News

Advice on Refinancing the House etc Needed, ASAP!

Discussion in 'Other Off Topic Forum' started by venusone, Dec 29, 2005.

  1. venusone

    venusone F1 Rookie

    Mar 20, 2004
    2,809
    I need some tips on refinancing my mortgage on the house. 15 years ago I purchased my house at 8.3% for 30 yrs. I’ve got a meeting w/ Bank of America (original loaner) tomorrow to discuss options at a lower interest rate. How can I trim from the transaction, etc? Should I add home improvement costs & also pay off my credit cards? I wish I had a husband that liked to deal w/ all this. Help!
     
  2. To remove this ad click here.

  3. Tspringer

    Tspringer F1 Veteran

    Apr 11, 2002
    6,155
    I own a mortgage company. YES, if your at 8.3% you can do much better. YES, you very well may want to include any home improvements costs and payoff credit cards. I said "may" want too because I do not have enough info to make a definitive recommendation.

    You will probably want a shorter term loan like a 15 year fixed. Right now, I have 15 year fixed rates at around 5.375% with no discount points.

    I would forget about Bank of America. Sure they can get a refi done for you, but they are not very competitive on price. Find a good local mortgage broker who has been in business for a long time and has wholesale lending relationships with ALL the best lenders. You will get the best overall price and service from a GOOD broker. That can be the rub of course.... there are many BAD brokers out there. Ask around and get some recommendations, hopefully you have a financial planner who can suggest a good broker.

    If you want to PM me, Ill give you my phone # and perhaps I can help further.



    Terry
     
  4. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    40,300
    95370
    Full Name:
    PeterS
    You have sat on an 8+% loan all this time? Do you read the newspapers or listen to radio?
     
  5. BigAl

    BigAl F1 Veteran

    Mar 17, 2002
    6,146
    TX
    Full Name:
    GSgt Hartman
    maybe he was waiting on a bonus, sale or other financial situation....
     
  6. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    40,300
    95370
    Full Name:
    PeterS
    The only people I know that are sitting on a loan with a rate like that are in a nursing home and their kids are keeping up the payments!
     
  7. To remove this ad click here.

  8. venusone

    venusone F1 Rookie

    Mar 20, 2004
    2,809
    Yep, I've thrown a lot of money away. I just never have paid much attention to %. Like I say, I would love to have someone do that while I wash clothes.
     
  9. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    40,300
    95370
    Full Name:
    PeterS
    Most men like women that are a bit smarter.....
     
  10. Zigno

    Zigno Karting

    I've been a loan officer/mortgage broker for 20 years and agree with Terry. Go for it now and if you can get a 15yr conforming fixed for 5.375% with no points and standard closing costs....appraisal, credit, escrow, title, and lender fees, go for it and lock asap! A window of opportunity is here now or just around the corner with the current inverted yeild curve pointing to stable or possibly lower long term fixed rates.
     
  11. Tspringer

    Tspringer F1 Veteran

    Apr 11, 2002
    6,155

    This someone you refer too is called a financial planner. If you had a good one and they knew you were at 8%+ (which they would) they would have had an affiliated mortgage broker contact you to correct this situation.

    Seriously... if you recognize that you are not a whiz with money (and there is nothing wrong with that) then take the next smart step and hire someone to help you who does know what and when to do things.

    But first, find a local mortgage broker and get your situation fixed ASAP.



    Terry
     
  12. To remove this ad click here.

  13. venusone

    venusone F1 Rookie

    Mar 20, 2004
    2,809
    If you were to drop dead on the side of the road, I might just save your life. Education is key. What makes you smarter?
     
  14. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    40,300
    95370
    Full Name:
    PeterS
    If I dropped dead, you would not have any life saving to perform!
     
  15. BigAl

    BigAl F1 Veteran

    Mar 17, 2002
    6,146
    TX
    Full Name:
    GSgt Hartman
    gotta laugh at that one....keel over, maybe, dropping dead...shows over....
     
  16. darth550

    darth550 Five Time F1 World Champ
    Lifetime Rossa

    Jul 14, 2003
    58,947
    In front of you
    Full Name:
    BCHC
    You mentioned wanting a man.....?

