Thread: OT: 2.625%

On 10/10/2012 9:42 AM, Bryan wrote:
> That's yesterday's interest rate on a 15 year mortgage.
> https://firstcommunity.mortgagewebce...om/Default.asp
> We lock in today on a refi. For a $55 a month increase in payments,
> we go from having 27 years to pay off, down to 15. If anyone out
> there has a significant mortgage balance, you should look into
> refinancing right now.

Congratulations. That's how we killed our mortgage, went to a
15 year and the balance dropped fast enough we were able to put
it to rest maybe 7 years later, if that. It's crazy not to jump
on that rate if you can. Almost funny compared to the 12.75 we
started with.

nancy

On Oct 10, 9:22*am, Nancy Young <rjynlynos...@vverizon.net> wrote:
> On 10/10/2012 9:42 AM, Bryan wrote:
>
> > That's yesterday's interest rate on a 15 year mortgage.
> >https://firstcommunity.mortgagewebce...om/Default.asp
> > We lock in today on a refi. * For a $55 a month increase in payments,
> > we go from having 27 years to pay off, down to 15. * If anyone out
> > there has a significant mortgage balance, you should look into
> > refinancing right now.
>
> Congratulations. *That's how we killed our mortgage, went to a
> 15 year and the balance dropped fast enough we were able to put
> it to rest maybe 7 years later, if that. *It's crazy not to jump
> on that rate if you can. *Almost funny compared to the 12.75 we
> started with.

It went down again. We locked in at 2.50!
>
> nancy

--Bryan

"Bryan" <[email protected]> wrote in message
news:[email protected]...
> That's yesterday's interest rate on a 15 year mortgage.
> https://firstcommunity.mortgagewebce...om/Default.asp
> We lock in today on a refi. For a $55 a month increase in payments,
> we go from having 27 years to pay off, down to 15. If anyone out
> there has a significant mortgage balance, you should look into
> refinancing right now.
>
> --Bryan


wow, I'm going to have to look into this... Mine is 5 1/8 and that was a
good deal at the time.

Thanks!

On Oct 10, 2:12*pm, "Somebody" <e...@mail.au> wrote:
> "Bryan" <bryangsimm...@gmail.com> wrote in message
>
> news:[email protected]...
>
> > That's yesterday's interest rate on a 15 year mortgage.
> >https://firstcommunity.mortgagewebce...om/Default.asp
> > We lock in today on a refi. * For a $55 a month increase in payments,
> > we go from having 27 years to pay off, down to 15. * If anyone out
> > there has a significant mortgage balance, you should look into
> > refinancing right now.
>
> > --Bryan
>
> wow, I'm going to have to look into this... *Mine is 5 1/8 and that wasa
> good deal at the time.
>
> Thanks!

Not if you're unemployed!

"Somebody" wrote:
>
>Mine is 5 1/8" and that was a good deal at the time.

Are you bragging, complaining, or exaggerating... as if the girls are
gonna swoon over that 1/8". LOL

On Oct 10, 4:12*pm, "Somebody" <e...@mail.au> wrote:
> "Bryan" <bryangsimm...@gmail.com> wrote in message
>
> news:[email protected]...
>
> > That's yesterday's interest rate on a 15 year mortgage.
> >https://firstcommunity.mortgagewebce...om/Default.asp
> > We lock in today on a refi. * For a $55 a month increase in payments,
> > we go from having 27 years to pay off, down to 15. * If anyone out
> > there has a significant mortgage balance, you should look into
> > refinancing right now.
>
> > --Bryan
>
> wow, I'm going to have to look into this... *Mine is 5 1/8 and that wasa
> good deal at the time.
>
> Thanks!

This may not be rock bottom, but since it often takes several weeks
before you can lock, I'd do it very soon. If, after the election,
there is legislation passed that avoids the sequestration, interest
rates will probably be heading back up pretty rapidly. Not far up,
but up.

--Bryan

"Brooklyn1" <Gravesend1> wrote in message
news:[email protected]..
> "Somebody" wrote:
>>
>>Mine is 5 1/8" and that was a good deal at the time.
>
> Are you bragging, complaining, or exaggerating... as if the girls are
> gonna swoon over that 1/8". LOL


lol!

