About 10 days ago, we dropped the price of the house $10,000. We didn't want to do it. But it was time.
Back in July when we put the house back on the market with the new realtor, we had an open house for brokers, and the price was the only REAL comment we got from them. Most would have priced the house in this new range, but after talking with the realtor....we left it where it was for the summer. However, part of that discussion was if we got to September and the house was not under contract, we may need to make changes. She asked us if our parents would just give us whatever money we may need. Um, if that was an option, we would have visited it a long time ago.
So we went through Labor Day, and then talked to her about the adjusting the price. We were all in agreement that this was the right decision. It would open up the pool of buyers since most people search in increments of 10k.
We noticed that on Zillow, our number of people who "saved" our house increased about 40%. However, we have only had one showing since we made the change. This coming weekend is a crapshoot...there is a large local fair that people attend and the weather is going to be beautiful! No idea what that will mean for real estate.
If the house sells at the current price (although we were told that most houses sell for 96-97% of the asking price), we would JUST cover the payoff on the mortgage. That leaves all the fees that go along with selling a house....realtor, conveyance, etc. Some things will get refunded down the line, but strictly speaking about going to closing...we will need 10k-12k to just close.
In order to cover the cost of dropping the house....we took out a personal loan. This loan is sort of a 2-part thing. The loan is for 22k at 6.99%, and is $435/mon for 60 months. The first $9400 went to pay off the retirement loan (although I have a feeling that we will end up making a slight overpayment since we paid this off right at the end of a paycycle and there may be an extra payment that will come out of G-man's check, which would be refunded to us). This will free up $441 a month (so a cash flow wash), which will then pay for the new loan. It also starts the 60 day "clock" that we have if we wanted to dip back into our retirement account down the line (possibly to lower the interest rate of the personal loan, money for a new house if that is a route that is open to us).
That leaves us $12,600. We originally were thinking we would need closer to 10k for the closing, and were going to use the difference ($2600) to pay off G-man's car, thus freeing up another $127 a month. However, we got nervous. I have said before, I have a problem with liquid money....I don't like to use it, because what if I NEED it (which contradicts myself since I have a hard time using it!). If we paid off the car, and then needed more for the closing, we would be scrambling. Even funneling all the "extra" money we would have in the budget (roughly $300 a month between everything that we have recently done), it would take 7-8 months to cover that amount. So, we are leaving it liquid.
We have $7000 put aside already for the moving costs (which also includes deposits for utilities, travel, etc). Add in the new $12,600....and we are at just under $20,000 cash. So this will cover the house and the move. And HOPEFULLY will have extra at the end that will then go toward some debt (at the moment, G-man's car, then my car....we are purely looking at cash flow, not at interest rates or long term goals). We also know we will have tax season coming before we know it....and if we move in 2015, our return will be much larger than usual because we will be able to deduct the move....and all of that money would go back into the debt reduction efforts.
I will update the side bar to reflect new numbers soon. So, yeah....a $12k set back. I played with the numbers until my eyes crossed. This was the option that made the most sense on paper.
I do feel better knowing that if we had to move quickly (if a buyer wanted a very quick closing), that we have this taken care of. Our cash flow isn't changing. Nothing really changes....except we now have $12k more in debt. That part....that I don't feel good about.
I guess time will tell how this will play out.
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Tuesday, September 22, 2015
Thursday, August 18, 2011
They giveth and they taketh away
So I saved $60 a month on oil! Yippee!!
I SWEAR....that same day....we got the new mortgage information.
Because of the mistake on our escrow account, our mortgage is not only going up the $41 for the missing bill....but another $60 because in one month it will fall below the federal minimum limit (we have an FHA loan) once bills are paid. They need to build the cushion back up. So they need to account for THAT too.
Now our mortgage is $100 more.
And our refi that we did in January....who cares that we got a lower rate? Our monthly out of pocket savings at this point is $100, we added $9,000 to to mortgage, and we are paying PMI for a minimum of 5 years.
This stupid escrow....I am tempted to remove the taxes and homeowner's insurance (which BTW, doubled this year) and just keep it as the PMI. I can do the same thing as an escrow account....put money in there until it is needed.
We are paying $598 a MONTH just for the escrow account now. The principal and interest payment is $1037. PMI is about $141 a month (which is part of the escrow). Our monthly "mortgage" payment would be about $1200 for principal, interest, and PMI (give or take...they need their cushion). In theory it is all the same amount of money (I would need to put about $400 a month away for taxes)....it just burns my biscuit that this happened.
I am just venting....
Not a good day......
I SWEAR....that same day....we got the new mortgage information.
Because of the mistake on our escrow account, our mortgage is not only going up the $41 for the missing bill....but another $60 because in one month it will fall below the federal minimum limit (we have an FHA loan) once bills are paid. They need to build the cushion back up. So they need to account for THAT too.
Now our mortgage is $100 more.
And our refi that we did in January....who cares that we got a lower rate? Our monthly out of pocket savings at this point is $100, we added $9,000 to to mortgage, and we are paying PMI for a minimum of 5 years.
This stupid escrow....I am tempted to remove the taxes and homeowner's insurance (which BTW, doubled this year) and just keep it as the PMI. I can do the same thing as an escrow account....put money in there until it is needed.
We are paying $598 a MONTH just for the escrow account now. The principal and interest payment is $1037. PMI is about $141 a month (which is part of the escrow). Our monthly "mortgage" payment would be about $1200 for principal, interest, and PMI (give or take...they need their cushion). In theory it is all the same amount of money (I would need to put about $400 a month away for taxes)....it just burns my biscuit that this happened.
I am just venting....
Not a good day......
Tuesday, August 9, 2011
Just Like That.....
the beginning of the backward slide.
I updated our current totals, which now reflect the bill we got for Bossy's supplies (and that is only 4 months worth) and the recent car repair. Add in a little interest...and it is a back slide of about $2k.
Plus, we found out that our mortgage company didn't pay one of the tax bills. They claim they didn't have it....amazing how in the 10 years we have had the house, and the mortgage has been sold off many times....and this is the first time. We have money in escrow, BUT, now that they have to account for another $800 a year, they are raising our escrow amount by $41 per month. Part of me almost wants to do another refi. Rates have dropped again, and if I compare mortgage rates, I might get a better deal.
I will have to call the medical company and set up a payment plan, but I have no idea where that money is going to come from. Ideally they want stuff paid on a rolling 6 month basis. I know they are going to want way more than we can give them.
I am estimating that our oil bill will be going up about $125 a month. Again...no idea where that is coming from.
In just over a day....our monthly expenses have skyrocketed.
Some hard choices will need to be made soon. Cell phones....probably cut down to bare bones. Cable....I have really REALLY been resisting getting rid of U-verse (cuz we love it), but we may have to. Land line....which is very rarely used but I have just been afraid to get rid of....probably will go.
I am running out of things to cut back.
Hopefully we will get a decent amount back on our car issues (boy has that turned into another mess). That may help some. We have paid almost $3500 in car repairs and maintenance in 7 months....and that is just on our credit card. That doesn't include stuff we paid cash for (some smaller repairs, oil changes, wiper blades).
Scared doesn't even to come close to my current state.
I may have to find a full time job. I have no idea how I will be able to handle that right now. I would like to parlay my current job into more hours...not sure if that will happen. But I need more income. Forget debt repayment....that is just to pay the minimums.
I have been really avoiding bankruptcy. I really really don't want to go there. But I may not have a choice. Just thinking about it is making me feel dirty.
Overwhelmed. I have no idea how others do this.....
I updated our current totals, which now reflect the bill we got for Bossy's supplies (and that is only 4 months worth) and the recent car repair. Add in a little interest...and it is a back slide of about $2k.
