Good mortgage or bad mortgage loan?

Good mortgage or bad mortgage loan?Good mortgage or bad mortgage loan?
esifivus asked 5 years ago

Hi all,

 

I am in the midst of refinancing my condo and need your advice.  I have read hundreds of web pages, magazine articles; watched YouTube video from mortgage brokers, real estate agents, and common folk; read Yelp revies, BBB rankings, and so on and on.  And I cannot figure out if this is a good loan refi.  Would love to hear what you think about this offer:

 

Currently mortgage:
FHA 3.75%, 30-year fixed loan, paying $ 262 PMI (primary driver for the refi). Payments $ 1734 approx. on a condo in southern California.  

(I was told to add the $ 262 PMI into my interest rate to get the “true” monthly rate I was paying….not even sure how to begin doing that)

 

New mortgage offer:

Conventional loan, $ 10k cashout, no PMI, 4.75% 30-year fixed. New payments $ 1,615 approx.

 

     1) BIG CHANGE: due to an error, my credit score which was borderline average-good plummted -30 points when a creditor reported me to the credit agencies as
         having a missed payment. The creditor IS removing the missed payment (since the card was paid off). but it will take a month or two for my score to recover).

 

    2) The new mortgage lender, Intelliloan,  stated that I can refi again at no cost, during the next three years to get an even better interest rate when my credit score
         improves.

 

I was always told when you refinance anything, you should always go for a drop in interest rate.  But I dunno……

 

Any thoughts from anyone???   Thanks!


How to Pay Off a Mortgage Quickly

Annony Mouse replied 5 years ago

I like Dave Ramsey for his beliefs in saving and managing or paying off
your revolving debt but his thoughts on paying off your mortgage early is
more of a religious based idea of not having debt or owing others than a
good money management plan. A 25 year old who has purchased his first home
should never be throwing extra money towards his mortgage, he should be
investing that money in something consistently so that money multiplies
like gangbusters and he gets the maximum tax benefit from his mortgage
interest. I love Daves ideas of paying cash for things but you need to
understand money, using credit in a positive way, opportunity cost and the
basic “time value of money” and you will see how he is not
quite the financial guru people claim he is. 

dluff replied 5 years ago

11 Great Reasons to Carry a Big, Long Mortgage
Reason #1: Your mortgage doesn’t affect your home’s value.
Reason #2: A mortgage won’t stop you from building equity in the house.
Reason #3: A mortgage is cheap money.
Reasons #4 and #5: Your mortgage interest is tax-deductible. And mortgage
interest is tax-favorable.
Reason #6: Mortgage payments get easier over time.
Reason #7: Mortgages allow you to sell without selling.
Reasons #8 and #9: Mortgages allow you to invest more money and to invest
it more quickly. Mortgages allow you to create more wealth than you
otherwise would.
Reason #10: Mortgages give you greater liquidity and flexibility.
Reason #11: You’ll never get rid of your monthly payment, no matter how
hard you try.

http://www.edelmanfinancial.com/education-center/articles/1/11-great-reasons-to-carry-a-big-long-mortgage#.VMruERLO4zc.mailto


Mike Meyers replied 5 years ago

DID DAVE JUST SAY KIDS COLLEGE ???? COLLEGE IS A WASTE OF MONEY AND TIME
DAVE !!!!

Asim Ullah replied 5 years ago

Question: I have 30 year amortization left on my mortgage – I am paying
double my mortgage each month(weekly payments) – so my amortization showing
10 years left , that it will be paid off in 10 years if i keep paying
double mortgage.

My Question is, i am due for renewal in 2016, Should i decrease the
amortization to lets say 10 years – so then what i am paying now becomes my
normal payment. Which pay i will be paying more towards principle, and less
interest? ? or it doesn’t matter, if i pay double, with 30 year
amortization, or normal with 10 year amortization,

(reason i am thinking decreasing amortization is because it would give me
option to pay it even sooner, as currently i am paying the maximum allowed).

Any input is appreciated.

goodgirlsguide replied 5 years ago

It’s only worth paying it off in full if you are planning to stay there for
life. If you are planning to move in a few years, save your cash and take
your equity to pay for the next house.

ThisIsTurok1 replied 5 years ago

He’s right. Use your tax return as a payment on the principle.

I’m going to do that this year.

After being on a mortgage for 2 years, I’ve only only reduced my principle
by about 4 grand, which is pathetic. At this rate I’ll never pay off the
house. It’s big damn scam.

The banks are schemers and they know there are ALOT of stupid people out
there that will fall for their traps.
Don’t be one of them.

R Triplett replied 5 years ago

wow, so much BAD advise. some of the things that is NOT discussed is 1) the
opportunity costs 2) losing control of your money 3) tieing up money
by prepaying 4) allocating assets to financial vehicles (houses and
college education) that may or may NOT provide return dividends.

