Refinance

Got pre-approved, 2.875% for 30years. Based on my low on paper income, and apparently not good credit score of 722 I came up getting less than I hoped. Means I will have to sell some stuff to be able to finish the new house but that's fine by me, once we sell our current house I plan to pay off the mortgage with the proceeds.

I was told that the rates for a cash-out loan on the current house would be much better than a construction loan, so that's what we are doing.


Anyone want a really nice bulldozer once I am done grading? :-D
 
Tacoma747 said:
2.875% for 30years
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The odd thing about that...even 4 years ago I woulda been super stoked for that rate. I also seem to remember the folklore my folks told me about the first house they bought in the early-80's 'good rates' were 15-18%...they were poor and shitty credit risks, so their rate was even higher.
 
UTfball68 said:
The odd thing about that...even 4 years ago I woulda been super stoked for that rate. I also seem to remember the folklore my folks told me about the first house they bought in the early-80's 'good rates' were 15-18%...they were poor and shitty credit risks, so their rate was even higher.
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Yea, she pretty much told me it was due to being self employed, low income, and mediocre credit score. I am honestly surprised my credit score is not great, I paid off my skid steer earlier this year, but don't have any other payments so I guess it really hurts you to pay off stuff too fast, or to not have any payments, I don't know what it is but I can't change it now. If I wait long enough to change my credit score/income/etc to get more $$ the rates might be higher.
 
Tacoma747 said:
Start to save up your pennies. About 3.5 million pennies should cover it :-D. It's an 88' model with 900 hours, has been refurbished too. It's nice
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You were thinking as many dimes as I was thinking pennies :lol:
 
Tacoma747 said:
Yea, she pretty much told me it was due to being self employed, low income, and mediocre credit score. I am honestly surprised my credit score is not great, I paid off my skid steer earlier this year, but don't have any other payments so I guess it really hurts you to pay off stuff too fast, or to not have any payments, I don't know what it is but I can't change it now. If I wait long enough to change my credit score/income/etc to get more $$ the rates might be higher.
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722 isn't terrible credit. For many things thats fairly decent. You're just up into teh range where little things matter.
Something that helps is having a credit card that you use but pay off monthly, so there is revolving credit but no real debt..Also - it's been a long time, my memory is fuzzy but isn't your wife a teacher? Unless she has bad credit it would help to have her on the app too (if you didn't).
 
Super stoked, got approved at 4.25% today!

Oh and forgot to mention I only have to pay $10,500 in closing costs.

Celebrating tonight and really splurging on some Boone’s Farm and Aristocrat!!
 
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RatLabGuy said:
722 isn't terrible credit. For many things thats fairly decent. You're just up into teh range where little things matter.
Something that helps is having a credit card that you use but pay off monthly, so there is revolving credit but no real debt..Also - it's been a long time, my memory is fuzzy but isn't your wife a teacher? Unless she has bad credit it would help to have her on the app too (if you didn't).
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We actually do have a CC that I pay off monthly. But that is literally the ONLY payment we have currently other than our land, but it wasn't through a bank so it doesn't show up on a credit report. Wife was a teacher, but she is a stay at home mom now. I guess she is a teacher again since the Crayola virus started (what my kids call it)

I know 2.875 isn't great at the moment, but it is still cheaper than the mortgage I used to have, and if all goes as planned and we build and pay it off in a year or two, it won't matter anyways. Actually going to start asking around to see if I can find a buyer for our current house that will buy at a discounted price once we are ready to sell so we can hopefully skip the realtors.
 
Closing tomorrow...roughly 45-50 days...and really only because of this thread. Otherwise I was fat dumb and happy with what I had.

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BigClay said:
Super stoked, got approved at 4.25% today!

Oh and forgot to mention I only have to pay $10,500 in closing costs.

Celebrating tonight and really splurging on some Boone’s Farm and Aristocrat!!
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That's awesome man, happy for you. Considering you're in a jumbo (referring to you're mortgage... that's not a fat joke), that's a great rate!

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rcalexander105 said:
That's awesome man, happy for you. Considering you're in a jumbo (referring to you're mortgage... that's not a fat joke), that's a great rate!

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Man I know, hopefully pay off the $20,000 principal early by 2048!
 
UTfball68 said:
The odd thing about that...even 4 years ago I woulda been super stoked for that rate. I also seem to remember the folklore my folks told me about the first house they bought in the early-80's 'good rates' were 15-18%...they were poor and shitty credit risks, so their rate was even higher.
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My first house in 1980, was 12%. Auto interest rates were 12-18%.
 
shawn said:
That's a big part of why houses were 60% smaller than they are today.
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I honestly wonder if rates will ever be anywhere near that high again in my life time.
 
shawn said:
Also bad for gov't debt.
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This!

Our Federal budget is fucked if the prime rate goes up too much.

And of course that's a problem that only gets worse over time with no solution in sight.
 
So, when y'all are saying you have zero out of pocket at closing (or $500, whatever), is that because they are taking the fees out of what they are giving you? I have never done a cash-out mortgage before. They told me I will owe about $500 at closing, but of the amount I am qualified for they are giving me about $3k less and said that $3k is for closing cost fees and such.

I always remember paying about $2-3k in closing costs on previous mortgages (in the 100-120k range back in 2008-2012 ish). So $3k for considerably more still sounds good, just making sure I am not getting the raw end of a deal.
 
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