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Old 07-09-2015, 04:41 PM
 
6 posts, read 5,971 times
Reputation: 11

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So I own nice single family brick home that sits on about 13 acres and its my primary residence and residential zoned . I owe nothing and have deed in hand. Tax value is about 120k on house and land. I have full time employement of 4 years same place and make about 40k a year not including wife's income. I'm 33 years old. My DTI is below 40. I want to borrow about 50k as I wanted to add on and enclose carport to another bedroom and bathroom. Also I want to pay off a few small auto loans. I have never had bankruptcy. House has never been borrowed against. I contacted Quiken Loans via Internet and was advised that my 617 credit score needed to come up 3 points to a 620. I'm sure it will by next month as my adding on a Harley loan last month probably dropped it a few points. However I would have thought surely owning home outright and over 580 credit score I would have been able to borrow many places. Anyone have any thoughts on the matter or know of a lender in area with an actual face rather than dealing with online agent who I'll never meet. Also it's really confusing about types of loans , FHA, HELOC , home equity , cash out refi , first mortage , second mortage etc etc . I simply want to put up my deed as collateral and borrow the 50k on a 10 or 15 year repayment with fixed intrest rate and set monthly payment. I never plan on moving.
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Old 07-09-2015, 06:32 PM
 
3,317 posts, read 7,253,255 times
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Because you wish to pay outside debt beyond the renovation, you seek a Conventional First Mortgage via a Cashout Refinance. A Home Equity Line of Credit (HELOC) might be another good option, but for me, I like the notion of having a fixed rate that I can pay off, and it sounds like you do not need to have a line of credit that you could run up, pay down, run up, etc., with a variable rate.


If you need $50,000 cash in hand, and do a fixed-rate 15-year refinance, the monthly payment would be around $400 a month, NOT including property taxes and homeowners insurance (sounds like you are used to paying those on your own, and that is ok). ** I calculated a 15-year fixed rate loan at 4.25% for $55,000, so as to include closing costs, and maybe a little $$ to pay taxes or something else. ***Yeah, the rate could be lower, but you take hits for the small loan amount, the fact that it's a cash-out, and for not escrowing taxes and insurance, and for the credit score.

I'd think a good Loan Officer would have seen an instant opportunity to help you raise your scores very quickly with a Rapid Rescore, but he/she likely preferred to get back into the sweatshop and hunt for big game because those poor kids are so underpaid at Quicken.
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Old 07-09-2015, 07:13 PM
 
6 posts, read 5,971 times
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55,000 @ 400 a month @ 15 years would be fine as the remodel on high side would only be 30,000 and with the remaining 25k I could pay off 3 of the 4 loans that we have and when all said and done we would have addition to house completed and only a 400 a month house payment and one 400 a month auto loan payment. Figure 5000 a month combined income minus 400 house and one 400 vehicle and let's say an additional 1700 for kids, utilities , insurance , food and living expenses . That would still allow at least 2000 a month to be put in savings ��.

So would you think the 617 CS would restrict my options to available lenders ? Are there companies out there that would do your mentioned 15yr @ 4.25% ? I would rather deal with local NC lender as I'm a do business and shake hands in person kind of guy. Can you in this forum reccommend or do you endorse any lenders ? Everything I read about local banks say they want 680 CS . I mean yes I can wait and raise score but on other hand I'm totally fine with mentioned above rates.
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Old 07-09-2015, 09:29 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
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Pfhtex is correct, you need someone experienced and knowledgeable about rapid restored. Make sure that same person can assist you with the loan program once the record is done.

A Fannie cash out if value will support the loan - if not, maybe a streamline 203k.

What area of NC are you in? This isn't a labor intensive process for the loan officer that knows what they are doing. But someone that hasn't done this, well, you don't want to be the guinea pig. It would not be a chore to get some names for you. As far as recommendations go, we can grill them for you, but you'll have to choose the meal.
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Old 07-10-2015, 04:42 PM
 
3,317 posts, read 7,253,255 times
Reputation: 4095
620 fico needed from most banks, but I'd bet money you can pop that score easily.
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Old 07-10-2015, 04:47 PM
 
35,121 posts, read 37,802,296 times
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Why not pay off all the loans first, quit getting loans then add on later after you are completely out of debt and have saved the money to pay for the addition in full?
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Old 07-24-2015, 12:00 AM
 
6 posts, read 5,971 times
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In the Charlotte area to answer you SmartMoney. And CSD610 , I take it by your response that , A : your filthy rich and pay cash for everything right down to 50,000 remodels or B: you are one of those Master Splinter( ninja turtles mentor ) kinda guys and freely offer words of wisdom to people. But just so u know, me paying off everything and then saving a no strings attached 50,000 cash to hand it over to contractor is WHACK and ain't gonna happen. And thanks for the insight there but it's not a perfect world and don't see that happening . I have done it before and just didn't like the after taste. Paid twice that in saved up cash for house and land that I own now. As for me in this 2015 world we live in , I prefer now to keep my cash safe and sound for the big unknowns and use the banks money on most larger purchases as at 33 I have no problem going to work tomorrow to pay it back .Don't mean to sound all pissy but I hate reading through info threads online and seeing posters offering info that is not answering the OP . Cheers
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Old 07-24-2015, 12:01 AM
 
6 posts, read 5,971 times
Reputation: 11
And SmartMoney yes please fire away with potential players . And thanks guys
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Old 07-24-2015, 09:37 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
Reputation: 8078
Ok, I poll some of my competitors will DM you. Will be later today or tomorrow.
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Old 07-24-2015, 09:54 AM
 
35,121 posts, read 37,802,296 times
Reputation: 61840
Quote:
Originally Posted by Thomas28150 View Post
In the Charlotte area to answer you SmartMoney. And CSD610 , I take it by your response that , A : your filthy rich and pay cash for everything right down to 50,000 remodels or B: you are one of those Master Splinter( ninja turtles mentor ) kinda guys and freely offer words of wisdom to people. But just so u know, me paying off everything and then saving a no strings attached 50,000 cash to hand it over to contractor is WHACK and ain't gonna happen. And thanks for the insight there but it's not a perfect world and don't see that happening . I have done it before and just didn't like the after taste. Paid twice that in saved up cash for house and land that I own now. As for me in this 2015 world we live in , I prefer now to keep my cash safe and sound for the big unknowns and use the banks money on most larger purchases as at 33 I have no problem going to work tomorrow to pay it back .Don't mean to sound all pissy but I hate reading through info threads online and seeing posters offering info that is not answering the OP . Cheers


Your assumption about me is wrong but if you want to believe it that's fine as well.

Your choice to do as you wish with your money however, you did ask and some answered.

If you really did not want advice or opinions why did you start a thread in the first place?

PS ~~ You are not using the "banks money" the bank is using "your money" to make more money for themselves so if you want to support the bank, carry on.
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