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James

Can someone explain what I need to do in detail?

I'll keep this short and sweet.

Mortgage: 503 a month through Chase bank. I want to try to stay with chase bank since I now bank through them.

Windows loan: 17k, and actually rising. I missed one payment (298/month) and now I'm upside down by one month payment, and over the limit. I don't want to go through with 15 years of this shitty interest and crap.

I need to refinance the house without raising my payments. I'll need to borrow 50,000 and 18,000 for a total of 68,000 to pay off this loan and incorporate it into the mortgage. With Brian here we each pay 250 for the mortgage. With a 6-8% rate (I have a 7% fixed on the mortgage now), can anyone help me figure out what kind of payments I'd end up paying if I could get this thing refinanced?

briansol

the major draw back to re-fi is that you have to re-close.
since you won't be a first time home buyer anymore, you can't do FHA.

look back at your closing costs from the sale. you'll need to pay those again.

Some places do offer a no-fee closing... but it does cost you money (they add it into the mortgage payment, thus making them interest for 30 years on the couple grand)

your best bet is to obtain a home equity loan, if you have equity... chances are you don't though... you haven't been there very long, and the market hasn't done a thing upwards since.

In general, it's a big no-no to take unsecured debt and move it to secured. If you have a traditional loan, there's nothing behind it other than your credit score.


On top of all that, you are tyring to add roughly 35% of your homes value onto the mortgage. you're going to have a REAL hard time getting any broker to be cool with that.
If your house won't sell for 68,000 TODAY, you won't get approved to do that without 20% down -- and well, that pretty much defeats the purpose of re-fi'ing in the first place.


for the math...


Result:Monthly payment: 30 Years Interest rate: 7.000%Loan amount:$ 50,000.00
$ 332.65 a month

Monthly payment: 30 Years Interest rate: 7.000%Loan amount:$ 68,000.00
$ 452.41 a month
of course this doesn't factor in pmi, property taxes, etc etc

so, expect $150 a month increase in the payment... which basically cuts your window payment in half... but i'm pretty sure you don't have a 30 year loan on the windows. You'll end up paying probably 20 times the cost vs what you're paying now over the 30 year time period from interest...
then add in the closing costs you'll have to pay, lawyer fees, etc etc... and since you can't FHA anymore, you'll probably get moved above 7 flat on interest as well.

You CAN afford it how it is... you just need to be smarter with your money. I know it's nice to get away, but you went to florida on vacation instead of making your payments, and that's why you are where you are. No more trips for you

titan22

i wouldn't worry about the re-fi either. you are going to spend more on closing and lose a locked in rate if you do. if you are behind on payments, look where you can skimp on some other stuff. sell some car parts if you have to. but a re-fi wont put you in a better position.

James

I didn't miss the payment because I used the money to go to Florida, I just forgot to pay it. I spent maybe 700 for the trip, and the other 700 I had went to the rest of my bills. The 1400 I had for the trip all came from monies that I got due to stocks and the government rebate thing. So this money had nothing to do with my bills.

Non-compounding, I worked the 17k with monthly payments of 298 at something like 20% interest... yeah I got fucked over... to about 65k before it's paid off in 15 years. It was basically a consolidation loan. It paid off other debts to do with the house and credit cards, along with paying for the windows.

I'd like a refi to put the cost of the windows on the mortgage so that it's being split equally. Brian is getting the benefit of the house and windows.

Yes, I can afford it due to it being a consolidation loan and I have very very little CC debt now, but when I fuck up and miss a payment I can't drop another 300 on making it up right away.

Thanks for the help and the math work, B.

titan22

If you can't afford $300 out of pocket on the spot, there is a large problem there.

I know we have talked about this before, but you may want to consider going back to school or getting a second job. it would help in the long run. there is no such thing as a "bad school loan". only good can come from it, if you finish. Hell, my gf's dad just bought books on programming. C+, sequel, A whatever, and got a job at microsoft. he just taught himself, but he had the degree to back it up.

James

I know. I'm looking at Civil Engineering courses at IPFW. With my debt/income ratio I don't know what I could get as far as student loans.

reckedracing

i might be wrong here, but does Brian own a share in the house?
If you refi and roll that 17K into the mortgage then you're not being particuarially fair to him since you used the 17K to pay off other debts and CC's

briansol

pretty sure he just rents a room.

reckedracing

yea, thats what i thought too

James

the parts of my debt I rolled into the loan were less than 1/4 of that 17k anyway.

If he wants a roof over his head and a 3 car garage to work on his truck in, he won't complain.

Besides, he gets the benefits of the 2 grand my dad sunk into the house, and the benefits of the grand I've sunk into the house already, plus the benefits of the windows I sunk into the house. I did the windows to lower the utility bill costs, which benefits him. He also rarely pays the garbage or internet bill since I always forget to ask him for it anyway. He's getting a hell of a deal for right around 300-400 a month depending on utility bills. He can go anywhere in the house and do what he wants, except in my room, he has the full garage to use and store his tools and truck.

How is this unfair?

On top of that, if he has his friend come up here and share the rent, it drops from paying half to paying thirds.

If I roll the 17k into the mortgage, and my payments are at 452, plus PMI, taxes, etc... then they should round out to about 620, which split 3 ways is 200. (I'll burdon that extra 20)... Which is a drop from what he pays now for rent alone... if I/he can get that 3rd party in the house like I originally had planned on doing.