[quote=HLS]Those are the guidelines.
There are many others that make zero sense as well.
Underwriters are told to follow directions, not to think for themselves.
If you pay off the house then want cash out, it’s a cash out refi.
You cannot buy the house from yourself.
Freddie & Fannie make the rules which have nothing to do with common sense. Pricing hit for cash out
Your lower loan amount is what’s hurting you if you’re looking for a no cost loan.
Doesn’t matter if you have 80% equity.
There are costs involved with every loan, $500,000 loan fees aren’t that much higher than 160,000 loan.
Lender pays a % of the loan amount to cover the costs.
1% of 500k = $5000
1% of 160k = $1600
Some lenders have penalties for loans under $200K
I am working on one for a client now.
It was cheaper to get a $200,000 cash out loan than $160,000 without cash out. They will probably pay the extra $40,000 back towards principal quickly.
Although the payment won’t change, interest is only charged on the actual loan balance. More will go towards principal.
What are you trying to accomplish ?
Is a rate around 3.21 with $1000 cost or below 3% with a higher cost any interest ?
It’s either low/no cost up front with a higher payment OR pay up front and have a lower payment for the life of the loan.
Some people think paying up front is wasting money but
staying in a higher rate is wasting money too.[/quote]
I guess my problem is im not sure what im trying to accomplish.
6 months ago, i was sick of the mortgage, sick of paying, just wanted no mortgage. I wanted to quit working and just vegetate, meditate and be done with all the bullshit.
Now the cheapest 15 year is starting to look almost free. I feel a little less disgusted by it all and feel like i can keep working and want more money again. I want to deal with all the bullshit!
I think what i want is a 165,000 15 year mortgage at 1.625 percent. For this i would pay $3900-4500.
Or 500k for $9200, if i could convince my wife thats not crazy. Which i dont think i could do. So realistically 160 to 200k
. I hope to get this before the election. I accept that it may never happen [the mortgage and the election].
I would like to keep some mortgage now well into my 70s, if it can be below 2 perc. And put the $ i intended to pay the mortgage off with into a diversified little portfolio with a 15 y investment horizon . I did not think id ever see a rate low enouggt to tempt me to do this. 1.625 would do it.
I also wasnt sure sure if id live to see 2k an oz gold for much of the last decade.
The latter will likely happen this week, (hell, it may open on monday close to 2k. Rocketing up in overnight trading. Holy crap, 1,941 right now. I bought as much as i could stomach on fri. But not enough)…
The former, im less confident but i feel its coming and that its related to the steep rise in gold and tht crazy shit will be done to prop of a failing system as election day approaches…including historic low rates
I might also run out of energy again and prob. Should keep the debt low just in case i wake up one day and cannot summon the energy to get out of bed. 20 years ago i felt like i could never run out of energy. Now me and the market could crash 80 perc from current levels tomorrow, and stay there for years. Maybe never recover. Man, life wears me down. What i would like tto accomplish is something i think will be unattainable for me.. to never worry about money. That is just not in the cards for a person like me in this society. Or not at least until death is very close. Which makes sense as the term mortgage translates from ancient french, death pledge.
