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I'm thinking about re-fi'ing from a 4.625% 30 year (with 28+ years left) to a 3.325% 15 year. All things being equal, my monthly payment would go up. I don't like this, so I'm considering throwing $100K at it to ensure my monthly payment stays the same or less.

I know that I would save a bunch of $ on interest if I make the move, but I still like having that $100K in the bank for flexibility purposes.

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I’m officially a homeowner. Just closed.  2.75%, 15 years.  🥳

Just made my last mortgage payment yesterday!!!  I am free and clear!

If you guys would allow me to vent... I need to vent a bit... I could vent to other LO's who all know it and they just smile and nod (somehow that doesn't really feel like venting) or my wife but with

I was thinking about renting another year, but with rates this low, I think I'm going to throw a few offers out there and see what's doing. How far in advance of anticipated closing do you guys recommend getting pre-qualified?

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I'm thinking about re-fi'ing from a 4.625% 30 year (with 28+ years left) to a 3.325% 15 year. All things being equal, my monthly payment would go up. I don't like this, so I'm considering throwing $100K at it to ensure my monthly payment stays the same or less. I know that I would save a bunch of $ on interest if I make the move, but I still like having that $100K in the bank for flexibility purposes.

If you can afford the 15yr payments, you're better off doing a 30yr re-fi for 3.5%-3.75% and paying the 15yr payment each month. You keep your 100k banked and have the felxibility to tap that or scale back your payment amounts, if something happens to your income. Edited by The Noid
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I was thinking about renting another year, but with rates this low, I think I'm going to throw a few offers out there and see what's doing. How far in advance of anticipated closing do you guys recommend getting pre-qualified?

In my market you want to get pre-qualified before you even make the offer, so that your offer is viewed as serious. Usually a pre-qual involves very little actual work on either your or the lender's part.
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I'm thinking about re-fi'ing from a 4.625% 30 year (with 28+ years left) to a 3.325% 15 year. All things being equal, my monthly payment would go up. I don't like this, so I'm considering throwing $100K at it to ensure my monthly payment stays the same or less. I know that I would save a bunch of $ on interest if I make the move, but I still like having that $100K in the bank for flexibility purposes.

If you can afford the 15yr payments, you're better off doing a 30yr re-fi for 3.5%-3.75% and paying the 15yr payment each month. You keep your 100k banked and have the felxibility to tap that or scale back your payment amounts, if something happens to your income.
That's an interesting thought and something I've considered. In theory, I could start doing that now with my existing mortgage and avoid the re-fi costs. I guess I just mentally like the idea of lower monthly mortgage payments even though another part of my brain knows that it's all a wash.
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I ended up going with Wells Fargo 1-2-3 Refi, final deal was 3.625%, 15 year (knocked 5 years off), saving $225/month on payment. No closing costs, no appraisal.Can't be more than 105% LTV to qualify.

Do you happen to know if this is limited to existing Wells Fargo loans?
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I ended up going with Wells Fargo 1-2-3 Refi, final deal was 3.625%, 15 year (knocked 5 years off), saving $225/month on payment. No closing costs, no appraisal.Can't be more than 105% LTV to qualify.

Do you happen to know if this is limited to existing Wells Fargo loans?
Not sure
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Rates have fallen again from the last Nov.

If your sitting on the fence now might be the time to lock in. You should be looking at 3.625% on a 30 yr fixed and 3.00%-3.125% on a 15 yr 0pts. Remember to always get a break down of closing costs before making loan application.

