Lindsey
Well-known member
The cost to refinance does make us sad because that would be enough to get a sweet pin
That's how I felt when I spent $3K on my dog's teeth
refinancing the house, appraiser stopped by
- Thread starter beerorkid
- Start date
That's how I felt when I spent $3K on my dog's teeth
dieseldogpi
Member
That's how I felt when I spent $3K on my dog's teeth
For $3k, I hope your dog is now walking around with a gold grill.
Congrats on the re-fi.
The whole mortgage thing has turned away from "lets give a family a way to purchase a decent home to live in" to "lets see how we can squeeze a bazillion dollar house into the budget". The banks were in the mode of "let em do it, we're making a killing on fees, interest, etc" and we see what happens.
On the two houses I had/have a mortgage on, the first was the typical "starter" home and I was thrilled at 9%/30 years. I paid it off in 12 years but always had the option to fall back to the "regular" payment. Just make sure you have a no-penalty early payoff loan and pay as much as you want towards the principal.
I used a 80% HELOC to buy the land and start building the current house and didn't have to live by the banks rules and deal with a bridge loan and all that crap.
So one can use a 30 year mortgage to ones advantage - most won't, sadly.
I have a program a co-worker wrote. It asks the details (mortgage amount, rate, etc) and you can put in a extra amount per month and it will tell you how many months and how much money you'll save on the back-end. Its scary, but very enlightening.
The whole mortgage thing has turned away from "lets give a family a way to purchase a decent home to live in" to "lets see how we can squeeze a bazillion dollar house into the budget". The banks were in the mode of "let em do it, we're making a killing on fees, interest, etc" and we see what happens.
On the two houses I had/have a mortgage on, the first was the typical "starter" home and I was thrilled at 9%/30 years. I paid it off in 12 years but always had the option to fall back to the "regular" payment. Just make sure you have a no-penalty early payoff loan and pay as much as you want towards the principal.
I used a 80% HELOC to buy the land and start building the current house and didn't have to live by the banks rules and deal with a bridge loan and all that crap.
So one can use a 30 year mortgage to ones advantage - most won't, sadly.
I have a program a co-worker wrote. It asks the details (mortgage amount, rate, etc) and you can put in a extra amount per month and it will tell you how many months and how much money you'll save on the back-end. Its scary, but very enlightening.
Deadly
New member
When I applied for my loan, I was told I qualified for $300K. I looked at my wife, then looked at the mortgage lender and said, "Are you shitting me? Seriously you're going to loan me $300K when I can't afford that?" She looked at me and said, "Well your debt to income ratio blah blah blah shows that you can." I said, "Clearly your numbers don't take into consideration that I need to eat, pay for gas for my vehicles and pay my utilities let alone my child support and YADDA YADDA YADDA. Nah ..... all I want and can comfortably afford is $250K."
The problem with people is they listen to the demon sitting across the desk from them. The mentality, "Well if they say I can afford it I must be able too!" Now add the the people that not only over extended themselves but went with an ARM loan or interest only loans. These are the very same people who complain about how they got screwed. Really? You signed a loan that you knew you couldn't afford and was an ARM that could possibly double your payment AND no one was holding a gun to your head to make you sign the papers? I have ZERO tolerance for stupidity and these people got what they deserved. (loss of job or health issues excluded from this)
Now add the average credit card debt into the mix.
I'm not a fan whatsoever of the US government but I will say I'm absolutely fed up with people pointing the finger at Washington when their "misfortune" is a direct result of them living outside their means .......... well, enjoy the soup line idiots. Want to blame Washington - blame them for oil prices not for you own stupidity.
Am I angry? I think it's apparent I'm very passionate about this. I feel the responsible people are now being wrongfully crucified for someone else's sins. The after math is people are upside down on the necessities of life. People now owe more on the vehicles and homes than what they are worth. They file BK. Companies have insurance to cover this loss. The insurance companies in return have to raise their rates which hits all of us again.
I can lose my job today and keep everything I have. Only thing I'd need to get rid of is my internet and satellite TV. That's it.
Sorry for the morning rant ladies and gents - but it's time people put on their "big boy underwear" and take responsibility for their own actions.
Good post Deadly (and sorry to continue the threadjack....).
My personal rant is not the people that buy a house and then lose it because they lost their job, although you pointed out there are people that shouldn't sign loans they can't afford, period.
My complaint is with people that speculated and bought a house, the value went down and now they're complaining its not worth as much. I have no sympathy for people that treated their house like the stock market.
My house, I'm guessing, isn't worth 90% of what I paid *at the moment*. But, I'm still paying my mortgage and will continue to do so until its paid off.
quses
Member
Insane amount of money. A coworker was in the exact same situation, same bank that failed and transfered our mortgage twice, a HELOC, and decided to call and see what could be done.
We are rolling the HELOC into the new loan and will save so much by refinancing.