    Mouth to mouth on a dead man is NOT going to get you elected into the Match.com hall of fame! ;)
     
  17. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    40,300
    95370
    Full Name:
    PeterS
    #14 PeterS, Dec 29, 2005
    Last edited by a moderator: Sep 7, 2017
  18. darth550

    darth550 Five Time F1 World Champ
    Lifetime Rossa

    Jul 14, 2003
    58,947
    In front of you
    Full Name:
    BCHC
    #15 darth550, Dec 29, 2005
    Last edited by a moderator: Sep 7, 2017
  19. 348_Spiderman

    348_Spiderman Formula 3

    Feb 16, 2004
    1,409
    Cumming, GA
    Full Name:
    Mike
    Wait a minute....I thought you were a "Nationally Certified Driving Instructor"?!? So which one is it? LOL

    :)
     
  20. Ciao Bello 348

    Ciao Bello 348 Formula 3

    Oct 3, 2005
    1,805
    The Garden State, US
    Full Name:
    John C
    Why are we picking on a woman that wants to refi and save some $$? Ok, so she lost a few years with the APR.. better to lose just some then all.

    Do a re fi.. forget BOAmerica. Im not a fan. Do your search online. I dare say I had my best results with LendingTree.com. Hooked me up with a little sleeper bank in North Jersey (im in NJ) and turns out the rep and I know a lot of the same people. He calls me at least once a month to just talk..
     
  21. quartermaster

    quartermaster Formula 3

    Sep 11, 2005
    1,813
    Karen,
    It was a mistake to keep the high-rate B of A mortgage for 15 years, but I think you know that. B of A can be a little ruthless with their rates, imo.

    If you choose the 'financial planner' route, just don't give them a POA! :)

    A possible alternative to engaging a financial planner is to have a discussion with your CPA, if you use one.
    The critical question about combining home improvement loan, credit card debt, etc. into a new mortgage depends primarily on interest rate, i.e., if it is higher than the new mortgage will be then it is probably a good idea to combine.
    Good luck!
    Keith
     
  22. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    Karen: Where are you located? PM me and maybe I can refer you to someone. We own a rather large mortgage company along with our real estate company here in California. You may want to check with a loan broker who will "shop" your loan for you. You surely can do much better!
     
  23. BigTex

    BigTex Seven Time F1 World Champ
    Rossa Subscribed Owner

    Dec 6, 2002
    74,297
    Houston, Texas
    Full Name:
    Bubba
    LOL! He's a FAST mortgage guy!!!!!!

    Driving fast is just a hobby......
     
  24. BigTex

    BigTex Seven Time F1 World Champ
    Rossa Subscribed Owner

    Dec 6, 2002
    74,297
    Houston, Texas
    Full Name:
    Bubba
    Good advice though...heck, I hire an Amex advisor to keep an eye on the Manulife advisor..........:rolleyes:
     
  25. Dr C

    Dr C Formula Junior

    Dec 1, 2002
    480
    Kansas City
    Full Name:
    Ed
    Any tips on how to refinance a home mortgage without paying all of the closing costs/points? It really kind of kills the advantage of refinancing since the extra costs are all paid up front (and financing them would just make them that much more expensive).

    Who does have the lowest legitimate costs for refinancing?
     
  26. Tspringer

    Tspringer F1 Veteran

    Apr 11, 2002
    6,155

    The "Nationally Certified Driving Instructor" title is what they give you for your $25 after you complete the "official" PCA driving instructor class..... sounds aweful fancy but doesnt mean anyone is writing me checks for my services! I also hear its worth about as much as the paper its printed on... minus the lamination costs of course. ;)

    BMWCCA and NASA let you drive/race for free if you agree to instruct at their events so doing so saves about $350 per weekend. But sometimes you get two students which equals stupid amounts of time on track as a passenger..... which sucks. PCA gives a whopping $100 discount on your track fee if you instruct. Yipeeeeeeeeeeeee!

    So, the mortgage job is required to pay for this silly speed habit.



    Terry
     
  27. Tspringer

    Tspringer F1 Veteran

    Apr 11, 2002
    6,155

    TINSTAAFL

    "No Closing Costs" loans do not exist. The closing costs ARE getting paid. The correct terminology for such loans is "Lender Paid Closing Costs". The broker/lender increases the interest rate you receive and uses premium paid by the loan purchaser to pay the closing costs for you and cover their profit.

    The proper way to evaluate whether this loan is best for you is to do a break-even analysis. Compare the lower payment you will get with the lower rate loan. Calculate the monthly payment savings, then divide this into the total closing costs. The answer is how many months it will take for your savings to equal the costs you paid to get it. If you plan to own the home for that long or longer... pay the costs and get the lower rate.

    Also, you are probably better off including the costs in the loan amount. Lets say your paying 6% on the mortgage and that interest is tax deductible. So, your actual costs is 4.5% or so. Can you get a better return than that on an investment elsewhere? If so... keep your cash and invest it and finance your closing costs.


    Terry
     
  28. steve f

    steve f F1 World Champ

    Mar 15, 2004
    12,030
    12cylinder town
    Full Name:
    steve
    if you borrow enough ito buy a 360cs i will do it for you while you was the clothes as i drive the 360cs all day
     

Share This Page