(BroncoFreak)

I bet Wells called to initiate this, right? The Wells 1-2-3 is specific to Wells. All it is is they up the rate above real market rates to cover the closing costs. You might find this from your current lender by asking what the rate would be with no closing costs and not added to the new loan. Always look at which would be better for you in the end no costs/higher rate or closing cost/lower rate. Long term you'd probably be better with the lower rate. HTH

Edited by towney
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Rates have fallen again from the last Nov.If your sitting on the fence now might be the time to lock in. You should be looking at 3.625% on a 30 yr fixed and 3.00%-3.125% on a 15 yr 0pts. Remember to always get a break down of closing costs before making loan application.(BroncoFreak)I bet Wells called to initiate this, right? The Wells 1-2-3 is specific to Wells. All it is is they up the rate above real market rates to cover the closing costs. You might find this from your current lender by asking what the rate would be with no closing costs and not added to the new loan. Always look at which would be better for you in the end no costs/higher rate or closing cost/lower rate. Long term you'd probably be better with the lower rate. HTH

nope I called them, inquiring about HARP. They are my current mortgage company. and yep, understand cost/benefit of rate/term. But I lowered my rate significantly (from 6%), shortened the term, and lowered the pmt....and I didnt have to pay a penny in costs...to me it was a no brainer. Edited by BroncoFreak_2K3
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I was thinking about renting another year, but with rates this low, I think I'm going to throw a few offers out there and see what's doing. How far in advance of anticipated closing do you guys recommend getting pre-qualified?

I would recommend it highly. If you find a place you think you would stay in for a long time (I could easily see myself here in 15-20 years), you couldn't pick a better time to buy. House values have come way down and you are looking at historically low rates. Even if house prices go down a bit more, run the numbers and you will see that in actually money out of your pocket, if rates go back up (they will, probably not soon, but they will eventually) even to 5%, you save a ton. 5% is historically really, really good.I am in the 4s, but I think I may call up my mortgage lender and see what they could offer.
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Local B&M bank that I originally used for my house. 3.75% Conventional 30-yr fixed, no points. Could be about the best buying opportunity in our lifetime.

sick, bro.i got a 3.75 on my 15 year last year and i thought i crushed it. turns out i was a year too early.then again, maybe the 15 year will be in the 2's next year... who knows?somehow i doubt this though.
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I was thinking about renting another year, but with rates this low, I think I'm going to throw a few offers out there and see what's doing. How far in advance of anticipated closing do you guys recommend getting pre-qualified?

I would recommend it highly. If you find a place you think you would stay in for a long time (I could easily see myself here in 15-20 years), you couldn't pick a better time to buy. House values have come way down and you are looking at historically low rates. Even if house prices go down a bit more, run the numbers and you will see that in actually money out of your pocket, if rates go back up (they will, probably not soon, but they will eventually) even to 5%, you save a ton. 5% is historically really, really good.I am in the 4s, but I think I may call up my mortgage lender and see what they could offer.
I just sent a pre-qualification request to my bank and pulled down about 10-15 listings in a good area 15 minutes from the beach to look at this weekend (at least drive-bys) - going to suck going from a 10 minute commute to a 55 minute one, but at least I'll be 15 mins from the beach.
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I don't qualify for the Wells Fargo deal. Current WF customers only.

I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

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I bank with Wells Fargo, is there any advantage/disadvantage to procuring my mortgage through them as well, or is it best just to shop for the best rate? Not sure I'm comfortable using Lending Tree or an online broker, isn't it preferable to speak with someone face-to-face in such matters?

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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

I would say yes. The closing costs seem high, but different states have a lot different fees, so who knows. Knocking off $150k for $1200 per year over 15 years is a no brainer. That is like getting an 833% return on the extra $18k you pay the next 15 years. No brainer.
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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

yes, double yes.sign fast before they change their mind
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I bank with Wells Fargo, is there any advantage/disadvantage to procuring my mortgage through them as well, or is it best just to shop for the best rate? Not sure I'm comfortable using Lending Tree or an online broker, isn't it preferable to speak with someone face-to-face in such matters?

