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(former)FormerSanDiegan
Participantgo to
homeloansheldon.com
to find his contact infoParticipantI don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:
If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.
e.g. –
192k @ 5.375 = 1075 (prinicipal & interest)
182k @ 5.875 = 1076 (P&I)
So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).
The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.
Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.
I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).
ParticipantI don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:
If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.
e.g. –
192k @ 5.375 = 1075 (prinicipal & interest)
182k @ 5.875 = 1076 (P&I)
So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).
The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.
Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.
I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).
ParticipantI don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:
If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.
e.g. –
192k @ 5.375 = 1075 (prinicipal & interest)
182k @ 5.875 = 1076 (P&I)
So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).
The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.
Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.
I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).
ParticipantI don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:
If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.
e.g. –
192k @ 5.375 = 1075 (prinicipal & interest)
182k @ 5.875 = 1076 (P&I)
So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).
The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.
Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.
I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).
ParticipantI don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:
If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.
e.g. –
192k @ 5.375 = 1075 (prinicipal & interest)
182k @ 5.875 = 1076 (P&I)
So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).
The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.
Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.
I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).
ParticipantI am sure your family will do fine in Orlando. It’s probably a decent place to raise a family and the costs will certainly be less … but for Heaven’s sake make sure you don’t forget the bug spray.
Good luck !ParticipantI am sure your family will do fine in Orlando. It’s probably a decent place to raise a family and the costs will certainly be less … but for Heaven’s sake make sure you don’t forget the bug spray.
Good luck !ParticipantI am sure your family will do fine in Orlando. It’s probably a decent place to raise a family and the costs will certainly be less … but for Heaven’s sake make sure you don’t forget the bug spray.
Good luck !ParticipantI am sure your family will do fine in Orlando. It’s probably a decent place to raise a family and the costs will certainly be less … but for Heaven’s sake make sure you don’t forget the bug spray.
Good luck !ParticipantI am sure your family will do fine in Orlando. It’s probably a decent place to raise a family and the costs will certainly be less … but for Heaven’s sake make sure you don’t forget the bug spray.
Good luck !Participant[quote=UCGal][quote=POZ]Thanks for all the comments, we currently reside in Visalia. I agree interest rates will probably go up incrementally.
[/quote]I was wondering if it was Fresno or Visalia… Just passed through there on our Yosemite/Sequoia spring break tour with the kids.
The savings issue is a tough nut… I tend to think that people should have a reserve before purchasing… but then again, I tend to think people should have a reserve if they’re renting… It sounds like you *might* be able to build your savings faster with the lower monthly out of pocket housing expenses…
If you can find a place to buy, that is cheaper than your rent and at least as nice… Go for it. Bank the difference to build up the savings reserve.[/quote]
I agree with UCGal. You need to build up a reserve. To do this, you should own for a while, since it’s cheaper. Use the excess cash flow while you own to build up a nice reserve. Once you have your reserve built up you can go back and rent a more expensive place if you wish. There is no shame in owning. If it makes financial sense and allows you to build up your cash reserves then do it 😉
Participant[quote=UCGal][quote=POZ]Thanks for all the comments, we currently reside in Visalia. I agree interest rates will probably go up incrementally.
[/quote]I was wondering if it was Fresno or Visalia… Just passed through there on our Yosemite/Sequoia spring break tour with the kids.
The savings issue is a tough nut… I tend to think that people should have a reserve before purchasing… but then again, I tend to think people should have a reserve if they’re renting… It sounds like you *might* be able to build your savings faster with the lower monthly out of pocket housing expenses…
If you can find a place to buy, that is cheaper than your rent and at least as nice… Go for it. Bank the difference to build up the savings reserve.[/quote]
I agree with UCGal. You need to build up a reserve. To do this, you should own for a while, since it’s cheaper. Use the excess cash flow while you own to build up a nice reserve. Once you have your reserve built up you can go back and rent a more expensive place if you wish. There is no shame in owning. If it makes financial sense and allows you to build up your cash reserves then do it 😉
Participant[quote=UCGal][quote=POZ]Thanks for all the comments, we currently reside in Visalia. I agree interest rates will probably go up incrementally.
[/quote]I was wondering if it was Fresno or Visalia… Just passed through there on our Yosemite/Sequoia spring break tour with the kids.
The savings issue is a tough nut… I tend to think that people should have a reserve before purchasing… but then again, I tend to think people should have a reserve if they’re renting… It sounds like you *might* be able to build your savings faster with the lower monthly out of pocket housing expenses…
If you can find a place to buy, that is cheaper than your rent and at least as nice… Go for it. Bank the difference to build up the savings reserve.[/quote]
I agree with UCGal. You need to build up a reserve. To do this, you should own for a while, since it’s cheaper. Use the excess cash flow while you own to build up a nice reserve. Once you have your reserve built up you can go back and rent a more expensive place if you wish. There is no shame in owning. If it makes financial sense and allows you to build up your cash reserves then do it 😉
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