byu1's predicament

[MikeWaters]

http://www.cougarboard.com/noframes/...tml?id=2918337

I just came up with an idea. I bet if he sold his 350z he could use that to keep his house solvent for a while.

[il Padrino Ute]

Originally Posted by MikeWaters

http://www.cougarboard.com/noframes/...tml?id=2918337

I just came up with an idea. I bet if he sold his 350z he could use that to keep his house solvent for a while.

I don't understand why people who spend beyond their means want me to feel badly for them.

[MikeWaters]

Originally Posted by il Padrino Ute

I don't understand why people who spend beyond their means want me to feel badly for them.

But they thought it would turn out different.

I'm sitting on a ARM right now. Am I thrilled? No. But I also have a house that is not that far from 1x my income.

[ewth8tr]

Originally Posted by MikeWaters

But they thought it would turn out different.

I'm sitting on a ARM right now. Am I thrilled? No. But I also have a house that is not that far from 1x my income.

I don't want people to feel badly for me and my 5.5% fixed rate either

[Jeff Lebowski]

Originally Posted by ewth8tr

I don't want people to feel badly for me and my 5.5% fixed rate either

We are at 4 5/8 fixed. Neener, neener.

[il Padrino Ute]

Originally Posted by Jeff Lebowski

We are at 4 5/8 fixed. Neener, neener.

You guys have me beat. I'm at 6 1/8 fixed - but I'm in year 8 of 15.

[BlueHair]

Originally Posted by Jeff Lebowski

We are at 4 5/8 fixed. Neener, neener.

Nice. I thought I had a good deal at 5.375% Did you have to pay points to get that rate?

[Jeff Lebowski]

Originally Posted by BlueHair

Nice. I thought I had a good deal at 5.375% Did you have to pay points to get that rate?

Nope. We got it 4-5 years ago. Got lucky on our timing and caught one of the dips.

Trust me, my timing in financial matters is rarely this good.

[il Padrino Ute]

Originally Posted by BlueHair

Nice. I thought I had a good deal at 5.375% Did you have to pay points to get that rate?

Points are a huge ripoff. They're just another way for the mortgage company to suck money out of your pocket and increase the commission of the guy doing the mortgage for you.

[cougjunkie]

Originally Posted by il Padrino Ute

Points are a huge ripoff. They're just another way for the mortgage company to suck money out of your pocket and increase the commission of the guy doing the mortgage for you.

I must weigh in here and defend my profession for a second. Points are not a ripoff if you plan to keep the mortgage the full term, or a substantial amount of time. For example. Usually paying 1 point or percent will buy down your interest rate .5%. So for example:

200,000 loan amount, at an interest rate of 6.5%, closing costs at 3% so you pay 6000 in closing costs and your payment is 1264.16.

If you pay 1 point and buy down the rate to 6% it looks like this:

200,000 loan amount, interest rate of 6%, closing costs at 3% plus additional 2,000 for 1 point. Your payment is: 1167.15 a month.

So to make it simple you save 100 a month, in 20 months you recoup your original 2k, and over the next 28 years you will save yourself: $33,600.