Find out their rates and quotes then go to somewhere like bankrate.com or aimloan.com and you can easily get "quotes" without any real interaction. You could compare the WF rates/fees and see if it is worth it. Also, on the WF web site I would bet they mention how to get a better rate if you are a customer and have certain checking/savings accounts, etc. Make sure you take that into consideration.
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I bank with Wells Fargo, is there any advantage/disadvantage to procuring my mortgage through them as well, or is it best just to shop for the best rate? Not sure I'm comfortable using Lending Tree or an online broker, isn't it preferable to speak with someone face-to-face in such matters?

Find out their rates and quotes then go to somewhere like bankrate.com or aimloan.com and you can easily get "quotes" without any real interaction. You could compare the WF rates/fees and see if it is worth it. Also, on the WF web site I would bet they mention how to get a better rate if you are a customer and have certain checking/savings accounts, etc. Make sure you take that into consideration.
Will do, thanks man.
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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

I would say yes. The closing costs seem high, but different states have a lot different fees, so who knows. Knocking off $150k for $1200 per year over 15 years is a no brainer. That is like getting an 833% return on the extra $18k you pay the next 15 years. No brainer.
:hifive: no brainer for sure...nice job!
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Local B&M bank that I originally used for my house. 3.75% Conventional 30-yr fixed, no points. Could be about the best buying opportunity in our lifetime.

sick, bro.i got a 3.75 on my 15 year last year and i thought i crushed it. turns out i was a year too early.then again, maybe the 15 year will be in the 2's next year... who knows?somehow i doubt this though.
I wasn't able to take advantage of these great rates yet. I just wanted to bump for others to see what current rates are. The reason I mentioned the bricks and mortar offer was because sometimes people will rail on you thinking it's a pie in the sky "Internet" offer, "how many pts are you paying?" or "closing costs must be sky high. "It's fun to see others closing deals with awesome rates. I enjoy it even though I'm not in the business.
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Hoping to refi my 20yr/4.875% to a 15yr/3% soon. Started the process yesterday. Could go 10yr/2.875% but the payment is significantly higher and with a 15 if I choose to add extra principle in the payment I can get it down to nearly 10 years and about the same interest paid. 15 gives me more flexibility, which I need with 2 college aged kids.

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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

I would say yes. The closing costs seem high, but different states have a lot different fees, so who knows. Knocking off $150k for $1200 per year over 15 years is a no brainer. That is like getting an 833% return on the extra $18k you pay the next 15 years. No brainer.
Agree. I hear that Lending Tree does a pretty good job, but I like the idea of being able to walk into a branch/office if there is a problem. Also don't ignore your local savings bank or credit union, a lot of times they will have same/similar rates with much lower closing costs.
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We bought our house in 2010 and currently owe about 114k, 30 yr fixed at 4.75. Does it make sense to refinance it now?

Without knowing your original loan amount.I'm guessing your original loan amount was some where around $114,500 or so at 4.75% your P&I payment is roughly $600 per month. At 3.75% on a current 30 yr fixed keeping the same loan amount your new P&I would be $530 per month a savings of $70 per month. Not knowing your area I'll guess your closing costs around 3K high end. Your recapture period would then be approx. 3.75 years so then the refi. makes sense if your going to be in the home over 3.75 years, in other words YES. If you roll the closing costs then your recapture period will be a little longer.
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We bought our house in 2010 and currently owe about 114k, 30 yr fixed at 4.75. Does it make sense to refinance it now?

