Comments on: Rates Are Low. Is It Time To Refinance? Our Refinance Story http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html Finances transformed by faith Sat, 21 Nov 2009 05:12:43 -0800 http://wordpress.org/?v=abc hourly 1 By: Tom Felten http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-10661 Tom Felten Sun, 01 Nov 2009 14:32:24 +0000 http://www.biblemoneymatters.com/?p=2019#comment-10661 A couple hours before closing they threw out a MI requirement! I am convinced that there are so many people out there just trying to prey for your money! I knew my REFI to beg to ONLY have to pay 2/3 MORE the mortgage than my neighbor (having moved in 3 years prior) pays instead of about 75% more, was too good to be true. I am just disgusted at the system, the wolves and all the greedy people that want more and more of my money!!! A couple hours before closing they threw out a MI requirement! I am convinced that there are so many people out there just trying to prey for your money! I knew my REFI to beg to ONLY have to pay 2/3 MORE the mortgage than my neighbor (having moved in 3 years prior) pays instead of about 75% more, was too good to be true. I am just disgusted at the system, the wolves and all the greedy people that want more and more of my money!!!

]]> By: Tom Felten http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-10536 Tom Felten Sun, 25 Oct 2009 15:41:28 +0000 http://www.biblemoneymatters.com/?p=2019#comment-10536 I have a story to share that is probably a microcosm of what is occuring throughout the country but I figured I would throw it out there to share...... We purchased our home here in Millersville Maryland in September of 2005 for $735,000 (interest rate 6 1/8). This was certainly the peak price paid for these homes and as a benchmark, the neighbors next door and others in the community purchased nearly similar homes for approximately $330-380K in 2001 (The couple we purchased from walked away with a $360K check and purchased this home new in 2002)...... We put $100K cash down when we moved in (this was hard cash not from a pre-existing home sale as this was our first home), and took out a 2nd (line of credit) which we have paid off completely. Also, our taxes and insurance since we bought so high are double all others in the neighborhood (neighbors pay about $3K annually and we pay $6K). The county has a law whereby they only raise taxes for existing homebuyers 10% of the total increase in assessment, therefore the new buyers shoulder the increase and you can probably imagine that things are upside down now; whereby during the boom the appraisal exceeded the assessment and now the assessment is much higher than the appraisal (of course since the assessment is what the county uses to tax)!!!! We have decided to refinance at 5.375% but not without a lot of out of pocket costs. The appraisal come in at about $108K less than we purcahsed the home 4 years ago, so given the 80/20 LTV ratio, (since we owe $548 remaining) we are winding up having to pay $20K toward the principle out of pocket to finance 85% of the now $622K value which is $528K....... The good news is that we will be saving about $600 monthly as the old PITI was $4,200 and the new PITI is approximately $3,600. I had a hard time throwing that $20K out there and of course the unrecoverables of about $5K and the "pregnant" escrow of about $7K which I hope to get back, particularly since most neighbors refinanced about $290K @ 5% and I am refinancing almost double the amount, paying double the taxes and have over $200K of my own hard earned cash in this home (put a great deal of personal cash into the home and bought my way into a non upside down scenario), but this is really a microcosm I believe of what occured in this country due in large part to people borrowing money they didn't have hence facilitating all of the greed on Wall Street and the derivative swaps which occured! In the meantime, I will just keep trying to save cash so I can put my kids through college, and congratulate my neighbors who will have a much easier and less stresed time doing so because they purchased the same asset only a few years prior I have a story to share that is probably a microcosm of what is occuring throughout the country but I figured I would throw it out there to share……
We purchased our home here in Millersville Maryland in September of 2005 for $735,000 (interest rate 6 1/8). This was certainly the peak price paid for these homes and as a benchmark, the neighbors next door and others in the community purchased nearly similar homes for approximately $330-380K in 2001 (The couple we purchased from walked away with a $360K check and purchased this home new in 2002)……
We put $100K cash down when we moved in (this was hard cash not from a pre-existing home sale as this was our first home), and took out a 2nd (line of credit) which we have paid off completely.
Also, our taxes and insurance since we bought so high are double all others in the neighborhood (neighbors pay about $3K annually and we pay $6K). The county has a law whereby they only raise taxes for existing homebuyers 10% of the total increase in assessment, therefore the new buyers shoulder the increase and you can probably imagine that things are upside down now; whereby during the boom the appraisal exceeded the assessment and now the assessment is much higher than the appraisal (of course since the assessment is what the county uses to tax)!!!!
We have decided to refinance at 5.375% but not without a lot of out of pocket costs. The appraisal come in at about $108K less than we purcahsed the home 4 years ago, so given the 80/20 LTV ratio, (since we owe $548 remaining) we are winding up having to pay $20K toward the principle out of pocket to finance 85% of the now $622K value which is $528K…….
The good news is that we will be saving about $600 monthly as the old PITI was $4,200 and the new PITI is approximately $3,600.
I had a hard time throwing that $20K out there and of course the unrecoverables of about $5K and the “pregnant” escrow of about $7K which I hope to get back, particularly since most neighbors refinanced about $290K @ 5% and I am refinancing almost double the amount, paying double the taxes and have over $200K of my own hard earned cash in this home (put a great deal of personal cash into the home and bought my way into a non upside down scenario), but this is really a microcosm I believe of what occured in this country due in large part to people borrowing money they didn’t have hence facilitating all of the greed on Wall Street and the derivative swaps which occured!
In the meantime, I will just keep trying to save cash so I can put my kids through college, and congratulate my neighbors who will have a much easier and less stresed time doing so because they purchased the same asset only a few years prior

