Just locked in my mortgage and it's a go

[Dottleshead ★]

I signed up for a conventional 30 year loan at 2.49%.  As a consumer, I'm really happy with that, but as an American I know it means our economy is suckin'.

[bikeman564™]

2 minutes ago, Dottles said:

2.49%

very nice

[Razors Edge ★]

That's a great rate for 30 years.  On the downside, you likely will NEVER get a chance to refi for better.  Shorter, but not better.

[Square Wheels]

14 minutes ago, Razors Edge said:

That's a great rate for 30 years.  On the downside, you likely will NEVER get a chance to refi for better.  Shorter, but not better.

True, but he can always double up on his payments.

I'm now paying a triple car payment each month.  My five year car loan will be paid in just over 2 years.

[Dottleshead ★]

15 minutes ago, Razors Edge said:

That's a great rate for 30 years.  On the downside, you likely will NEVER get a chance to refi for better.  Shorter, but not better.

Yeah, that's what my wife and I talked about.  In some ways, it's a relief in that I may never have to follow mortgage rates again.  You need to at least gain a percentage point to even make refinancing a consideration and if it ever goes to 1.5 -- this country will be dead.

[Dottleshead ★]

2 minutes ago, Square Wheels said:

True, but he can always double up on his payments.

I'm now paying a triple car payment each month.  My five year car loan will be paid in just over 2 years.

This is exactly why I decided to move.  We were never going to be in a position to pay off the old place and I'll be saving at least $300 in monthly payments.  I'll be double and triple paying now on the tail end of my car loan and/or my mortgage.  

[Razors Edge ★]

3 minutes ago, Square Wheels said:

True, but he can always double up on his payments.

I'm now paying a triple car payment each month.  My five year car loan will be paid in just over 2 years.

I agree. We have a 15 yr and will pay off in the next 10 years (aiming for 6).  But my point being, say in five years or more, he wants to refi and take some equity out. At 2.5 now, what are the odds that works out well for him (or anyone these days)?  The new rate would be higher and with the new added "equity" added in.

Again, not something he has to ever do, which is why the rate is great!

[Square Wheels]

1 minute ago, Dottles said:

This is exactly why I decided to move.  We were never going to be in a position to pay off the old place and I'll be saving at least $300 in monthly payments.  I'll be double and triple paying now on the tail end of my car loan and/or my mortgage.  

Plus, it's a 30 year loan.  Your financial situation will change in those 30 years, hopefully for the better.  

[Guest]

What’s a mortgage?

[Razors Edge ★]

1 minute ago, Square Wheels said:

Plus, it's a 30 year loan.  Your financial situation will change in those 30 years, hopefully for the better.  

And what makes that nice is that he can treat it as a 30 for now, but as things get better for him, treat it as a 20 or 15 and pay down principle at a faster pace.

I remember close to 20% rates in the early 80s.  How the heck do you ever pay that off?  That's like credit card levels!

[Dottleshead ★]

3 minutes ago, Zackny said:

What’s a mortgage?

Boo!

[Reverend_Maynard]

Congrats!  Hope you are happy in the new place!

Such a great rate! Maybe you should borrow more than needed and hold it.  A hedge against those future needs.  If you invest it in something safe, you can probably make money above the interest, too.

I remember my mother had one of those 18+% mortgages... highway robbery!

[Kirby]

Congrats!  Nice to see one more step in the process done. 

[Razors Edge ★]

5 minutes ago, Dottles said:

Boo!

I bet you need all the tax deductions you can get! And look at it this way, not tying hundreds of thousands of dollars up in an asset lets you use those dollars to ride the wave to massive wealth growth!

[Dottleshead ★]

5 minutes ago, Reverend_Maynard said:

Congrats!  Hope you are happy in the new place!

Such a great rate! Maybe you should borrow more than needed and hold it.  A hedge against those future needs.  If you invest it in something safe, you can probably make money above the interest, too.

I remember my mother had one of those 18+% mortgages... highway robbery!