Without knowing your original loan amount.I'm guessing your original loan amount was some where around $114,500 or so at 4.75% your P&I payment is roughly $600 per month. At 3.75% on a current 30 yr fixed keeping the same loan amount your new P&I would be $530 per month a savings of $70 per month. Not knowing your area I'll guess your closing costs around 3K high end. Your recapture period would then be approx. 3.75 years so then the refi. makes sense if your going to be in the home over 3.75 years, in other words YES. If you roll the closing costs then your recapture period will be a little longer.
Thanks for the response. Original loan amount was 118.500. Bought the house for125k, put 5% down. We have been paying a little extra each month-not much, bout 125. Owe about 114k now (closed Aug2010).This will be the last house we buy, almost certainly live here the rest of our lives (I suppose there's a small chance we could sell to downsize and move someplace warmer when we retire but it's more likely we will stay here and son will get house)I had always read it is worth refi if you drop 1% on rate. I know that depends on how long you stay to recoup. I assumed it was worth it but haven't pursued it yet and have no idea what closing costs would be. We are in Western NY btw. guess it's time to check it out.Thanks again. Edited by Ranethe
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We bought our house in 2010 and currently owe about 114k, 30 yr fixed at 4.75. Does it make sense to refinance it now?

Without knowing your original loan amount.

I'm guessing your original loan amount was some where around $114,500 or so at 4.75% your P&I payment is roughly $600 per month. At 3.75% on a current 30 yr fixed keeping the same loan amount your new P&I would be $530 per month a savings of $70 per month. Not knowing your area I'll guess your closing costs around 3K high end. Your recapture period would then be approx. 3.75 years so then the refi. makes sense if your going to be in the home over 3.75 years, in other words YES. If you roll the closing costs then your recapture period will be a little longer.

Thanks for the response. Original loan amount was 118.500. Bought the house for125k, put 5% down. We have been paying a little extra each month-not much, bout 125. Owe about 114k now (closed Aug2010).

This will be the last house we buy, almost certainly live here the rest of our lives (I suppose there's a small chance we could sell to downsize and move someplace warmer when we retire but it's more likely we will stay here and son will get house)

I had always read it is worth refi if you drop 1% on rate. I know that depends on how long you stay to recoup. I assumed it was worth it but haven't pursued it yet and have no idea what closing costs would be. We are in Western NY btw. guess it's time to check it out.

Thanks again.

Go out a get a few quotes from reputable mortgage companies include a mortgage broker for most of the time they are more competitive then the banks. Have each one prepare a closing cost worksheet for you to compare. You might also save on the mortgage insurance end if your property appraises higher and your LTV goes below 90%, right now your paying MI based on 95% LTV.
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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

I would say yes. The closing costs seem high, but different states have a lot different fees, so who knows. Knocking off $150k for $1200 per year over 15 years is a no brainer. That is like getting an 833% return on the extra $18k you pay the next 15 years. No brainer.
Agree. I hear that Lending Tree does a pretty good job, but I like the idea of being able to walk into a branch/office if there is a problem. Also don't ignore your local savings bank or credit union, a lot of times they will have same/similar rates with much lower closing costs.
The above quote is from a company that contacted me on Lending Tree. Downside is the constant phone calls from 1-800 numbers now though.
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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

I would say yes. The closing costs seem high, but different states have a lot different fees, so who knows. Knocking off $150k for $1200 per year over 15 years is a no brainer. That is like getting an 833% return on the extra $18k you pay the next 15 years. No brainer.
Agree. I hear that Lending Tree does a pretty good job, but I like the idea of being able to walk into a branch/office if there is a problem. Also don't ignore your local savings bank or credit union, a lot of times they will have same/similar rates with much lower closing costs.
The above quote is from a company that contacted me on Lending Tree. Downside is the constant phone calls from 1-800 numbers now though.
seems like a good deal if you can swing it. buzzkill on the harassing phone calls.
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I don't qualify for the Wells Fargo deal. Current WF customers only.I've been offered a 15 year at 3.3%. My current mortgage is a 30 at 5.75%. My payment will go up about $100, and closing costs are about $6k. I can afford the payment and will knock out the loan in half the time saving roughly $150k over the life of the loan. Seems like a no brainer. Yes/no?

