EDU Mortgage EDU

pookrat

OT Supporter
Dec 6, 2002
4,623
The Woodlands
Tell me how stupid I am for thinking about doing this. I am not good with money. I will try to keep this short. Ran all the numbers with my Mortgage guy.

In my current house since May of 2020. House was worth around $340,000 at the time. Bought for $310,000. Financed $279,000 at 2.999% Conventional 30 Year with PMI.

We are currently getting over our heads in CC Debt. Got around $26,500-27,000 over 5 cards (was reasonable, then had a bunch of surprise medical and auto expenses). About 3/4 of that is now high interest (over 18%).

Right now spending about $850/mo just in minimums to only have the balances rise. Looking at a refi with payout to just pay them all off at once. Only problem is that around Christmas of last year, I was in between jobs (well actually the job I had was only paying 30hrs/wk due to "covid" and the company sucking) and had 1 late payment on one Citibank card. In response they lowered my available credit on all CitiBank cards to right near the balance. Reducing available credit by over $25,000!!! Jacked my ratio and score up.

Mortgage Bob already said he could still make this work but couldn't get me the 2.6% he thought he could with my previous numbers. Can get me refinanced with a $30,000 payout. Roll all fees into the loan so nothing up front. But Interest rate will go up to 3.25%. Start the 360 months over. No PMI so save a few bucks there. And found cheaper Insurance that has same coverages to save a few bucks. Will end up paying ~$20-30 less on the monthly note.

What am I missing here? Is there a better route to get out of that debt faster without long term issues?

TLDR : In Debt. Want to refinance with payout to pay off all CC Debt. But restart 30 years and interest goes up. Good or Bad?
 

NiggaPHX420

OT Supporter
Jan 17, 2002
50,542
Phoenix, AZ
Tell me how stupid I am for thinking about doing this. I am not good with money. I will try to keep this short. Ran all the numbers with my Mortgage guy.

In my current house since May of 2020. House was worth around $340,000 at the time. Bought for $310,000. Financed $279,000 at 2.999% Conventional 30 Year with PMI.

We are currently getting over our heads in CC Debt. Got around $26,500-27,000 over 5 cards (was reasonable, then had a bunch of surprise medical and auto expenses). About 3/4 of that is now high interest (over 18%).

Right now spending about $850/mo just in minimums to only have the balances rise. Looking at a refi with payout to just pay them all off at once. Only problem is that around Christmas of last year, I was in between jobs (well actually the job I had was only paying 30hrs/wk due to "covid" and the company sucking) and had 1 late payment on one Citibank card. In response they lowered my available credit on all CitiBank cards to right near the balance. Reducing available credit by over $25,000!!! Jacked my ratio and score up.

Mortgage Bob already said he could still make this work but couldn't get me the 2.6% he thought he could with my previous numbers. Can get me refinanced with a $30,000 payout. Roll all fees into the loan so nothing up front. But Interest rate will go up to 3.25%. Start the 360 months over. No PMI so save a few bucks there. And found cheaper Insurance that has same coverages to save a few bucks. Will end up paying ~$20-30 less on the monthly note.

What am I missing here? Is there a better route to get out of that debt faster without long term issues?

TLDR : In Debt. Want to refinance with payout to pay off all CC Debt. But restart 30 years and interest goes up. Good or Bad?


Do it with your guy or with @saabguy . Either way, get the fuck out from under those CCs.

New 30fx is fine. Minimal rate bump. Remove PMI. Remove revolving debt. Apply half or all of that $850 savings to your mortgage. Your 30 year now becomes a 20.
 
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,561
Loserville. Population: 1
Tell me how stupid I am for thinking about doing this. I am not good with money. I will try to keep this short. Ran all the numbers with my Mortgage guy.

In my current house since May of 2020. House was worth around $340,000 at the time. Bought for $310,000. Financed $279,000 at 2.999% Conventional 30 Year with PMI.

We are currently getting over our heads in CC Debt. Got around $26,500-27,000 over 5 cards (was reasonable, then had a bunch of surprise medical and auto expenses). About 3/4 of that is now high interest (over 18%).

