U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-22-2013, 06:46 PM
 
Location: Southern California
4,351 posts, read 4,978,162 times
Reputation: 2129

Advertisements

Quote:
Originally Posted by thelopez2 View Post
Your Dec1 payment is interest for Nov. Your payoff is roughly 417k + 1 mortgage payment. In California you can bring that paying into escrow and keep the loan at 417k, I hope that was clear.
Correction , TYPICALLY a December payment includes the interest for November, but you said you paid til the end of Nov. Either you are paid thought October and don't understand how it works, or you are paid to November and in a non typically situation where you are paid though November, it is hard to say for sure.

A mortgage is different than rent. Rent you pay in advance, a mortgage covers the interest from the pervious month.

Depending on how your property taxes are paid, it can significantly change how much money you need to bring to close. If you don't try to "SKIP"/"Finance" a payment , you should be able to keep the loan at $417k

Last edited by thelopez2; 10-22-2013 at 08:10 PM..
Reply With Quote Quick reply to this message

 
Old 10-23-2013, 10:44 AM
 
472 posts, read 400,342 times
Reputation: 186
Quote:
Originally Posted by Electrician4you View Post
Unless there is some huge advantage to refi'ing and I'm talking some big monthly payment drop you're better off making a $2600 payment to your principal and paying a extra $40 a month on your payment hell make one extra payment a year towards principal. You'll decimate a lot of the banks profit. Especially if you start doing it at the beginning of the loan.
I'm @ 4.625 & as of y'day the best rate was 4% with ~2k in fees + closing costs. So, my monthly payments drop by 150 (2144->1991). I do understand that I can pay extra every month to reduce my overall cost but by using the same yardstick wouldn't I be paying even less interest with a reduced rate. Since, I'm very very early in the mortgage payment process my rationale is that its a more straight forward decision @ this point compared to doing this 5/10yrs down the loan.
Reply With Quote Quick reply to this message
 
Old 10-23-2013, 10:45 AM
 
472 posts, read 400,342 times
Reputation: 186
Quote:
Originally Posted by thelopez2 View Post
Correction , TYPICALLY a December payment includes the interest for November, but you said you paid til the end of Nov. Either you are paid thought October and don't understand how it works, or you are paid to November and in a non typically situation where you are paid though November, it is hard to say for sure.

A mortgage is different than rent. Rent you pay in advance, a mortgage covers the interest from the pervious month.

Depending on how your property taxes are paid, it can significantly change how much money you need to bring to close. If you don't try to "SKIP"/"Finance" a payment , you should be able to keep the loan at $417k
I take back y'day's statement. I'm only paid up till end of October. Thanks to all for clarifying the details about the payoff statement.
Reply With Quote Quick reply to this message
 
Old 10-23-2013, 01:09 PM
 
Location: Southern California
4,351 posts, read 4,978,162 times
Reputation: 2129
Somewhere is got side tracked, IF you can find someone to do a "no cost" loan with out increasing your balance, without paying extra fees at closing , and get a lower interest rate , it is a good idea.

If you are planning to pay to get a lower rate, it might be years to get that money back , and if rates dropped and you want to refi again, you have lost money.

You said a long would be about 2k plus fee. Fees could be as much as $3,000 or more, who knows what those fees are? Now you are paying $5,000 to get a loan to save $150 a month, and unless you put that extra $150 a month back towards your loan, it will actually take longer for your new balance to catchup to where your old balance would have been.

If you look at it as an investment even spending $5,000 to make $1800 is a really good investment if you don't want to refi in 3 years, that is a 36% return on your money. if you do refi, it becomes lost money, like insurance.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top