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skills@eurocarsplus
Samba Peckerhead
Joined: January 01, 2007
Posts: 16863
Location: sticksville, ct.
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 Posted: Wed Jul 17, 2019 7:28 pm Post subject: Re: My first time refinancing... |
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| my59 wrote: |
| Keep in mind CC debt is on the person with the card account. Lots of folks die and the CC company goes after the surviving spouse or kids to get the card paid off if there is no estate to pay off the debt.. |
when my mother took a dirt nap she had about 4k in CC debt...which I guess is "normal". she was a renter, never owned anything (had a retirement pension, retirement account etc)
in the end, I used all of what I could for her end of life care. her doctor sent ME a bill...how they found me is anyone's guess. I told them bring momma back..and i'll cut a check. never heard from them again.
anyway...the CC company....was her bank. they threatened to "seize here assets"  joke's on them...I left her account with about 300.00 in it...spent what I could to take care of her while she circled the drain which went to any DR I knew of and the end of life care facility.
never heard back from anyone...she had no real assets. still dealing with the IRS which is about to get a dick pic in my next correspondence with them.
anyway...CC companies are evil if you let them be. Dave Ramsey is a pretty smart guy. honestly...none of this is rocket science....you can live a pretty good life at any income level if you live within your means. I grew up poor...like no joke broke. if you're willing to work there are opportunities out there. to this day if I need to make a big purchase (1k+) I will save until I have cash in hand
even at that if it is a real big purchase I will save at minimum 75% before I pull the money gun....and finance the rest. at this point in my life I have no reason to borrow any money. if anything I am looking to downsize some stuff...I have gotten to the point where "less is more"
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| gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
| Jake Raby wrote: |
| Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
| Brian wrote: |
| Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12848
Location: North Carolina
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| Posted: Wed Jul 17, 2019 8:14 pm Post subject: Re: My first time refinancing... |
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Just out of curiosity, what is your mortgage payment?
While $2,800 in CC debt sounds like a mountain to you, I would have been happy at one point if that was just a monthly payment for all the shit I had going on.
You can’t refinance your way out of debt, you have to work to claw your way out.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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sb001
Samba Member
Joined: May 19, 2011
Posts: 10406
Location: NW Arkansas
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| Posted: Wed Jul 17, 2019 9:02 pm Post subject: Re: My first time refinancing... |
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| TDCTDI wrote: |
Just out of curiosity, what is your mortgage payment?
While $2,800 in CC debt sounds like a mountain to you, I would have been happy at one point if that was just a monthly payment for all the shit I had going on.
You can’t refinance your way out of debt, you have to work to claw your way out. |
Current mortgage payment is $840/month at 5% fixed rate. I have 19 years left on it. Then as far as the monthly credit card payment, minimum is usually around $90/month but I try to pay around $100-$125/month or so. So let's just say I spend a total of about $950/month average between those two things.
Going with either the Quicken offer or the local offer gets my monthly payment (including the mortgage AND the credit card buyout) down to around $680/month on another 30 year mortgage- they're both within about $10 of each other. Basically, Quicken's up front costs (PMI and rate buydown) for the FHA loan balance out with the higher interest rate of the local conventional loan. Granted I wouldn't see much of an improvement in equity for the next 10 years, but I sure would see it in my bank account.
I am not trying to refinance my way out of debt, please stop saying that. I am simply trying to figure out a way to survive on my current income. I was in a much better situation financially when I bought the house, but-- well life happened and now it's a real struggle. I have next to nothing to sell (one TV and my bug I suppose) and a second job is next to impossible with the crazy shift I work (10 hours days Wed and Thurs and overnight Fri and Sat- try finding a place--even a pizza delivery joint-- that will let you work around that schedule.) I work at the community college and get a tuition waiver, it's barely possible for me to take classes around this crap shift. Hopefully that will lead to better things down the road but I'm focused on making ends meet right now.
And BTW that ignorant ass fuck in the white house didn't do me any favors either with his new 1-percenters club only tax laws. FUUCCKKK him I cannot stress that enough. At least before his reign of terror I could count on a tax refund. Now I have a $1500 debt to the IRS. What's that??-- I needed to withhold EVEN MORE money from my paycheck I already struggle off of to make sure that didn't happen??
_________________
I'm the humblest guy on this board.
