06-25-2008, 02:06 PM
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#1 |
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Piggy Bank
Join Date: Mar 2008
Location: pa
Age: 35
Posts: 77
Rep Power: 4  |
Home ReFi
Well since james posted up about his I'd figure I'd do mine as well. I'm refinancing my mortgage. Yes I'm a subprime mortgage person who's sinking the economey. However in the past 3 years I've doubled my income and done everything possible to raise my credit score. The only outstanding debt I have at this point is mortgage and student loans, the rest has been paid off. Also I am adding an escrow account to the loan, to make my life more simple. So the old loan was a 3-27 at %8.69 about to go variable (7/15) new loan ~%6.8. Origanl loan principle and intrest is $544.43 vs new loan of ~$600 with escrow. Also I got an apprasial wavier for $94k and my refi will be under %80 of that so no pmi.
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06-25-2008, 02:10 PM
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#2 |
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Savings Advisor
Join Date: Aug 2006
Location: Central CT
Age: 31
Posts: 761
Rep Power: 7 |
nice. sounds good. I know you've been working on the place a lot lately.
While the new loan is slightly more expensive, you'll actually be paying down pricipal this time 
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06-25-2008, 02:12 PM
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#3 |
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Piggy Bank
Join Date: Mar 2008
Location: pa
Age: 35
Posts: 77
Rep Power: 4 |
yeah and no coming out of pocket at tax time. I would rather not have an escrow acct, IMO you save money not having one. But with the way life is right now just me and my son I need to keep things simple and reduce stress and if it costs a few bucks a year to do that it's well worth it.
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06-25-2008, 02:12 PM
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#4 |
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Super Moderator
Join Date: Aug 2006
Location: West Coast
Posts: 773
Rep Power: 7 |
the 2% discount will be nice, but i would be worried about the variable rates. can you lock that it at a later date or are you going to re-fi again if rates increase?
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06-25-2008, 02:20 PM
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#5 |
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Savings Advisor
Join Date: Aug 2006
Location: Central CT
Age: 31
Posts: 761
Rep Power: 7 |
no, he's leaving the variable for a 6.8% one.
escrow is common, if not always on a mortgage. between property taxes, home owners ins, and pmi if you have it, its the easiest way to work it all in. |
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06-25-2008, 02:27 PM
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#6 |
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Super Moderator
Join Date: Aug 2006
Location: West Coast
Posts: 773
Rep Power: 7 |
ahhhh, well, it's a great deal then.
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06-25-2008, 02:40 PM
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#7 |
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Piggy Bank
Join Date: Mar 2008
Location: pa
Age: 35
Posts: 77
Rep Power: 4 |
yeah 6.8 is fixed payment is up $55 but includes escrow
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09-05-2008, 03:09 PM
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#8 |
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Piggy Bank
Join Date: Mar 2008
Location: pa
Age: 35
Posts: 77
Rep Power: 4 |
update signed the middle of august. the payment went from $544.43 P&I only to $597 and change includes P&I and escrow (school and propert tax and home owners insurance). I just save myself about $150 a month. Also the loan is for 72k and the house apraised at 93k so no PMI for me. The new mortgage holder is Countrywide so life should be peach, no worries about them going under.
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09-05-2008, 03:29 PM
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#9 |
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Savings Advisor
Join Date: Aug 2006
Location: Central CT
Age: 31
Posts: 761
Rep Power: 7 |
heh, are you sure? countrywide has been on the brink of failure for almost a year now. lol
but either way, who cares if they do go under.. nothing you need to worry about really. you'll just get moved/bought to a new provider. |
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