Refinancing

[Wagonbacker9]

Any of you considering refinance still... do it.

I just scheduled closing of a refi on my 09/11 30 yr FHA mortgage. Property value is up 30K between renovations and market appreciation (best investment I'll ever make), so I got 9K more than I needed to meet the Loan to Value to drop my PMI.

Total savings assuming both loans were paid as scheduled: ~$80K. Basically just taking my PMI and putting it to principle, same payment, same rate, down to a 20 year from just under 27 to go.

Also.. Thank you congress for giving me further motivation to do this by expiring the PMI tax credit for 2014. I'm sure you'll spend that $300 I lost more effectively than I would have...

[animal]

In the middle of doing it myself. Cutting 9 years off ours.

All the paperwork and approvals are done, just gotta get an appraisal to get to assessed value or better. When did you buy originally that the value was up 30k? Was the appraisal way above your assessed value?

I am sweatin my appraisal here because I stupidly looked at Zillow prices and got all freaked out. I gotta clean up clutter in the house and paint a ceiling that is peeling paint from the original seller. :|

[awsomeears]

I did mine last June, took a 30yr down to 15 and my APR was 2.625%

Lowest of anyone I know, but luck was on my side, the home appraised for I think it was 8k more and there are ZERO foreclosures around me.

Will be nice to be mortgage free at the age of 45

[Wagonbacker9]

In the middle of doing it myself. Cutting 9 years off ours.

All the paperwork and approvals are done, just gotta get an appraisal to get to assessed value or better. When did you buy originally that the value was up 30k? Was the appraisal way above your assessed value?

I am sweatin my appraisal here because I stupidly looked at Zillow prices and got all freaked out. I gotta clean up clutter in the house and paint a ceiling that is peeling paint from the original seller. :|

September of 11 appraisal came in at I think 169 (paid 162). I needed 183 and got 192. Still below tax assessment by 10K.

This puts me mortgage free just after my 50th if we stay in this house, and I pay it on schedule.

I have to say I'm disappointed in my employer (and mortgage holder) doing absolutely nothing for me to help me refi, and didn't even offer a 20 year product (15 year just isn't in the cards for me with 2 kids).

So I called A+ mortgage out of Muskego and he offered me an 85% LTV option (assuming 720+ credit), and had a few other options up his sleeve if LTV wasn't where I was hoping it was. Luckily all that worked out OK.

[05caddyext]

Wagon, what did you end up getting for a rate? What about closing costs?

Awsomeears - who did you get that rate through?

Wagon, I feel your pain about your current lender. I had been with Landmark Credit Union for 16 years when I bought a house. They wouldn't even consider my application for a loan since I had only been at my job for a year.

I am having issues with financial stuff right now as I am currently unemployed. I lost my job 2x last year. My mother passed away last year in July, and I have enough money from her to pay off my house, and be completely debt free, but I struggle with the notion of doing that. It doesn't feel like it's my money. However If I pay off the house, I would be saving $150,000 in interest over the next 25 years. My rate is high for todays standards, it's 5.5%. I locked into that with a rural housing loan as I didn't need a down payment for that type of loan. I also didn't need PMI. My credit score is still over 800, I check it all the time. Just don't know the right thing to do.

[Wagonbacker9]

3.75. Closing costs total out to about 1500 or so. On a 15 year rates are typically awesome, because they appeal most to people who are more financially solid than a 30 year.

If I had the cash, even at today's rates, I'd just pay it off and be done. The flexability alone is worth it to me..

However if you would have to clean yourself out to do that, it doesn't make sense while unemployed.

[animal]

September of 11 appraisal came in at I think 169 (paid 162). I needed 183 and got 192. Still below tax assessment by 10K.
That's promising anyway, thank you for the rundown.

Appraiser comes tomorrow.

Did you compare your appraisal to zillow? curious if they are even close to what an apparaiser says.

[Wagonbacker9]

That's promising anyway, thank you for the rundown.

Appraiser comes tomorrow.

Did you compare your appraisal to zillow? curious if they are even close to what an apparaiser says.

Mine is within $1000 of Zillow. Your results WILL varry. My wife's aunt works in undeveloped real estate and she said itis frequently off by up to 10%.

