Advice on buying a home.

[CrushB610]

^^ Btw, Tyler right? Shoulda mentioned it years ago but this is Chris, one of the 2 Twins friends. We hung out and tailgated with ya before CVille 2016 and also Camden when ya randomly parked right next to us. Hope all is well buddy!

[Nick@Night]

Originally Posted by Nick@Night

Look at some of your local credit unions if you can, might be able to score a better IR than a big bank by up to a quarter percentage point, and they might also have better origination charge. I just began the process of refinancing my mortgage down to a 15-year at 2.75% with a credit union, and the origination fee is .3% of the loan amount. An outfit like Wells Fargo might have you at .5%. Small difference, but on my $185,000 loan that's $370.

Estimated loan costs for me are pretty much in line with what smoke mentioned for theirs, at about $3,500 not including prepaids.

Closed on this refi today. Seeing purchase rates for 30-year under 3%, kind of wish I was in position to move up in house.

[smokew11]

congrats!

Even though we just refi'd in October (stayed at 30 yrs), if 15 yr rates go below 2.5 I'll have to seriously consider it, if its only a couple hundred more a month

[ExistenceNow]

We have 20 years left on our mortgage and were looking to lower the rate and go down to 15 years, but Quicken, who we have our mortgage with, only offered us 3.3%. I haven't checked with our credit union yet, but what they advertise online isn't any lower.

[smokew11]

our credit union is at 2.75 for 15 yrs

[Lee3691]

Originally Posted by ExistenceNow

We have 20 years left on our mortgage and were looking to lower the rate and go down to 15 years, but Quicken, who we have our mortgage with, only offered us 3.3%. I haven't checked with our credit union yet, but what they advertise online isn't any lower.

Quicken is known for its higher rates. Assuming you and your s/o have good credit, your 15 year should be well under 3% now.

[coolhotwaves]

If you have really good credit there are 2.5% mortgages out there.

[mandy18]

After what seemed like 20 years of house hunting, we finally closed on our new place an hour ago (and now just killing time on Ants of course until the movers show up).

2 of the 3 people at closing did ask about my DMB mask (well, commented that they are fans. I do get some people asking what is on my mask. They knew).

[BTBaboon]

Originally Posted by mandy18

After what seemed like 20 years of house hunting, we finally closed on our new place an hour ago (and now just killing time on Ants of course until the movers show up).

2 of the 3 people at closing did ask about my DMB mask (well, commented that they are fans. I do get some people asking what is on my mask. They knew).

"dO yOu DaNcE"

That's the response I get from the uninitiated when they see my firedancer on my car

Congrats on closing!

[cpxc.]

Originally Posted by mandy18

After what seemed like 20 years of house hunting, we finally closed on our new place an hour ago (and now just killing time on Ants of course until the movers show up).

2 of the 3 people at closing did ask about my DMB mask (well, commented that they are fans. I do get some people asking what is on my mask. They knew).

congratulations

[mandy18]

Originally Posted by BTBaboon

"dO yOu DaNcE"

That's the response I get from the uninitiated when they see my firedancer on my car

Congrats on closing!

Thanks!

Ha! I haven’t gotten that; it’s just been a general “what is that?” when someone asks me.

Originally Posted by cpxc.

congratulations

Thanks!

[smokew11]

congrats Mandy

sounds like you have a patient realtor!

[YouNeverKnow25]

Where’d you end up buying mandy

[mandy18]

Originally Posted by smokew11

congrats Mandy

sounds like you have a patient realtor!

Lol - we’ve only been with Rob since the fall, and 2 months were shut down, so he didn’t have to spend too much time with us. After the bad deal on a house a few years ago (I know I talked about it somewhere on here - agent messed up paperwork pertaining to sewage line issues), we didn’t use that agent again and then we took time off in the Pgh market.

Originally Posted by YouNeverKnow25

Where’d you end up buying mandy

Hampton!

It ended up being our compromise area. I didn’t want to be as far up in Butler Co & Fox Chapel got even more ridiculous after the market re-opened, so we settled there. The house is about 5 minutes from the school my son starts at this fall, and we have friends in the neighborhood, so it seemed like the right fit.

[cjstinelli]

Originally Posted by mandy18

Lol - we’ve only been with Rob since the fall, and 2 months were shut down, so he didn’t have to spend too much time with us. After the bad deal on a house a few years ago (I know I talked about it somewhere on here - agent messed up paperwork pertaining to sewage line issues), we didn’t use that agent again and then we took time off in the Pgh market.