]]> By: In Debt http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-9865 In Debt Thu, 24 Sep 2009 18:01:32 +0000 http://www.biblemoneymatters.com/?p=2019#comment-9865 When we refinanced in April, 2009 I found our mortgage broker through the Zillow Marketplace. Even though he was several states away, he was awesome to work with via telephone, email, fax. Much lower fees than I found anywhere locally, and I was so lucky to get a 4.5% fixed rate (albeit 30 years). .-= In Debt´s last blog ..<a href="http://payingformypast.blogspot.com/2009/09/holding-my-breath.html" rel="nofollow">Holding my breath</a> =-. When we refinanced in April, 2009 I found our mortgage broker through the Zillow Marketplace. Even though he was several states away, he was awesome to work with via telephone, email, fax. Much lower fees than I found anywhere locally, and I was so lucky to get a 4.5% fixed rate (albeit 30 years).
In Debt´s last blog ..Holding my breath

]]> By: As Rates Spring Back, Is a Weak Summer for Stocks Ahead? | Good Financial Cents by Jeff Rose Certified Financial Planner http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-7057 As Rates Spring Back, Is a Weak Summer for Stocks Ahead? | Good Financial Cents by Jeff Rose Certified Financial Planner Fri, 05 Jun 2009 04:00:26 +0000 http://www.biblemoneymatters.com/?p=2019#comment-7057 [...] process underway in the United States is driven in part by low interest rates that contribute to low mortgage rates, low cost of capital for businesses, and the low cost of government debt used to finance [...]

[...] process underway in the United States is driven in part by low interest rates that contribute to low mortgage rates, low cost of capital for businesses, and the low cost of government debt used to finance [...]

]]> By: What To Do With an Inheritance Money | Good Financial Cents http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-5180 What To Do With an Inheritance Money | Good Financial Cents Thu, 19 Mar 2009 11:35:20 +0000 http://www.biblemoneymatters.com/?p=2019#comment-5180 [...] to write off your interest each year which can be a very nice deduction. If you qualify, I would make sure you refinance for a rate at least 6% or lower.   If your rate is below 6%, one possibility you could look into [...]

[...] to write off your interest each year which can be a very nice deduction. If you qualify, I would make sure you refinance for a rate at least 6% or lower.   If your rate is below 6%, one possibility you could look into [...]

]]> By: Should you refinance your home | Good Financial Cents http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-4988 Should you refinance your home | Good Financial Cents Wed, 04 Mar 2009 20:58:00 +0000 http://www.biblemoneymatters.com/?p=2019#comment-4988 [...] will be spending money up front for the loan, but you will be saving money each month because your interest rate will be lower. Therefore, you will need to calculate how many months it will take to recoup your up front cost. [...]

[...] will be spending money up front for the loan, but you will be saving money each month because your interest rate will be lower. Therefore, you will need to calculate how many months it will take to recoup your up front cost. [...]

]]> By: Lower Housing Prices Equals Lower Property Taxes : Cash Money Life http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-4489 Lower Housing Prices Equals Lower Property Taxes : Cash Money Life Wed, 28 Jan 2009 10:36:13 +0000 http://www.biblemoneymatters.com/?p=2019#comment-4489 [...] week, Pete from Bible Money Matters wrote about how and his wife were considering refinancing their home. They were able to lock in a new mortgage rate that would save them $200 per month. Unfortunately, [...]

[...] week, Pete from Bible Money Matters wrote about how and his wife were considering refinancing their home. They were able to lock in a new mortgage rate that would save them $200 per month. Unfortunately, [...]

]]> By: Steve http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-4447 Steve Mon, 26 Jan 2009 17:51:02 +0000 http://www.biblemoneymatters.com/?p=2019#comment-4447 Great article! I was wondering where your friends got their loans at Saint Seven? And any ideas of the closing costs? Any input is appreciated! Thanks All! Great article! I was wondering where your friends got their loans at Saint Seven? And any ideas of the closing costs? Any input is appreciated! Thanks All!

]]> By: Weekly Round Up- Happy Birthday Edition | Good Financial Cents http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-4431 Weekly Round Up- Happy Birthday Edition | Good Financial Cents Sun, 25 Jan 2009 18:31:58 +0000 http://www.biblemoneymatters.com/?p=2019#comment-4431 [...] it makes a great time to refinance at a low fixed rate.  Pete from Bible Money Matters shares his personal story of refinancing his home.  The best part is how he actually found his mortage banker.  I’ll give you a hint: Tweet! [...]

[...] it makes a great time to refinance at a low fixed rate.  Pete from Bible Money Matters shares his personal story of refinancing his home.  The best part is how he actually found his mortage banker.  I’ll give you a hint: Tweet! [...]

]]> By: Camping and the Primetime QuickHits | Prime Time Money http://www.biblemoneymatters.com/2009/01/rates-are-low-is-it-time-to-refinance-our-mortgage-story.html/comment-page-1#comment-4425 Camping and the Primetime QuickHits | Prime Time Money Sat, 24 Jan 2009 19:01:08 +0000 http://www.biblemoneymatters.com/?p=2019#comment-4425 [...] Pete from Bible Money Matters looked at possibly refinancing his house this past week. See how he did in an article titled, Rates Are Low. Is It Time To Refinance? Our Refinance Story. [...]

[...] Pete from Bible Money Matters looked at possibly refinancing his house this past week. See how he did in an article titled, Rates Are Low. Is It Time To Refinance? Our Refinance Story. [...]

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