I would say yes. The closing costs seem high, but different states have a lot different fees, so who knows. Knocking off $150k for $1200 per year over 15 years is a no brainer. That is like getting an 833% return on the extra $18k you pay the next 15 years. No brainer.
Agree. I hear that Lending Tree does a pretty good job, but I like the idea of being able to walk into a branch/office if there is a problem. Also don't ignore your local savings bank or credit union, a lot of times they will have same/similar rates with much lower closing costs.
The above quote is from a company that contacted me on Lending Tree. Downside is the constant phone calls from 1-800 numbers now though.
Google Voice is your friend.
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I'm thinking about re-fi'ing from a 4.625% 30 year (with 28+ years left) to a 3.325% 15 year. All things being equal, my monthly payment would go up. I don't like this, so I'm considering throwing $100K at it to ensure my monthly payment stays the same or less. I know that I would save a bunch of $ on interest if I make the move, but I still like having that $100K in the bank for flexibility purposes.

:mellow:
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My wife and mother-in-law bought a condo together in '05 with the plan to stay just a few years, but never sold, and never considered that could be bad :wall:

The first problem I see (besides the worthless condo) is that they have an ARM on the bulk. Thankfully they can convert to fixed. I guess it costs $500 to do it now, or $50 to do it in April. Is it worth doing it now? I said "yes" last week but they didn't do it, and they feel they made the right choice since rates went down.

Then, they have a line of credit of about $35,000 that they are paying 9% on. That seems crazy to me. However, is there really anything they can do short of just trying to pay it down asap? I wouldn't think they could get a new loan with how negative they are on the condo.

Thanks for any advice.

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My wife and mother-in-law bought a condo together in '05 with the plan to stay just a few years, but never sold, and never considered that could be bad :wall: The first problem I see (besides the worthless condo) is that they have an ARM on the bulk. Thankfully they can convert to fixed. I guess it costs $500 to do it now, or $50 to do it in April. Is it worth doing it now? I said "yes" last week but they didn't do it, and they feel they made the right choice since rates went down. Then, they have a line of credit of about $35,000 that they are paying 9% on. That seems crazy to me. However, is there really anything they can do short of just trying to pay it down asap? I wouldn't think they could get a new loan with how negative they are on the condo.Thanks for any advice.

Well taking into consideration rates are at new lows you are probably correct to do it now, it could be a possibility rates may be up by April too. Do you know the conversion criteria? Typically to adjust to a fixed the lender looks at the Fannie Mae 60 day note rate and adds .625 to it to get the fixed rate.On the equity line they are probably stuck if they are underwater, but never hurts to contact their current lender to see. 9% seems crazy but something might have diven that rate up, such as credit or high CLTV. Equity lines of credit are usually tied to prime and vary month to month on what prime does. Prime has been stuck at 3.25% for a long time so that makes their equity line prime + 2.75. It is a equity line and not a straight second mortgage?
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Typically to adjust to a fixed the lender looks at the Fannie Mae 60 day note rate and adds .625 to it to get the fixed rate.

This. To me, the damage is done and messing around trying to save a few hundred doesn't seem worth it. The "penalty" (2% annual increase max) is too scary. But, I also understand their thinking that rates keep dropping, so why pay extra lock in prematurely.

On the equity line they are probably stuck if they are underwater, but never hurts to contact their current lender to see

That was about what I thought, thanks tho - I'll at least have them call.

It is a equity line and not a straight second mortgage?

That's what she said but I should probably check to be sure what exactly it is. She did say it was tied to her wages if she defaulted if that means anything. I'll look into it.Thanks!
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Offered 3.0% at 15yrs today by penfed. Would only be financing $80k so the monthly payment would be $552 for P%I. 30yr for the same is 3.875 or $376/mo :lmao: crazy

i should close my 30/4.0 refi next week. unfortunately my note is 270k :bag:
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Well, as soon as I get my W-2's and 1099's this year (should get both next week) and file, the wife and I will be officially looking for a house.

We are meeting w/ an agent tomorrow to go look at a couple of houses just to see if we like the area and if the houses seem as good as they look on zillow.