Hampton!

It ended up being our compromise area. I didn’t want to be as far up in Butler Co & Fox Chapel got even more ridiculous after the market re-opened, so we settled there. The house is about 5 minutes from the school my son starts at this fall, and we have friends in the neighborhood, so it seemed like the right fit.

Used to live in Hampton, now in Richland!

[TheLastStop123]

finally getting around to a refi, rates are amazing right now. we're at 3.75 and are gonna drop to 2.87 and save almost $300 a month.

[M. Steng]

Originally Posted by TheLastStop123

finally getting around to a refi, rates are amazing right now. we're at 3.75 and are gonna drop to 2.87 and save almost $300 a month.

Damn, that's awesome.

We refi'd back in...maybe November/December of 2019? I can't remember at this point. We dropped to 3% flat on a 10/1. I doubt we could realistically get any lower than that right now, and I quite frankly don't feel like going through yet another refinance and fronting the closing costs again.

A cash-out refinance might be in the cards within the next few years if rates stay the same. I'm trying to assess the best way to pay my student loans off as quickly as possible. We've got ~$150k in equity in the house with all the improvements we've made in the past year, and I am still in the very high five figures on my loan. Saving that $2k per month on my student loan for the rest of time would be fucking sweet. I just don't know if it's a savvy financial move to leverage home equity to do so, or if I would be fucking myself over once it comes time to sell this place in 3-5 years.

[dmbmuskie]

It literally hurts my brain to think that you have 2k per month in student loans. I don’t think we even have 2k per month in bills.

We looked at the worst house on of our dream streets over the weekend. Out of town seller was looking for a cash offer of around 400k, ended up getting 480k from a flipper.

I don’t see how we ever get a new house that’s an upgrade from what we have. Might just finally start some remodeling projects next spring.

[M. Steng]

Originally Posted by dmbmuskie

It literally hurts my brain to think that you have 2k per month in student loans. I don’t think we even have 2k per month in bills.

We looked at the worst house on of our dream streets over the weekend. Out of town seller was looking for a cash offer of around 400k, ended up getting 480k from a flipper.

I don’t see how we ever get a new house that’s an upgrade from what we have. Might just finally start some remodeling projects next spring.

Trust me, it hurts my brain (and my heart/soul) when I see that $1000 come out of my account every other Friday. I should note that I pay well above the minimum, but still have ~5 years left on this payment schedule. I'm planning on throwing basically my entire year-end bonus at my loan if all else stays the same. My student loans are just shy of our monthly mortgage payment.

Between mortgage, student loans, credit card (daily living stuff like groceries etc), and child care, we're over $10k in monthly expenses. It's the worst

[YouNeverKnow25]

I happened to look again today at refi rates; all the lenders stopped giving jumbo mortgages for a few months but it looks like they're back on it now. I'm in a 7 year ARM at 3.75 but if I could get to 3.0 I might do it and make bi-weekly payments to get back to (or exceed) initial amortization schedule

[M. Steng]

Originally Posted by YouNeverKnow25

I happened to look again today at refi rates; all the lenders stopped giving jumbo mortgages for a few months but it looks like they're back on it now. I'm in a 7 year ARM at 3.75 but if I could get to 3.0 I might do it and make bi-weekly payments to get back to (or exceed) initial amortization schedule

Graham, do you have any insight you can share about using home equity to pay off student loans? Is it simply a numbers game or are there other considerations I might be overlooking?

[YouNeverKnow25]

it's not really my field but to me I think it comes down to whether, and to what extent, you're able to deduct your SL interest. and then as a followup whether you itemize or use the standard deduction.

[YouNeverKnow25]

full disclosure: I did a cash-out refi to pay off my student loans in 2019. well, mostly pay off...I think I have like 2500 or so left that I'll just pay once the forbearance period ends.

[M. Steng]

Originally Posted by YouNeverKnow25

it's not really my field but to me I think it comes down to whether, and to what extent, you're able to deduct your SL interest. and then as a followup whether you itemize or use the standard deduction.

Originally Posted by YouNeverKnow25

full disclosure: I did a cash-out refi to pay off my student loans in 2019. well, mostly pay off...I think I have like 2500 or so left that I'll just pay once the forbearance period ends.

I can deduct the interest and have done so every year since I graduated. As of last year you can only deduct $2500 in SL interest per household as opposed to per person, so we were able to deduct $2500 less last year compared to previous years.