I haven't talked to you in awhile Rev.  How are you doing?

[Dottleshead ★]

5 minutes ago, Kirby said:

Congrats!  Nice to see one more step in the process done. 

Yeah, we just need the appraiser to submit the report by the 20th and a 3 day wait cooling off period, I believe, and then it should be ours.

[Razors Edge ★]

2 minutes ago, Dottles said:

Yeah, we just need the appraiser to submit the report by the 20th and a 3 day wait cooling off period, I believe, and then it should be ours.

@Dirtyhip is definitely winning in the photo documentation race!  What's the latest?

[Reverend_Maynard]

Just now, Dottles said:

I haven't talked to you in awhile Rev.  How are you doing?

Pretty good, thanks for asking.

The pandemic seems to work for me.  I'm an introvert and would rather work from home anyway (and have the job for it).  My activities tend to be outdoors, and I can still socialize a little on small group rides.  I had an online therapist already.

I've been keeping up with exercise and diet all year, and in about as good a shape as I've ever been in physically.  Weighing in the 170s, and I ran a <24min 5k at the end of November.  Might try to lose a little more weight while training for the Mt Washington Ride.  I've even been doing a bunch of calisthenics, so looking and feeling strong overall.

How about you?  Staying sane?

[Dottleshead ★]

1 minute ago, Razors Edge said:

@Dirtyhip is definitely winning in the photo documentation race!  What's the latest?

She has a plot of land up in in the hills overlooking the valley, man.  I have half a side of a duplex in a row of duplexes.  But views of the British Columbia Coastal Mountains from my office and views of Mt. Baker in our face from the backyard.  I'll post some later.  I can tell you that our appliances are being installed on Friday so obviously that means it's pretty close to being completed.

[Dottleshead ★]

3 minutes ago, Reverend_Maynard said:

Pretty good, thanks for asking.

The pandemic seems to work for me.  I'm an introvert and would rather work from home anyway (and have the job for it).  My activities tend to be outdoors, and I can still socialize a little on small group rides.  I had an online therapist already.

I've been keeping up with exercise and diet all year, and in about as good a shape as I've ever been in physically.  Weighing in the 170s, and I ran a <24min 5k at the end of November.  Might try to lose a little more weight while training for the Mt Washington Ride.  I've even been doing a bunch of calisthenics, so looking and feeling strong overall.

How about you?  Staying sane?

I don't like you.  

Seriously, congrats on all those achievements.  You should feel good about yourself.  As for me, I'm hoping this move brings a new life and a lifestyle with it.  I have work to do.

[MickinMD ★]

59 minutes ago, Dottles said:

I signed up for a conventional 30 year loan at 2.49%.  As a consumer, I'm really happy with that, but as an American I know it means our economy is suckin'.

Great rate!   My fixed, 30-year mortgage in 1991 was 9.5%.  In 1993, rates began falling and I was thrilled to get 6.625% for 15 years!. In 2003, with 5 1/2 years left, Wells Fargo contacted me and offered a 5.4%, 4 year-mortgage with no fees which, of course, I grabbed. I was a weird mortgage - no escrow, I had to pay my own property taxes, but it saved a several thousands.

Anything under 4% over the past decade has been a really good deal.  It's like when Reagan was President, inflation went bananas, and people were buying 30-year bonds that paid over 13%.  Within a few years, inflation was dropping to 4%-6% but people were getting 13% interest for the next generation!

[Reverend_Maynard]

2 minutes ago, Dottles said:

I don't like you.  

Seriously, congrats on all those achievements.  You should feel good about yourself.  As for me, I'm hoping this move brings a new life and a lifestyle with it.  I have work to do.

Thanks!  Like most of us, I find it hard to give myself credit, but I try sometimes.

I have faith that you can do it!  Hit me up if there's anything I can do to help.

[Dottleshead ★]

1 minute ago, Reverend_Maynard said:

Thanks!  Like most of us, I find it hard to give myself credit, but I try sometimes.

