Author Topic: DONT Payoff your Mortgage Club  (Read 409445 times)

Dicey

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Re: DONT Payoff your Mortgage Club
« Reply #2400 on: September 16, 2020, 09:05:57 PM »
Hey I was wondering.... can anyone tell me?  Do details matter or not?
Hey all, meet dragoncar, the funniest creature on this forum. He's also very smart and breathes FIRE. Don't fuck with him. As long as you're nice to him, no one will get hurt. Maybe.

Fomerly known as something

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Re: DONT Payoff your Mortgage Club
« Reply #2401 on: September 17, 2020, 03:34:18 AM »

What matters with mortgages is whether you are using it as agreed on the note. It doesnít matter if you split who holds each loan. If you arenít living there r have rented it out, that could be a problem. Check first, or risk penalties.

Thank you for your feedback and opinions...this was more complicated than I thought, unfortunately :(
What would YOU do if this was your situation?  Now, I think I just got confused.  Refinance but maybe unable to rent it out in the future or keep original mortgage and can rent it out since notes allow after 3 years...
You're right, we're all in this together and trying to help and learn from one another and I really appreciated your time and comment.

thank you.
[/quote]

There are several questions Iíd ask in addition to refinance questions.  As I donít know if you should rent out your house.

1.  Do I want to be a landlord and why?
2.  Do I want to be a hands on landlord, if not do the numbers work if I hire a property manager.
3.  Do the numbers work as a rental on your current.  I donít mean can I rent it for the PITI, but also factoring in vacancies and Maintence.  (Does it meet the 1% rule, property rents for at least 1% of the purchase price ie a 100k house rents for $1,000 a month).
4.  Also you mentioned DR, you know he would be yelling at you for considering that you are considering buying a second home with a mortgage while still in other debt right?  Especially when you donít have a 3-6 month emergency fund.  Where are you getting you down payment let alone affording a new roof on your ďnew rentalĒ
« Last Edit: September 17, 2020, 03:35:55 AM by Fomerly known as something »

Dicey

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Re: DONT Payoff your Mortgage Club
« Reply #2402 on: September 17, 2020, 05:36:39 AM »
4.  Also you mentioned DR, you know he would be yelling at you for considering that you are considering buying a second home with a mortgage while still in other debt right? 
Fortunately, this is the Don't Pay Off Your Mortgage thread on the Mister Money Mustache Forum. We do things to optimize the path to FIRE. Here, we tend to yell at Dave Ramsey for the crappy investment advice he peddles.



CarnivoreforLife

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Re: DONT Payoff your Mortgage Club
« Reply #2403 on: September 17, 2020, 06:19:27 AM »

What matters with mortgages is whether you are using it as agreed on the note. It doesnít matter if you split who holds each loan. If you arenít living there r have rented it out, that could be a problem. Check first, or risk penalties.

Thank you for your feedback and opinions...this was more complicated than I thought, unfortunately :(
What would YOU do if this was your situation?  Now, I think I just got confused.  Refinance but maybe unable to rent it out in the future or keep original mortgage and can rent it out since notes allow after 3 years...
You're right, we're all in this together and trying to help and learn from one another and I really appreciated your time and comment.

thank you.

There are several questions Iíd ask in addition to refinance questions.  As I donít know if you should rent out your house.

1.  Do I want to be a landlord and why?
2.  Do I want to be a hands on landlord, if not do the numbers work if I hire a property manager.
3.  Do the numbers work as a rental on your current.  I donít mean can I rent it for the PITI, but also factoring in vacancies and Maintence.  (Does it meet the 1% rule, property rents for at least 1% of the purchase price ie a 100k house rents for $1,000 a month).
4.  Also you mentioned DR, you know he would be yelling at you for considering that you are considering buying a second home with a mortgage while still in other debt right?  Especially when you donít have a 3-6 month emergency fund.  Where are you getting you down payment let alone affording a new roof on your ďnew rentalĒ
[/quote]

I appreciate your reply- to answer your question:

I always wanted to try. I Know the pros and cons and def will regret if I donít take the risk. Basically, Iíll regret it if I donít try something (one of those people :) ).
I donít care about DR and this is the DONíT pay off your mortgage thread.
And Iím not sure how the assumption was made on me having no cash, emergency funds etc?...

Thanks


Mako52

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Re: DONT Payoff your Mortgage Club
« Reply #2404 on: September 17, 2020, 06:32:06 AM »
9/17/20.......Just closed on a 2.625/30yr with Lenderfi.  If the escrow refund from Loan Depot (3.25/30) is what I expect, net out of pocket cost is $350.  Saves us $2900 in interest the first year alone and frees up future cash flow to diversify away from illiquid home equity.
 

CarnivoreforLife

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Re: DONT Payoff your Mortgage Club
« Reply #2405 on: September 17, 2020, 06:38:59 AM »
9/17/20.......Just closed on a 2.625/30yr with Lenderfi.  If the escrow refund from Loan Depot (3.25/30) is what I expect, net out of pocket cost is $350.  Saves us $2900 in interest the first year alone and frees up future cash flow to diversify away from illiquid home equity.
 