Plus, we found out that our mortgage company didn't pay one of the tax bills. They claim they didn't have it....amazing how in the 10 years we have had the house, and the mortgage has been sold off many times....and this is the first time. We have money in escrow, BUT, now that they have to account for another $800 a year, they are raising our escrow amount by $41 per month. Part of me almost wants to do another refi. Rates have dropped again, and if I compare mortgage rates, I might get a better deal.
I will have to call the medical company and set up a payment plan, but I have no idea where that money is going to come from. Ideally they want stuff paid on a rolling 6 month basis. I know they are going to want way more than we can give them.
I am estimating that our oil bill will be going up about $125 a month. Again...no idea where that is coming from.
In just over a day....our monthly expenses have skyrocketed.
Some hard choices will need to be made soon. Cell phones....probably cut down to bare bones. Cable....I have really REALLY been resisting getting rid of U-verse (cuz we love it), but we may have to. Land line....which is very rarely used but I have just been afraid to get rid of....probably will go.
I am running out of things to cut back.
Hopefully we will get a decent amount back on our car issues (boy has that turned into another mess). That may help some. We have paid almost $3500 in car repairs and maintenance in 7 months....and that is just on our credit card. That doesn't include stuff we paid cash for (some smaller repairs, oil changes, wiper blades).
Scared doesn't even to come close to my current state.
I may have to find a full time job. I have no idea how I will be able to handle that right now. I would like to parlay my current job into more hours...not sure if that will happen. But I need more income. Forget debt repayment....that is just to pay the minimums.
I have been really avoiding bankruptcy. I really really don't want to go there. But I may not have a choice. Just thinking about it is making me feel dirty.
Overwhelmed. I have no idea how others do this.....
Thursday, February 10, 2011
Resolution is a nice thing
After my hissy fit on Monday, I decided that I needed to do some serious rebounding. I like to think I can do it all, but once in a while....I can't. Sorry. Despite popular belief, I am human, not SUPER human. I needed to resolve several problems.
PROBLEM: I am needing a serious jolt of positive juju.
RESOLUTION:
1) I have $100 Spa card, and I will use it for either a facial or Reiki session (which is what I am leaning toward).
2) I desperately need my hair cut, so my $50 from Christmas will go to that.
3) A local fitness center is doing $10/mon special, so this weekend I am checking that out.
4) When G-man goes "home" in a few weeks, I am cleaning out my closet of all the stuff that I don't love, doesn't fit, etc. I need to surround myself with things that make me feel good.
PROBLEM: I am unappreciated and G-man takes me for granted.
RESOLUTION: I told him that I done having this same argument. There was not a true resolution, but I told him that I need to take some time for myself.....I am worth it.
PROBLEM: Next debt snowball steps.
RESOLUTION: We finally decided that once his car is paid off, the money we have been putting toward that car payment will continue to be saved for a new to me car, and once my student loan payment increases in October, the remainder of what is left will continue to go towards a new car (so not folding into the debt snowball). My car is going into the shop AGAIN tomorrow due to the belt issue. I am hoping this isn't an expensive repair. But it is looking like my car may start to nickel and dime us.
Additionally, the next debt on the chopping block will be his credit card. We need to figure out if it is worth trying to do another Lending Club loan, just to get the lower interest rate....since they take some off the top, the savings might not be worth it....vs just paying extra on it per month. It is somewhat frustrating that this is a larger debt and we won't be able to see huge progress, but it is what it is.
PROBLEM: Loose ends from the mortgage refi
RESOLUTION: Talked to Mortgage Guy, and
1) The taxes were NOT double paid. The new title company held on to the payment, and now that our taxes have posted, that check will be released to US, not the city.
2) The extra checks we got from the attorney are ok to cash (which will probably pay for my car repair tomorrow)
3) Still waiting on the escrow check from old company, but that should be coming soon.
Once we have all this money, we will be able to make some nice big payments!!!
That is about it for now.....a few things have been settled, and it calms my brain. Now, if I can only get my house cleaned again.....I will be back in business!
PROBLEM: I am needing a serious jolt of positive juju.
RESOLUTION:
1) I have $100 Spa card, and I will use it for either a facial or Reiki session (which is what I am leaning toward).
2) I desperately need my hair cut, so my $50 from Christmas will go to that.
3) A local fitness center is doing $10/mon special, so this weekend I am checking that out.
4) When G-man goes "home" in a few weeks, I am cleaning out my closet of all the stuff that I don't love, doesn't fit, etc. I need to surround myself with things that make me feel good.
PROBLEM: I am unappreciated and G-man takes me for granted.
RESOLUTION: I told him that I done having this same argument. There was not a true resolution, but I told him that I need to take some time for myself.....I am worth it.
PROBLEM: Next debt snowball steps.
RESOLUTION: We finally decided that once his car is paid off, the money we have been putting toward that car payment will continue to be saved for a new to me car, and once my student loan payment increases in October, the remainder of what is left will continue to go towards a new car (so not folding into the debt snowball). My car is going into the shop AGAIN tomorrow due to the belt issue. I am hoping this isn't an expensive repair. But it is looking like my car may start to nickel and dime us.
Additionally, the next debt on the chopping block will be his credit card. We need to figure out if it is worth trying to do another Lending Club loan, just to get the lower interest rate....since they take some off the top, the savings might not be worth it....vs just paying extra on it per month. It is somewhat frustrating that this is a larger debt and we won't be able to see huge progress, but it is what it is.
PROBLEM: Loose ends from the mortgage refi
RESOLUTION: Talked to Mortgage Guy, and
1) The taxes were NOT double paid. The new title company held on to the payment, and now that our taxes have posted, that check will be released to US, not the city.
2) The extra checks we got from the attorney are ok to cash (which will probably pay for my car repair tomorrow)
3) Still waiting on the escrow check from old company, but that should be coming soon.
Once we have all this money, we will be able to make some nice big payments!!!
That is about it for now.....a few things have been settled, and it calms my brain. Now, if I can only get my house cleaned again.....I will be back in business!
Wednesday, February 2, 2011
Two days in a row!
My kids are on yet another snow day....I think we are at 7 or 8 now. I lost count.
Yesterday my boss told me not to come in to work (this was of course AFTER I was sitting in my car waiting for it to warm up). I called out today because the kids are home. Today is payday (we get real checks, no direct deposit), so no payday for me today....will have to wait until tomorrow.
I am trying to not stress about the money. Both not having my paycheck today, and missing 2 days of work (and 1 next week that is scheduled, and who knows about the week after). In addition to trying to stay positive....why am I not stressing???
Because 1) G-man got an extra week of pay at his part time job this week (probably left over vacation pay), and 2) we got $330 back from the attorney that did our closing in over charges!
The overcharges worry me just a tad. I just don't want them to find out they made a mistake and want the money back. So I am not cashing the checks until I am sure.
The extra week of pay that G-man got will make up for my not working, so that is pretty much a wash. I will get my paycheck tomorrow, and we will be ok until then. I am just itching to start paying stuff off, and I won't do it until I am sure all the ducks are in a row. Then KABLAM! My debt number will change by roughly $2500, in addition to the regular stuff. Yeah us!!!!
Yesterday my boss told me not to come in to work (this was of course AFTER I was sitting in my car waiting for it to warm up). I called out today because the kids are home. Today is payday (we get real checks, no direct deposit), so no payday for me today....will have to wait until tomorrow.
I am trying to not stress about the money. Both not having my paycheck today, and missing 2 days of work (and 1 next week that is scheduled, and who knows about the week after). In addition to trying to stay positive....why am I not stressing???
Because 1) G-man got an extra week of pay at his part time job this week (probably left over vacation pay), and 2) we got $330 back from the attorney that did our closing in over charges!
The overcharges worry me just a tad. I just don't want them to find out they made a mistake and want the money back. So I am not cashing the checks until I am sure.