Good for you Reverend.  It's important to post success stories to remind and inspire the rest of us who have somehow managed to find themselves in unfavorable positions.

[Dottleshead ★]

3 hours ago, Razors Edge said:

@Dirtyhip is definitely winning in the photo documentation race!  What's the latest?

Ok got some photos at twilight. No Coastal Mountains but good shot of Baker from the back yard.

 

[Ralphie ★]

2 minutes ago, Dottles said:

Baker

Nice!  I love that mountain. 

[Thaddeus Kosciuszko]

5 hours ago, Dottles said:

I'll be double and triple paying now on the tail end of my car loan and/or my mortgage.  

Before you do, read - and I mean read - your mortgage contract.  I had a mortgage that required me to notify the company in writing that any overpayment had to be applied to principal.  Otherwise, the contract stated all overpayments were applied to interest first.  I nearly made a most costly mistake by sending in a large payment without the letter.  The check was literally in the envelope; it was that close.

If I may, I'd like to offer a suggestion about paying down the mortgage.  Rather than sending the double/triple payments monthly to the mortgage company, pay yourself first instead.  Put the extra payments in an account just for that purpose, and when you've accumulated a fair amount, send in that larger amount - say once or twice a year - separately from your mortgage payment.

For me, this presented the following advantages: 1) I had the cash on hand to supplement my emergency fund if needed; 2) the fewer payments made it easier for me to track and verify that payments were indeed applied to the principal, and 3) at the low interest rate I had (not as good as yours!) I still incurred little additional interest by holding off to make one larger payment.

The disadvantage to this plan would be if you drop the money in a savings account you might get all of 0.000001/2% interest on it if you're lucky.  That's the cost of you having that cash at ready disposal for yourself as opposed to sending it in to the mortgage company.  However, I suspect if you could tolerate a bit of risk you could readily find a place to invest the money at a return higher than your mortgage rate, which would put you ahead.

[Dottleshead ★]

33 minutes ago, Thaddeus Kosciuszko said:

Before you do, read - and I mean read - your mortgage contract.  I had a mortgage that required me to notify the company in writing that any overpayment had to be applied to principal.  Otherwise, the contract stated all overpayments were applied to interest first.  I nearly made a most costly mistake by sending in a large payment without the letter.  The check was literally in the envelope; it was that close.

If I may, I'd like to offer a suggestion about paying down the mortgage.  Rather than sending the double/triple payments monthly to the mortgage company, pay yourself first instead.  Put the extra payments in an account just for that purpose, and when you've accumulated a fair amount, send in that larger amount - say once or twice a year - separately from your mortgage payment.

For me, this presented the following advantages: 1) I had the cash on hand to supplement my emergency fund if needed; 2) the fewer payments made it easier for me to track and verify that payments were indeed applied to the principal, and 3) at the low interest rate I had (not as good as yours!) I still incurred little additional interest by holding off to make one larger payment.

The disadvantage to this plan would be if you drop the money in a savings account you might get all of 0.000001/2% interest on it if you're lucky.  That's the cost of you having that cash at ready disposal for yourself as opposed to sending it in to the mortgage company.  However, I suspect if you could tolerate a bit of risk you could readily find a place to invest the money at a return higher than your mortgage rate, which would put you ahead.

I have REALLY missed you. Thank you for coming back.

[Dirtyhip]

5 hours ago, Dottles said:

She has a plot of land up in in the hills overlooking the valley, man.  I have half a side of a duplex in a row of duplexes.  But views of the British Columbia Coastal Mountains from my office and views of Mt. Baker in our face from the backyard.  I'll post some later.  I can tell you that our appliances are being installed on Friday so obviously that means it's pretty close to being completed.

We have worked so hard saving and sacrificing to get this.  It is the first time in my life that I will have a view.  It will be so nice not to have a fence as my kitchen window view.    My front yard view right now looks at an ugly house across the street.

