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> If you've ever considered a mortgage refi ...
mitchntx
post Oct 20 2011, 11:25 AM
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... 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 ...
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BryanL
post Oct 24 2011, 10:19 PM
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Little bit of apples vs oranges going on. Is a house bought to live in an investment? Sure you can try to make it look like an investment and approach it with the idea of investing but at the end of the day you have to live somewhere. Even people in the business with experience will tell you not to try and time the market when it comes to the house you live in.

Now what Steve is doing is investing in houses. That is completely different than talking about the house you live in. It is definitely a way to TRY and make some money. But don't forget to factor in your time and then the costs of the repairs after a renter leaves. It can easily wipeout any equity you thought they had paid for. It can be done and I know several people who have been successful but it still ends up being a career. Mostly that whole market is made up of people buying books and seminars, buying 2 houses and then realizing this isn't what they bargained for or they didn't make the kind of money they thought. For what its worth I rent the house out I lived in for 8 years and currently rent a house where I live-anyone want to buy a lakehouse?

And Gene that makes me jealous after slaving in my Dad's garage (6-8 car capacity) all weekend-nice setup. I can't wait for my wife to leave me so I can have a place like that with a small buildout for living quarters.

Lastly-do some research (Case/Schiller) and look back over 100 years to see the rate of return for housing. Yes, it does appreciate over time but check to see if its not close to 1% which is below the inflation rate. When it comes to an investment I certainly want something that beats inflation and doesn't require me to mow the lawn, maintain the pool, and fix the roof.
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mitchntx   If you've ever considered a mortgage refi ...   Oct 20 2011, 11:25 AM
CrashTestDummy   It's good to know the property values are goin...   Oct 20 2011, 12:43 PM
AllZWay   We actually just checked on our house. We only ow...   Oct 20 2011, 01:24 PM
mitchntx   My cost/benefit was almost a wash ... I had 8 year...   Oct 20 2011, 02:07 PM
FBody383   Man, I need to go see the CrashTest shop. Maybe I...   Oct 20 2011, 02:28 PM
mitchntx   I was suprised at the costs associated with buying...   Oct 20 2011, 02:52 PM
CrashTestDummy   QUOTE (FBody383 @ Oct 20 2011, 09:28 AM) ...   Oct 21 2011, 01:45 PM
BryanL   Nice work Mitch. Yes if you have more than 1-2 har...   Oct 20 2011, 05:18 PM
Steve91T   QUOTE (BryanL @ Oct 20 2011, 01:18 PM) Ni...   Oct 20 2011, 05:39 PM
mitchntx   QUOTE (Steve91T @ Oct 20 2011, 12:39 PM) ...   Oct 20 2011, 10:19 PM
cccbock   QUOTE (mitchntx @ Oct 20 2011, 06:19 PM) ...   Oct 21 2011, 12:49 AM
cccbock   QUOTE (mitchntx @ Oct 20 2011, 06:19 PM) ...   Oct 21 2011, 12:51 AM
Steve91T   QUOTE (cccbock @ Oct 20 2011, 08:51 PM) Q...   Oct 21 2011, 02:17 AM
Rob Hood   Congrats Mitch - 3% is awesome money. I hope I ca...   Oct 21 2011, 01:02 AM
mitchntx   Steve, you are banking on a couple things with tha...   Oct 21 2011, 09:19 AM
supermac   QUOTE (mitchntx @ Oct 21 2011, 03:19 AM) ...   Oct 21 2011, 01:20 PM
Steve91T   OK, let me say one more thing. I understand what y...   Oct 21 2011, 02:00 PM
BryanL   Little bit of apples vs oranges going on. Is a ho...   Oct 24 2011, 10:19 PM

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