The extra week of pay that G-man got will make up for my not working, so that is pretty much a wash. I will get my paycheck tomorrow, and we will be ok until then. I am just itching to start paying stuff off, and I won't do it until I am sure all the ducks are in a row. Then KABLAM! My debt number will change by roughly $2500, in addition to the regular stuff. Yeah us!!!!
Friday, January 28, 2011
The Refi- the final chapter
So when last we saw our weary homeowners, they were yelling at MG.
I probably spent a good 45 minutes going off about the last minute documents and that we were at Tuesday at 4pm at this point. And how disappointed I was that MG's BOSS, didn't know what documents underwriting needed. I told them that I could send them a print out from online, but wasn't sure about the official statements. I would have to dig those out. He said the online stuff was fine. We set closing up for 3pm on Wednesday.
I had to print it all, and then scan it and e-mail. See, if they had wanted this stuff earlier, I could have faxed it all. But by that point, I was home and no fax machine. I left MG a message that I was going out, and to please call G-man at home to confirm we were all set. I went out and didn't bring my phone. He called my phone because he didn't actually listen to the message completely.
So G-man told him that I was out and to please call the house. They talked, and underwriting wanted a statement that had our name and account number on it. GRRRR. So the time I spent printing, scanning, and e-mailing was wasted because I still had to get the statements. G-man was able to find one for him and he sent that over.
Wednesday morning I found the other one and sent it. But I had not heard from the closing attorney. I called MG at 10:00 and he said he signed off on everything and he was sure that the attorney would be calling soon. But if I didn't hear from them by 1pm (remember...that would be 2 hrs before closing....), to call him.
Meanwhile, it started snowing again (which if you remember, I already had told him was going to happen). I left work a little early to make sure I would get home in time. I still hadn't heard anything, so I called MG and left him a message.
About 15 minutes later, I get a call from the President of the company, who was on a three-way call with G-man. Ut oh....
So yeah....the attorney didn't want to drive in the snow, and wasn't coming.
Are you freaking kidding me?????????? This was the last day we could close, and the attorney didn't want to come? Actually, the attorney wanted us to go to their office. Oh, and in our state, you need a third party witness, so we would have had the two of us, our witness, and the kids.
Luckily the President was smart enough to know that wouldn't fly. So he told the attorney no, and that we weren't going anywhere. It was arranged that the attorney would come to us on Thursday, and bring the witness for us. And as long as we were ok with it, they would take care of the problem on the closing date. And they knocked off a few fees and 1 day of interest because of the huge amount of problems we had at the end.
G-man and I weren't surprised. Nothing can ever just go according to plan for us. The attorney called around 8:30pm and confirmed the address and said she would see us at 1pm. Uh....we agreed to 9:30. *sigh* So she had to work that out. We also had a discussion about the taxes and the problem that could happen if the old lender paid them and then we also paid them.
Thursday morning, G-man had to get up and shovel the 18 inches of snow we got overnight (here in CT....we have gotten over 80 inches of snow so far!!!) so the attorney could park. Nothing but fun here.
I called the old lender about the taxes (which we had been monitoring to see if they had been paid). Well guess what....they paid them the day before! As a bulk check. So it would take about 2 weeks for the city to credit our account. Isn't that special? I called MG to see if we didn't have to pay the taxes now at closing and he said because they aren't recorded yet, it didn't count and we would have to pay them, but that the city couldn't accept a double payment and would have to reimburse us.
The attorney finally got to our house and we started with the "real" paperwork....the note. All of the numbers were right, except the amount we had to pay. It was a little off (not by much....maybe $30). Put in another call to MG but it went to voice mail. So we moved on to the "fluff" paperwork, and G-man's middle initial was wrong. She said it didn't matter. Um, this is a legal document....shouldn't it matter if his name is wrong? So we had to cross out all the wrong stuff and initial it.
Then she didn't have the wiring instructions. So she called her office and they emailed it to us (aka, they forgot to give it to her).
MG called back and confirmed the correct pay off amount. $2087. In the end, it came out almost $500 cheaper than we thought because of all the problems.
But wait...let's go back to the taxes for a minute. I called the tax collector's office and they said that they had to cash the check from the old lender if it was on it's way. AND they would have to cash the check from the new lender (which legally they had to send because the taxes weren't paid at the time of closing). And then they would have to return the funds, which would be returned to us. This process would probably take 6-8 weeks.
Meanwhile, I went to the bank to take care of the wire transfer. That took almost 45 minutes because the directions weren't clear, and the teller didn't know how to do it.
This whole thing was exhausting!!!! In the end, our mortgage decreased by $190 a month. We will be able to deduct the origination fee from closing, interest, and mortgage insurance from our taxes. And we plan to do a biweekly mortgage, which will shave 7 years off the mortgage right from the start. Once the mortgage insurance drops off, that will shave another 3 years off. So our 30 year will be come a 20 year....and hopefully even sooner.
I am really disappointed that it will take so long to get our money back from the taxes. I will have to keep on top of that. That money, plus the money we will get from the remainder of our escrow account, plus what we had put aside for closing that we didn't need will all go directly to debt. Specifically, CC1 and Student Loan 2, oh, and off course replenishing the emergency fund.
This had better be worth all the aggravation!
I probably spent a good 45 minutes going off about the last minute documents and that we were at Tuesday at 4pm at this point. And how disappointed I was that MG's BOSS, didn't know what documents underwriting needed. I told them that I could send them a print out from online, but wasn't sure about the official statements. I would have to dig those out. He said the online stuff was fine. We set closing up for 3pm on Wednesday.
I had to print it all, and then scan it and e-mail. See, if they had wanted this stuff earlier, I could have faxed it all. But by that point, I was home and no fax machine. I left MG a message that I was going out, and to please call G-man at home to confirm we were all set. I went out and didn't bring my phone. He called my phone because he didn't actually listen to the message completely.
So G-man told him that I was out and to please call the house. They talked, and underwriting wanted a statement that had our name and account number on it. GRRRR. So the time I spent printing, scanning, and e-mailing was wasted because I still had to get the statements. G-man was able to find one for him and he sent that over.
Wednesday morning I found the other one and sent it. But I had not heard from the closing attorney. I called MG at 10:00 and he said he signed off on everything and he was sure that the attorney would be calling soon. But if I didn't hear from them by 1pm (remember...that would be 2 hrs before closing....), to call him.
Meanwhile, it started snowing again (which if you remember, I already had told him was going to happen). I left work a little early to make sure I would get home in time. I still hadn't heard anything, so I called MG and left him a message.
About 15 minutes later, I get a call from the President of the company, who was on a three-way call with G-man. Ut oh....
So yeah....the attorney didn't want to drive in the snow, and wasn't coming.
Are you freaking kidding me?????????? This was the last day we could close, and the attorney didn't want to come? Actually, the attorney wanted us to go to their office. Oh, and in our state, you need a third party witness, so we would have had the two of us, our witness, and the kids.
Luckily the President was smart enough to know that wouldn't fly. So he told the attorney no, and that we weren't going anywhere. It was arranged that the attorney would come to us on Thursday, and bring the witness for us. And as long as we were ok with it, they would take care of the problem on the closing date. And they knocked off a few fees and 1 day of interest because of the huge amount of problems we had at the end.
G-man and I weren't surprised. Nothing can ever just go according to plan for us. The attorney called around 8:30pm and confirmed the address and said she would see us at 1pm. Uh....we agreed to 9:30. *sigh* So she had to work that out. We also had a discussion about the taxes and the problem that could happen if the old lender paid them and then we also paid them.
Thursday morning, G-man had to get up and shovel the 18 inches of snow we got overnight (here in CT....we have gotten over 80 inches of snow so far!!!) so the attorney could park. Nothing but fun here.