Right now spending about $850/mo just in minimums to only have the balances rise. Looking at a refi with payout to just pay them all off at once. Only problem is that around Christmas of last year, I was in between jobs (well actually the job I had was only paying 30hrs/wk due to "covid" and the company sucking) and had 1 late payment on one Citibank card. In response they lowered my available credit on all CitiBank cards to right near the balance. Reducing available credit by over $25,000!!! Jacked my ratio and score up.

Mortgage Bob already said he could still make this work but couldn't get me the 2.6% he thought he could with my previous numbers. Can get me refinanced with a $30,000 payout. Roll all fees into the loan so nothing up front. But Interest rate will go up to 3.25%. Start the 360 months over. No PMI so save a few bucks there. And found cheaper Insurance that has same coverages to save a few bucks. Will end up paying ~$20-30 less on the monthly note.

What am I missing here? Is there a better route to get out of that debt faster without long term issues?

TLDR : In Debt. Want to refinance with payout to pay off all CC Debt. But restart 30 years and interest goes up. Good or Bad?
What will your house appraise for?
 
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,561
Loserville. Population: 1
You should 100% do it *if you can.

By my estimation your house will need to appraise for at least $425k to have enough equity to do it. Are you thinking value has gone up that much? It very well may have…but that’s important to know up front. Or at least have a good feeling that it’ll appraise that high.
 

pookrat

OT Supporter
Dec 6, 2002
4,623
The Woodlands
You should 100% do it *if you can.

By my estimation your house will need to appraise for at least $425k to have enough equity to do it. Are you thinking value has gone up that much? It very well may have…but that’s important to know up front. Or at least have a good feeling that it’ll appraise that high.
Awesome. I just can't find the downside other than having all that sweet sweet credit available!!! Just in time for Christmas!!! LOL Definitely kidding. I have always been pretty good when it comes to credit. I know better than that. But being in a much better situation financially would feel good. Plan on paying extra on the mortgage after refi since we will be spending less on credit card payments to interest.

The house appraisal has skyrocketed like a lot of homes in the area in this market. Bought it at just the right time from an old man that was moving on to the RV life and just wanted it sold. My realtor said if we were to list it she would list at $460,000-480,000 (could even bring more). That's about what comps are and my house has an added garage apartment making it a little more desirable. Even the tax appraisal district tried to raise the value from $320,000 to $449,000. And tax appraisals here are generally lower than actual costs. Fought that and had it put back to $320,000 for tax purposes after filing for homestead so good there.


Thanks for the opinion man.
 
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,561
Loserville. Population: 1
Awesome. I just can't find the downside other than having all that sweet sweet credit available!!! Just in time for Christmas!!! LOL Definitely kidding. I have always been pretty good when it comes to credit. I know better than that. But being in a much better situation financially would feel good. Plan on paying extra on the mortgage after refi since we will be spending less on credit card payments to interest.

The house appraisal has skyrocketed like a lot of homes in the area in this market. Bought it at just the right time from an old man that was moving on to the RV life and just wanted it sold. My realtor said if we were to list it she would list at $460,000-480,000 (could even bring more). That's about what comps are and my house has an added garage apartment making it a little more desirable. Even the tax appraisal district tried to raise the value from $320,000 to $449,000. And tax appraisals here are generally lower than actual costs. Fought that and had it put back to $320,000 for tax purposes after filing for homestead so good there.


Thanks for the opinion man.
What did your credit go to after the late payment?
 
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,561
Loserville. Population: 1
No, about what I would have to do, can do, if its even possible to get another loan eventually for another house?
You can have up to 10 financed properties.

You can count income from your existing rental property as qualifying income on another rental. If you have a primary housing expense, you can count a portion of potential rental income on the new property. But if you don’t have a present housing expense, you can’t count rental income from the new subject property.

In neither case are you allowed to pay in Jew gold.
 

pookrat

OT Supporter
Dec 6, 2002
4,623
The Woodlands
HOLE UP


@pookrat did you actually have a THIRTY DAY late hit your credit, or you were just late (less than 30) ?

cuz if it wasnt a real 30, no one gives a shit :rofl:
A real 30. 1 real 30. December of 2020. Just totally missed the payment on one card with all that was going on. Was out of the country and missed calls and letters. Thought they were all paid. All others paid on time. I know it is one of the worse things you can do. But can't change the past.

