Getting Real (Estate) - Page 7

smoothmoniker · 01-15-2009, 05:24 PM

In that range.

Griff · 01-15-2009, 05:25 PM

Congrats!

Aliantha · 01-15-2009, 05:27 PM

$4k per month? What term would that loan be over? We don't pay anywhere near that much for our mortgage (which would be around the same amount) even if you do include insurance etc.

smoothmoniker · 01-15-2009, 05:32 PM

20% down, 30 year fixed at 5%

Aliantha · 01-15-2009, 05:34 PM

When you say insurance, do you mean building/contents insurance or mortgage insurance?

Over here, you only have to get mortgage insurance if you're borrowing more than 80% of the value of the property in most cases.

smoothmoniker · 01-15-2009, 05:36 PM

That's with homeowners insurance, hazard insurance.

80% is the same cutoff for mortgage insurance.

Clodfobble · 01-15-2009, 05:39 PM

Congrats, smooth! It's a beautiful place. I love mission-tile roofs, but they aren't common in this area.

Aliantha · 01-15-2009, 05:40 PM

We pay less than $2500/month with a slightly higher interest rate over a similar term (might be 25yrs actually).

There must be a different calculation here than there or something.

Interesting.

Radar · 01-15-2009, 05:41 PM

When is the move-in fiesta?

monster · 01-15-2009, 08:15 PM

In the UK before we left, all the talk was about "Australian-style" mortgages and how you could save a load of money because interest was calculated daily rather than monthly or something....

Aliantha · 01-15-2009, 08:25 PM

There are different types of mortgages, but our interest is calculated on the minimum monthly balance, so what we do is load all our income into the mortgage account and live off the Credit Card, then pay it off at the end of the month. So in effect, although we're not paying any more off the loan, what we are paying is more capital and less interest. It's quite good really.

xoxoxoBruce · 01-17-2009, 07:33 AM

Here, at least awhile back, they were offering considerable savings if you agreed to make mortgage payments twice a month instead of once. That extra half month's interest, on half the monthly payment, adds up to a lot of money.

Radar · 01-17-2009, 10:22 AM

If you pay 13 monthly payments per year on a 30 year loan rather than 12 and ask the bank to put the extra payment on the principle, you'll knock 10 years off your loan.

glatt · 01-17-2009, 11:58 AM

Looking at refinancing now. We've got 24 years left on our mortgage, but looking at average national rates for 15 year mortgages, what we are paying now per month, and what our remaining balance is, it looks like we can probably refinance now to a 15 year mortgage and keep our monthly payments the same. We'd pay it off nine years sooner, and the only drawback would be the closing costs, which would probably be the equivalent of a couple months of mortgage payments.

We haven't actually shopped around or anything yet for actual quotes.

Does anyone happen to know if rates are expected to continue to drop? 15 year rates seem to be at 4.65% right now.

TheMercenary · 01-18-2009, 08:31 AM

Quote:

Originally Posted by glatt

Looking at refinancing now. We've got 24 years left on our mortgage, but looking at average national rates for 15 year mortgages, what we are paying now per month, and what our remaining balance is, it looks like we can probably refinance now to a 15 year mortgage and keep our monthly payments the same. We'd pay it off nine years sooner, and the only drawback would be the closing costs, which would probably be the equivalent of a couple months of mortgage payments.

We haven't actually shopped around or anything yet for actual quotes.

Does anyone happen to know if rates are expected to continue to drop? 15 year rates seem to be at 4.65% right now.

I think the rates are going to be as low as you are going to see them. We refinanced to a 15yr loan and our payments went up a few hundred dollars. Best thing we ever did. We only owe 8 years or so. At the time, around 2001, closing costs were around $3500, but I guess it depends on the market and the size of the loan. Lookout could tell us better.