1969 autostick sedan, family owned since new
1600 SP engine
Solex 30 PICT 3 carburetor
Bosch 113905205AE autostick distributor |
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marklaken
Samba Member
Joined: March 19, 2004
Posts: 2416
Location: fort collins, CO
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| Posted: Wed Jul 17, 2019 9:30 pm Post subject: Re: My first time refinancing... |
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refi only your current mortgage balance into in a traditional 30 year fixed. use the monthly mortgage payment savings to pay down the credit card. 2 things will happen by refi this way - first, by not taking extra money, you will get the best interest rate. second, you will have a 1 month break in your house payments that you can use to pay off credit card debt.
Make 1 big credit card payment - $800 (on the month you don't have a mortgage) and then make regular preset credit card payments and pay biweekly - like $125 biweekly - easy to do online. Once the credit card is paid off, setup a vanguard retirement account and continue to invest that same $125 biweekly pretax into an index fund (or go roth IRA, since you are in a low tax bracket).
_________________
Wish List:
1967 Wesfalia SO-42 Parts Needed: Kitchenette, Cot Poles
'65 rear left beetle fender
15" Bus Wheels in fair condition
Mark Laken
Fort Collins, CO |
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marklaken
Samba Member
Joined: March 19, 2004
Posts: 2416
Location: fort collins, CO
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| Posted: Wed Jul 17, 2019 10:04 pm Post subject: Re: My first time refinancing... |
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| TDCTDI wrote: |
Lenders make money off of money & finding new & improved ways of screwing borrowers out of it. Refinancing is just another way of keeping broke people broke.
On a typical 30 year note, you will pay 2-2.5 times the original cost of the house & people get excited about "screwing" the "lender" because the refied at a lower rate, just to start the amortization schedule all over again.
https://www.calculatestuff.com/financial/loan-amortization-calculator |
You can save a boatload of money refinancing as long as you stick to your old payment on your new loan. If you just continue making the minimum monthly payments, then yes, the banks end up getting more money. It's best to setup a spreadsheet to compare where you are on your current amortization schedule and then compare what happens with a refi - the banks always talk about the new mortgage monthly savings and the "break even" point where the refi charges = the monthly payment savings. That's not the bottom line if you are trying to minimize total interest paid to "screw" the bank. This website will allow you to add extra monthly payments so you can compare amortization schedules using the same fixed payment on your refi. just cut and paste different amortization schedules scenarios into a spreadsheet and compare the bottom line when you plan to sell your house (10 years) or the house is paid off https://usmortgagecalculator.org/
_________________
Wish List:
1967 Wesfalia SO-42 Parts Needed: Kitchenette, Cot Poles
'65 rear left beetle fender
15" Bus Wheels in fair condition
Mark Laken
Fort Collins, CO |
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sb001
Samba Member
Joined: May 19, 2011
Posts: 10406
Location: NW Arkansas
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| Posted: Wed Jul 17, 2019 10:10 pm Post subject: Re: My first time refinancing... |
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| marklaken wrote: |
| refi only your current mortgage balance into in a traditional 30 year fixed. use the monthly mortgage payment savings to pay down the credit card. 2 things will happen by refi this way - first, by not taking extra money, you will get the best interest rate. second, you will have a 1 month break in your house payments that you can use to pay off credit card debt. |
Good points, PLUS I get a decent check back from my current escrow. But unfortunately pretty much all of that would have to go to the IRS, since I am on a 120 day payment plan with them that will expire toward the end of next month. Still I don't mind figuring something else out about paying down the CC other than rolling it into the refi.
| marklaken wrote: |
| Make 1 big credit card payment - $800 (on the month you don't have a mortgage) and then make regular preset credit card payments and pay biweekly - like $125 biweekly - easy to do online. Once the credit card is paid off, setup a vanguard retirement account and continue to invest that same $125 biweekly pretax into an index fund (or go roth IRA, since you are in a low tax bracket). |
That sounds like a good plan. Although I will say that my current retirement fund through the community college (403b with TIAA-CREF) is one of the few outstanding things about my job. I am only required to contribute 5% minimum and they'll match it at 10%. That's not to say I couldn't or wouldn't invest the savings.
_________________
I'm the humblest guy on this board.