Oh! How niceeee!
Congrats!

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2406 on: September 17, 2020, 06:39:31 AM »
9/17/20.......Just closed on a 2.625/30yr with Lenderfi.  If the escrow refund from Loan Depot (3.25/30) is what I expect, net out of pocket cost is $350.  Saves us $2900 in interest the first year alone and frees up future cash flow to diversify away from illiquid home equity.
 

That's awesome.  Kudos to you!

NotBadForADad

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Re: DONT Payoff your Mortgage Club
« Reply #2407 on: September 17, 2020, 07:32:24 AM »
9/17/20.......Just closed on a 2.625/30yr with Lenderfi.  If the escrow refund from Loan Depot (3.25/30) is what I expect, net out of pocket cost is $350.  Saves us $2900 in interest the first year alone and frees up future cash flow to diversify away from illiquid home equity.
 

How legitemate is this, I went to their site and they saying $1035/monthly, including insurance.

couponvan

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Re: DONT Payoff your Mortgage Club
« Reply #2408 on: September 17, 2020, 10:51:26 AM »
9/17/20.......Just closed on a 2.625/30yr with Lenderfi.  If the escrow refund from Loan Depot (3.25/30) is what I expect, net out of pocket cost is $350.  Saves us $2900 in interest the first year alone and frees up future cash flow to diversify away from illiquid home equity.
 

How legitemate is this, I went to their site and they saying $1035/monthly, including insurance.
I'm not sure what you are asking here because the $1,035 monthly could mean anything.  We are using Loan Depot right now for a no cost 2.5% 30 year fixed refi (VA, excellent credit).  I've never used Lenderfi, but I have heard of it. Your rates are going to depend on your credit, loan amount, loan-to-value ratio, employment history, and income. The insurance inclusion payment amounts are usually just an estimate. Your own insurance and taxes will vary by location.

talltexan

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Re: DONT Payoff your Mortgage Club
« Reply #2409 on: September 17, 2020, 11:46:12 AM »
I see some discussion above about Dave Ramsey and the baby-steps.

If you are reading this and committed to bringing order to your finances through the Dave Ramsey baby steps, please follow through at least to baby step #3 (full emergency fund). Bond yields will stay low for long enough for you to kill your non-mortgage debt.

Then come back to this thread. For planning your next ten years after you're out of debt, we think we're on to something.

NotBadForADad

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Re: DONT Payoff your Mortgage Club
« Reply #2410 on: September 17, 2020, 12:13:03 PM »
I see some discussion above about Dave Ramsey and the baby-steps.

If you are reading this and committed to bringing order to your finances through the Dave Ramsey baby steps, please follow through at least to baby step #3 (full emergency fund). Bond yields will stay low for long enough for you to kill your non-mortgage debt.

Then come back to this thread. For planning your next ten years after you're out of debt, we think we're on to something.

Sounds good. I created a case study as well.

Fomerly known as something

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Re: DONT Payoff your Mortgage Club
« Reply #2411 on: September 17, 2020, 07:23:21 PM »

What matters with mortgages is whether you are using it as agreed on the note. It doesnít matter if you split who holds each loan. If you arenít living there r have rented it out, that could be a problem. Check first, or risk penalties.

Thank you for your feedback and opinions...this was more complicated than I thought, unfortunately :(
What would YOU do if this was your situation?  Now, I think I just got confused.  Refinance but maybe unable to rent it out in the future or keep original mortgage and can rent it out since notes allow after 3 years...
You're right, we're all in this together and trying to help and learn from one another and I really appreciated your time and comment.

thank you.

There are several questions Iíd ask in addition to refinance questions.  As I donít know if you should rent out your house.

1.  Do I want to be a landlord and why?
2.  Do I want to be a hands on landlord, if not do the numbers work if I hire a property manager.
3.  Do the numbers work as a rental on your current.  I donít mean can I rent it for the PITI, but also factoring in vacancies and Maintence.  (Does it meet the 1% rule, property rents for at least 1% of the purchase price ie a 100k house rents for $1,000 a month).
4.  Also you mentioned DR, you know he would be yelling at you for considering that you are considering buying a second home with a mortgage while still in other debt right?  Especially when you donít have a 3-6 month emergency fund.  Where are you getting you down payment let alone affording a new roof on your ďnew rentalĒ

I appreciate your reply- to answer your question:

I always wanted to try. I Know the pros and cons and def will regret if I donít take the risk. Basically, Iíll regret it if I donít try something (one of those people :) ).
I donít care about DR and this is the DONíT pay off your mortgage thread.
And Iím not sure how the assumption was made on me having no cash, emergency funds etc?...

Thanks
[/quote]

Sorry on the DR confused your question with NotBadForADad.