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Rep Retirement Lodge 119: Legands of the Foopers

Rep Retirement Lodge 119: Legands of the Foopers

  • Total voters
    31
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Re: Rep Retirement Lodge 119: Legands of the Foopers

Bakunin said:
Hammer, I was advocating 10% down, not 15%. If he was going all the way to 15%, doing an appraisal at any point would be pointless as he's already so close to the 80% threshold. In any event, he can't keep up with the 15 yr payments, so my suggested approach might work best for him - 10 down / 5 over the next ~3 years followed by an appraisal to see if his new value has climbed enough to get him the rest of the way.
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The problem is, these banks might require him to refinance in a couple years to get rid of the PMI, at (higher) prevailing rates. In two years, the rates could be north of 7%, and certainly not near the 4.35% he's getting now.

I don't want him to put so much down that he's got no cash to maneuver once he gets in the house, but he probably wants a fighting chance to get out from PMI as quick as he can.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

We got out of our FHA within 2-3 years of buying the house and went into a 15 year at 4-5 points lower than what we purchased (we bought in '92 and rates dropped a lot shorty thereafter). We happened to do this at the same time real estate prices were going up at an insane rate so our equity shot up pretty quickly. This allowed us to refinance again and take out ~$100K in equity (plus I sold a boat load of mother mining stock I had been buying since 1990) to buy the lake place for cash.

Home is a great investment no matter how you structure the financing it almost always turns into a win-win - except the JF Gopher plan. :) For us the best part is the value of the lake property is increasing significantly more quickly than our house so when we bulldoze and build in a few years we should be sitting pretty to use the property to finance what we build and then when we sell the house we can dump that into a condo or townhouse somewhere in capital city. :)
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

There are ways around PMI. I know a coworker who was able to put somewhere between 5% and 7% down and didn't have to pay it. No penalties on the rate either.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

Hammer said:
The problem is, these banks might require him to refinance in a couple years to get rid of the PMI.
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Why / how would banks require him to refi to get rid of PMI? If he's on a fixed loan, they can't require him to do anything as long as he is keeping current on the payments. All he has to do to get rid of PMI is to hit 80% LTV and ask the lender to get rid of it - whether that is via additional principal payments (what I did) or a combination of additional principal payments + a new appraisal that shows his property value has increased, it doesn't much matter.

Unless the economy completely dies, I don't see a legitimate reason to refi in the future - it's difficult to imagine loan rates dropping much more than they have.

Interestingly, with FHA loans, they call it MIP - and you prepay 2.25% of the loan for it + monthly payments (although these are far lower than PMI, somewhere on the order of 1/4-1/3 of what PMI would be). Since the monthly is so low with MIP, there's basically no incentive to prepay to get rid of it (mine will run about $25 a month).
 
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Re: Rep Retirement Lodge 119: Legands of the Foopers

All this mortgage talk makes me want to start drinking early today, because I'm a member of the "Two Mortgage Club" and I don't like being reminded of it!

I'll let you guys know when the old homestead in West Texas sells. That will be a good day!

Good morning all, 46 days to go.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

What I really should do is sell my truck. That extra $650/month I'm paying on that would go a long way towards getting a good start on the mortgage. Unfortunately, I don't know about driving that 21 year old Jeep full time. :p
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

Get rid of the 2500 and get a smaller Ram, if the numbers work out right. Pick one up that is 2-3 years old and save almost half. The 2500 is a want, not a need.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

Hammer said:
Get rid of the 2500 and get a smaller Ram, if the numbers work out right. Pick one up that is 2-3 years old and save almost half. The 2500 is a want, not a need.
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I wouldn't buy one with a gas engine. I'm a diesel guy.

edit: Actually what I'd do is get a 10-12 year old Ram 2500 Diesel, then it would be pre-emissions BS, and I could play with the engine cals because it would be out of warranty
 
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Re: Rep Retirement Lodge 119: Legands of the Foopers

Good morning. Even though it's mid-August there was definitely a touch of autumn in the air this morning here in Denver at five thirty or six o'clock. I hope everyone's week is off to a good start. :)
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

Buy 1-2 yr old vehicles and keep them for 7 years plus. You'll save over $100k in your lifetime easily by doing that instead of buying new.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

Greyeagle said:
Home is a great investment no matter how you structure the financing it almost always turns into a win-win - except the JF Gopher plan. :) For us the best part is the value of the lake property is increasing significantly more quickly than our house so when we bulldoze and build in a few years we should be sitting pretty to use the property to finance what we build and then when we sell the house we can dump that into a condo or townhouse somewhere in capital city. :)
Click to expand...

Or if you buy in 2004, refi in 2006, then watch your value fall through the basement. :(

After 6 years of paying in total (and 4 on the refi'd mortgage), I still owe significantly more money than my condo is currently worth.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

So, you guys think my money/mortgage situation is complicated, listen to this...:p

As most of you know, I have started a little something with my waitress friend that has been mentioned previously.
I also was at my buddy's wedding this weekend where, unknown to me, the bride was trying to set me up with her maid of honor. I ended up actually talking to and dancing another of the bride's friends for most of the night.
Recently a girl that I was persuing several years ago started texting me and asking me why we never did this or that or went out to eat at some place. I got mad at her and yelled at her because it was obvious that I was interested, but she was either too stupid or too manipulative to notice. Now she is texting more and more after I got ****ed at her, making it seem like she's interested in me, and frankly I can't ****ing tell with this chick, I swear she's crazy in the head.

This all leads up to, I have Twins tickets tonight. I made plans with waitress girl to go to the game. All was good. Then some family emergency comes up and she has to be at her uncles for the week because his deadbeat wife disappeared, leaving him a business and 3 young kids. (for the record, I know she's telling the truth on this one, we've talked about it, she's not just avoiding me :p ) So I asked the girl from the wedding to go, she said she'd love to, but works the late shift at the hospital she works at. Sooo, I decided to ask crazy chick, and she's free.

Fast forward to this Saturday. I'm going out with my friend and his new wife, like I mentioned a couple days ago. Maid of honor is coming out also, buddy's wife still wants to set me up with her, even though neither of us were really interested last weekend. Other friend from wedding is also going to be there. And to top it off, they all want to go to the bar where waitress girl works.

****.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

That's why if you're going to own for < 10 years, it makes more sense to rent. The cost of the loan + risk of market downturn is simply not worth buying for short-term ownership.

BBDL - I think what you just posted is proof positive that there is such a thing as being too successful with women. Or to put it in George Washington terms: avoid entangling alliances! :p

As for girl from wedding: what hospital? She a nurse? You should introduce her to me if things don't work out. :D
 
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Re: Rep Retirement Lodge 119: Legands of the Foopers

BBDL, I am not interested in you but I would go to the Twins/White Sux game with you. :D

Oh also, I am not crazy.
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

Bakunin said:
BBDL - I think what you just posted is proof positive that there is such a thing as being too successful with women. Or to put it in George Washington terms: avoid entangling alliances! :p

As for girl from wedding: what hospital? She a nurse? You should introduce her to me if things don't work out. :D
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I'm going to be walking a tightrope Saturday night...should be interesting.

She works at Regions in St. Paul. Not a nurse...and doubtful, but I could be convinced.
JF_Gophers said:
BBDL, I am not interested in you but I would go to the Twins/White Sux game with you. :D

Oh also, I am not crazy.
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Yeah, but I've seen you before. Her chest blows yours out of the water. :D
 
Re: Rep Retirement Lodge 119: Legands of the Foopers

If she isn't a nurse, what is she? Ward clerk? Or god forbid, does she work in the lab? :eek:
 
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