On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young
<[email protected]> wrote:

>On 10/10/2012 9:42 AM, Bryan wrote:
>> That's yesterday's interest rate on a 15 year mortgage.
>> https://firstcommunity.mortgagewebce...om/Default.asp
>> We lock in today on a refi. For a $55 a month increase in payments,
>> we go from having 27 years to pay off, down to 15. If anyone out
>> there has a significant mortgage balance, you should look into
>> refinancing right now.
>
>Congratulations. That's how we killed our mortgage, went to a
>15 year and the balance dropped fast enough we were able to put
>it to rest maybe 7 years later, if that. It's crazy not to jump
>on that rate if you can. Almost funny compared to the 12.75 we
>started with.
>
>nancy
>

Even if you don't re-fi, send a few extra bucks every month to knock
down the principal and save a bundle. When I bought this house in
1981, it was 15%. Re-finance a couple of times and was happy to
finally pay it off.

On 10/10/2012 9:42 AM, Bryan wrote:

> That's yesterday's interest rate on a 15 year mortgage.
> https://firstcommunity.mortgagewebce...om/Default.asp
> We lock in today on a refi. For a $55 a month increase in payments,
> we go from having 27 years to pay off, down to 15. If anyone out
> there has a significant mortgage balance, you should look into
> refinancing right now.

I've refinanced twice in the last two years, the last one to modify my
30 year to a 15 year. Otherwise, I'd refinance again. I'd have to do
some math to figure out if it would be worth it. Could probably go down
to a 10 year with that rate. Hmm...

I bought my house in 2000 when the interest rate was over 9%, and have
refinanced probably 4 times.

On 10/10/2012 11:02 PM, Ed Pawlowski wrote:
> On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young
> <[email protected]> wrote:
>
>> On 10/10/2012 9:42 AM, Bryan wrote:
>>> That's yesterday's interest rate on a 15 year mortgage.
>>> https://firstcommunity.mortgagewebce...om/Default.asp
>>> We lock in today on a refi. For a $55 a month increase in payments,
>>> we go from having 27 years to pay off, down to 15. If anyone out
>>> there has a significant mortgage balance, you should look into
>>> refinancing right now.
>>
>> Congratulations. That's how we killed our mortgage, went to a
>> 15 year and the balance dropped fast enough we were able to put
>> it to rest maybe 7 years later, if that. It's crazy not to jump
>> on that rate if you can. Almost funny compared to the 12.75 we
>> started with.
>>
>> nancy
>>
>
> Even if you don't re-fi, send a few extra bucks every month to knock
> down the principal and save a bundle. When I bought this house in
> 1981, it was 15%. Re-finance a couple of times and was happy to
> finally pay it off.
>
That's what I do, too. I spend $200 extra per month. Math is not my
strength so I can't remember what that's supposed to knock the principal
down to over the next several years. That's why after the last refin I
opted for 15 year rather than 10 and just pay extra while I can, but if
I can't, I have a lower monthly payment than the 10 year plan.

On 10/10/2012 11:02 PM, Ed Pawlowski wrote:
> On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young

>> Congratulations. That's how we killed our mortgage, went to a
>> 15 year and the balance dropped fast enough we were able to put
>> it to rest maybe 7 years later, if that. It's crazy not to jump
>> on that rate if you can. Almost funny compared to the 12.75 we
>> started with.

> Even if you don't re-fi, send a few extra bucks every month to knock
> down the principal and save a bundle. When I bought this house in
> 1981, it was 15%. Re-finance a couple of times and was happy to
> finally pay it off.

Imagine, 15%. We re-fied a couple of times, too. Some of the
clowns we had to deal with, I knew any effort to pay down principal
would result in the money being applied to escrow or something.

Can't believe how low Bryan's rate wound up. Incredible. Almost
makes me want to go buy another place. Harrr.

nancy

"Nancy Young" <[email protected]> wrote in message
news:50763547$0$4880$[email protected] com...
> On 10/10/2012 11:02 PM, Ed Pawlowski wrote:
>> On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young
>
>>> Congratulations. That's how we killed our mortgage, went to a
>>> 15 year and the balance dropped fast enough we were able to put
>>> it to rest maybe 7 years later, if that. It's crazy not to jump
>>> on that rate if you can. Almost funny compared to the 12.75 we
>>> started with.
>
>> Even if you don't re-fi, send a few extra bucks every month to knock
>> down the principal and save a bundle. When I bought this house in
>> 1981, it was 15%. Re-finance a couple of times and was happy to
>> finally pay it off.
>
> Imagine, 15%. We re-fied a couple of times, too. Some of the
> clowns we had to deal with, I knew any effort to pay down principal
> would result in the money being applied to escrow or something.
>
> Can't believe how low Bryan's rate wound up. Incredible. Almost
> makes me want to go buy another place. Harrr.
>
> nancy



Back when Carter was president, I had a CD that earned around 20%!

