Any members in the Mortgage field? (2 Viewers)
- Thread starter Tommy
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SuckoutKing
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Your HSA? Health Savings Account? Whats the rate...
One Eyed Dollar
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Yeah, I have it set up with my local bank and the interest rate is like 0.01% right now.
SuckoutKing
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Wow, that’s lowwwww. Mine has the option to invest available funds into the stock market. Does yours allow that? Mine is thru Health Equity.
One Eyed Dollar
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I need to look into that option. I love the tax breaks from investing in the HSA, but there's no growth this way. I've got almost 10 grand in there so far, and it would be nice to get a return on that.
SixSpeedFury
Full House
With the potential purchase of a house looming I've been doing my research on how to pay mortgage down fast as well. I came across this video:
SuckoutKing
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Yes you need to invest that in good mutual funds. If thats not an option fund a different HSA. Good luck!
I've been thinking about refi for a while since the interest rates are so low. Financially it only makes sense to me if I get an interest rate that's 1% below what I'm currently on (4%). Assuming a closing cost similar to that which I paid when I bought the house and keeping my monthly payment the same (I currently overpay):
If I get a 3.0% rate, I will save $7,500 over the life of the mortgage
If I get a 3.25% rate, I will save a whopping $2,185 over the life of the mortgage (10 years 3 months)
If I get a 3.5% rate, it will cost me $3,387 extra
Sitting now with the oil & gas market in the toilet and my job uncertain, I'm very happy with the position I'm in - if I can afford it, I'll put extra towards the principal but if I lose my job, my savings will allow me to continue paying the mortgage at the minimum rate for a year while I try and sort my life out. Optimizing is all well and good but it's sub-optimal to get stuck where you desperately need to sell your house because you've lost your job and can't make the payments at the same time when no one is buying!
It seems like refi is only worth considering if you can drop your rate by 1% without paying extra for points.
If I get a 3.0% rate, I will save $7,500 over the life of the mortgage
If I get a 3.25% rate, I will save a whopping $2,185 over the life of the mortgage (10 years 3 months)
If I get a 3.5% rate, it will cost me $3,387 extra
Sitting now with the oil & gas market in the toilet and my job uncertain, I'm very happy with the position I'm in - if I can afford it, I'll put extra towards the principal but if I lose my job, my savings will allow me to continue paying the mortgage at the minimum rate for a year while I try and sort my life out. Optimizing is all well and good but it's sub-optimal to get stuck where you desperately need to sell your house because you've lost your job and can't make the payments at the same time when no one is buying!
It seems like refi is only worth considering if you can drop your rate by 1% without paying extra for points.
I have a question.
We did a cash out refi two months ago so we would have cash to buy a new house in the next year. The loan officer said that we would have to wait one full year before we buy our next house. I am not sure why we would have to wait a year to buy.
If you do a cash out refi can you buy a couple months later? We found a house we like!
We did a cash out refi two months ago so we would have cash to buy a new house in the next year. The loan officer said that we would have to wait one full year before we buy our next house. I am not sure why we would have to wait a year to buy.
If you do a cash out refi can you buy a couple months later? We found a house we like!
Take a look at the documents that you signed at closing.
Look for a document that is called Occupancy & Financial Statement or something similar.
It will say something like this:
1. Occupancy:
Principal Residence. Borrower either currently occupies and uses the Property as Borrower’s principal residence,
or Borrower will occupy and use the Property as Borrower’s principal residence within 60 days after Borrower signs
the Security Instrument. Borrower will continue to occupy and use the Property as Borrower’s principal residence
for at least one (1) year from the date that Borrower first occupies the Property. However, Borrower will not have
to occupy and use the Property as Borrower’s principal residence within the time frames set forth above if Lender
agrees in writing that Borrower does not have to do so. Lender may not refuse to agree unless the refusal is
reasonable. Borrower will also not have to occupy and use the Property as Borrower’s principal residence within
the time frames set forth above if extenuating circumstances exist which are beyond Borrower’s control.
In short, the issue at hand is loan fraud for occupancy. If you applied and closed on the cash out refinance loan with the intent to purchase another Primary Residence shortly after the closing, you essentially committed loan fraud. The bigger question is whether the lender will pursue you to rectify it or not.
Notice there are three sentences of gray area at the end of that paragraph. You may be at more risk of an issue if you are keeping the departure residence as a rental property vs selling the home and paying off the loan. Ultimately, nothing may happen, but an early address change, or an early payoff will trigger the lender to review or audit the loan file.
If you plan on keeping the departure residence, you increase your risk of an issue by having the new mortgage loan go to the same agency as the old loan (i.e. Fannie Mae or Freddie Mac). I've seen lenders pursue a borrower after the lender had to repurchase a loan where the investor/agency ended up with two loans for a primary residence for the same borrower within 6 months made by the same lender.
Occupancy fraud has been a hot button since the crash of 2008.
Look for a document that is called Occupancy & Financial Statement or something similar.
It will say something like this:
1. Occupancy:
Principal Residence. Borrower either currently occupies and uses the Property as Borrower’s principal residence,
or Borrower will occupy and use the Property as Borrower’s principal residence within 60 days after Borrower signs
the Security Instrument. Borrower will continue to occupy and use the Property as Borrower’s principal residence
for at least one (1) year from the date that Borrower first occupies the Property. However, Borrower will not have
to occupy and use the Property as Borrower’s principal residence within the time frames set forth above if Lender
agrees in writing that Borrower does not have to do so. Lender may not refuse to agree unless the refusal is
reasonable. Borrower will also not have to occupy and use the Property as Borrower’s principal residence within
the time frames set forth above if extenuating circumstances exist which are beyond Borrower’s control.
In short, the issue at hand is loan fraud for occupancy. If you applied and closed on the cash out refinance loan with the intent to purchase another Primary Residence shortly after the closing, you essentially committed loan fraud. The bigger question is whether the lender will pursue you to rectify it or not.
Notice there are three sentences of gray area at the end of that paragraph. You may be at more risk of an issue if you are keeping the departure residence as a rental property vs selling the home and paying off the loan. Ultimately, nothing may happen, but an early address change, or an early payoff will trigger the lender to review or audit the loan file.
If you plan on keeping the departure residence, you increase your risk of an issue by having the new mortgage loan go to the same agency as the old loan (i.e. Fannie Mae or Freddie Mac). I've seen lenders pursue a borrower after the lender had to repurchase a loan where the investor/agency ended up with two loans for a primary residence for the same borrower within 6 months made by the same lender.
Occupancy fraud has been a hot button since the crash of 2008.
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