[05caddyext]

My fear of paying it off is not knowing the tax implications of that. I haven't been able to get the same answer out of 2 different financial advisers. I receive approx ~$800 a month from the employee trust fund as a result of my mothers passing. She was receiving that as part of a divorce settlement. She (I now) will receive that benefit for the next 14 years. That $800 is after I have taxes taken out of it. If I just allow that to keep coming for the next 14 years, and don't spend it, which I haven't touched it, it will be ~ $130,000 in value. If I took a lump sum, which is an option, I would receive $87,000 from the fund. The taxes on that would be ridiculous I would think, however I would not be getting the money, the bank that owns my home loan would get it immediately. I haven't gotten a good answer on whether that counts as income then. I know that certain rollovers to pay off things such as mortgages, student loan debt, etc, aren't taxed as income, as long as the entire amount being received is swallowed up by the debt that is owed, as it would be in this case. So I haven't done anything. And of course, just straight refinancing is not an option, because I am not working. Even though I have made every single payment the last 6 years, and have a credit score over 800, I can't do it. I can pay the higher amount that I pay now, but somehow I don't qualify for a lower payment. So I am stuck in the mud it seems. Everyone I talk to wants to do something different with the money, I just want a straight, honest answer, and then let ME decide how to proceed. I have to protect that $$, it's not a lot, but it means very much to me, as it was all my mother had...

[Wagonbacker9]

Yeah, you should just set up an appointment with a tax accountant and map out your options. I've gotten pretty good with "expense management" but actual wealth management I still have no clue on.

[PB86MCSS]

Are you sure you can't deduct PMI for 2014? Last I heard it was extended for 2014 and 2015.

Our mortgage broker contacted us last week, loan is almost 2 years in and her idea is to refi into a conventional loan to get rid of PMI, but the rate would go up .5. Doesn't add up long term in my math. Currently a FHA loan so even if we appraise high enough to get 20% equity (solid chance) the PMI has about 39 months left before we should be able to have it removed on its own, keeping our 3.25% rate.


Any of you considering refinance still... do it.

I just scheduled closing of a refi on my 09/11 30 yr FHA mortgage. Property value is up 30K between renovations and market appreciation (best investment I'll ever make), so I got 9K more than I needed to meet the Loan to Value to drop my PMI.

Total savings assuming both loans were paid as scheduled: ~$80K. Basically just taking my PMI and putting it to principle, same payment, same rate, down to a 20 year from just under 27 to go.

Also.. Thank you congress for giving me further motivation to do this by expiring the PMI tax credit for 2014. I'm sure you'll spend that $300 I lost more effectively than I would have...

[Wagonbacker9]

Are you sure you can't deduct PMI for 2014? Last I heard it was extended for 2014 and 2015.

Our mortgage broker contacted us last week, loan is almost 2 years in and her idea is to refi into a conventional loan to get rid of PMI, but the rate would go up .5. Doesn't add up long term in my math. Currently a FHA loan so even if we appraise high enough to get 20% equity (solid chance) the PMI has about 39 months left before we should be able to have it removed on its own, keeping our 3.25% rate.

http://www.forbes.com/sites/kellyphillipserb/2014/11/24/10-expired-tax-provisions-that-might-affect-you-in-2014/

See #4.

And in case you want a 2nd source:

http://www.thetruthaboutmortgage.com/new-bill-aims-to-make-mortgage-insurance-premiums-permanently-deductible/

They were working on extending it, but from what I've read the only thing that got passed is debt forgiven on a short sale NOT being taxed.

[PB86MCSS]

Funny, same link(Forbes) I just was about to paste. So they extended it for 2014..unless I'm totally missing something?

[Wagonbacker9]

Where are you seeing they extended it?

"The deduction was extended after 2007 through the end of 2013 but doesn’t apply to PMI paid in 2014 and beyond."

[PB86MCSS]

The top of the article that reads this in red:

"(Author’s note: Since this story originally appeared, Congress has taken action. The tax extenders bill was passed on December 16, 2014, which means that these provisions are good for one more year. "

That part ;)

[Wagonbacker9]

Either all of them have been extended, or it just circularly references back to the same article. God I hate politicians.

[British_Ben]

I deducted PMI for 2014. http://www.irs.gov/publications/p936/ar02.html#en_US_2014_publink1000296058

[Wagonbacker9]

Yeah, I dug through the H&R block software again, and they added the box since I filed. Now I get to file an ammendment. Thats always fun.

[animal]

Well appraisal was yesterday. I'll let you know how it turns out. I asked the lady on it a bit as far as what people have been seeing in my area for appraised versus assessed value. She didn't really give me anything to go off of.

[animal]

I was happily rewarded with well more than the appraisal value we needed today. Down less than 4% from 2009 appraisal, and 6% over assessed value.

[Wagonbacker9]

I was happily rewarded with well more than the appraisal value we needed today. Down less than 4% from 2009 appraisal, and 6% over assessed value.

NICE. I'm still under my tax assessment.