1969 autostick sedan, family owned since new
1600 SP engine
Solex 30 PICT 3 carburetor
Bosch 113905205AE autostick distributor |
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sb001
Samba Member
Joined: May 19, 2011
Posts: 10406
Location: NW Arkansas
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| Posted: Thu Jul 18, 2019 3:01 am Post subject: Re: My first time refinancing... |
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OK after marklaken's post that got me thinking, the local lender actually sent me a secondary loan estimate on what was called a "conventional home possible" loan, that was ONLY for refinancing the mortgage note + $2000 cash back (which was maximum cash back at closing that didn't affect the interest rate) but did NOT include the CC payoff. The rate on that was 4.125% and it did not include PMI. Also closing costs were about $500 less partially due to no rate buydown.
I had initially dismissed that option since it did not include paying the CC off, but now I'm wondering if that's not the best all around compromise, where -- considering the skipped mortgage payment next month + returned escrow check, plus the $2000 back at closing-- I could make a sizable payment to either the tax owed or the CC or both. And on this loan my monthly payment drops to $612, which frees up even more per month to make CC payments or pay more toward principal, whatever.
_________________
I'm the humblest guy on this board.
1969 autostick sedan, family owned since new
1600 SP engine
Solex 30 PICT 3 carburetor
Bosch 113905205AE autostick distributor |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12848
Location: North Carolina
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| Posted: Thu Jul 18, 2019 4:06 am Post subject: Re: My first time refinancing... |
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There again, forget the CC, PAY THE IRS!!! They can & will take your home or screw you by levying your bank account or garnishing your wages (and that’s not in an agreeable percentage.)
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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jspbtown
Samba Member
Joined: January 27, 2004
Posts: 5156
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| Posted: Thu Jul 18, 2019 7:02 am Post subject: Re: My first time refinancing... |
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Haven't read each post in detail but your last chart grabbed my attention....
$99 a month for property taxes? Damn...….I pay close to $500 a month for property taxes. I am sure a NY'er will chime in as well.... |
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bluebus86
Banned
Joined: September 02, 2010
Posts: 11075
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| Posted: Thu Jul 18, 2019 8:26 am Post subject: Re: My first time refinancing... |
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| TDCTDI wrote: |
| bluebus86 wrote: |
| TDCTDI wrote: |
The credit card is a non-secured loan, if you can't afford it a month or more, screw them, there's nothing they can do except ding your credit & call you relentlessly.
Refinance just the balance of the mortgage to lose the PMI & shorten the duration of the loan, use the money that you would have had to pay PMI & maybe any additional savings on the mortgage to pay down the credit card. Do not use the mortgage to consolidate your credit card payments. |
That plan sounds like theft, highly immoral. You get a loan to buy something, you pay it off, not screw the lender. Also that ding on the credit can come back to bite with much higher interest rate on say a home loan.
That theft of not paying a credit card is also screwing the investors, which often includes peoples retirement account, it screws the employees of the credit company, and other borrowers who all must suffer to make up for some dead beat thief.
I dont roll that way, no one should.
The best thing is to refinance the credit card, ask for better terms, work harder to pay it off. Screwing the company as suggested is really bad, it harms others, it is wrong. Once you reneg on your word, your word becomes worthless.
Work out credit issues, dont ignore them.
Bug On, With Integrity! |
REALLY?!? These dick eating bastards changed the agreed interest rate just because they could, how was that not theft? How would walking away be any less moral than tripling the agreed interest rate that I signed up for? |
If you credit agreement you sign allows for interest rate hikes, then that is on you, you just dick ate yourself. If you want a fix interest rate, then sign up for one. If you dont want a variable rate, dont sign up for it.
If you dont like the rules, dont take THEIR money, which in reality is other peoples money, as in the depositors in the banks money.
dead beats you skip out on loans cause intrest rate to be very high for others, cause rates to increase, and reduce the interest rates depositors earn.
dead beats ate not only ripping of the credit company, which was good enough to hand over money for folks that wanted a loan. The dead beats screw over depositors, savers, other folks that want loans, retirees who habe their funds invested in the bank, and the bank employees.
Money dont grow on trees, when you become a dead beat, you are stealing from many an innocent person, not to mention destroying your good word.
Bug On, Crime Free!
_________________
Help Prevent VW Engine Fires, see this link.....Engine safety wire information
Stop introducing dirt into your oil when adjusting valves ... https://www.thesamba.com/vw/forum/viewtopic.php?t=683022 |
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cdennisg
Samba Member
Joined: November 02, 2004
Posts: 20271
Location: Sandpoint, ID
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| Posted: Thu Jul 18, 2019 10:42 am Post subject: Re: My first time refinancing... |
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Interesting read.