First-time home buyers and I have my VA loan. So, no down payment needed and no PMI.

Any suggestions on how to choose an agent and how to choose a lender? Any other tips for us noobs?

eta: When I spoke to a VA-centric lender today via phone, she said that we should invest in a copy of Turbo Tax. With it, she said that we should look at various home prices and play around with the numbers some and see if we can actually buy more house and pay less, since the tax write-off could be considerably more for a more expensive house. Is this possible???

Edited by fasteddie_21
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Well, as soon as I get my W-2's and 1099's this year (should get both next week) and file, the wife and I will be officially looking for a house.

We are meeting w/ an agent tomorrow to go look at a couple of houses just to see if we like the area and if the houses seem as good as they look on zillow.

First-time home buyers and I have my VA loan. So, no down payment needed and no PMI.

Any suggestions on how to choose an agent and how to choose a lender? Any other tips for us noobs?

eta: When I spoke to a VA-centric lender today via phone, she said that we should invest in a copy of Turbo Tax. With it, she said that we should look at various home prices and play around with the numbers some and see if we can actually buy more house and pay less, since the tax write-off could be considerably more for a more expensive house. Is this possible???

The bolded doesn't make sense to me. While you can deduct mortgage interest, it is a deduction, so no matter what you do, you will pay more for a more expensive house. The only caveat is if somehow you just happen to cross a threshold with AGI, but there are usually gradual cutoffs. For instance (fake #s), it isn't at 90k you lose the entire $3k child tax credit, it is from $80k to $100k the $3k goes to 0.

Again, in the scenario above, you would have to pay an extra $20k to get the full $3k, i.e. you aren't hitting a magic number where you pay more and somehow save money.

If you don't really understand deductions, if you are in the 25% bracket, every $1 of interest you pay saves you $0.25, so while you save on the extra interest, $0.75 still actually came out of your pocket. I am 100% sure that if you pay an extra $100k for your house that there is no way you can play around with taxes and somehow get back enough in taxes to cover all the extra interest you pay.

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Well, as soon as I get my W-2's and 1099's this year (should get both next week) and file, the wife and I will be officially looking for a house.

We are meeting w/ an agent tomorrow to go look at a couple of houses just to see if we like the area and if the houses seem as good as they look on zillow.

First-time home buyers and I have my VA loan. So, no down payment needed and no PMI.

Any suggestions on how to choose an agent and how to choose a lender? Any other tips for us noobs?

eta: When I spoke to a VA-centric lender today via phone, she said that we should invest in a copy of Turbo Tax. With it, she said that we should look at various home prices and play around with the numbers some and see if we can actually buy more house and pay less, since the tax write-off could be considerably more for a more expensive house. Is this possible???

The bolded doesn't make sense to me. While you can deduct mortgage interest, it is a deduction, so no matter what you do, you will pay more for a more expensive house. The only caveat is if somehow you just happen to cross a threshold with AGI, but there are usually gradual cutoffs. For instance (fake #s), it isn't at 90k you lose the entire $3k child tax credit, it is from $80k to $100k the $3k goes to 0.

Again, in the scenario above, you would have to pay an extra $20k to get the full $3k, i.e. you aren't hitting a magic number where you pay more and somehow save money.

If you don't really understand deductions, if you are in the 25% bracket, every $1 of interest you pay saves you $0.25, so while you save on the extra interest, $0.75 still actually came out of your pocket. I am 100% sure that if you pay an extra $100k for your house that there is no way you can play around with taxes and somehow get back enough in taxes to cover all the extra interest you pay.

That's what I thought...it just didn't make sense to me.

This very well could have been the lender trying to encourage us to spend more on the house than we want to. :shrug:

Very excited to go look at houses for the first time tomorrow. :pickle:

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Well, as soon as I get my W-2's and 1099's this year (should get both next week) and file, the wife and I will be officially looking for a house.

