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Thank you all for your feedback.
jeff, that's quite a detailed explanation. hope i didn't take too much
of your time.
what's the name of the investor you're trying to refi with?
Jeff Strickland wrote:
> Well, no. He didn't get all of the answers.
>
> The quick math is to add all of the current payments and come up with a
> number. Then find out what the new mortgate payment will be (with all of the
> other payments rolled it) and see if the new payment is lower than the
> current payment. Odds favor that the new payment will be less. (I don't
> like the new mortgage, the rate is very high. I think the OP should be
> looking at a rate of around 6.250% ~ 6.500%, not a rate hovering at 8%.
>
> The trick is to NOT take all of the avialable equity today -- or to take it
> but put it somewhere that it can be accessed but don't access it. Then,
> take the difference in the current payment and the new payment and set it
> aside in some manner of saving vehicle. If your current payment is $2500,
> and the new payment is $2000, then SAVE $50 each and every month.
> Alternatively, pay $500 extra each and every month to the mortgage and pay
> it off years ahead of schedule. The problem with this plan is that if you
> NEED money down the road, it will be locked away in equity, forcing a
> refinance to unlock it. If you have the discipline to save money, this is
> arguably better than paying the mortgage off. If you have not the discipline
> to save, then throw the money at the mortgage and refi if needed.
>
> I suggested taking the equity out now and settign it aside. My strategy is
> that he might want to make property improvements where the improvement is
> worth more than the cost, using equity dollars in this manner makes lots of
> sense. Using equity dollars to buy good scotch and fine cigars is a VERY bad
> idea.
>
> In any case, take all of your credit cards except a Visa (or your favorite),
> your American Express and the bank card where you keep your checking
> account, and feed them to a shredder. You might go to dinner, but not have
> $70 for the tab today, use the American Express and pay the tab at the end
> of the month. Your TV might take a dump, and you have to get a new one, pull
> out the Visa and pay the bill in 2 or 3 months, tops. When you need to get a
> sack or two of groceries, pull out the bank card because it hits your
> checking account right then.
>
> The point is to get your Credit Life in order, and now that you have
> transferred all credit to the mortgage, this is the best time to get the
> credit moneky off your back.
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Re: Opinion
