Refinance Advice

[Modification Specialist]

Originally Posted by chet everett

Taken literally, the statement "If you payoff all your bills, your credit report will dry up..." is simply false.

Nor should you continue to pay interest JUST TO GET SOME TAX MONEY BACK -- much CHEAPER in the long run to just pay the stuff off IF you can otherwise afford it AND your TOTAL tax picture keeps you in a situation that the mortgage costs are not needed to break you out of standard deducation...

All the other stuff from ModSpec is right on: Accelerate payments is a super simple way to pay off loan FASTER and save on both principle & interest!

Hey Chet

I respect you on all the good and informative posts you help people with.

Cannot count all times I had borrowers applying for loans having no credit score. After no activity on a report, say for a period of a year, the FICA score can show "N/A" status. Thats what I mean about ones credit score drying up.

Somewhat agree with you - there might be lenders out there (Loan Sharks), that would lend money at sub prime terms, to people with no credit scores. In all the years I was in mortgages, did my best to get people the best rate, or into good loans that would not blow up. Even went his far as helping them improve there credit, just to qualify for a better loan. Now I'm working getting people out of bad (subprime) loans..

As for tax write offs - I agree with you statement it is much CHEAPER in the long run to just pay the stuff off. What about people who are 1099 or self employed as DBA. There are many people that look for deductions (me being one).

I like what OBama Rocks said - he appears to know a lot about taxes.....

[Omaha Rocks]

Originally Posted by VictorBurek

Looks like a 20% return on investment. Would you invest $10 to make $2?

Nope. And that's exactly why I'm not dumb enough to think I'm saving money buy spending $10 to save $2 in taxes.

[dcv2002]

Quick update (I was on vacation for a while).

So I called my current bank where I have my mortgage (Bank of America). They gave rates higher than my current credit union, with fees of $400 app, $775 lender fee + $2440 3rd party fees for a ~$213,000 mortgage.

For my credit union I get about $5100 in fees:

Appraisal Deposit: $350.00
Title Insurance: $1,075
Recording Fee: $285
Flood Cert Fee: $6
Tax Service Fee: $73
Survey: $95 (Don't think I need this)
Satisfaction of Mortgage: $85
Settlement Agent/Closing Attorney Fee: $600
Application Fee: $95
Mortgage Tax: $1720.24
Abstract/Title Fee: $280.00
Doc. Prep. Fee: $25.00
Title Endorsement Fee: $150
Title Closer pick up/attendence fee: $200.00
Processing Fee: $350.00
Underwritting Fee: $150.00
Total: $5094.24

Lots of fees....... Welcome to New York State...

[chet everett]

Ah the joys of the Big Apple...

Well at least you have a detailed list of which groups lobby the State Legislature to make things so no competitive when refinancing!

I have heard from others that NY has some of the most onerous fees related to real estate transactions and I can see lots of things that appear to fit into the "lobbyists made us do it" category.

[dcv2002]

Just put in my application. Right now the rate is 4.25% @ 15yr. It costs me a refundable 0.5pt to lock-in rate if close within 45 days. So right now its $1,075 refundable to lock in rate. Just a slight concern over the 45 days though. I can lock in from 11am-4pm each business day.