Author Topic: DONT Payoff your Mortgage Club  (Read 538773 times)

rmorris50

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Re: DONT Payoff your Mortgage Club
« Reply #2950 on: October 13, 2021, 06:07:03 PM »
So we are in the process of doing a cash out refinance and the appraisal came in $115k below what Zillow shows the value to be. I値l be canceling that cashout.


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nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2951 on: October 13, 2021, 06:46:53 PM »
So we are in the process of doing a cash out refinance and the appraisal came in $115k below what Zillow shows the value to be. I値l be canceling that cashout.


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You can contest an appraisal, fyi.

rmorris50

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Re: DONT Payoff your Mortgage Club
« Reply #2952 on: October 13, 2021, 07:14:46 PM »
So we are in the process of doing a cash out refinance and the appraisal came in $115k below what Zillow shows the value to be. I値l be canceling that cashout.


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You can contest an appraisal, fyi.
Yes, but that値l be hard to close the gap between Zillow and the appraisal. The market is so hot here in Charlotte that prices have risen 30% in the past year, but nothing has sold in the past six months in my neighborhood, that痴 how tight supply is. Older homes are still getting cash offers off market and being torn down and rebuilt.

Also I知 not trading in my 2.5% for a 3% rate unless I can get a large amount of money out.


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bryan995

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Re: DONT Payoff your Mortgage Club
« Reply #2953 on: October 13, 2021, 07:28:57 PM »
Just signed the paperwork for our cash out refi.  2.99% 30yr w/ $126k out.  Looking at investment properties now.  Torn between furnished-medium-term in FL vs a unfurnished-long-term in AL vs a furnished-short-term in CA.

~3 months ago, we had tesla solar+powerwalls w/ financing added to the home.  Apparently the loan does not show up until Tesla receives PTO from the energy provider, so the bank was none the wiser.  Luckily that has not yet happened yet, so we were able to complete this refi without any issue.  Solar loan is at 0.99% APR so it was a no brainer.

Next time we refi we may run into some issues though as it seems having a solar loan/lean on the home can block some refis.
As long as you're buying it and not leasing, the hassle should be minimal. Leased solar is a whole other can of worms.

Yes, purchase (via financing), would never lease ... yuck! 

And good to know - it came up often enough during that closing that it made me wonder.  Glad to hear that my next refi (with financed solar) should be mostly hassle free, assuming rates stay low!

Would still like to refinance once more, in an attempt to lock in a even lower rate due to not having the cash out portion...  Assuming of course we stay at ~60% LTV and rates stay sub 3%.  gulp.

I too want to refinance to drop to a lower rate after having done cash out, but if rates go up in the short term I'm not going to sweat it. The rate we refi'd at (3.125%) I was comfortable holding 30 years because it's 3.125% for cryin out loud. We bought this property 4 years ago at 4.75%. I think our PI payment now after pulling out 100k at current rates is about where it was back when we bought at the earlier rates, +/- $50.
I wanted to comment on this while I have a moment at a real keyboard. Posts like this make me nuts so jelly. FOMO is real, man, and we have it big time. DH and I paid cash for our house eight years ago and still we kick ourselves. It just gets worse as rates continue to drop and fellow mustachians post stuff like this. Okay, it's actually Fear That We Missed Out, but let's still call it FOMO.

You'd think it would be no big deal because we're FI/RE and statistically it's probably less of a big deal because of our advanced ages (Ha!), but dang it, we still feel like we're missing out! There's a lesson here. DPOYM Rules!!!

Congratulations to everyone who has locked in a cheap-ass, fixed rate mortgage on a reasonably priced (for your area) house! Your future selves are going to be ecstatic!

Here's a twist. I cashed out and refi'd. My plan was to refi later to drop the rates because cash out rates were higher.

I started paperwork last night and discovered I don't qualify to refi because my income isn't high enough because I went to 3/4 time last month. DW is self employed currently and I'm not ready to dive into that headache. If she ever goes back to FT W2 work

My reaction last night? Oh well. I got a sweet mortgage rate anyway.

Dang, that's too bad.  Temporarily go back full-time to qualify? Or work some 'extra time' for a few weeks to boost on-paper income?

