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Welcome to the Home Ec Section. Matters of the family sometimes bring joy and other times bring grief. But it is never trivial: Family matters! Feel free to discuss topics such as the sanctity of marriage; the awesome responsibility of raising children; the struggles of communication problems; the grief of losing a loved one; or anything else that relates to the home and family. However, due to the more personal nature of this section, I ask that you would be especially thoughtful of the readers' feelings. My earnest hope and prayer is that the discussions in this section will help families grow in the love of Christ.

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ReFi Fun

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  • ReFi Fun

    With interest rates so low, I have been working on a ReFi for my home.
    We have a fairly decent rate, but I had said if I can get it one whole point lower, it would be worth it.

    I'm actually enjoying the process, because I don't NEED to refinance - I'm going for lower payments, not cash out, because I'm getting closer to retirement.

    I had done a lot of homework, and AmeriSave seemed the best option.
    I'm "in process", and I would lose the $500 processing fee if I crash out, but it might be worth it if Quicken Loans can get me a better rate.

    Currently, it appears that Quicken Loans will eat my $500 loss, but they haven't quite settled on an APR - definitely lower than what I have, but not sure it's equal to or lower than AmeriSave.

    Just throwing this out there for "sounding" from my friends.

    And the $500 gets credited to the loan if I stay with AmeriSave, but I'm really tired of dealing with Chase Bank. Chase has very GENEROUSLY (cough, sputter) offered me a HALF point lower if I ReFi with them.

    Waiting to hear back from Quicken Loans.
    "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

  • #2
    Originally posted by Cow Poke View Post
    With interest rates so low, I have been working on a ReFi for my home.
    We have a fairly decent rate, but I had said if I can get it one whole point lower, it would be worth it.

    I'm actually enjoying the process, because I don't NEED to refinance - I'm going for lower payments, not cash out, because I'm getting closer to retirement.
    Yeah, refinance is the way to go with these super low interest rates. The best thing about a lower interest rate is, if you can maintain the current payment, you can put more to the principle without any extra pain.


    I had done a lot of homework, and AmeriSave seemed the best option.
    I'm "in process", and I would lose the $500 processing fee if I crash out, but it might be worth it if Quicken Loans can get me a better rate.

    Currently, it appears that Quicken Loans will eat my $500 loss, but they haven't quite settled on an APR - definitely lower than what I have, but not sure it's equal to or lower than AmeriSave.
    If Quicken Loans would eat your loss and give a lower rate, I'd personally hold out.


    And the $500 gets credited to the loan if I stay with AmeriSave, but I'm really tired of dealing with Chase Bank. Chase has very GENEROUSLY (cough, sputter) offered me a HALF point lower if I ReFi with them.

    Waiting to hear back from Quicken Loans.
    Any lower interest rate is money saved which can either be applied to the principle or used elsewhere, including savings.

    It sounds like with either of the Chase alternatives, you'll be better off..
    Last edited by Diogenes; 02-22-2021, 06:14 PM.
    Ideological Vagrant (Yes, this is in Comic Sans.)

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    • #3
      Originally posted by Diogenes View Post
      Yeah, refinance is the way to go with these super low interest rates. The best thing about a lower interest rate is, if you can maintain the current payment, you can put more to the principle without any extra pain.
      EGGzackly my plan -- and I've already been making "principal only" payments on a consistent basis.

      If Quicken Loans would eat your loss and give a lower rate, I'd personally hold out.
      Have you had experience with them?

      Any lower interest rate is money saved which can either be applied to the principle or used elsewhere, including savings.

      It sounds like with either of the Chase alternatives, you'll be better off. I'm sure Money Wise would approve.
      Yeah, so to be clear....

      Currently with Chase
      AmeriSave will lower the rate one full point
      Quicken Loans seems to think they can do better than that, but so far, nothing in writing.