I called the old lender about the taxes (which we had been monitoring to see if they had been paid). Well guess what....they paid them the day before! As a bulk check. So it would take about 2 weeks for the city to credit our account. Isn't that special? I called MG to see if we didn't have to pay the taxes now at closing and he said because they aren't recorded yet, it didn't count and we would have to pay them, but that the city couldn't accept a double payment and would have to reimburse us.
The attorney finally got to our house and we started with the "real" paperwork....the note. All of the numbers were right, except the amount we had to pay. It was a little off (not by much....maybe $30). Put in another call to MG but it went to voice mail. So we moved on to the "fluff" paperwork, and G-man's middle initial was wrong. She said it didn't matter. Um, this is a legal document....shouldn't it matter if his name is wrong? So we had to cross out all the wrong stuff and initial it.
Then she didn't have the wiring instructions. So she called her office and they emailed it to us (aka, they forgot to give it to her).
MG called back and confirmed the correct pay off amount. $2087. In the end, it came out almost $500 cheaper than we thought because of all the problems.
But wait...let's go back to the taxes for a minute. I called the tax collector's office and they said that they had to cash the check from the old lender if it was on it's way. AND they would have to cash the check from the new lender (which legally they had to send because the taxes weren't paid at the time of closing). And then they would have to return the funds, which would be returned to us. This process would probably take 6-8 weeks.
Meanwhile, I went to the bank to take care of the wire transfer. That took almost 45 minutes because the directions weren't clear, and the teller didn't know how to do it.
This whole thing was exhausting!!!! In the end, our mortgage decreased by $190 a month. We will be able to deduct the origination fee from closing, interest, and mortgage insurance from our taxes. And we plan to do a biweekly mortgage, which will shave 7 years off the mortgage right from the start. Once the mortgage insurance drops off, that will shave another 3 years off. So our 30 year will be come a 20 year....and hopefully even sooner.
I am really disappointed that it will take so long to get our money back from the taxes. I will have to keep on top of that. That money, plus the money we will get from the remainder of our escrow account, plus what we had put aside for closing that we didn't need will all go directly to debt. Specifically, CC1 and Student Loan 2, oh, and off course replenishing the emergency fund.
This had better be worth all the aggravation!
The Refi - Part Two
So we left off with us needing to bring somewhere between $500 and $2600 dollars to the closing table. As I said before, that is a huge difference.
MG said he was still working on it and would let us know.
By last Friday we were still in limbo about everything. Underwriting was looking at it, but it was looking like we would be closer to $2600. The breakdown was about $1700 for our taxes, and $900 of "shortage." Additionally, our first payment would be due on March 1. The $1700 would come back to us from our escrow account, so we were basically "fronting" the money (more on this later). Then the $900 would come from the money we would have paid for our February payment....so instead of skipping a month payment, it was more like half a month.
On Monday of this week, MG's boss called us, and per him, we needed to submit a recent copy of our 401k statement as proof of assets. Ok. They were working on the last few items, and we should be ok.
They had told me that Jan 26 was the last day we could close, and we were at January 24. And we knew there was snow coming. I told MG all of this over and over and that I was getting worried that they didn't have everything, and that they were still asking us for documentation. We had already had a bad loan and I really felt that when things are rushed in the end, stuff gets missed.
Monday afternoon I had to spend an hour on the phone with the info checking person who had to call certain creditors to confirm balance, no late payments, etc. And I had to sit on the phone while she did this because those creditors wouldn't release info directly to them. Huge waste of time. Plus they faxed over a verification of employment and wanted to know my past wages for the past 3 years. Of course my boss doesn't keep the records on site, so he was only able to give them 2010, and approximations for the rest. I guess they were ok with it because they never asked for more.
By Monday night, we were told that they were only missing one piece of paper....the new home insurance document with the new lenders name. So this one piece of paper was holding it all up. But they would call first thing Tuesday morning and hound them.
Tuesday morning, I get a call from MG that the home insurance people wanted to talk to me. Ok fine....I called them and after being transferred around, they tell me that the release that they had was only to RELEASE information and not to change it, so I had to tell them it was ok to change the info.
Then later that morning....MG calls again and says they need bank account statements. What???? Apparently, underwriting wanted statements from the exact accounts that were funding the money we were bringing to the table. When underwriting asked for proof of asset, they neglected to mention it was for the accounts that funded the closing, and his boss failed to clarify this....which is why they asked for the 401k instead of what they really needed.
Now I am mad. We are at 36 hrs before the deadline and they want us to produce more information. Why the heck didn't someone think of this before, and considering we were not the first people in the world to need to bring money to the closing table, why didn't MG, or his boss for that matter, know any of this. Oh and to make it worse, they wanted proof that we had that money for at least 60 days.
So I went off. I was like, what if I chose to pawn something to get to the money?? What if we were borrowing the money from Mom? None of that should be their concern; those would be our personal business. All they should care about is that we have the money. And if they were really concerned about it, then they should require a Bank check at closing for the amount, vs the wire transfer that they wanted to do.
I really am a nice person....but don't piss me off. MG got an earful and a half. Just wait until you hear what happened next.
MG said he was still working on it and would let us know.
By last Friday we were still in limbo about everything. Underwriting was looking at it, but it was looking like we would be closer to $2600. The breakdown was about $1700 for our taxes, and $900 of "shortage." Additionally, our first payment would be due on March 1. The $1700 would come back to us from our escrow account, so we were basically "fronting" the money (more on this later). Then the $900 would come from the money we would have paid for our February payment....so instead of skipping a month payment, it was more like half a month.
On Monday of this week, MG's boss called us, and per him, we needed to submit a recent copy of our 401k statement as proof of assets. Ok. They were working on the last few items, and we should be ok.
They had told me that Jan 26 was the last day we could close, and we were at January 24. And we knew there was snow coming. I told MG all of this over and over and that I was getting worried that they didn't have everything, and that they were still asking us for documentation. We had already had a bad loan and I really felt that when things are rushed in the end, stuff gets missed.
Monday afternoon I had to spend an hour on the phone with the info checking person who had to call certain creditors to confirm balance, no late payments, etc. And I had to sit on the phone while she did this because those creditors wouldn't release info directly to them. Huge waste of time. Plus they faxed over a verification of employment and wanted to know my past wages for the past 3 years. Of course my boss doesn't keep the records on site, so he was only able to give them 2010, and approximations for the rest. I guess they were ok with it because they never asked for more.
By Monday night, we were told that they were only missing one piece of paper....the new home insurance document with the new lenders name. So this one piece of paper was holding it all up. But they would call first thing Tuesday morning and hound them.
Tuesday morning, I get a call from MG that the home insurance people wanted to talk to me. Ok fine....I called them and after being transferred around, they tell me that the release that they had was only to RELEASE information and not to change it, so I had to tell them it was ok to change the info.
Then later that morning....MG calls again and says they need bank account statements. What???? Apparently, underwriting wanted statements from the exact accounts that were funding the money we were bringing to the table. When underwriting asked for proof of asset, they neglected to mention it was for the accounts that funded the closing, and his boss failed to clarify this....which is why they asked for the 401k instead of what they really needed.
Now I am mad. We are at 36 hrs before the deadline and they want us to produce more information. Why the heck didn't someone think of this before, and considering we were not the first people in the world to need to bring money to the closing table, why didn't MG, or his boss for that matter, know any of this. Oh and to make it worse, they wanted proof that we had that money for at least 60 days.
So I went off. I was like, what if I chose to pawn something to get to the money?? What if we were borrowing the money from Mom? None of that should be their concern; those would be our personal business. All they should care about is that we have the money. And if they were really concerned about it, then they should require a Bank check at closing for the amount, vs the wire transfer that they wanted to do.
I really am a nice person....but don't piss me off. MG got an earful and a half. Just wait until you hear what happened next.