I am looking into buying a rental with our cash-out proceeds (may only put 10% down).  I want more 'pro-inflation-bank-sponsored-leverage' :)  Most homes I am considering need a ton of work.  It may just be too much for our first foray into real estate investing. I assume an additional home improvement / construction loan would have wildly high rates.  Need to look into which to do first.  Re-fi the primary or purchase rental home or procure construction loan (if we need it).  I'm also hoping that that county conventional limits will increase massively in 2022, which again should help some with their refi. 
SS benefits just increased 5.9%!  If that's not a sure sign of looming inflation, then we are truly living in a bizarro world.

So we are in the process of doing a cash out refinance and the appraisal came in $115k below what Zillow shows the value to be. I値l be canceling that cashout.

Prices do seem to be flattening but that is wild!   We came in about $110k over the zestimate.  And since the re-finance, the zestimate now shows +30k over our appraisal.  Granted there are quite a few neighbors listing pushing the price/sqft higher and higher (almost $500 now). 



JJ-

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Re: DONT Payoff your Mortgage Club
« Reply #2954 on: October 13, 2021, 08:06:47 PM »
 
Dang, that's too bad.  Temporarily go back full-time to qualify? Or work some 'extra time' for a few weeks to boost on-paper income?

That is soooooo not worth ~100 hours of my time 😊

bryan995

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Re: DONT Payoff your Mortgage Club
« Reply #2955 on: October 13, 2021, 08:28:53 PM »
 
Dang, that's too bad.  Temporarily go back full-time to qualify? Or work some 'extra time' for a few weeks to boost on-paper income?

That is soooooo not worth ~100 hours of my time 😊

The FED just signaled that they will not taper anytime soon. What if we hit 2.25%, 30yr? Surely a fresh cash out + reset of the clock is worth 100 hours :)

JJ-

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Re: DONT Payoff your Mortgage Club
« Reply #2956 on: October 13, 2021, 09:14:50 PM »
 
Dang, that's too bad.  Temporarily go back full-time to qualify? Or work some 'extra time' for a few weeks to boost on-paper income?

That is soooooo not worth ~100 hours of my time 😊

The FED just signaled that they will not taper anytime soon. What if we hit 2.25%, 30yr? Surely a fresh cash out + reset of the clock is worth 100 hours :)

Maybe. I'd probably consider and be like..... Nahhhhhh. It's nice having time.

talltexan

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Re: DONT Payoff your Mortgage Club
« Reply #2957 on: October 14, 2021, 06:14:51 AM »
So we are in the process of doing a cash out refinance and the appraisal came in $115k below what Zillow shows the value to be. I値l be canceling that cashout.


Sent from my iPhone using Tapatalk
You can contest an appraisal, fyi.
Yes, but that値l be hard to close the gap between Zillow and the appraisal. The market is so hot here in Charlotte that prices have risen 30% in the past year, but nothing has sold in the past six months in my neighborhood, that痴 how tight supply is. Older homes are still getting cash offers off market and being torn down and rebuilt.

Also I知 not trading in my 2.5% for a 3% rate unless I can get a large amount of money out.


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I also live in Charlotte, and I became very skeptical of Zillow's estimates, particularly in the Northern half of the area.

rmorris50

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Re: DONT Payoff your Mortgage Club
« Reply #2958 on: October 14, 2021, 06:27:43 AM »
So we are in the process of doing a cash out refinance and the appraisal came in $115k below what Zillow shows the value to be. I値l be canceling that cashout.


Sent from my iPhone using Tapatalk
You can contest an appraisal, fyi.
Yes, but that値l be hard to close the gap between Zillow and the appraisal. The market is so hot here in Charlotte that prices have risen 30% in the past year, but nothing has sold in the past six months in my neighborhood, that痴 how tight supply is. Older homes are still getting cash offers off market and being torn down and rebuilt.

Also I知 not trading in my 2.5% for a 3% rate unless I can get a large amount of money out.


Sent from my iPhone using Tapatalk

I also live in Charlotte, and I became very skeptical of Zillow's estimates, particularly in the Northern half of the area.
Interestingly Trulia is extremely close to Zillow.

However the appraisal of $615 doesnt even fall into zillows range of 665k to 790k. The fact the two are so far off makes me uncomfortable to refinance and want to just stand pat.