We are meeting w/ an agent tomorrow to go look at a couple of houses just to see if we like the area and if the houses seem as good as they look on zillow.

First-time home buyers and I have my VA loan. So, no down payment needed and no PMI.

Any suggestions on how to choose an agent and how to choose a lender? Any other tips for us noobs?

eta: When I spoke to a VA-centric lender today via phone, she said that we should invest in a copy of Turbo Tax. With it, she said that we should look at various home prices and play around with the numbers some and see if we can actually buy more house and pay less, since the tax write-off could be considerably more for a more expensive house. Is this possible???

The bolded doesn't make sense to me. While you can deduct mortgage interest, it is a deduction, so no matter what you do, you will pay more for a more expensive house. The only caveat is if somehow you just happen to cross a threshold with AGI, but there are usually gradual cutoffs. For instance (fake #s), it isn't at 90k you lose the entire $3k child tax credit, it is from $80k to $100k the $3k goes to 0.

Again, in the scenario above, you would have to pay an extra $20k to get the full $3k, i.e. you aren't hitting a magic number where you pay more and somehow save money.

If you don't really understand deductions, if you are in the 25% bracket, every $1 of interest you pay saves you $0.25, so while you save on the extra interest, $0.75 still actually came out of your pocket. I am 100% sure that if you pay an extra $100k for your house that there is no way you can play around with taxes and somehow get back enough in taxes to cover all the extra interest you pay.

That's what I thought...it just didn't make sense to me.

This very well could have been the lender trying to encourage us to spend more on the house than we want to. :shrug:

Very excited to go look at houses for the first time tomorrow. :pickle:

This is something Mr Ref would call "Going broke saving money". Sure you save some money on taxes buying a more expensive house. But it's fools logic because to get the savings you need to pay interest to a bank. how you suposed to save money paying interest to a bank? Get a house you can afford regardless of tax savings and "SAVE" 100% of the money your not paying the bank interest on, not 25% of the extra money you are paying the bank.

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Well, as soon as I get my W-2's and 1099's this year (should get both next week) and file, the wife and I will be officially looking for a house.

We are meeting w/ an agent tomorrow to go look at a couple of houses just to see if we like the area and if the houses seem as good as they look on zillow.

First-time home buyers and I have my VA loan. So, no down payment needed and no PMI.

Any suggestions on how to choose an agent and how to choose a lender? Any other tips for us noobs?

eta: When I spoke to a VA-centric lender today via phone, she said that we should invest in a copy of Turbo Tax. With it, she said that we should look at various home prices and play around with the numbers some and see if we can actually buy more house and pay less, since the tax write-off could be considerably more for a more expensive house. Is this possible???

The bolded doesn't make sense to me. While you can deduct mortgage interest, it is a deduction, so no matter what you do, you will pay more for a more expensive house. The only caveat is if somehow you just happen to cross a threshold with AGI, but there are usually gradual cutoffs. For instance (fake #s), it isn't at 90k you lose the entire $3k child tax credit, it is from $80k to $100k the $3k goes to 0.

Again, in the scenario above, you would have to pay an extra $20k to get the full $3k, i.e. you aren't hitting a magic number where you pay more and somehow save money.

If you don't really understand deductions, if you are in the 25% bracket, every $1 of interest you pay saves you $0.25, so while you save on the extra interest, $0.75 still actually came out of your pocket. I am 100% sure that if you pay an extra $100k for your house that there is no way you can play around with taxes and somehow get back enough in taxes to cover all the extra interest you pay.

That's what I thought...it just didn't make sense to me.

This very well could have been the lender trying to encourage us to spend more on the house than we want to. :shrug:

Very excited to go look at houses for the first time tomorrow. :pickle:

This is something Mr Ref would call "Going broke saving money". Sure you save some money on taxes buying a more expensive house. But it's fools logic because to get the savings you need to pay interest to a bank. how you suposed to save money paying interest to a bank? Get a house you can afford regardless of tax savings and "SAVE" 100% of the money your not paying the bank interest on, not 25% of the extra money you are paying the bank.

