[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 ...

[mitchntx]

Steve, you are banking on a couple things with that rental home ... your renters won't trash the place and will pay on time. There is a reason why that house was in foreclosure and needed a good scrubbing ... people couldn't afford to pay and they no longer cared about the home because it wasn't theirs.

And you are banking on the property values to begin to return. Once the economy does turn, the glut of homes on the market will keep prices depressed for years to come. Even 3% mortgages can't entice buyers.

Real Estate just isn't the safe place to put your money any more to see a ROI.

Like anything purchased, there is more to the bottom line than depreciation or appreciation. The cost of ownership has to be factored in. For real estate, taxes, insurance interest payments, maintenance ... all take away from the bottom line.

You can't buy dinner, clothe your kids, buy silver ingets or stock your bunkers with MREs with FMV or equity. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/wink.gif)

[supermac]

Steve, you are banking on a couple things with that rental home ... your renters won't trash the place and will pay on time. There is a reason why that house was in foreclosure and needed a good scrubbing ... people couldn't afford to pay and they no longer cared about the home because it wasn't theirs.

And you are banking on the property values to begin to return. Once the economy does turn, the glut of homes on the market will keep prices depressed for years to come. Even 3% mortgages can't entice buyers.

Real Estate just isn't the safe place to put your money any more to see a ROI.

Like anything purchased, there is more to the bottom line than depreciation or appreciation. The cost of ownership has to be factored in. For real estate, taxes, insurance interest payments, maintenance ... all take away from the bottom line.

You can't buy dinner, clothe your kids, buy silver ingets or stock your bunkers with MREs with FMV or equity. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/wink.gif)

Mitch, where do you buy your silver and in what size can you get them?