regret minimization.
Mortgage rates will lag the 10yr a little, but less and less as you approach zero. What we see is the 30yr fixed rate, which 2-3 years ago was about 1.6% about the 10yr, has a spread of 2% and points (fees) have increased. Banks (and government-run Fannie and Freddie) have to make money.
Mortgage rates will lag the 10yr a little, but less and less as you approach zero. What we see is the 30yr fixed rate, which 2-3 years ago was about 1.6% about the 10yr, has a spread of 2% and points (fees) have increased. Banks (and government-run Fannie and Freddie) have to make money.
westbranch
Well-known member
Mortgage guy I know said 3.125% for 30 yr yesterday. We are at 4.25%, might hold off another couple weeks.
Have an rental property at 5.125%, not as many refinance options for that. But thinking I need to look a little harder now.
Have an rental property at 5.125%, not as many refinance options for that. But thinking I need to look a little harder now.
LuketheDog
Well-known member
Overrated for you in your situation, yes, that rate difference is not that big. But, for most people it's worth it. I'm in the process of a refi now, probably going 4.87 to 3.2, we're only 18 months into our loan and I can reduce my payment by $500 per month and just roll that straight back into the principal instead of interest.
westbranch
Well-known member
We have some good friends that bought a new construction house in the Stapleton area in 2013. They felt like they were paying an absurd price coming from the midwest but value increase has been insane.
SAJ-99
Well-known member
Market is pricing in 50-75bps next week. Fed doesn't change Prime rate directly, just the short term fed funds rate. As you mentioned, mortgage rates are all priced off the 10yr Treasury and it is already at all time lows. The Fed funds rate is going back to zero, but you have to look at the 10yr to determine the mortgage rate. The market is pushing the action at this point and the Fed is reacting.
huntin24/7
Well-known member
I’ve seen on multiple sites that the bank has to drop PMI when you’ve gotten down to 78% of your loan. Am I reading this wrong? We paid off the first 20% way ahead of schedule but they wouldn’t remove it because home values have dropped since we took out the loan.
D
Deleted member 28227
Guest
Yeah the market here is bonkers. Our property value went up 100% in 18 months with no improvements done, on a 1 bedroom apt. How is that even possible.