      And I've made it easier because I NEVER do the deal where I allow them to include property taxes and insurance - it's way easier to negotiate without those variables included in the loan.
      "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

      Comment


      • #4
        Originally posted by Cow Poke View Post
        And I've made it easier because I NEVER do the deal where I allow them to include property taxes and insurance - it's way easier to negotiate without those variables included in the loan.
        On that part - Escrow...
        • I pay my home insurance directly, so I am free to renegotiate a better deal or even switch companies without messing up my home loan.
        • I make monthly deposits in my money market account toward property taxes, and pay the taxes myself. There's a portion of the property taxes that I can pay 3 months early for a significant discount, and the rest aren't due til January 31 of the following year without penalty.

        "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

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        • #5
          Didn't you just build that house? have the rates dropped that much since then that it is worth the cost and trouble to refinance?

          I just refinanced my mortgage a couple of months ago, I first bought my house in 2008 and got a pretty good rate. But by refinancing I dropped the payment by about $50/month and didn't have to pay any points or anything. My bank is the one who called me up to refinance and had some sort of "special" going on with no fees or points. The rate wasn't quite as good as if I shopped around, but by the time I added in the fees and points I would have to pay elsewhere, I calculated it was a good deal, and I can always redo it again if I want to. I dropped my interest rate by about 1.25% over my first loan.

          Comment


          • #6
            Originally posted by Sparko View Post
            Didn't you just build that house? have the rates dropped that much since then that it is worth the cost and trouble to refinance?
            Fun flies when you're having time -- built in 2017, and, yes, a whole point lower.

            I just refinanced my mortgage a couple of months ago, I first bought my house in 2008 and got a pretty good rate. But by refinancing I dropped the payment by about $50/month and didn't have to pay any points or anything. My bank is the one who called me up to refinance and had some sort of "special" going on with no fees or points. The rate wasn't quite as good as if I shopped around, but by the time I added in the fees and points I would have to pay elsewhere, I calculated it was a good deal, and I can always redo it again if I want to. I dropped my interest rate by about 1.25% over my first loan.
            Quicken Loans called and wants to talk to me - he thinks he can do a better deal than AmeriSave, AND cover the $500 processing fee I'll lose if I abandon the AmeriSave deal.

            When I told my AmeriSave guy, he asked me "please don't do anything til I check some things and call you back at 3PM".



            I LOVES me some competition!!!

            "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

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            • #7
              Have you checked with TexasLending.com?

              I have a buddy who works in a Bank mortgage dept. He told me to be careful with out of State lenders as many of them aren't privy to Texas' unique lending laws...whatever that means.
              "What has the Church gained if it is popular, but there is no conviction, no repentance, no power?" - A.W. Tozer

              "... there are two parties in Washington, the stupid party and the evil party, who occasionally get together and do something both stupid and evil, and this is called bipartisanship." - Everett Dirksen

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              • #8
                Originally posted by Littlejoe View Post
                Have you checked with TexasLending.com?

                I have a buddy who works in a Bank mortgage dept. He told me to be careful with out of State lenders as many of them aren't privy to Texas' unique lending laws...whatever that means.
                I have - they were absolutely "snowed under" (probably literally) and couldn't help me for a few weeks. I think rates are already heading back up slightly.
                "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

                Comment


                • #9
                  Originally posted by Cow Poke View Post

                  Fun flies when you're having time -- built in 2017, and, yes, a whole point lower.



                  Quicken Loans called and wants to talk to me - he thinks he can do a better deal than AmeriSave, AND cover the $500 processing fee I'll lose if I abandon the AmeriSave deal.

                  When I told my AmeriSave guy, he asked me "please don't do anything til I check some things and call you back at 3PM".



                  I LOVES me some competition!!!
                  Yeah the banks are desperate for some action right now because of the whole COVID shutdown. I was surprised when they called me because I was just thinking about doing a refi. And the fact that it is still my main bank and there were no fees or points was great. It was a bit of a headache to wait for it all to go through the approval process and then go sign the papers. But basically, the only thing I ended up paying was a $500 difference between my old loan principal and the new one. They refinanced it for a lower amount, expecting it would take longer to approve and taking into consideration the principal that I would have paid down in that time, but it went through earlier and so I just paid the difference in cash. I still can't figure out how they got any money out of it. Seems like they just lost profit off of my old interest rate.