If you are smart enough to work for yourself from home ……

Jack Akins replied 5 years ago

I’m living Debit Free thanks to Dave Ramsey’s advice. Credit is for
suckers.

mike matthews replied 5 years ago

Notice the words covenant in the contracts biblical information
Thats where it all comes from
Its and oath a bond a promise to pay. Notice the bank never lends u any
money physicslly smh all paperwork all your energy and labor
Look up the word mortgage in law dictionary mindblowing
GAAP GENERAL ACCECTPED ACCOUNTING PRINCIPLES. ALL MATCHING NUMBERS ON THEIR
BOOKS
ASK THE BANK CROOK WHERE THEY GET THE MONEY FROM
U CANT LOAN MONEY USE OTHER DEPSITORS MONEY AGAINST LAW. IN THE
CONSTUTUTION ITS UNLAWFUL TO HAVE A MORTGAGE PAST 5 6 YEARS ARTIICLE 6 READ
IT. 

Jacob Hughes replied 5 years ago

How to Pay Off a Mortgage Quickly: http://youtu.be/0IoIi522_Yk

Athrough Z replied 5 years ago

I like what Robert Kiyosaki says when it comes to one’s house. When the
bank says it’s your greatest asset, what they really mean is that it’s
THEIR greatest asset. 

Strawman Money Credit replied 5 years ago

Learn why the banks don’t want you to pay your mortgage!!! THEY WANT TO
SELL YOUR HOME FOR $$$$!!! Don’t give it to them…you worked too hard for
this to happen!!! See my profile for more information on how you can use
the governments money to PAY YOUR MORTAGE FAST!!!!

mike matthews replied 5 years ago

He dont know fuck he talking bout yall

winaitip2 replied 5 years ago

make more money, that’s it,

L0RDF0RGIVEME replied 5 years ago

private lending & opm is the best way to invest!!

YOUR Military Money replied 5 years ago

I’m down to $70K on my house and I’ll stay on it until it’s paid off! If
you’re thinking of buying a house, don’t go for the max approval and get a
15 year mortgage.

Patrick Britton replied 5 years ago

this guy’s a moron – totally forgetting opportunity cost and tax
deductibility to name only two. 99% of people who pay cash for a house or
try to get their mortgage paid off faster to “free up their cashflow” spend
that extra cash on toys. sure, banks aren’t the greatest, but this guy
needs to go back to whatever mickey-mouse college he came from and get his
money back. 

chris minnifield replied 5 years ago

bi-weekly and bi-monthly payments demonstrated in this video are
misleading. Your mortgage has to set up for bi-monthly payments if not. The
money just simply sits in your banks checking account until your normal
mortgage payment is due.

redmond424 replied 5 years ago

The Dividends Pay My Bills Method helped me to pay off my credit card debt
and home mortgage (Google it). It also taught me how to use investment
dividend income to pay my monthly utility bills… Google the method.

Leona Ba replied 5 years ago

this is good to no

Jeremy Drobeck replied 5 years ago

The guy talking about weekly/biweekly payments is just way wrong. He
doesnt understand how it works.

eric bailey replied 5 years ago

I know someone that tried to do this before 2008. She lost big time. She
did all of this for years. The minute she fell behind on her mortgage, bam
the bank kicked her out. Save your money, too many things can happen to
you. Cash is king, let the bank have the house back and take the money &
run. Just like Trump.

Eric Peltier replied 5 years ago

Be careful – Most bi-weekly payment plans IMPLY that they will apply your
payment to the mortgage twice a month, but they don’t. They apply it once
per month because the mortgage Note does not allow for more than one
payment per month. Also, Suzy Orman lost ALL credibility when she was
telling people to lease Cadillac Escalades in 2006 or so. 

supernova743 replied 5 years ago

Please please please look at your contracts. You may be charged fees for
early payments or multiple payments per month. Paying off your mortgage
off quickly is usually a good idea. However the interest payments on
mortgages is usually less than other loans. Credit cards should almost
always be paid off first. Then you should save enough money for
emergencies, short term loans like payday advances have insane costs.
After that then pay down your mortgage. Paying off your mortgage early
will reduce your monthly benefit however neglecting the rest of your credit
score could hurt you a lot more. Owning a house is better than paying off
a mortgage but any equity in your house can be leveraged against. It makes
little sense to pay off a house if you’re going to be taking out more
credit to do so. Also steady payments like mortgages and car payments will
actually IMPROVE your credit rating over time. While the debt does hurt,
following through on your scheduled plan may over time actually increase
your score.

This video makes it seem like paying off your mortgage will improve your
financial health. That is not the case in many people’s cases.

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