[arv]

Thank you every one for the responses.

I got approved by AIG. They have conversion option to fixed product. Also they provide conversion option to a new Term with in first 2 years.

The yearly rates I got are
1million 20year for $594
1million 30year for $1094
500K 20 year for $329
500K 30 year for $589

I have a 6 year old and one on way.

“California Life and Health Insurance Guarantee Association” provides coverage protection upto 300K or 80% of the death benefit. Should one divide policies into multiple amount policies?

[arv]

teaboy, finally I went through docs and collected following information about my policy

– Dwelling coverage is 431,100
– 2500 deductible
– Dwelling extended replacement cost (ERC) included 150%
– Building code upgrade coverage is included
– Replacement cost on contents included
– Inflation guard 4% (every year the dwelling coverage is increased by 4%)
-$18,000 mortgage payment protection included

My premium is 874.

My agent informed that inflation guard can not be removed and also coverage can not be reduced 🙁

Any recommendations on any reasonable insurance companies for where I can get quote.

[arv]

I am reviewing my statement from insurance company for renewal. The insurance company is increasing coverage about 4% every year and the building coverage amount it has on renewal is 433,600 for about 2200 Sqft SFH in scripps ranch area. The premium went up by 10% each year.

I am not sure whether I am over insured/under or adequately insured. How to determine average cost for building?

Shall I continue 4% increase every year or reduce the coverage?

[arv]

teaboy,
property taxes + hazard insurance renewal + impound account helped to consume the rebate. So it all depends time of refinancing and loan amount and property taxes.

[arv]

teaboy, it is good to see some one else is using this approach to get some money out of home. I have done this successfully a number of times with 25k getting in rebates since last year.

My latest is around 6800 cash back on the closing which happened today.

This approach works in falling interest rate environment with out much risk. In rising interest rate environment one has to take a risk of getting locked into higher interest rate.

I also consider interest payments as rent payments (as teaboy mentioned) and thinking that I am buying a home a year later with reduced price.

My latest is 20 year refinancing. Last year when I bought home it was 30 year 4.875. Now I am at 20 year with payment increased only by $250 per month compared to first financing and top of that I made 25K tax free with refinancing. Even if I may not able to refinance to lower rate in future I am fine with this payment.

Like any other investment this may not work for every one. So one has to make choice to use it or not. In my case it happened that I able to use and make it work for me so far.

[arv]

teaboy, it is good to see some one else is using this approach to get some money out of home. I have done this successfully a number of times with net 25k getting in rebates since last year.

My latest is around 6800 cash back on the closing which happened today.

This approach works in falling interest rate environment with out much risk. In rising interest rate environment one has to take a risk of getting locked into higher interest rate.

I also consider interest payments as rent payments (as teaboy mentioned) and thinking that I am buying a home a year later with reduced price.

My latest is 20 year refinancing. Last year when I bought home it was 30 year 4.875. Now I am at 20 year with payment increased only by $250 per month compared to first financing and top of that I made 25K tax free with refinancing. Even if I may not able to refinance to lower rate in future I am fine with this payment.

Like any other investment this may not work for every one. So one has to make choice to use it or not. In my case it happened that I able to use and make it for me so far.

[arv]

I did talk to absolute mortgage guy he didn’t say that refinance is not worth in my case (may be because I didn’t ask) I am also on 4.375%. I think it all depends upon how much is your current balance so that rebate can cover the closing cost can leave some thing for you to keep. I did last refinance through Amerisave. They are fine but one needs to be familiar with refinancing and keep communicating with them. I think Sheldon is being recommended here earlier. How to reach him? I am thinking of getting quote from him in future.

[arv]

Following similar strategy and I am able to refinance two times with negative points receiving around 3K and reducing rate at the same time. The only way to receive funds was opening an impound account with lender.

Not sure if there is a clause which can limit refinance frequently to leverage current mortgage environment this way.

[arv]

Thanks for the useful information.

Yes SD Realtor, I was also looking at it from cash flow point of view also. I am not sure how to get financing for this property to make cash flow work.

[arv]

Thanks for the useful information.

Yes SD Realtor, I was also looking at it from cash flow point of view also. I am not sure how to get financing for this property to make cash flow work.

[arv]

Thanks for the useful information.

Yes SD Realtor, I was also looking at it from cash flow point of view also. I am not sure how to get financing for this property to make cash flow work.

[arv]

Thanks for the useful information.

Yes SD Realtor, I was also looking at it from cash flow point of view also. I am not sure how to get financing for this property to make cash flow work.

[arv]

Thanks for the useful information.

Yes SD Realtor, I was also looking at it from cash flow point of view also. I am not sure how to get financing for this property to make cash flow work.

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