Dave Ramsey and Clark Howard give excellent financial advice. Highly recommend researching their respective websites for info.
Credit unions are better in almost every way than big banks.
That Conversion Home Possible loan looks to be your best bet considering your situation. Ask around from a few more lenders and compare.
A decent credit score is a good thing to have. Who knows what it will be used for in the future, whether is should be or not.
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12848
Location: North Carolina
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| Posted: Thu Jul 18, 2019 10:49 am Post subject: Re: My first time refinancing... |
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| bluebus86 wrote: |
If you credit agreement you sign allows for interest rate hikes, then that is on you, you just dick ate yourself. If you want a fix interest rate, then sign up for one. If you dont want a variable rate, dont sign up for it.
If you dont like the rules, dont take THEIR money, which in reality is other peoples money, as in the depositors in the banks money.
dead beats you skip out on loans cause intrest rate to be very high for others, cause rates to increase, and reduce the interest rates depositors earn.
dead beats ate not only ripping of the credit company, which was good enough to hand over money for folks that wanted a loan. The dead beats screw over depositors, savers, other folks that want loans, retirees who habe their funds invested in the bank, and the bank employees.
Money dont grow on trees, when you become a dead beat, you are stealing from many an innocent person, not to mention destroying your good word.
Bug On, Crime Free! |
Did you write this through an Ambien fog?
There is no credit card that has a fixed rate. Most have an introductory rate & all of them can raise the rates to the maximum allowable limit at any time at their discretion. Their rate stipulations & adjustments are hidden within the reams of legalese that realistically, almost no one reads, much like any of the user agreements for software updates on all of the smart phones. If you don't like the terms, you don't get to use their product.
I didn't say to not pay them at all, I just said that it was an unsecured loan. What I meant was, that if you had to chose what to pay with a set amount of income, that will not cover all of the bills, pay the entities that have ability to seize your assets.
There are far more retirees, savers, & depositors being screwed by the predatory practices credit card companies than there are being helped by one.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12848
Location: North Carolina
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| Posted: Thu Jul 18, 2019 11:16 am Post subject: Re: My first time refinancing... |
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| cdennisg wrote: |
Dave Ramsey and Clark Howard give excellent financial advice. Highly recommend researching their respective websites for info. |
Yes, but, as with anyone, they do have some differing ideas on finances. Clark is a proponent of "The bank of mom & Dad" while Dave is strongly against it due to the potential of strains on the relationships.
Clark doesn't interject religion into the discussion while Dave's teachings have a lot of biblical references & is largely based on his faith, which can be objectionable to some.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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Mark Evans 
Samba Member
Joined: April 21, 2004
Posts: 1931
Location: Alsea,Oregon
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| Posted: Thu Jul 18, 2019 11:52 am Post subject: Re: My first time refinancing... |
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By no means am I a financial guru, but I was taught early on to NOT refinance short term debt into long term debt. Keeping your home as your investment separate from other debt is huge. I understand, your situation is wanting you to do this, but as stated by you and others, you've already paid a large share of the interest for this home, I'd stick to the original note. BTW, a 5% loan isn't that bad, my first home purchase back in 1988 was at 9 7/8%!
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bluebus86
Banned
Joined: September 02, 2010
Posts: 11075
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| Posted: Thu Jul 18, 2019 11:59 am Post subject: Re: My first time refinancing... |
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| TDCTDI wrote: |
| bluebus86 wrote: |
If you credit agreement you sign allows for interest rate hikes, then that is on you, you just dick ate yourself. If you want a fix interest rate, then sign up for one. If you dont want a variable rate, dont sign up for it.
If you dont like the rules, dont take THEIR money, which in reality is other peoples money, as in the depositors in the banks money.
dead beats you skip out on loans cause intrest rate to be very high for others, cause rates to increase, and reduce the interest rates depositors earn.
dead beats ate not only ripping of the credit company, which was good enough to hand over money for folks that wanted a loan. The dead beats screw over depositors, savers, other folks that want loans, retirees who habe their funds invested in the bank, and the bank employees.
Money dont grow on trees, when you become a dead beat, you are stealing from many an innocent person, not to mention destroying your good word.