Thursday, January 27, 2011
The Refi....part one
I started talking about the refi in late December. Two weeks later, it was in jeopardy.
Mortgage Guy (MG) said from the beginning that his goal was to make this SIMPLE. He wanted me to write it down. That their company preapproves the loans, so by the time we sent in our supporting documentation, we were 95% of the way to the finish line. And up until a little over a week ago....I would have agreed with all of this.
We agreed to do the refi on December 31 (Friday). By Monday morning, we had sent in everything that they asked for, and per MG, our piece was pretty much done. Sit back and wait for closing. Sounds good, right? When the appraisal came in low, MG assured us it wasn't over yet. They would work out something else. Don't worry. (like that is possible).
The modified appraisal took another 5 days, and it still was short. At this point the whole loan had to be restructured. While it remained a 30 year fixed, we went from 4.75% to 5.125%. Additionally, we would have to bring some money to the closing.
MG called me and said it was looking like we would be $500 short, and could we bring that to the table. We said yes, but if it was any more, they needed to tell us ASAP. Then it was discovered that our current mortgage lender has not paid the city taxes (about $1750) that were due Jan 1 (even though the money was in our escrow account). And now we would have to bring THAT to the table (oh, but don't worry....you will get it all back when they refund your escrow account).
None of this was for sure....if the taxes got paid before closing, that would be a moot point. MG was trying to zero out a few things, so we would have to bring as little as possible to closing. This was early last week. I repeatedly told MG that we need to know numbers as soon as possible.
I don't know about you, but $500 and $2600 are not the same thing in my world......
Mortgage Guy (MG) said from the beginning that his goal was to make this SIMPLE. He wanted me to write it down. That their company preapproves the loans, so by the time we sent in our supporting documentation, we were 95% of the way to the finish line. And up until a little over a week ago....I would have agreed with all of this.
We agreed to do the refi on December 31 (Friday). By Monday morning, we had sent in everything that they asked for, and per MG, our piece was pretty much done. Sit back and wait for closing. Sounds good, right? When the appraisal came in low, MG assured us it wasn't over yet. They would work out something else. Don't worry. (like that is possible).
The modified appraisal took another 5 days, and it still was short. At this point the whole loan had to be restructured. While it remained a 30 year fixed, we went from 4.75% to 5.125%. Additionally, we would have to bring some money to the closing.
MG called me and said it was looking like we would be $500 short, and could we bring that to the table. We said yes, but if it was any more, they needed to tell us ASAP. Then it was discovered that our current mortgage lender has not paid the city taxes (about $1750) that were due Jan 1 (even though the money was in our escrow account). And now we would have to bring THAT to the table (oh, but don't worry....you will get it all back when they refund your escrow account).
None of this was for sure....if the taxes got paid before closing, that would be a moot point. MG was trying to zero out a few things, so we would have to bring as little as possible to closing. This was early last week. I repeatedly told MG that we need to know numbers as soon as possible.
I don't know about you, but $500 and $2600 are not the same thing in my world......
Wednesday, January 12, 2011
Mortgage Refi is in Jeopardy!!
Our appraisal came in too low. Like, way too low.
I talked to our Mortgage Guy (aka MG; who again, is terrific!) and he has submitted paperwork to have the appraisal looked at again. The comps the appraiser used are very low, and as he is telling me where they are(a couple of miles away), I explained the pitfalls of those areas (one is next to a meat processing plant, and one is next to a psychiatric hospital). Plus, the age of the houses are at least 50 years off from ours (one older, one younger).
So he pulled a few other higher comps that will weight the average higher. And those houses are the next street over. If the appraiser reconsiders, we will be good to go. If not, we are out the appraisal fee, and it is dead in the water for now. We would have to wait for the house value to go up.
I am now worried about this. I was hoping to use the month off of our mortgage to pay off stuff, plus our escrow that we would get back. If it falls through, I will still have to dig out from all of that. This was really going to catapult us into knocking alot of stuff out this year. I know it isn't over yet, and MG is optimistic.
But I am nervous!
I talked to our Mortgage Guy (aka MG; who again, is terrific!) and he has submitted paperwork to have the appraisal looked at again. The comps the appraiser used are very low, and as he is telling me where they are(a couple of miles away), I explained the pitfalls of those areas (one is next to a meat processing plant, and one is next to a psychiatric hospital). Plus, the age of the houses are at least 50 years off from ours (one older, one younger).
So he pulled a few other higher comps that will weight the average higher. And those houses are the next street over. If the appraiser reconsiders, we will be good to go. If not, we are out the appraisal fee, and it is dead in the water for now. We would have to wait for the house value to go up.
I am now worried about this. I was hoping to use the month off of our mortgage to pay off stuff, plus our escrow that we would get back. If it falls through, I will still have to dig out from all of that. This was really going to catapult us into knocking alot of stuff out this year. I know it isn't over yet, and MG is optimistic.
But I am nervous!
Wednesday, January 5, 2011
Sometimes The Obvious Answer is well....OBVIOUS
I consider myself an intelligent woman. Granted, I have made stupid choices....but as a whole, at least 22 of the 24 crayons in the box are sharp.
When I have worked out my budgets, it is based on the typical month pay (give or take). For example, if they cut hours at G-man's part time job, his weekly paycheck will be a little lower. But it usually balances out in the end. His main job paycheck is fairly static (I am curious to see what that number will be with tax differences, medical insurance, and FSA differences). The biggest wild card in all of this is OVERTIME.
(NOTE: We agreed that OT is NOT a side hustle)
In the past, overtime pretty much got sucked up into life. Mostly, when we went over in a budget category.....food being the number one culprit. How stupid we are.....
Now, as soon as there is overtime on a paycheck, it gets moved out of the main account immediately. It isn't budgeted money. No more getting sucked into the darkness of the great abyss. It will get held until all of the budgeted expenses are paid, and then that EXTRA money will go where it belongs....as an EXTRA payment to something.
G-man had to get up at 2:30am.....yes, you read that right, 2:30am....to be at work for 4:00am this morning. He will be earning OT all day (and without going into detail about his job, this is the stuff he LOVES to do), and he will work his regular shift tonight. Today will be about 10-11 hrs of OT (unless they are able to finish early). At time and a half, that is about 15-16 hrs of regular time......2 days worth......or about 20% extra.
That EXTRA money....because that is what it is.....will make an EXTRA payment somewhere.
(I am being vague about the somewhere because of the new mortgage refi. Depending on when it closes, and we get the escrow money back from the current loan, we will have to see where we are at on the snowball. The current plan is that the month off from our mortgage and the escrow will pay off CC1 and Student Loan 2, and part of Christmas nonsense. If OT hits before the mortgage closes, then OT will be used for the above stuff, and the mortgage stuff finishes off the above, and the remainder goes to the next debt victim).
I probably make things harder with all my little piles. But it works for me. I need to visually see it all broken out. So for now....the piles stay. His OT today will probably be in his paycheck on Jan 24, so we have a few weeks before we will see it. But I am looking forward to it!!!
When I have worked out my budgets, it is based on the typical month pay (give or take). For example, if they cut hours at G-man's part time job, his weekly paycheck will be a little lower. But it usually balances out in the end. His main job paycheck is fairly static (I am curious to see what that number will be with tax differences, medical insurance, and FSA differences). The biggest wild card in all of this is OVERTIME.
(NOTE: We agreed that OT is NOT a side hustle)
In the past, overtime pretty much got sucked up into life. Mostly, when we went over in a budget category.....food being the number one culprit. How stupid we are.....
Now, as soon as there is overtime on a paycheck, it gets moved out of the main account immediately. It isn't budgeted money. No more getting sucked into the darkness of the great abyss. It will get held until all of the budgeted expenses are paid, and then that EXTRA money will go where it belongs....as an EXTRA payment to something.