01-15-2009, 05:24 PM	#1
smoothmoniker to live and die in LA Join Date: Feb 2003 Location: Los Angeles Posts: 2,090	In that range. __________________ to live and die in LA

01-15-2009, 05:25 PM	#2
Griff still says videotape Join Date: Feb 2001 Posts: 26,813	Congrats! __________________ If you would only recognize that life is hard, things would be so much easier for you. - Louis D. Brandeis

01-15-2009, 05:27 PM	#3
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	$4k per month? What term would that loan be over? We don't pay anywhere near that much for our mortgage (which would be around the same amount) even if you do include insurance etc. __________________ Kind words are the music of the world. F. W. Faber

01-15-2009, 05:32 PM	#4
smoothmoniker to live and die in LA Join Date: Feb 2003 Location: Los Angeles Posts: 2,090	20% down, 30 year fixed at 5% __________________ to live and die in LA

01-15-2009, 05:34 PM	#5
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	When you say insurance, do you mean building/contents insurance or mortgage insurance? Over here, you only have to get mortgage insurance if you're borrowing more than 80% of the value of the property in most cases. __________________ Kind words are the music of the world. F. W. Faber

01-15-2009, 05:36 PM	#6
smoothmoniker to live and die in LA Join Date: Feb 2003 Location: Los Angeles Posts: 2,090	That's with homeowners insurance, hazard insurance. 80% is the same cutoff for mortgage insurance. __________________ to live and die in LA

01-15-2009, 05:39 PM	#7
Clodfobble UNDER CONDITIONAL MITIGATION Join Date: Mar 2004 Location: Austin, TX Posts: 20,012	Congrats, smooth! It's a beautiful place. I love mission-tile roofs, but they aren't common in this area. __________________ My book My other book My spirit animal

01-15-2009, 05:40 PM	#8
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	We pay less than $2500/month with a slightly higher interest rate over a similar term (might be 25yrs actually). There must be a different calculation here than there or something. Interesting. __________________ Kind words are the music of the world. F. W. Faber

01-15-2009, 05:41 PM	#9
Radar Constitutional Scholar Join Date: Dec 2002 Location: Ocala, FL Posts: 4,006	When is the move-in fiesta? __________________ "I'm completely in favor of the separation of Church and State. My idea is that these two institutions screw us up enough on their own, so both of them together is certain death." - George Carlin

01-15-2009, 08:15 PM	#10
monster I hear them call the tide Join Date: Dec 2005 Location: Perpetual Chaos Posts: 30,852	In the UK before we left, all the talk was about "Australian-style" mortgages and how you could save a load of money because interest was calculated daily rather than monthly or something.... __________________ The most difficult thing is the decision to act, the rest is merely tenacity Amelia Earhart

01-15-2009, 08:25 PM	#11
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	There are different types of mortgages, but our interest is calculated on the minimum monthly balance, so what we do is load all our income into the mortgage account and live off the Credit Card, then pay it off at the end of the month. So in effect, although we're not paying any more off the loan, what we are paying is more capital and less interest. It's quite good really. __________________ Kind words are the music of the world. F. W. Faber

01-17-2009, 07:33 AM	#12
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Here, at least awhile back, they were offering considerable savings if you agreed to make mortgage payments twice a month instead of once. That extra half month's interest, on half the monthly payment, adds up to a lot of money. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

01-17-2009, 10:22 AM	#13
Radar Constitutional Scholar Join Date: Dec 2002 Location: Ocala, FL Posts: 4,006	If you pay 13 monthly payments per year on a 30 year loan rather than 12 and ask the bank to put the extra payment on the principle, you'll knock 10 years off your loan. __________________ "I'm completely in favor of the separation of Church and State. My idea is that these two institutions screw us up enough on their own, so both of them together is certain death." - George Carlin

01-17-2009, 11:58 AM	#14
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	Looking at refinancing now. We've got 24 years left on our mortgage, but looking at average national rates for 15 year mortgages, what we are paying now per month, and what our remaining balance is, it looks like we can probably refinance now to a 15 year mortgage and keep our monthly payments the same. We'd pay it off nine years sooner, and the only drawback would be the closing costs, which would probably be the equivalent of a couple months of mortgage payments. We haven't actually shopped around or anything yet for actual quotes. Does anyone happen to know if rates are expected to continue to drop? 15 year rates seem to be at 4.65% right now.

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