[mitchntx]

... now is probably the best time to do so. Thought I would share ...

I close on a refi Monday at a 3% rate (IMG:http://www.frrax.com/rrforum/style_emoticons/default/blink.gif)

I have enough equity, that I'm cashing out enough to be debt free on everything except my mortgage, obviously.
Increasing the term by 7 years and the monthly payment is going down $100/month.

My home appraised for a LOT more than I first thought it would ... a LOT.

During my appraisal, I learned quite a bit ...

A kitchen remodel/update will get you about 120% of the money you spend.
New paint and tile in a bathroom is not considered an "update" ... bupkis.
A new 16 SEER HVAC ... bupkis.

A 1200 sq/ft shop will modify the appraisal $25K ... according to the appraiser, it would take $60K to replace it.
I need to chat with my insurance agent ...

I shopped around for a lender. I contacted several brokers and wound up with 4 GFEs.
When I chose my broker and started the process, I learned that my Credit Score took a hit ... a pretty substantial hit ... due to numerous pulls of my credit score from all those lenders. Really?
This came back to bite me in the end. Lots more more paperwork, documentation and a couple grand in by-down points.

But, the lender allowed me to negotiate and purchase many of the required processes, like a survey. I was able to save a couple hundred by negotiating outside the title company process. And the same holds true for a title company. I was able to negotiate a reduce fee structure by allowing me to freelance much of the documentation. I've been working nights the last few weeks, so I can pull records and do much of the leg work. Again saved several hundred bucks all used for the buy down points to get me at 3%.

The survey was interesting. My shop is built 6" into an easement. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif)
Neighbors to the south have their fence running almost a foot into my property. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif) (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif)
I have 5% more land than what was on my original survey. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/cool2.gif)

It's taken several weeks longer than normal because of the route I chose.
But I learned a lot about the process, the post bail-out red tape, where to spend money, how to work the system ...

Any way, just thought I'd share ...

[BryanL]

Nice work Mitch. Yes if you have more than 1-2 hard credit inquiries your credit will take a hit. When shopping different lenders request a GFE based on a certain credit score. You can get your own free anyway. Then when you pick who you want to use they will check your credit. Let me know when you have to register with the ATF for weapons of mass destruction.

Dave-I have several options that will get you a better rate than BofA. Also, they can close on the loan within a month whereaa the big banks will take you months and be a pita.

Also, I recommend anyone that does a refi to go with a 15 year. Have to be careful about using it as a piggy bank because of the low interest rate, too. A house isn't an investment-its just a place you live. Though the only debt you want to have is in a house if that makes any sense.

[Steve91T]

Nice work Mitch. Yes if you have more than 1-2 hard credit inquiries your credit will take a hit. When shopping different lenders request a GFE based on a certain credit score. You can get your own free anyway. Then when you pick who you want to use they will check your credit. Let me know when you have to register with the ATF for weapons of mass destruction.

Dave-I have several options that will get you a better rate than BofA. Also, they can close on the loan within a month whereaa the big banks will take you months and be a pita.

Also, I recommend anyone that does a refi to go with a 15 year. Have to be careful about using it as a piggy bank because of the low interest rate, too. A house isn't an investment-its just a place you live. Though the only debt you want to have is in a house if that makes any sense.

A house is absolutely an investment.

[mitchntx]

Also, I recommend anyone that does a refi to go with a 15 year. Have to be careful about using it as a piggy bank because of the low interest rate, too. A house isn't an investment-its just a place you live. Though the only debt you want to have is in a house if that makes any sense.

A house is absolutely an investment.

I used to believe that with all my soul. My focus was to get the mortgage paid off ASAP and be mortgage free.

But a mortgage is cheap money and a house is a tool to access it.

[cccbock]

Also, I recommend anyone that does a refi to go with a 15 year. Have to be careful about using it as a piggy bank because of the low interest rate, too. A house isn't an investment-its just a place you live. Though the only debt you want to have is in a house if that makes any sense.

A house is absolutely an investment.

I used to believe that with all my soul. My focus was to get the mortgage paid off ASAP and be mortgage free.

But a mortgage is cheap money and a house is a tool to access it.

How bout "a house is a poor investment"? If you believe an investment is supposed to make money, then a house is a bad investment, especially bad in a down market. By the time you pay the maintenance, taxes, mortgage interest and miscellaneous costs, then find out your market value is less today than last year, you just lost a bunch of money. But you gotta live somewhere.

If you were fortunate enough to buy your house in say 1985....then you probably have a "good" investment based on the equity and market value increase built over time. But the prospect of having a house be a "good" investment right now is quite low, even with the low rates. Saying that a house isn't an investment is echoing the market. And it is true. For now.

[Steve91T]

Also, I recommend anyone that does a refi to go with a 15 year. Have to be careful about using it as a piggy bank because of the low interest rate, too. A house isn't an investment-its just a place you live. Though the only debt you want to have is in a house if that makes any sense.

A house is absolutely an investment.

I used to believe that with all my soul. My focus was to get the mortgage paid off ASAP and be mortgage free.

But a mortgage is cheap money and a house is a tool to access it.

How bout "a house is a poor investment"? If you believe an investment is supposed to make money, then a house is a bad investment, especially bad in a down market. By the time you pay the maintenance, taxes, mortgage interest and miscellaneous costs, then find out your market value is less today than last year, you just lost a bunch of money. But you gotta live somewhere.

If you were fortunate enough to buy your house in say 1985....then you probably have a "good" investment based on the equity and market value increase built over time. But the prospect of having a house be a "good" investment right now is quite low, even with the low rates. Saying that a house isn't an investment is echoing the market. And it is true. For now.

It only becomes a poor investment when you sell it and take a loss. The one great thing about real estate is it will eventually go up in value. Right now house prices are low, right? In 10 years, what do you think it's going to be worth? Probably something more than you bought it for.

I bought a house in Norfolk, VA in the wrong neighborhood, at the wrong time, and at a really high price. I swear as soon as I got the keys, the housing market crashed. I needed to move, so I rented it out. A property manager takes care of EVERYTHING. I know that someday the prices will recover and it'll be worth something again. Until then, my renters are paying for the house for me.

The house we live in right now. Been 3 years, and we've done a ton of remodeling (ourselves). We are going to have to move soon. If we sold it, we'd probably get enough to pay off our mortgage, but we'd loose everything we put into it. So, instead of dumping it, we're going to rent it out. Let someone else pay for it until it's worth something again.

A few months ago, we bought an old house, in decent shape, that needed a good, hard, scrubbing. $45,000 foreclosure. We have put less than $10,000 into it. So, call it $55,000 into it, right? Well, it's taxed assessed for something like $106,000. Even in today's economy, it should be able to sell for $80,000. Someday it'll be worth more than that. Until then, we have it rented for $725/month.

All I'm saying is this is the perfect time to buy houses. Real estate is the most likely investment to make money....eventually.


That being said, I'm really glad I saw this thread. I need to take advantage of the low rates and refinance. The only thing is I really don't want to spend the money to refinance right now. It's the out of pocket that I don't like. I'll probably make some phone calls next week.

Steve