G-man had to get up at 2:30am.....yes, you read that right, 2:30am....to be at work for 4:00am this morning. He will be earning OT all day (and without going into detail about his job, this is the stuff he LOVES to do), and he will work his regular shift tonight. Today will be about 10-11 hrs of OT (unless they are able to finish early). At time and a half, that is about 15-16 hrs of regular time......2 days worth......or about 20% extra.
That EXTRA money....because that is what it is.....will make an EXTRA payment somewhere.
(I am being vague about the somewhere because of the new mortgage refi. Depending on when it closes, and we get the escrow money back from the current loan, we will have to see where we are at on the snowball. The current plan is that the month off from our mortgage and the escrow will pay off CC1 and Student Loan 2, and part of Christmas nonsense. If OT hits before the mortgage closes, then OT will be used for the above stuff, and the mortgage stuff finishes off the above, and the remainder goes to the next debt victim).
I probably make things harder with all my little piles. But it works for me. I need to visually see it all broken out. So for now....the piles stay. His OT today will probably be in his paycheck on Jan 24, so we have a few weeks before we will see it. But I am looking forward to it!!!
Friday, December 31, 2010
Nothing Like Going Out With A Bang!
Nothing like waiting until the last day of the year to do something BIG.
We are doing a refi on our mortgage! After paying 7.5% interest for the past 4 years, being underwater for awhile, and dealing with all the rest of the garbage....we are ready, willing, and able.
The short version....it is a 30 year fixed, at 4.75%, via an FHA loan. We purchased 1.685% in points, which is was a little over $3000 upfront, but we can write off on taxes later. We have decided to just bite the bullet and do a bi-weekly mortgage, which automatically will shave 7 years off the life of the loan. Additionally, FHA loans have "MPI", which is the FHA version of mortgage insurance, that will drop in 5 years. Continuing with the bi-weekly payment, and continuing to pay the monthly rate ($1510), even after the MPI drops, will shave another 3 years off the term. Add in any extra we will throw at it once the rest of the baby steps are done, and we will be in good shape.
The net difference on a monthly basis is $200 back in our pocket, which will be great for the ole snowball. The month off of paying the mortgage and the escrow amount we will get will pay off CC1 (which is not $490 higher due to the appraisal cost), and my student loan snowball . The left over will go towards the car, which is our next victim in the debt snowball.
We have been working with an incredible guy, who has not only been informative and helpful, but SUPER nice. He really knows his stuff. He has laid it all on the table, walked us through everything, and really has been professional. We were pre-approved on the front end, so we have already gone through underwriting. As of right now, we will close about January 15.
We are feeling very good about this. We weighed it all out, and I think this kick will really help us in 2011. Student Loan #2 and the car will be paid off. The extra $200 (well...we look at it as $150 once the life insurance piece is worked in) will all go to debt. My other student loan payment will increase later this year, but we are prepared.
January will be our 13th wedding anniversary. Lucky 13!! This year will be huge for us in resolving some of this mess. Our little tiny snowball is starting to take shape.
I will be back tomorrow in 2011, with my new goals to share. For tonight, G-man are ordering dinner in (our last for awhile...we are doing a No Eating Out challenge in January) and watching movies.
From our house to yours.....be safe, be well, and have a wonderful New Year's Eve!!! See ya next year.
We are doing a refi on our mortgage! After paying 7.5% interest for the past 4 years, being underwater for awhile, and dealing with all the rest of the garbage....we are ready, willing, and able.
The short version....it is a 30 year fixed, at 4.75%, via an FHA loan. We purchased 1.685% in points, which is was a little over $3000 upfront, but we can write off on taxes later. We have decided to just bite the bullet and do a bi-weekly mortgage, which automatically will shave 7 years off the life of the loan. Additionally, FHA loans have "MPI", which is the FHA version of mortgage insurance, that will drop in 5 years. Continuing with the bi-weekly payment, and continuing to pay the monthly rate ($1510), even after the MPI drops, will shave another 3 years off the term. Add in any extra we will throw at it once the rest of the baby steps are done, and we will be in good shape.
The net difference on a monthly basis is $200 back in our pocket, which will be great for the ole snowball. The month off of paying the mortgage and the escrow amount we will get will pay off CC1 (which is not $490 higher due to the appraisal cost), and my student loan snowball . The left over will go towards the car, which is our next victim in the debt snowball.
We have been working with an incredible guy, who has not only been informative and helpful, but SUPER nice. He really knows his stuff. He has laid it all on the table, walked us through everything, and really has been professional. We were pre-approved on the front end, so we have already gone through underwriting. As of right now, we will close about January 15.
We are feeling very good about this. We weighed it all out, and I think this kick will really help us in 2011. Student Loan #2 and the car will be paid off. The extra $200 (well...we look at it as $150 once the life insurance piece is worked in) will all go to debt. My other student loan payment will increase later this year, but we are prepared.
January will be our 13th wedding anniversary. Lucky 13!! This year will be huge for us in resolving some of this mess. Our little tiny snowball is starting to take shape.
I will be back tomorrow in 2011, with my new goals to share. For tonight, G-man are ordering dinner in (our last for awhile...we are doing a No Eating Out challenge in January) and watching movies.
From our house to yours.....be safe, be well, and have a wonderful New Year's Eve!!! See ya next year.
Tuesday, October 5, 2010
Coming to the surface!!
YIPPEE!!!! Per Zillow.com, our house is FINALLY out from underwater on the mortgage!!!!!! Per Zillow, the house value is 191k, and we owe 181k. I wouldn't say we are safely on the life boat, huddled under our Coast Guard blanket.....but the life vest is on and we are treading water.
With this said...I am trying to find a little extra money in the budget for a possible HUGE change that may come on down the pike (more on that another time). Time to revisit the mortgage.
We currently pay 7.5% interest, and know we can do better. We were locked into our current mortgage until October of last year do to a 5% prepayment penalty. Now that we are no longer underwater, we can start to look around again.
The Loan to Value ratio is still about 95%, so we would have to do a primary and second mortgage. Neither G-man nor I really dig this idea. But until we are closer to 80% LTV, that is probably our only option (beyond bringing money to the table). But if we really were hurting for money.....we could do it.
Best case scenario would be about $400 a month, or $4,800 year (roughly half way to my goal of finding an extra 9k per year).
Of course we looked into the Home Affordability program and didn't qualify because our loan wasn't funded through Freddie Mac or Sallie Mae. And we were able to make our mortgage, it just stunk that so much went to interest.
Anybody have 2 mortgages because of the LTV? What brought you to the decision? How do you like it?
With this said...I am trying to find a little extra money in the budget for a possible HUGE change that may come on down the pike (more on that another time). Time to revisit the mortgage.
We currently pay 7.5% interest, and know we can do better. We were locked into our current mortgage until October of last year do to a 5% prepayment penalty. Now that we are no longer underwater, we can start to look around again.
The Loan to Value ratio is still about 95%, so we would have to do a primary and second mortgage. Neither G-man nor I really dig this idea. But until we are closer to 80% LTV, that is probably our only option (beyond bringing money to the table). But if we really were hurting for money.....we could do it.
Best case scenario would be about $400 a month, or $4,800 year (roughly half way to my goal of finding an extra 9k per year).
Of course we looked into the Home Affordability program and didn't qualify because our loan wasn't funded through Freddie Mac or Sallie Mae. And we were able to make our mortgage, it just stunk that so much went to interest.
Anybody have 2 mortgages because of the LTV? What brought you to the decision? How do you like it?
Wednesday, September 8, 2010
Escrow question for ya all
We received our yearly escrow analysis yesterday, and of course they are estimating a shortage. As a whole, it really isn't too bad. We are short $123 for this year, and they are estimating an additional $12 per month for next years account. All in all...not horrible.
