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All-In [40872]
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stock tip for the day
Mar 6, 2020, 8:08 AM
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sell. Take your cash and spray it with disinfectant (if you can find any) and put it under your mattress.
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Oculus Spirit [97663]
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Another tip. Refinance your home. Never will be a better
Mar 6, 2020, 8:31 AM
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time than when debt becomes worthless. Ran the numbers and can save us $300-400/mo if we do it today. We will be making some calls. Odds are the fed drops rates some more in a week or two, assuming this continues. We might wait for that next drop then pounce. Prolly save $500-600/mo if we hold out for another cut.
One industry will be booming when the wheels are flying off. 
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All-In [46797]
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^^ bout to be living high on the hog
Mar 6, 2020, 8:33 AM
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as soon as my dude runs the numbers one more time (to see if I can get a better rate)
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Oculus Spirit [97663]
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It will get better if the virus gets worse
Mar 6, 2020, 10:23 AM
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and the fed drops rates again, which is predicted.
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All-In [29076]
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We've already got a pretty low rate at 3.875%
Mar 6, 2020, 8:35 AM
[ in reply to Another tip. Refinance your home. Never will be a better ] |
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but I reached out to my lender and yesterday he could get us to 3.25 which would save us around $100 a month. Since we're already so low I'm in gambling mode and waiting for it to drop more. With the 10 yr bond rate dropping under .8% this morning I'm expecting today's mortgage rates to come down even more. I'd love to get 3% or less, but that may have to wait until the fed drops the rate again in two weeks.
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All-In [46797]
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Saw that this morning too.
Mar 6, 2020, 8:47 AM
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Not sure if I need to go ahead and lock in my rate or hold out for another .25% drop
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All-In [31847]
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CU Medallion [56005]
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Any particular lenders you'd recommend?***
Mar 6, 2020, 9:04 AM
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CU Guru [1059]
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Re: Any particular lenders you'd recommend?***
Mar 6, 2020, 9:18 AM
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I am have been in the financial planning industry my entire life and i do agree that now is a great time to consider refinancing. One thing....
When you compare rates on here be aware that you may be paying "points" to get a lower interest rate. Example....i was quoted 2.99% last week with 1/2 pt. I could have gotten 2.875% but it would have cost more. My point......you can get a lower rate but it will cost you more at closing. Just run your own numbers.
Also, beware some of the rates you see online. Many of the online lenders quote low rates with up to two points fee.
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All-In [46797]
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Yeah that's why my rate isn't as low as some I have seen
Mar 6, 2020, 9:22 AM
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at 3.5 but that's also not paying down any points. Still gets me out of PMI and drops my mortgage by 10 years
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All-In [31847]
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Heisman Winner [135478]
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I used to have a Guild acoustic guitar.
Mar 6, 2020, 10:05 AM
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But I sold it.
If that helps move the conversation along, I mean.
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Oculus Spirit [80977]
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I've watched the Guild rebuild cars on Restoration Garage
Mar 6, 2020, 11:18 AM
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on the Motor Trend channel.
This probably stops the conversation.
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Oculus Spirit [75673]
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All-In [29076]
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Yeah, 30 year.
Mar 6, 2020, 9:21 AM
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I don't see a point in a 15 year at this point in my life.
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Oculus Spirit [75673]
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####, I may need to call back. I've got sparkling credit
Mar 6, 2020, 9:32 AM
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but I'm at like 3.5 on a 30 year.
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All-In [29076]
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Try a couple different places. I think our rate has a
Mar 6, 2020, 9:47 AM
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quarter point bought into it, but since the appraisal would be waved since we have only owned the house 8 months that basically pays for the fractional points right there.
I can send you my guy's number too if you want. He's been great to work with although he's been swamped this week.
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Oculus Spirit [75673]
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Eh, I've already got the appraisal
Mar 6, 2020, 9:56 AM
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scheduled for mine. My guy waved like $1000 in fees or something.
