Shopping for a mortgage

[AdironRider]

Biweekly payments = 26 a year or 13 monthly payments. Just divide your monthly principle by 12 and send in the extra principle reduction each month with your payment. No need to over think this.

Just do this. The difference is pretty negligible doing the biweekly payment over this, and you now know, most servicers don't let you.

[Mustonen]

Just do this. The difference is pretty negligible doing the biweekly payment over this, and you now know, most servicers don't let you.

We’re talking about potentially hundreds of dollars over the next three decades.

If it’s convenient, no reason not to. If it isn’t, nothing to wind yourself up over. Making a single extra payment early on or even contributing just a few extra bucks per payment to principal will have a far bigger impact than making more frequent payments. The key point is to reduce principal early and often (as opposed to some harebrained scheme to withhold payments and pretend you’re “winning” ).

[oftpiste]

Had an old mortgage broker pal recommend printing your amortization schedule and making the next month's principle payment with every full payment. Toward the end of the mortgage's life it's a big chunk, but IIRC it turns a 30 year into about a 17.

[Danno]

I could Google this, I'm sure, but I'm lazy. Can you refi a primary residence if you think you might move in the next year but nothing is set in stone? (Assuming that primary would become a rental after a move.)

Yes, not a problem. I believe that when you purchase a home as a primary residence, they expect you to live in it for some period of time (2 years?), but even that is not set in stone (it might be a problem for serial offenders but if you move after a year on a single property, and aren't doing it every time, it's no biggie). This is your current primary residence and it will be so after you refi. If in 6 months you decide to move and rent it out, no problem.

Disclaimer: I am not a mortgage professional, just someone who has refied a bunch and had discussions with brokers on this point.

[altasnob]

And if you are planning on moving and renting out, it makes sense to refi now because low rates and your interest is deductible off your rental income. So in a way, it is good to restart the amortization schedule where each payment you make is mostly all just interest. Also, I believe you get a better rate on your primary residence than rental property.

[Danno]

Also, I believe you get a better rate on your primary residence than rental property.

This is the reason you're required to be there a certain time for a purchase mortgage. To keep people from gaming the system by "living" somewhere for a month to get the better rate. I've never heard a similar length requirement for a refi.

[neufox47]

Had an old mortgage broker pal recommend printing your amortization schedule and making the next month's principle payment with every full payment. Toward the end of the mortgage's life it's a big chunk, but IIRC it turns a 30 year into about a 17.

I used to look at schemes like that but now I figure at 2.375% why bother. I did increase my auto savings that go to VOO though so that money doesn’t just go to spending.

[liv2ski]

Per a standard FNMA/FHLMC Note you are suppose to occupy an Owner Occ property for the first 12 months. If you refi and then move out 2 months later, there are a few companies that will do the new loan for you owner occupied, just not every company. So it may limit who you can get quotes from.

[tgapp]

Per a standard FNMA/FHLMC Note you are suppose to occupy an Owner Occ property for the first 12 months. If you refi and then move out 2 months later, there are a few companies that will do the new loan for you owner occupied, just not every company. So it may limit who you can get quotes from.

hey L2S, we're about to turn our primary into a rental. we're on a 15yr and we wanna refi to 30. we just had an offer accepted on a second home, with no contingencies with regard to our first home (eg, we don't need to refi to qualify for home #2). what other considerations should we be making at this juncture?

thanks man, we appreciate your wisdom

[Boissal]

hey L2S, we're about to turn our primary into a rental. we're on a 15yr and we wanna refi to 30. we just had an offer accepted on a second home, with no contingencies with regard to our first home (eg, we don't need to refi to qualify for home #2). what other considerations should we be making at this juncture?

thanks man, we appreciate your wisdom

How the fuck did you find a home for sale in SLC these days??
Dentists these days...

Congrats!

[liv2ski]

hey L2S, we're about to turn our primary into a rental. we're on a 15yr and we wanna refi to 30. we just had an offer accepted on a second home, with no contingencies with regard to our first home (eg, we don't need to refi to qualify for home #2). what other considerations should we be making at this juncture?

thanks man, we appreciate your wisdom

Timing is everything. I am assuming the new purchase contract is written as an owner occupied deal, not as a true 2nd home (because you said property 1 will be a rental). If that is the case I would tell you the present property needs to be refinanced as a non owner occ loan (rate is maybe .50% higher), because you are under contract to move. If I missed something here pm me.

[wolfelot]

Checkout Lenderfi.com. At least for me in Denver they always have easily the lowest rates and loan cost combo. I used them three times over about 19 months at virtually no loan costs with my most recent in October being a 2.5% 30 year for about $170 in loan costs + escrow.

[liv2ski]

I was priced better but only do CA

[CantDog]

Any MA brokers out there? Checking out a place this weekend, but haven’t pulled rates yet.

[4matic]

All time low ARM rate. 2.47%. Tempting..

[liv2ski]

I'll take the 30 yr fixed at 2.625%-no fees all day.

[tgapp]

@liv2ski I just got cleared to close on a cash out second residence refi at 3.125...should I start this whole thing over again to get a better rate? how much am i leaving on the table here?

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[krp8128]

Any VT brokers?

Quicken etc. Are all above 3% (my loan is too small I think). Working with credit union to hopefully get 2.875, but they are dragging feet to lock.

[Todd Zander]

Can you streamline with your current lender? We are going to try and get ours into a monadnock region credit union after our current refi pays back jn 12 months as our current credit union didnt want to play with us.

[Name Redacted]

Liv2ski- what rates are you seeing on investment properties these days w/ 25% or more down payment? Considering swapping properties through a 1031 and potentially picking up another.

[liv2ski]

@liv2ski I just got cleared to close on a cash out second residence refi at 3.125...should I start this whole thing over again to get a better rate? how much am i leaving on the table here.

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I need your details to reprice the loan in CA and you can use that to decide. PM me Value, Loan Amt, mid FICO score used, Property type.

Liv2ski- what rates are you seeing on investment properties these days w/ 25% or more down payment? Considering swapping properties through a 1031 and potentially picking up another.

Need details like the above to respond to you.

[liv2ski]

Guys regarding refinancing, pricing across the board improved .125% in rate today as FNMA/FHLMC dropped off the previous .50 fee hit they had on refinances.

[liv2ski]

@liv2ski I just got cleared to close on a cash out second residence refi at 3.125...should I start this whole thing over again to get a better rate? how much am i leaving on the table here?

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The credit at 2.75% is enough to cover all the non recurring costs.

[tgapp]

The credit at 2.75% is enough to cover all the non recurring costs.

thanks dude. I've got almost $5k in closing costs at 3.125. how do I go about pulling the plug to lock in a lower rate?

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[liv2ski]

thanks dude. I've got almost $5k in closing costs at 3.125. how do I go about pulling the plug to lock in a lower rate?

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Man, I hate to fuck another lender over, as it is not their fault rates are better than when you decided to lock in. Obviously, you can shop around and maybe find a better deal if they didn't have you sign my disclosure. Did you sign something like the below?



That is the "don't waste my time clause"

Que the indignant and clueless social warriors.