I am debating paying the $123 and eliminating the extra $10.71 they built in for next year to make up for it. Then our monthly bill would only go up $12.
Really....it is $12 vs $23. My gut feeling is it is easier to adjust the monthly budget to accommodate a $23 change, vs trying to find the $123 right now. We do have extra in the emergency fund (over our $1000) and we could always take it from there.
I am just glad that it wasn't a HUGE shortage. We had that happen one year, and it blew.
What would you do?
I am debating paying the $123 and eliminating the extra $10.71 they built in for next year to make up for it. Then our monthly bill would only go up $12.
Really....it is $12 vs $23. My gut feeling is it is easier to adjust the monthly budget to accommodate a $23 change, vs trying to find the $123 right now. We do have extra in the emergency fund (over our $1000) and we could always take it from there.
I am just glad that it wasn't a HUGE shortage. We had that happen one year, and it blew.
What would you do?
Sunday, December 27, 2009
The move
A few weeks ago, I mentioned a potential move. See....here it is. If you read this post, I also said we have been down this path before, and I wasn't going to get myself worked up about it. Been there, done that, got the T-shirt.
I lied. I ALWAYS get worked up. I am a proverbial "Cart before the Horse" kind of gal when it comes to this.
The original job I posted about is dead in the water. Upon further investigation...he isn't qualified. But, another job opened up at the same time (application is due tomorrow!). And he is WAY qualified for this one! We really do have a good shot at this one.
So, here goes Mysti's panic, ahem...I mean plan.
1) We are going to have to pay for the move ourselves. Even doing it ourselves, it is still going to cost a few grand.
2) If we can manage to pay off G-man's retirement loan BEFORE a move, we can dip into it as part of moving, and not have to put it on the ole CC. We would also have some liquid asset to use as a down payment, closing, etc. We have no equity in our house now....so there won't be anything left.
3) Here is a LONG shot.....if we were able to close before the end of April, we would qualify for Obama's house credit! We would need a bridge loan since we probably would not have sold this house yet, but details, details. But getting this credit would allow us to pay some stuff back quickly.
4) I looked at the housing market there...and while I would love a completely updated house, I think we could handle one that needs some TLC. The mortgage would be lower. And once our snowball was really rolling, we would be able to update.
5) If I did manage to sell this house and buy a new one quickly....I still wouldn't take the kids out of school before the end of the school year. This might require some type of temporary housing, or maybe renting our house back from the new owners.
(see....Cart....Horse).
So I am trying to get this house in as good a shape as possible, pay stuff down quickly, and keep my sanity. Maybe I exaggerated a bit and called it a plan. Maybe it is closer to a brainstorm.
Any of you who have done a big move before.....thoughts? Suggestions???
I lied. I ALWAYS get worked up. I am a proverbial "Cart before the Horse" kind of gal when it comes to this.
The original job I posted about is dead in the water. Upon further investigation...he isn't qualified. But, another job opened up at the same time (application is due tomorrow!). And he is WAY qualified for this one! We really do have a good shot at this one.
So, here goes Mysti's panic, ahem...I mean plan.
1) We are going to have to pay for the move ourselves. Even doing it ourselves, it is still going to cost a few grand.
2) If we can manage to pay off G-man's retirement loan BEFORE a move, we can dip into it as part of moving, and not have to put it on the ole CC. We would also have some liquid asset to use as a down payment, closing, etc. We have no equity in our house now....so there won't be anything left.
3) Here is a LONG shot.....if we were able to close before the end of April, we would qualify for Obama's house credit! We would need a bridge loan since we probably would not have sold this house yet, but details, details. But getting this credit would allow us to pay some stuff back quickly.
4) I looked at the housing market there...and while I would love a completely updated house, I think we could handle one that needs some TLC. The mortgage would be lower. And once our snowball was really rolling, we would be able to update.
5) If I did manage to sell this house and buy a new one quickly....I still wouldn't take the kids out of school before the end of the school year. This might require some type of temporary housing, or maybe renting our house back from the new owners.
(see....Cart....Horse).
So I am trying to get this house in as good a shape as possible, pay stuff down quickly, and keep my sanity. Maybe I exaggerated a bit and called it a plan. Maybe it is closer to a brainstorm.
Any of you who have done a big move before.....thoughts? Suggestions???
Monday, November 30, 2009
One more mortgage thought
When we did the last refi (3 yrs ago), I wasn't working outside the home. And the mortgage company would not put my name on the loan note (it is on the deed).
G-man added my name to the authorized persons list so I can call about the mortgage.
So why is it every time I call...they tell me they can't talk to me!!!!!!
I locked myself out of the on-line system....called....20 min on the phone for them to tell me they won't reset it until they talk to G-man (who happened to be on his way out the door and I grabbed him).
Then I called about the refi....another 20 min on the phone for them to find the authorization to talk to me. And then she says "the loan officer isn't available, but she will call you back."
Amazing how they don't have a problem cashing a check that I sign......but talking to me is above and beyond the call of duty.
G-man added my name to the authorized persons list so I can call about the mortgage.
So why is it every time I call...they tell me they can't talk to me!!!!!!
I locked myself out of the on-line system....called....20 min on the phone for them to tell me they won't reset it until they talk to G-man (who happened to be on his way out the door and I grabbed him).
Then I called about the refi....another 20 min on the phone for them to find the authorization to talk to me. And then she says "the loan officer isn't available, but she will call you back."
Amazing how they don't have a problem cashing a check that I sign......but talking to me is above and beyond the call of duty.
What to do about the mortgage
I first have to say how frustrated I am that we are in this mess to start. And I will never forget how frustrating, emotional, and tiresome it is to clean it up.
Based on current interest rates, if we were able to refinance, it would free up roughly $300 a month toward our snowball. Sounds good....until you factor in.....
Our house took a hit in value (as did pretty much everyone else's). At this point, based on the town assessment, our house is mortgaged at about 96% of the value. This bites the big one. We have 2 options; neither option really does anything overwhelmingly positive for us.
If we do a conventional refi, then we have to pay PMI. There goes the savings.
If we do an FHA, we will probably need to bring about $3000-$4000 to the table at closing.
We have the insurance check from the car accident, and based on when we went to closing....we might be able to scrape up the money for closing on FHA. But then we lose that money toward debt repayment (but the lower payment in general will still be good; Plus, we will get our escrow money back, which will go toward debt.)
We could try and refi now that the rates are low and just basically hit "reset". We could try and refi later and hope that the rates stay low and that the value of the house goes up. Not sure which is the way to go.
I don't think there is a right or wrong answer. Just a commitment one way or the other.
Based on current interest rates, if we were able to refinance, it would free up roughly $300 a month toward our snowball. Sounds good....until you factor in.....
Our house took a hit in value (as did pretty much everyone else's). At this point, based on the town assessment, our house is mortgaged at about 96% of the value. This bites the big one. We have 2 options; neither option really does anything overwhelmingly positive for us.
If we do a conventional refi, then we have to pay PMI. There goes the savings.
If we do an FHA, we will probably need to bring about $3000-$4000 to the table at closing.
We have the insurance check from the car accident, and based on when we went to closing....we might be able to scrape up the money for closing on FHA. But then we lose that money toward debt repayment (but the lower payment in general will still be good; Plus, we will get our escrow money back, which will go toward debt.)
We could try and refi now that the rates are low and just basically hit "reset". We could try and refi later and hope that the rates stay low and that the value of the house goes up. Not sure which is the way to go.
I don't think there is a right or wrong answer. Just a commitment one way or the other.
Wednesday, October 7, 2009
How low can you go?
I have been watching the mortgage interest rates....trying to figure out if we can do a refi. Doesn't really matter at this point.
Using some internet sites that give you an idea of market value of your home, we are screwed. Houses on our street and a few that are considered "comps" have dropped somewhere in the neighborhood of $30-$40k. Zillow.com has OUR house at $25k less than 4 months ago.