The best part will be the privacy.  I don't even think I will need much in the form of window tratments.  

Your place looks cute.  Hope the move goes swimmingly.

 

[Bikeguy]

6 hours ago, Razors Edge said:

I remember close to 20% rates in the early 80s. 

We purchased our first home in 1984.  I can't remember, and I don't want to...  But 12.5% comes to mind now.   We refinance once... probably dropped down to 8 (or 9) %  And we still paid that 30 year mortgage off in a bit less than 15 years.  For 20 years we had no mortgage.   Our new home changed that for a while. 

[Dottleshead ★]

1 hour ago, Dirtyhip said:

We have worked so hard saving and sacrificing to get this.  It is the first time in my life that I will have a view.  It will be so nice not to have a fence as my kitchen window view.    My front yard view right now looks at an ugly house across the street.

The best part will be the privacy.  I don't even think I will need much in the form of window tratments.  

Your place looks cute.  Hope the move goes swimmingly.

 

Bellingham was the best compromise for us.  It's near plenty of services and yet where we live is on the threshold of the prairie.  We wanted to be by services and medical and we needed to be on the west side of the Cascades to be near our families.  Yet Bellingham is not Seattle (Thank goodness) and amazingly beautiful. A home like yours has always been a consideration of mine but we cannot move out that remotely until certain family obligations have been fulfilled.  It's going to be colder than we'd like and it's going to be windier than we'd like and it's probably a little smaller than we'd like -- but my wife and I have lived in about a 1/3rd of that size for about 4 months now and it's going to seem luxurious once we move in. But that sacrifice is going to come at a big gain in that financially it's going to take the pressure off and put us front and center in living within our means.  We are excited to get out of greater Seattle area.  I lived in Spokane for about 4 years so I got a good feel of the inland northwest.  Obviously I could live there.

[Razors Edge ★]

12 hours ago, Thaddeus Kosciuszko said:

Before you do, read - and I mean read - your mortgage contract.  I had a mortgage that required me to notify the company in writing that any overpayment had to be applied to principal.  Otherwise, the contract stated all overpayments were applied to interest first.  I nearly made a most costly mistake by sending in a large payment without the letter.  The check was literally in the envelope; it was that close.

If I may, I'd like to offer a suggestion about paying down the mortgage.  Rather than sending the double/triple payments monthly to the mortgage company, pay yourself first instead.  Put the extra payments in an account just for that purpose, and when you've accumulated a fair amount, send in that larger amount - say once or twice a year - separately from your mortgage payment.

For me, this presented the following advantages: 1) I had the cash on hand to supplement my emergency fund if needed; 2) the fewer payments made it easier for me to track and verify that payments were indeed applied to the principal, and 3) at the low interest rate I had (not as good as yours!) I still incurred little additional interest by holding off to make one larger payment.

The disadvantage to this plan would be if you drop the money in a savings account you might get all of 0.000001/2% interest on it if you're lucky.  That's the cost of you having that cash at ready disposal for yourself as opposed to sending it in to the mortgage company.  However, I suspect if you could tolerate a bit of risk you could readily find a place to invest the money at a return higher than your mortgage rate, which would put you ahead.

Good advice for sure - for any contract including a mortgage.

The nice thing about many/most mortgage payment systems these days is the on-line payment process.  My last mortgage, anything over the statement balance was applied as being against the principle and it showed up nicely in each statement.  My current mortgage, when you are setting up auto-pay, you explicitly fill out the fields which show the monthly amount (principle, interest, escrow for taxes) and then the "additional payment towards principle" field.  Again, it is reflected in each statement, so hopefully Dottles can just set that up to handle it.

From a paying down in larger lumps, I think there are obviously pros/cons to both approaches, but with online stuff, the tracking is pretty simple, so that makes it a non-issue with most mortgages nowadays.  Biggest is obviously the "emergency fund" being kept topped off FIRST, and then the gravy can be used to pay the extra principle, save for the next vehicle, kids college, retirement, and/or vacation and etc..  It makes NO sense to pay down a mortgage without FIRST having a secure and funded emergency fund at the ready.  Money put into paying off a mortgage early is NOT EASY to pull out in the middle of financial stress, so best to have the dollars needed to weather a storm at the ready before moving onto other prudent but lower priority financial actions. 