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Oculus Spirit [80977]
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build equity
Mar 6, 2020, 9:41 AM
[ in reply to Yeah, 30 year. ] |
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And if not for resale, pay it off sooner.
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All-In [29076]
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But since money at these rates is basically free, I can
Mar 6, 2020, 9:46 AM
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invest the difference and return a lot more (potentially) than the value increase on the house. Also, I'm young so having a paid off house sooner isn't really something I'm worried about if it ties up cash.
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Oculus Spirit [80977]
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I'm risk averse.
Mar 6, 2020, 9:49 AM
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So I'd get the lowest interest rate I could get...so in 5 years if I don't want to live there anymore, housing prices have gone up, I have a lot more equity when I sell then I would otherwise.
Your call.
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Oculus Spirit [75673]
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All-In [29076]
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That's pretty much how we ended up so far out and not
Mar 6, 2020, 11:47 AM
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in a 2 bedroom 1 bath house off augusta road. This should be a 10-15 year place for us
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Oculus Spirit [75673]
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I've seldom been more proud.
Mar 6, 2020, 11:58 AM
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I recall back to 2004-2005ish and folks I know were chomping at the bit to buy a house but they were just so small that any degree of family was not going to work. This was okay for some folks but others had plans of expanding only 2-3 years down the line. You can math out the rest to see what happened.
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Oculus Spirit [79400]
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All-In [31847]
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Oculus Spirit [97663]
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We're at 4.25%
Mar 6, 2020, 10:25 AM
[ in reply to We've already got a pretty low rate at 3.875% ] |
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If they drop rates again, we can refi at a 15-yr rate paying what we pay for currently on our 30 year fixed. Or refi at 30 years again and have extra money on hand if needed and pay ahead. Either way.
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Oculus Spirit [97663]
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SO many people ignore a 1% drop in rates. They're like
Mar 6, 2020, 10:31 AM
[ in reply to We've already got a pretty low rate at 3.875% ] |
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"what's 1% going to save me?". Well, 1% is 25% of 4%. So if your mortgage is X at 4%, then it's .75 x X at 3%. You save 25% a month.
This is why debt at rates this low is so dangerous. You can jump at a downturn, but if there is ever an upturn (like 5%+ GDP growth, MAGA and whatnot), it will cause your 2% mortgage or whatever to become debt more toxic than the housing crisis debt.
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Heisman Winner [105432]
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this isn't right***
Mar 6, 2020, 11:51 AM
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Oculus Spirit [97663]
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What isn't?***
Mar 6, 2020, 11:52 AM
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Heisman Winner [105432]
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saving 25% a month is not correct when going from 4 to 3%
Mar 6, 2020, 12:18 PM
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25% of the interest, maybe, but not 25% total.
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Oculus Spirit [97663]
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But on a 30 year fixed don't they average it out?
Mar 6, 2020, 12:30 PM
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I mean you pay almost 100% interest on your monthly payment at first, and zero at the end, but the total mortgage monthly payment remains basically the same, minus escrow changes.
Plus when you refinance, you have your original down payment, plus any additional equity built up. We rolled PMI into the mortgage rate, but this time we will either not owe it, or only owe it for a short time.
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Heisman Winner [105432]
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Hol up, nobody mentioned PMI or Escrow, you said save
Mar 6, 2020, 12:43 PM
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25% like it is simple math. That is not correct.
200k mortgage for 30 yr.
4% - $954.83/month P&I
3% - $843.21/month P&I
saves +/- $110/month which is not 25%. The math isn't THAT simple.
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All-In [31847]
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Oculus Spirit [80977]
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Oculus Spirit [79400]
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I dropped a full 1% in January
Mar 6, 2020, 12:30 PM
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One year after we bought. I needed to refinance anyway, but it was worth it.
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All-In [29076]
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I just initiated my 2020 Roth contribution to buy more
Mar 6, 2020, 8:31 AM
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Also upped my 401k contribution.
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Oculus Spirit [75673]
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awful***
Mar 6, 2020, 8:53 AM
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