In article <k562i9$8ri$[email protected]>, Somebody <[email protected]> wrote:
>"Nancy Young" <[email protected]> wrote in message
>news:50763547$0$4880$[email protected] .com...
>> On 10/10/2012 11:02 PM, Ed Pawlowski wrote:
>>> On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young
>>
>>>> Congratulations. That's how we killed our mortgage, went to a
>>>> 15 year and the balance dropped fast enough we were able to put
>>>> it to rest maybe 7 years later, if that. It's crazy not to jump
>>>> on that rate if you can. Almost funny compared to the 12.75 we
>>>> started with.
>>
>>> Even if you don't re-fi, send a few extra bucks every month to knock
>>> down the principal and save a bundle. When I bought this house in
>>> 1981, it was 15%. Re-finance a couple of times and was happy to
>>> finally pay it off.
>>
>> Imagine, 15%. We re-fied a couple of times, too. Some of the
>> clowns we had to deal with, I knew any effort to pay down principal
>> would result in the money being applied to escrow or something.
>>
>> Can't believe how low Bryan's rate wound up. Incredible. Almost
>> makes me want to go buy another place. Harrr.
>>
>> nancy
>
>
>
>Back when Carter was president, I had a CD that earned around 20%!

That was Volker's doing.

Our first mortgage (in 1985) was 11.75% (a 15 year); the second balloon
mortgage was 12%. The balloon saved us from being required to have an
escrow account. We never refinanced (rates only dropped slightly
in the ensuing years) but we were able to pay them off in about eight
years.

In those days, the mortgage interest deduction was quite valuable.
Today, not so much.



Steve

"Steve Pope" <[email protected]> wrote in message
news:k56mjv$mvf$[email protected]..
>>Back when Carter was president, I had a CD that earned around 20%!
>
> That was Volker's doing.
>
> Our first mortgage (in 1985) was 11.75% (a 15 year); the second balloon
> mortgage was 12%. The balloon saved us from being required to have an
> escrow account. We never refinanced (rates only dropped slightly
> in the ensuing years) but we were able to pay them off in about eight
> years.
>
> In those days, the mortgage interest deduction was quite valuable.
> Today, not so much.
>
> Steve


I wish I could refinance, but probably sell in year or so. Doesn't makes
sense... And local agent here said: 3.6%

On Wed, 10 Oct 2012 23:02:36 -0400, Ed Pawlowski <[email protected]> wrote:

>On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young
><[email protected]> wrote:
>
>>On 10/10/2012 9:42 AM, Bryan wrote:
>>> That's yesterday's interest rate on a 15 year mortgage.
>>> https://firstcommunity.mortgagewebce...om/Default.asp
>>> We lock in today on a refi. For a $55 a month increase in payments,
>>> we go from having 27 years to pay off, down to 15. If anyone out
>>> there has a significant mortgage balance, you should look into
>>> refinancing right now.
>>
>>Congratulations. That's how we killed our mortgage, went to a
>>15 year and the balance dropped fast enough we were able to put
>>it to rest maybe 7 years later, if that. It's crazy not to jump
>>on that rate if you can. Almost funny compared to the 12.75 we
>>started with.
>>
>>nancy
>>
>
>Even if you don't re-fi, send a few extra bucks every month to knock
>down the principal and save a bundle.

I think it very rare that a mortgage holder will accept a few bucks at
a time, they typically take advance payments but in my experience they
need to be in multiples of the full monthly payment amount. And in my
experience one should do very careful computations prior to
refinancing because typically there is no savings when the loss of all
the years one has already paid is calculated... you can end up with
smaller monthly payments but end up paying a larger net amount because
you get credit for the principal you paid but don't get credit for the
years you paid. Often there are substantial closing costs and then
you need to start paying all over again so for most folks they will
pay for a lot longer so will make many more payments even though the
payments are smaller. Usually there is no savings and in fact they
pay more but the payments are smaller and in this new economic
environment that can be a help to those who have a problem making the
larger payments under their original mortgage... one also needs to
calculate the tax savings from the interest deduction. In my
experience refinancing stretches out the payments but offers no net
savings... the banks ain't stupid. Most folks think of a mortgage as
liability but in fact a mortgage is an asset.