Honestly the deduction wouldn't factor in much to the consideration...with a monthly payment of $2000 then the extra tax deduction is sort of a drop in the bucket at that point.

How did it go with the refi and paying off the loans? If you don't mind my asking, were you paying off numbers like I need to (close to $100k), and how much of your equity did you use up?

I am just pretty uneducated on the extent to which cashing out on equity in the next year or so will impact equity when we go to sell in 3-5 years. Like, I understand that the cash-out is really just adding whatever that amount is to your new mortgage balance, but assuming that our home value will be greater due to recent improvements, I'm thinking the practical effect will be *sort of* like a windfall, assuming that we'll be reappraised for an even higher amount than last time due to market conditions and home improvements within the past few months. I don't know, perhaps I'm not considering this as comprehensively as I should be.

[YouNeverKnow25]

Originally Posted by M. Steng

I can deduct the interest and have done so every year since I graduated. As of last year you can only deduct $2500 in SL interest per household as opposed to per person, so we were able to deduct $2500 less last year compared to previous years.

this to me leans me more toward cash-out refi...a limited deductibility versus a full deductibility of interest

Originally Posted by M. Steng

Honestly the deduction wouldn't factor in much to the consideration...with a monthly payment of $2000 then the extra tax deduction is sort of a drop in the bucket at that point.

I don't really agree with this mindset. the cost of the money you've borrowed is really the sole deciding factor here; the full deductibility of mortgage interest (again, as long as you're itemizing) here makes it much cheaper money in general, even ignoring the fact that I imagine your mortgage rate is lower than your student loan interest rate.

Originally Posted by M. Steng

How did it go with the refi and paying off the loans? If you don't mind my asking, were you paying off numbers like I need to (close to $100k), and how much of your equity did you use up?

I went to public state schools for both undergrad and graduate school (and was able to get in-state tuition rates for all undergrad and 2 of 3 grad school years), not to mention being older than you, so I didn't have that level of loan balance. I had maybe 30-40 thousand, paid off about 90% of that, and thus have a small balance left.

Originally Posted by M. Steng

I am just pretty uneducated on the extent to which cashing out on equity in the next year or so will impact equity when we go to sell in 3-5 years. Like, I understand that the cash-out is really just adding whatever that amount is to your new mortgage balance, but assuming that our home value will be greater due to recent improvements, I'm thinking the practical effect will be *sort of* like a windfall, assuming that we'll be reappraised for an even higher amount than last time due to market conditions and home improvements within the past few months. I don't know, perhaps I'm not considering this as comprehensively as I should be.

I don't really understand the question. As stated, you are just converting the equity into loan balance (while of course pocketing the same amount). A cash out refinance will have no effect whatsoever on the value of your house; of course it will increase your payoff amount whenever the time to sell comes but hopefully that money is in your pocket already via not having as high (or any) a SL payment in the interim.

[smokew11]

Originally Posted by M. Steng

Trust me, it hurts my brain (and my heart/soul) when I see that $1000 come out of my account every other Friday. I should note that I pay well above the minimum, but still have ~5 years left on this payment schedule. I'm planning on throwing basically my entire year-end bonus at my loan if all else stays the same. My student loans are just shy of our monthly mortgage payment.

Between mortgage, student loans, credit card (daily living stuff like groceries etc), and child care, we're over $10k in monthly expenses. It's the worst

serious question, but why don't you slow down? If we get a dem president and a dem senate there's a good chance for at least partial loan forgiveness

[M. Steng]

Originally Posted by smokew11

serious question, but why don't you slow down? If we get a dem president and a dem senate there's a good chance for at least partial loan forgiveness

1. I have private loans...very unlikely that anything substantial can be done about that from a governmental perspective;

2. Biden's proposal to knock $10k off any balances will still leave me with like 90% of what I owe

[ExistenceNow]

Not so much a tip, as a spoiler alert:

Water can and will get everywhere you don't want it to get, and at the same time, can and will find a way to NOT go where you want it to go (drains).

[smokew11]

Originally Posted by ExistenceNow

Not so much a tip, as a spoiler alert:

Water can and will get everywhere you don't want it to get, and at the same time, can and will find a way to NOT go where you want it to go (drains).

yep this is true

[danielalan]

If anyone is interested in in a refi or purchase in NY NJ or CT. Send me PM.

Run a family owned mortgage co. Can beat most loan estimates since we don't pay a "middle man"

Rates for 15 year are around 2.5-2.625.
30 year. 2.75-2.875.

willing to answer any questions as well

Dan