:thumbup:

So, how do you choose a realtor & lender?

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Offered 3.0% at 15yrs today by penfed. Would only be financing $80k so the monthly payment would be $552 for P%I. 30yr for the same is 3.875 or $376/mo :lmao: crazy

Yeah I just got 30 year for 3.875 for a new house, but I'm wondering if I should rent my current house out as I owe $95K on it as my P&I would be $446.
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Went looking at a couple of houses in a new-ish development and we LOVE it. Our money goes so far out there, it's not even funny.

Also, just got my credit scores and they avg. 712...so we will have absolutely not problem getting the VA loan.

We're so damn excited that it looks like next weekend, we go get pre-approved @ NFCU. :thumbup::excited:

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Offered 3.0% at 15yrs today by penfed. Would only be financing $80k so the monthly payment would be $552 for P%I. 30yr for the same is 3.875 or $376/mo :lmao: crazy

Yeah I just got 30 year for 3.875 for a new house, but I'm wondering if I should rent my current house out as I owe $95K on it as my P&I would be $446.
Just got this exact rate on a refinance. Dropped from 5.625 to 3.875. :towelwave:
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Went looking at a couple of houses in a new-ish development and we LOVE it. Our money goes so far out there, it's not even funny.Also, just got my credit scores and they avg. 712...so we will have absolutely not problem getting the VA loan.We're so damn excited that it looks like next weekend, we go get pre-approved @ NFCU. :thumbup::excited:

Be careful with NFCU. I went to them for a loan and they had some outlandish fees.
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Went looking at a couple of houses in a new-ish development and we LOVE it. Our money goes so far out there, it's not even funny.Also, just got my credit scores and they avg. 712...so we will have absolutely not problem getting the VA loan.We're so damn excited that it looks like next weekend, we go get pre-approved @ NFCU. :thumbup::excited:

Be careful with NFCU. I went to them for a loan and they had some outlandish fees.
That said, for VA loans, any suggestions on where to look for lenders?
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Went looking at a couple of houses in a new-ish development and we LOVE it. Our money goes so far out there, it's not even funny.Also, just got my credit scores and they avg. 712...so we will have absolutely not problem getting the VA loan.We're so damn excited that it looks like next weekend, we go get pre-approved @ NFCU. :thumbup::excited:

Be careful with NFCU. I went to them for a loan and they had some outlandish fees.
That said, for VA loans, any suggestions on where to look for lenders?
penfed
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Went looking at a couple of houses in a new-ish development and we LOVE it. Our money goes so far out there, it's not even funny.Also, just got my credit scores and they avg. 712...so we will have absolutely not problem getting the VA loan.We're so damn excited that it looks like next weekend, we go get pre-approved @ NFCU. :thumbup::excited:

Be careful with NFCU. I went to them for a loan and they had some outlandish fees.
That said, for VA loans, any suggestions on where to look for lenders?
penfed
Are you willing to unpack as to why for us. We're totally green when it comes to buying a house, so can you direct us someone to read up that you guys would recommend or spell this out for us? We'd greatly appreciate it.
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Went looking at a couple of houses in a new-ish development and we LOVE it. Our money goes so far out there, it's not even funny.Also, just got my credit scores and they avg. 712...so we will have absolutely not problem getting the VA loan.We're so damn excited that it looks like next weekend, we go get pre-approved @ NFCU. :thumbup::excited:

Be careful with NFCU. I went to them for a loan and they had some outlandish fees.
That said, for VA loans, any suggestions on where to look for lenders?
Don't limit yourself to Banks also look at a reputable Mortgage Broker Company a lot of times they will have lower rates then the Big Banks. VA 30yr fixed rates are running around 3.75% (0pts) on average right now.
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