[2Far ★]

Signed the ReFi docs at the end of December, VA loan, 2.25% for 30 years.

Rocket Mortgage has a calculator that allows you to see how much you save by adding a little extra to the payment each month.

[2Far ★]

10 hours ago, Bikeguy said:

We purchased our first home in 1984.  I can't remember, and I don't want to...  But 12.5% comes to mind now.   We refinance once... probably dropped down to 8 (or 9) %  And we still paid that 30 year mortgage off in a bit less than 15 years.  For 20 years we had no mortgage.   Our new home changed that for a while. 

We bought our first in "87, VA loan, I think it was at ~9.5%. Sold it 5 years later, I think we got a check at closing for like $750. A real, real estate Tycoon I am.

[Dirtyhip]

22 minutes ago, Razors Edge said:

Good advice for sure - for any contract including a mortgage.

The nice thing about many/most mortgage payment systems these days is the on-line payment process.  My last mortgage, anything over the statement balance was applied as being against the principle and it showed up nicely in each statement.  My current mortgage, when you are setting up auto-pay, you explicitly fill out the fields which show the monthly amount (principle, interest, escrow for taxes) and then the "additional payment towards principle" field.  Again, it is reflected in each statement, so hopefully Dottles can just set that up to handle it.

From a paying down in larger lumps, I think there are obviously pros/cons to both approaches, but with online stuff, the tracking is pretty simple, so that makes it a non-issue with most mortgages nowadays.  Biggest is obviously the "emergency fund" being kept topped off FIRST, and then the gravy can be used to pay the extra principle, save for the next vehicle, kids college, retirement, and/or vacation and etc..  It makes NO sense to pay down a mortgage without FIRST having a secure and funded emergency fund at the ready.  Money put into paying off a mortgage early is NOT EASY to pull out in the middle of financial stress, so best to have the dollars needed to weather a storm at the ready before moving onto other prudent but lower priority financial actions. 

[Kzoo]

We built our first house in '84 (owner builder).  It was a 13% mortgage.  We made lump sum extra payments a couple times a year as TK suggested.  I also had a long printout of the 30years worth of payments.  It was fun to look at the sheet after each extra payment to see how many months or years we took off the loan.  I can't remember where we sat on the loan when we built the second time in '94 but there wasn't much principal left on the loan.

I have always considered my home to be an equity generator (lots of sweat equity).  The mistake I made was sitting on (living in) that first house for 10 years.  Sweat equity can only be multiplied if realized by selling.

 

[Dirtyhip]

I paid 8.25% in the 90's.  This was the rate when I bought my first home as a single lady at the age of 24. There was a mortgage credit certificate that allowed me to afford the mortgage all by myself.

[Dottleshead ★]

6 hours ago, 2Far said:

Signed the ReFi docs at the end of December, VA loan, 2.25% for 30 years.

Rocket Mortgage has a calculator that allows you to see how much you save by adding a little extra to the payment each month.

Yeah I can't touch that as I'm not VA.  Great deal for you though!  And thank you for your service.

[Dottleshead ★]

Jump on it. I did.

https://www.mpamag.com/news/united-wholesale-mortgage-unveils-gamechanging-incentive-for-borrowers-242904.aspx

[Reverend_Maynard]

2 hours ago, Dottles said:

Jump on it. I did.

https://www.mpamag.com/news/united-wholesale-mortgage-unveils-gamechanging-incentive-for-borrowers-242904.aspx

that's nice... but what's a "bps"?

[Dottleshead ★]

3 hours ago, Reverend_Maynard said:

that's nice... but what's a "bps"?

I was thinking bits per second but I know it means butthead per security.