I just love showing people who have no clue I have a mini arcade in my house and watching their reactions. He mentioned that if he did not have kids, ummm exactly
Don't underestimate the "equity accellerator" program where you make two half payments a month, with one of them 2 weeks early. That cut my 20 year down to 15, which was paid off this month.. woo hoo!
quses
Member
I agree with you that ultimately, individuals are responsible for the financial obligations they agree to undertake, however it's virtually impossible for anyone other than an experienced specialist to understand the terms and nature of these contracts people sign. 99.9% of us will never even fully-read the contracts we sign, much less understand exactly what they mean. So the reps and salespeople are obligated to provide certain disclosures and details, and many times they do not (and this isn't well enforced). It's easy to say if you're in your 40s, 50s or 60s "caveat emptor" but a young couple with up-and-coming jobs can be easily snowed by a greedy, manipulative salesman into signing a very bad deal. Is it there fault? Yes. Is the institution also partially to blame? In a lot of cases yes.
When I first bought my house, I had an ARM. It was the *only* way I could afford the mortgage note. I now know it was a horrible idea, and I could have easily lost my house if interest rates had gone the other direction. Luckily I was able to re-finance to a fixed rate. There are a lot of predatory lenders out there that misrepresent the nature of their services. Look at those "reverse mortgages" they're trying to pawn off on old people. If someone hoodwinked your gradma into doing one of those would you say, "Hey Grams, that's what you get for being stupid?"
There's another, critical key element to the whole home lending situation that the mainstream media doesn't talk about, and that's the fact that until 2000, most of the hanky-panky the banks were doing had previously been illegal. A provision authored by Phil Gram in the 1999 Financial Services Modernization Act rolled back a bunch of depression era regulations that forced banks to act responsibly with peoples' money. Up until then, there were only so many loans banks could write, and they performed a lot more due-dilligence in qualifying applicants. But once the Gram-Leach-Bliley Act passed, banks no longer had to make "healthy loans". They would take the mortage notes, securitize them into unrecognizable "credit default swaps" and sell them like stocks to other institutions, then make more loans. It was nothing more than a huge Ponzi Scheme authorized by the government. This is why the banks went nuts making bad loans... because they didn't have to answer for them - they handed them off like hot potatoes to the next institution and hopefully someone else lost their chair when the music stopped.
gabesdad1981
New member
Hey we did the 15 yr instead of 30 as well..Plus we pay half the payment on 15th of month...In 5 yrs we have paid loan down 40 grand......True story.......The pmts are pulled automatically twice monthly... Payments is high but should be done with it in 9 yrs.
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beerorkid
New member
I like you guys.
Got to show my electrician friend my arcade last night. He was not all that blown away, just wanted to buy one. I offered up the Alien Poker and he said he cannot get one with a woman in that state of undress. He is Pakistani, in that culture you take care of your parents. So he cannot bring it into the house.
I am going to need a new breaker box, but the BorKade is going to get wired up good
I have extention cords running all over even from other rooms. Stupid 105 year old house >.<
Got to show my electrician friend my arcade last night. He was not all that blown away, just wanted to buy one. I offered up the Alien Poker and he said he cannot get one with a woman in that state of undress. He is Pakistani, in that culture you take care of your parents. So he cannot bring it into the house.
I am going to need a new breaker box, but the BorKade is going to get wired up good
I have extention cords running all over even from other rooms. Stupid 105 year old house >.<
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cadillacman
Well-known member
congrats!
If i could afford any more $$, id definately do a 15 year as it isnt that much more, but honestly at this point were scraping by and i mean scraping hard.
i have one dead car, one dead truck, and one dying car which leaves us with one good one. THe real bitch is im a mechanic, i just aint got the funds for parts.
Thats cool man. If i ever get a visit form the local fire dept for inspection or an appraisal, i hope something simular happens. I love when i see people go from 30-40-50 year olds all the way back to 12 year olds instantly. Its awesome for sure.
If i could afford any more $$, id definately do a 15 year as it isnt that much more, but honestly at this point were scraping by and i mean scraping hard.
i have one dead car, one dead truck, and one dying car which leaves us with one good one. THe real bitch is im a mechanic, i just aint got the funds for parts.
Thats cool man. If i ever get a visit form the local fire dept for inspection or an appraisal, i hope something simular happens. I love when i see people go from 30-40-50 year olds all the way back to 12 year olds instantly. Its awesome for sure.
It wasn't because of your Appraiser that he valued your home more, it was because of the economy and new appraising laws. You didn't have to slip him any money or show him your arcade, the bank makes money on refinancing. Under the new mortgage laws homes are now worth more then when they were packaged and sold under the Fanny and Freddy old regulations. Housing market has been improving slowly also since the middle of 2010.
Sorry for the news, but the info and statistics are there to look up.
Your appraiser may come back to play, but your house being worth more and him giving you a lower interest rate is not up to him, it's up to the bank. Also an appraiser isn't going to lose his license over a 20.00 dollar bill and some arcade game play. His firm could terminate him for such wrongful acts or misconduct.
Sorry for the news, but the info and statistics are there to look up.
Your appraiser may come back to play, but your house being worth more and him giving you a lower interest rate is not up to him, it's up to the bank. Also an appraiser isn't going to lose his license over a 20.00 dollar bill and some arcade game play. His firm could terminate him for such wrongful acts or misconduct.
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beerorkid
New member
Of course. i just thought it was funny and wanted to share.