Of course I will continue to not pay one extra dime towards my mortgage:-)


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ChpBstrd

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Re: DONT Payoff your Mortgage Club
« Reply #2959 on: October 14, 2021, 07:15:43 AM »
Can you sell to Zillow, if they think it's worth so much?

sonofsven

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Re: DONT Payoff your Mortgage Club
« Reply #2960 on: October 14, 2021, 07:34:23 AM »
Just signed the paperwork for our cash out refi.  2.99% 30yr w/ $126k out.  Looking at investment properties now.  Torn between furnished-medium-term in FL vs a unfurnished-long-term in AL vs a furnished-short-term in CA.

~3 months ago, we had tesla solar+powerwalls w/ financing added to the home.  Apparently the loan does not show up until Tesla receives PTO from the energy provider, so the bank was none the wiser.  Luckily that has not yet happened yet, so we were able to complete this refi without any issue.  Solar loan is at 0.99% APR so it was a no brainer.

Next time we refi we may run into some issues though as it seems having a solar loan/lean on the home can block some refis.
As long as you're buying it and not leasing, the hassle should be minimal. Leased solar is a whole other can of worms.

Yes, purchase (via financing), would never lease ... yuck! 

And good to know - it came up often enough during that closing that it made me wonder.  Glad to hear that my next refi (with financed solar) should be mostly hassle free, assuming rates stay low!

Would still like to refinance once more, in an attempt to lock in a even lower rate due to not having the cash out portion...  Assuming of course we stay at ~60% LTV and rates stay sub 3%.  gulp.

I too want to refinance to drop to a lower rate after having done cash out, but if rates go up in the short term I'm not going to sweat it. The rate we refi'd at (3.125%) I was comfortable holding 30 years because it's 3.125% for cryin out loud. We bought this property 4 years ago at 4.75%. I think our PI payment now after pulling out 100k at current rates is about where it was back when we bought at the earlier rates, +/- $50.
I wanted to comment on this while I have a moment at a real keyboard. Posts like this make me nuts so jelly. FOMO is real, man, and we have it big time. DH and I paid cash for our house eight years ago and still we kick ourselves. It just gets worse as rates continue to drop and fellow mustachians post stuff like this. Okay, it's actually Fear That We Missed Out, but let's still call it FOMO.

You'd think it would be no big deal because we're FI/RE and statistically it's probably less of a big deal because of our advanced ages (Ha!), but dang it, we still feel like we're missing out! There's a lesson here. DPOYM Rules!!!

Congratulations to everyone who has locked in a cheap-ass, fixed rate mortgage on a reasonably priced (for your area) house! Your future selves are going to be ecstatic!

Here's a twist. I cashed out and refi'd. My plan was to refi later to drop the rates because cash out rates were higher.

I started paperwork last night and discovered I don't qualify to refi because my income isn't high enough because I went to 3/4 time last month. DW is self employed currently and I'm not ready to dive into that headache. If she ever goes back to FT W2 work

My reaction last night? Oh well. I got a sweet mortgage rate anyway.

I did three in the last year as self employed, two with lender fi, one with Better. All they wanted was a previous three months profit and loss statement (which was done by me, not an accountant, not notarized), three months of bank statements, two years taxes.
That was pretty much it. They each took less than a month, start to finish. One was cash out, two were rate/term.

JJ-

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Re: DONT Payoff your Mortgage Club
« Reply #2961 on: October 14, 2021, 07:56:06 AM »
Just signed the paperwork for our cash out refi.  2.99% 30yr w/ $126k out.  Looking at investment properties now.  Torn between furnished-medium-term in FL vs a unfurnished-long-term in AL vs a furnished-short-term in CA.

~3 months ago, we had tesla solar+powerwalls w/ financing added to the home.  Apparently the loan does not show up until Tesla receives PTO from the energy provider, so the bank was none the wiser.  Luckily that has not yet happened yet, so we were able to complete this refi without any issue.  Solar loan is at 0.99% APR so it was a no brainer.

Next time we refi we may run into some issues though as it seems having a solar loan/lean on the home can block some refis.
As long as you're buying it and not leasing, the hassle should be minimal. Leased solar is a whole other can of worms.

Yes, purchase (via financing), would never lease ... yuck! 

And good to know - it came up often enough during that closing that it made me wonder.  Glad to hear that my next refi (with financed solar) should be mostly hassle free, assuming rates stay low!

Would still like to refinance once more, in an attempt to lock in a even lower rate due to not having the cash out portion...  Assuming of course we stay at ~60% LTV and rates stay sub 3%.  gulp.