Bug On, Crime Free! |
Did you write this through an Ambien fog?
There is no credit card that has a fixed rate. Most have an introductory rate & all of them can raise the rates to the maximum allowable limit at any time at their discretion. Their rate stipulations & adjustments are hidden within the reams of legalese that realistically, almost no one reads, much like any of the user agreements for software updates on all of the smart phones. If you don't like the terms, you don't get to use their product.
I didn't say to not pay them at all, I just said that it was an unsecured loan. What I meant was, that if you had to chose what to pay with a set amount of income, that will not cover all of the bills, pay the entities that have ability to seize your assets.
There are far more retirees, savers, & depositors being screwed by the predatory practices credit card companies than there are being helped by one. |
Perhaps if folks were not in an Ambien fog they would understand the loan agreement they sign up for, including policy concerning interest rate increases. Read and understand what you sign up for before taking the money, dont play ignorant, then complain how you are being ripped off. better still, dont run up credit debt. Some folks can be very stupid with what they agree to, and that is what gets them in trouble.
The high rates that are charged to all are in fact the result of a few deadbeats skipping out on their agreements.
_________________
Help Prevent VW Engine Fires, see this link.....Engine safety wire information
Stop introducing dirt into your oil when adjusting valves ... https://www.thesamba.com/vw/forum/viewtopic.php?t=683022 |
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Cusser
Samba Member
Joined: October 02, 2006
Posts: 31361
Location: Hot Arizona
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calvinater
Samba Member
Joined: September 06, 2014
Posts: 3327
Location: 802 The Pointless Forrest
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| Posted: Thu Jul 18, 2019 12:51 pm Post subject: Re: My first time refinancing... |
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Dude $612 / month is nothing. What are wages like down there? Oops forgot
Walmart. With your knowledge of electrics you should install car stereos on the side.
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iamdonquixote
Samba Member
Joined: January 28, 2003
Posts: 2041
Location: M*ssholia
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| Posted: Thu Jul 18, 2019 1:03 pm Post subject: Re: My first time refinancing... |
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| marklaken wrote: |
refi only your current mortgage balance into in a traditional 30 year fixed. use the monthly mortgage payment savings to pay down the credit card. 2 things will happen by refi this way - first, by not taking extra money, you will get the best interest rate. second, you will have a 1 month break in your house payments that you can use to pay off credit card debt.
Make 1 big credit card payment - $800 (on the month you don't have a mortgage) and then make regular preset credit card payments and pay biweekly - like $125 biweekly - easy to do online. Once the credit card is paid off, setup a vanguard retirement account and continue to invest that same $125 biweekly pretax into an index fund (or go roth IRA, since you are in a low tax bracket). |
^^
I think this is probably the best advice for you.
Having good credit never hurt anyone,
I disagree that one's credit score doesn't matter, especially for younger and middle aged people.
Having some rainy day savings is important, so I think its often more important to save than to 'pay down' your house if you can only do one.
sounds like you are the right track. |
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cdennisg
Samba Member
Joined: November 02, 2004
Posts: 20271
Location: Sandpoint, ID
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| Posted: Thu Jul 18, 2019 1:31 pm Post subject: Re: My first time refinancing... |
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| TDCTDI wrote: |
| cdennisg wrote: |
Dave Ramsey and Clark Howard give excellent financial advice. Highly recommend researching their respective websites for info. |
Yes, but, as with anyone, they do have some differing ideas on finances. Clark is a proponent of "The bank of mom & Dad" while Dave is strongly against it due to the potential of strains on the relationships.
Clark doesn't interject religion into the discussion while Dave's teachings have a lot of biblical references & is largely based on his faith, which can be objectionable to some. |
True on both counts. Just like consuming news, one has to glean from several sources to find the correct info.
I am not a religious person, but Dave's references don't bother me. He isn't preachy, just stating his place.
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bluebus86
Banned
Joined: September 02, 2010
Posts: 11075
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| Posted: Thu Jul 18, 2019 1:43 pm Post subject: Re: My first time refinancing... |
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| calvinater wrote: |
Dude $612 / month is nothing. What are wages like down there? Oops forgot
Walmart. With your knowledge of electrics you should install car stereos on the side. |
On which side, left, right, front, or rear?
Bug On!
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Help Prevent VW Engine Fires, see this link.....Engine safety wire information
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