                  ETA: I was wrong. I just looked at my emails. There were $299 closing costs I was charged. I guess that is what they made on the deal.
                  Last edited by Sparko; 02-23-2021, 01:41 PM.

                  Comment


                  • #10
                    Originally posted by Sparko View Post

                    Yeah the banks are desperate for some action right now because of the whole COVID shutdown. I was surprised when they called me because I was just thinking about doing a refi. And the fact that it is still my main bank and there were no fees or points was great. It was a bit of a headache to wait for it all to go through the approval process and then go sign the papers. But basically, the only thing I ended up paying was a $500 difference between my old loan principal and the new one. They refinanced it for a lower amount, expecting it would take longer to approve and taking into consideration the principal that I would have paid down in that time, but it went through earlier and so I just paid the difference in cash. I still can't figure out how they got any money out of it. Seems like they just lost profit off of my old interest rate.


                    ETA: I was wrong. I just looked at my emails. There were $299 closing costs I was charged. I guess that is what they made on the deal.
                    I think I had shared about my only other refi - it was Chase bank who sent me a letter (back in 2010, I think) inviting me to do a refi, and I started to discard it because I was getting flooded with offers.

                    There was something about that letter, though, and "zero out of pocket expenses", with a clarification that "fees will not be rolled into the loan" kind of thing.
                    I knew a realtor/lender at a Chase bank, and I took the letter to him.

                    At first, he acknowledge it was just a sales pitch, then he looked at again, and said, "hold on a second".... he called somebody in their mortgage department, and when he hung up, he said, "OK, this is different - this is rare - I'd go ahead and call that toll-free number and give them that code".

                    He explained that, because I had excellent credit and payment history, I was a great candidate for somebody else to swoop in and take me away, and they were willing to do what they could to keep me.

                    As it turned out, they sent a lady to my house, she had all the forms necessary for us to sit and sign at our dining room table, and ZERO fees. It was quick and painless. Didn't even have to provide a mountain of paperwork - just sign some affidavits that my situation had not changed since the original loan.

                    I was hoping to do that again with Chase, but they're not being aggressive at all - and I guess they don't care that I jump ship.
                    "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

                    Comment


                    • #11
                      So, lookie here...

                      Looks like rates are headed back up, but I locked in at a good time.

                      mortgage rates.jpg
                      Sure, I coulda done better in January, but not by a whole lot.
                      "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

                      Comment


                      • #12
                        Originally posted by Sparko View Post

                        Yeah the banks are desperate for some action right now because of the whole COVID shutdown. I was surprised when they called me because I was just thinking about doing a refi. And the fact that it is still my main bank and there were no fees or points was great. It was a bit of a headache to wait for it all to go through the approval process and then go sign the papers. But basically, the only thing I ended up paying was a $500 difference between my old loan principal and the new one. They refinanced it for a lower amount, expecting it would take longer to approve and taking into consideration the principal that I would have paid down in that time, but it went through earlier and so I just paid the difference in cash. I still can't figure out how they got any money out of it. Seems like they just lost profit off of my old interest rate.


                        ETA: I was wrong. I just looked at my emails. There were $299 closing costs I was charged. I guess that is what they made on the deal.
                        I think it's a matter that they know that, if you have good credit, they could lose your business completely. So they'd rather have a little smaller long term income stream than none at all.

                        Remember, with sustainable businesses, it's not the profit from the sale, but developing a long term income stream that they can capitalize to borrow money.
                        "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

                        Comment


                        • #13
                          And now I'm getting flooded with messages from Chase....

                          final payment.jpg
                          "Neighbor, how long has it been since you’ve had a big, thick, steaming bowl of Wolf Brand Chili?”

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