I too want to refinance to drop to a lower rate after having done cash out, but if rates go up in the short term I'm not going to sweat it. The rate we refi'd at (3.125%) I was comfortable holding 30 years because it's 3.125% for cryin out loud. We bought this property 4 years ago at 4.75%. I think our PI payment now after pulling out 100k at current rates is about where it was back when we bought at the earlier rates, +/- $50.
I wanted to comment on this while I have a moment at a real keyboard. Posts like this make me nuts so jelly. FOMO is real, man, and we have it big time. DH and I paid cash for our house eight years ago and still we kick ourselves. It just gets worse as rates continue to drop and fellow mustachians post stuff like this. Okay, it's actually Fear That We Missed Out, but let's still call it FOMO.

You'd think it would be no big deal because we're FI/RE and statistically it's probably less of a big deal because of our advanced ages (Ha!), but dang it, we still feel like we're missing out! There's a lesson here. DPOYM Rules!!!

Congratulations to everyone who has locked in a cheap-ass, fixed rate mortgage on a reasonably priced (for your area) house! Your future selves are going to be ecstatic!

Here's a twist. I cashed out and refi'd. My plan was to refi later to drop the rates because cash out rates were higher.

I started paperwork last night and discovered I don't qualify to refi because my income isn't high enough because I went to 3/4 time last month. DW is self employed currently and I'm not ready to dive into that headache. If she ever goes back to FT W2 work

My reaction last night? Oh well. I got a sweet mortgage rate anyway.

I did three in the last year as self employed, two with lender fi, one with Better. All they wanted was a previous three months profit and loss statement (which was done by me, not an accountant, not notarized), three months of bank statements, two years taxes.
That was pretty much it. They each took less than a month, start to finish. One was cash out, two were rate/term.

Hmm. This I'll give a shot. Thanks

JJ-

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Re: DONT Payoff your Mortgage Club
« Reply #2962 on: October 15, 2021, 09:17:31 AM »


I did three in the last year as self employed, two with lender fi, one with Better. All they wanted was a previous three months profit and loss statement (which was done by me, not an accountant, not notarized), three months of bank statements, two years taxes.
That was pretty much it. They each took less than a month, start to finish. One was cash out, two were rate/term.

Good news bad news. Bad news, DW has been self employed for 6 months and doesn't qualify for a co borrower. Good news? My refi showed up twice on the credit report, with both the original bank and then the one it was sold to. They were able to get me qualified by removing the first one that has been sold.

dandarc

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Re: DONT Payoff your Mortgage Club
« Reply #2963 on: October 15, 2021, 09:44:50 AM »


I did three in the last year as self employed, two with lender fi, one with Better. All they wanted was a previous three months profit and loss statement (which was done by me, not an accountant, not notarized), three months of bank statements, two years taxes.
That was pretty much it. They each took less than a month, start to finish. One was cash out, two were rate/term.

Good news bad news. Bad news, DW has been self employed for 6 months and doesn't qualify for a co borrower. Good news? My refi showed up twice on the credit report, with both the original bank and then the one it was sold to. They were able to get me qualified by removing the first one that has been sold.
Yeah, I had 9 years self employed, then 10 months W2, then tried to refinance ~1 month after going back to self employed. Lender Fi scuttled the deal. Moral of this story is never work as an employee for anyone ever.

Telecaster

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Re: DONT Payoff your Mortgage Club
« Reply #2964 on: October 15, 2021, 01:12:43 PM »
Yeah, I had 9 years self employed, then 10 months W2, then tried to refinance ~1 month after going back to self employed. Lender Fi scuttled the deal. Moral of this story is never work as an employee for anyone ever.

That's a bummer.  Usually they don't care unless you change industries. 

dandarc

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Re: DONT Payoff your Mortgage Club
« Reply #2965 on: October 15, 2021, 03:36:59 PM »
Yeah, I had 9 years self employed, then 10 months W2, then tried to refinance ~1 month after going back to self employed. Lender Fi scuttled the deal. Moral of this story is never work as an employee for anyone ever.

That's a bummer.  Usually they don't care unless you change industries.
I also formed a new LLC for this latest iteration, so maybe that was it? I just wish they would have told me before the "gather all your paperwork" part - I thought I went out of my way to explain the whole situation.