I went from high 700's like 770 to something like 685 in two or three months. Had the 30 that killed the score, Then CITI droped my limits on 2 different cards over $20,000 in one month. like one care had a balance of $8,000 with a $25,000 limit. They lowered the limit to $9,000 after the 30. Screwed the ratio up ROYALLY!!!

Looking at the report, available credit for revolving accounts went from $87,200 to $59,200 in 3 months. Some of that looks like it could have been old account closing because of the creditors like store cards for furniture or such.
 
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,561
Loserville. Population: 1
A real 30. 1 real 30. December of 2020. Just totally missed the payment on one card with all that was going on. Was out of the country and missed calls and letters. Thought they were all paid. All others paid on time. I know it is one of the worse things you can do. But can't change the past.

I went from high 700's like 770 to something like 685 in two or three months. Had the 30 that killed the score, Then CITI droped my limits on 2 different cards over $20,000 in one month. like one care had a balance of $8,000 with a $25,000 limit. They lowered the limit to $9,000 after the 30. Screwed the ratio up ROYALLY!!!

Looking at the report, available credit for revolving accounts went from $87,200 to $59,200 in 3 months. Some of that looks like it could have been old account closing because of the creditors like store cards for furniture or such.
CC debt is crushing. It’s almost insurmountable in a lot of cases. I’ve had it happen 2x. Once when I was just out of college and acting regarded (it wasn’t even that much). And once as an adult while going through a divorce and just after moving across country to start over my referral based business in a brand new area where I didn’t know anyone.

You are incredibly fortunate that it happened when house values have skyrocketed, and even have an opportunity to pay it off like this. Can you imagine if house value increased 5% instead of 50%? You should be counting your lucky stars and rushing to get this done ASAP. I’m curious to see what your rate and fee quote comes back to look like in this scenario.
 

NiggaPHX420

OT Supporter
Jan 17, 2002
50,542
Phoenix, AZ
CC debt is crushing. It’s almost insurmountable in a lot of cases. I’ve had it happen 2x. Once when I was just out of college and acting regarded (it wasn’t even that much). And once as an adult while going through a divorce and just after moving across country to start over my referral based business in a brand new area where I didn’t know anyone.

You are incredibly fortunate that it happened when house values have skyrocketed, and even have an opportunity to pay it off like this. Can you imagine if house value increased 5% instead of 50%? You should be counting your lucky stars and rushing to get this done ASAP. I’m curious to see what your rate and fee quote comes back to look like in this scenario.


Yeah man hit him with a little more scare tactic :h5:

:rofl: jk jk jk
 
  • Haha
Reactions: conflayz
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,561
Loserville. Population: 1
Yeah man hit him with a little more scare tactic :h5:

:rofl: jk jk jk
Lol, dude I’ve been there. I was like 23yo getting multiple calls every day from CC companies asking me when I was going to pay. Shit sucked. Now imagine 18 months after putting down 5% to buy a house, you have the ability to pay off $30k of debt with the equity in your home AND drop PMI at the same time. That’s like getting the golden goose to blow you.
 

ERabbit

OT Supporter
Dec 25, 2007
5,520
Newport Beach
Still a good time to refinance? Currently at 5% with 19 years of a 30 year FHA left.

Maybe a 15 year conventional?

You should be able to very easily get down to at least the mid 2's. You could go with a 20 year term, drop to a 15 or even go with a custom flex term of 19. It's not too often that you still see a rate in the 5's.
 

Users who are viewing this thread

About Us

  • Please do not post anything that violates any Local, State, Federal or International Laws. Your privacy is protected. You have the right to be forgotten. Site funded by advertising, link monetization and member support.
OT v15.11.2 Copyright © 2000-2022 Offtopic.com
Served by fx.offtopic.com

Online statistics

Members online
293
Guests online
129
Total visitors
422

Forum statistics

Threads
76,144
Messages
7,405,846
Members
87,013
Latest member
jexic84026