If these numbers are to be trusted, our house is now mortgaged for roughly $8k more than it's value. So a refi is out of the question. We would have to come up with even more money than we originally thought, and since we can't even come up with the first number....the second is out of the realm of possibility.
The housing market here really does stink. Even if we did sell for the current value, add in commission and expenses....we would probably owe $15k after the sale.
Things really are going to get drastic soon. I think G-man and I will talk on Friday when we are both home. Not sure where to go from here.
Using some internet sites that give you an idea of market value of your home, we are screwed. Houses on our street and a few that are considered "comps" have dropped somewhere in the neighborhood of $30-$40k. Zillow.com has OUR house at $25k less than 4 months ago.
If these numbers are to be trusted, our house is now mortgaged for roughly $8k more than it's value. So a refi is out of the question. We would have to come up with even more money than we originally thought, and since we can't even come up with the first number....the second is out of the realm of possibility.
The housing market here really does stink. Even if we did sell for the current value, add in commission and expenses....we would probably owe $15k after the sale.
Things really are going to get drastic soon. I think G-man and I will talk on Friday when we are both home. Not sure where to go from here.
Sunday, October 4, 2009
Slight good news.....very slight
The mortgage company collected too much in escrow, so we got a $50-ish check for the overage, and now our mortgage payment has gone down $44/month, effective November 1.
Debate....take the $44 "extra" per month toward medical debt, which is the smallest debt, but has no interest...... vs.
Add it to the payment on CC1, which has the highest interest rate.
Dave says tackle the smallest debt first. But since the smallest debt has no interest....would tackling the smallest interest collecting debt be better (CC3)??
Debate....take the $44 "extra" per month toward medical debt, which is the smallest debt, but has no interest...... vs.
Add it to the payment on CC1, which has the highest interest rate.
Dave says tackle the smallest debt first. But since the smallest debt has no interest....would tackling the smallest interest collecting debt be better (CC3)??
Friday, September 11, 2009
Another Financial Planner Meeting
We are starting to head in the right direction. We are off like a herd of turtles, I tell ya!
So the newest plan.....
1) Personal loan that will pay off G-man's retirement loan (which isn't even in my master tally....it is auto deduct from his pay, so I never think about it).
2) Pay off retirement loan, and then in 60 days (per the terms of the acct), take out the max we can and pay off CC1 and Car. This should leave about 12k that we can use towards a refi.
3) Refi the house. In order to avoid PMI, we probably will need some cash (see #2). Hopefully we will still have a little left over to fund an emergency fund, maybe to pay off loan (see #1).
All of this, plus other changes we recently made, should increase cash flow. This plan will take us roughly until Jan. 1, which then we will see where we are. It is really all just a reshuffle of the deck. The debt really doesn't go away, just is redistributed. Once all the redistribution happens, THEN we are in a situation of repayment.
I think I will feel better when I start to see things decrease. I am still upset/frustrated/sad that we are STILL not at a place where we are breaking even. This plan makes us just go LESS in the hole each month.
So the newest plan.....
1) Personal loan that will pay off G-man's retirement loan (which isn't even in my master tally....it is auto deduct from his pay, so I never think about it).
2) Pay off retirement loan, and then in 60 days (per the terms of the acct), take out the max we can and pay off CC1 and Car. This should leave about 12k that we can use towards a refi.
3) Refi the house. In order to avoid PMI, we probably will need some cash (see #2). Hopefully we will still have a little left over to fund an emergency fund, maybe to pay off loan (see #1).
All of this, plus other changes we recently made, should increase cash flow. This plan will take us roughly until Jan. 1, which then we will see where we are. It is really all just a reshuffle of the deck. The debt really doesn't go away, just is redistributed. Once all the redistribution happens, THEN we are in a situation of repayment.
I think I will feel better when I start to see things decrease. I am still upset/frustrated/sad that we are STILL not at a place where we are breaking even. This plan makes us just go LESS in the hole each month.
Monday, September 7, 2009
The mortgage story
We were one of those unfortunate people who got caught in the mortgage "scams" a few years ago. It wasn't a scam per se...it was all real. But not as it appeared. I should have trusted my gut feeling at closing and stopped, but alas....we put so much time into it, we just did it.
Three yrs ago, we did a re-fi and took out the max equity from the house to pay off debt (big surprise there....). The rate was 5.5%, or so we thought. At closing, the papers said 7.5%, so we called the broker (why we used a broker is beyond me). He said, oh no...it is 5.5. Also, there was a paper in there that said if we chose to do another re-fi within 24 months, it would wave the broker fees. Sounds good, right?
Yeah....not so much.
In short....the 7.5% fixed was correct. The 5.5% we THOUGHT we were getting was based on paying bi-weekly (thus making an extra month worth of payment per year) and over the entire life of the loan, it would average out to 5.5%. Pretty sneaky, huh?
Wait...it gets better.....so when the rates dropped, we tried to do a re-fi......and found out that there was a HUGE pre-payment penalty of 5% for the first 36 months. Basically, it would cost us an additional 10k to get out of the current loan, or we had to wait it out. UGH.
So we called the original broker (remember him.....if we do a re-fi, no fees?) Out of business!!!!!!
Here we are....we paid our dues. October 24th the pre-payment penalty is lifted!!!! YIPPEE!!!
We are looking into our options....we are much more savvy about this now, so we have much more to look at. The debate is between a conventional fixed rate 30-yr OR and ARM that is fixed for 5 yrs at 4%, then goes adjustable up to a max of 2% per year, with a cap of 6% total increase.
Normally I wouldn't even look at the ARM. But we are hoping to relocate. Plus, we will save over 9k in the next 5 yrs doing the arm. If we want to re-fi again in 5 yrs, we can. No idea where the rates will be at that point....but the MAX our interest will go up is 2%. So that would put us at 6%. And if the current plans work out.....we should be debt free in 5 yrs, so a re-fi might be to a 20 yr vs a 30 yr.
Thoughts???
Three yrs ago, we did a re-fi and took out the max equity from the house to pay off debt (big surprise there....). The rate was 5.5%, or so we thought. At closing, the papers said 7.5%, so we called the broker (why we used a broker is beyond me). He said, oh no...it is 5.5. Also, there was a paper in there that said if we chose to do another re-fi within 24 months, it would wave the broker fees. Sounds good, right?
Yeah....not so much.
In short....the 7.5% fixed was correct. The 5.5% we THOUGHT we were getting was based on paying bi-weekly (thus making an extra month worth of payment per year) and over the entire life of the loan, it would average out to 5.5%. Pretty sneaky, huh?
Wait...it gets better.....so when the rates dropped, we tried to do a re-fi......and found out that there was a HUGE pre-payment penalty of 5% for the first 36 months. Basically, it would cost us an additional 10k to get out of the current loan, or we had to wait it out. UGH.
So we called the original broker (remember him.....if we do a re-fi, no fees?) Out of business!!!!!!
Here we are....we paid our dues. October 24th the pre-payment penalty is lifted!!!! YIPPEE!!!
We are looking into our options....we are much more savvy about this now, so we have much more to look at. The debate is between a conventional fixed rate 30-yr OR and ARM that is fixed for 5 yrs at 4%, then goes adjustable up to a max of 2% per year, with a cap of 6% total increase.
Normally I wouldn't even look at the ARM. But we are hoping to relocate. Plus, we will save over 9k in the next 5 yrs doing the arm. If we want to re-fi again in 5 yrs, we can. No idea where the rates will be at that point....but the MAX our interest will go up is 2%. So that would put us at 6%. And if the current plans work out.....we should be debt free in 5 yrs, so a re-fi might be to a 20 yr vs a 30 yr.
Thoughts???
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