On Oct 11, 3:19*pm, Brooklyn1 <Gravesend1> wrote:
> On Wed, 10 Oct 2012 23:02:36 -0400, Ed Pawlowski <e...@snet.net> wrote:
> >On Wed, 10 Oct 2012 10:22:46 -0400, Nancy Young
> ><rjynlynos...@vverizon.net> wrote:
>
> >>On 10/10/2012 9:42 AM, Bryan wrote:
> >>> That's yesterday's interest rate on a 15 year mortgage.
> >>>https://firstcommunity.mortgagewebce...om/Default.asp
> >>> We lock in today on a refi. * For a $55 a month increase in payments,
> >>> we go from having 27 years to pay off, down to 15. * If anyone out
> >>> there has a significant mortgage balance, you should look into
> >>> refinancing right now.
>
> >>Congratulations. *That's how we killed our mortgage, went to a
> >>15 year and the balance dropped fast enough we were able to put
> >>it to rest maybe 7 years later, if that. *It's crazy not to jump
> >>on that rate if you can. *Almost funny compared to the 12.75 we
> >>started with.
>
> >>nancy
>
> >Even if you don't re-fi, send a few extra bucks every month to knock
> >down the principal and save a bundle.
>
> I think it very rare that a mortgage holder will accept a few bucks at
> a time, they typically take advance payments but in my experience they
> need to be in multiples of the full monthly payment amount. *And in my
> experience one should do very careful computations prior to
> refinancing because typically there is no savings when the loss of all
> the years one has already paid is calculated... you can end up with
> smaller monthly payments but end up paying a larger net amount because
> you get credit for the principal you paid but don't get credit for the
> years you paid. * Often there are substantial closing costs and then
> you need to start paying all over again so for most folks they will
> pay for a lot longer so will make many more payments even though the
> payments are smaller. *Usually there is no savings and in fact they
> pay more but the payments are smaller and in this new economic
> environment that can be a help to those who have a problem making the
> larger payments under their original mortgage... one also needs to
> calculate the tax savings from the interest deduction. *In my
> experience refinancing stretches out the payments but offers no net
> savings... the banks ain't stupid. *Most folks think of a mortgage as
> liability but in fact a mortgage is an asset.

In my case, I did the math and it turned out great. Our monthly
payment increases 18%, but the years to payoff go down from 27 years
to 15 years. We never itemize, so we never use the mortgage interest
as a deduction on our home, though we do on the rental house.

--Bryan

On 10/10/2012 11:45 PM, Nancy Young wrote:

> Can't believe how low Bryan's rate wound up. Incredible. Almost
> makes me want to go buy another place. Harrr.

Seriously. I've wanted to buy a place at the ocean that I can use a few
weeks during the summer and other seasons, rent it out the rest of the
time, then retire to it some day. If I thought I could swing it, now
would be the time. I'm sure my window of opportunity is very short so
it won't give me time to think it through. Though a non-primary place
of residence probably won't get that low rate.

On Oct 11, 6:25*pm, Cheryl <jlhsha...@hotmail.com> wrote:
> On 10/10/2012 11:45 PM, Nancy Young wrote:
>
> > Can't believe how low Bryan's rate wound up. *Incredible. *Almost
> > makes me want to go buy another place. *Harrr.
>
> Seriously. *I've wanted to buy a place at the ocean that I can use a few
> weeks during the summer and other seasons, rent it out the rest of the
> time, then retire to it some day. *If I thought I could swing it, now
> would be the time. *I'm sure my window of opportunity is very short so
> it won't give me time to think it through. *Though a non-primary place
> of residence probably won't get that low rate.

That is true.

--Bryan

On Thu, 11 Oct 2012 16:19:30 -0400, Brooklyn1 <Gravesend1> wrote:



>>
>>Even if you don't re-fi, send a few extra bucks every month to knock
>>down the principal and save a bundle.
>
>I think it very rare that a mortgage holder will accept a few bucks at
>a time, they typically take advance payments but in my experience they
>need to be in multiples of the full monthly payment amount.

Never ran into that. I could send as little or as much as I wanted,
but other banks may differ.

>And in my
>experience one should do very careful computations prior to
>refinancing because typically there is no savings when the loss of all
>the years one has already paid is calculated... you can end up with
>smaller monthly payments but end up paying a larger net amount because
>you get credit for the principal you paid but don't get credit for the
>years you paid. Often there are substantial closing costs and then
>you need to start paying all over again so for most folks they will
>pay for a lot longer so will make many more payments even though the
>payments are smaller.

When I first refinanced, I went from 15% to about 9% IIRC. I remember
walking out with 10 years less to pay and about the same payment. When
the interest moves just a little, you are right about closing cost
eating up the savings. Thus the savings by prepaying a bit each month
instead.