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Oh ok, that’s good to know. I never knew that existed anywhere.
Oh ok, that’s good to know. I never knew that existed anywhere.
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- Feb 23, 2006
For the remodelers, can you give me a ballpark figure of the effort and cost for a conversion like the one I have photoshopped? Looking to turn a foyer to a bedroom and add a shower to the powder room, however, the mechanical room opens out to the foyer. That would need to be walled off and opened out to the garage. There are components currently on the wall adjoining the garage, so those would also need to be rerouted. You can account for your locale.
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Depends on your interest rate and what your expected rate of return on investment would be.
If your interest rate is 5% for example, you are getting a guaranteed 5% "return" on your money by paying off your mortgage earlier. If you think your investment could beat 5% - then go with investing.
Do you currently pay PMI? Did you put down a good chunk for a down payment, or minimal?
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my interest rate is at 4.3% (best rate i could get during when i closed in March. i don't pay PMI. I did put 20% down. Also, my home is a legal 2 family, so that's how i am currently able to pay more into the mortgage to have it end in 15 years (rental income).
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- Jun 12, 2006
I need advice as well....
This is my 2nd rodeo as I sold my first house 5 years ago and made a cool profit. Anyway my scenario is below:
I currently owe 420k, but my house is worth 560k. My interest rate is pretty damn low at 3.25, but I am paying PMI and it **** is like 330 a month. Should I sell and take my profits to buy another house and drop the 20% so I don't have to pay PMI anymore? I want to refi to conventional, but with the market rate being way higher than my current interest rate, it doesn't make too much sense because I'll get rid of PMI, but i'll be paying a higher interest rate which will make my payments basically the same or save chicken scratch only.
I'd figure if I sell, I'd gain like 140k minus fees and such, but then i'll just be buying another house that is high with a higher interest rate? I don't know what to do right now...just stay put?
I don't want to stay put, then the market crashes right? I'll lose all of my equity.
This is my 2nd rodeo as I sold my first house 5 years ago and made a cool profit. Anyway my scenario is below:
I currently owe 420k, but my house is worth 560k. My interest rate is pretty damn low at 3.25, but I am paying PMI and it **** is like 330 a month. Should I sell and take my profits to buy another house and drop the 20% so I don't have to pay PMI anymore? I want to refi to conventional, but with the market rate being way higher than my current interest rate, it doesn't make too much sense because I'll get rid of PMI, but i'll be paying a higher interest rate which will make my payments basically the same or save chicken scratch only.
I'd figure if I sell, I'd gain like 140k minus fees and such, but then i'll just be buying another house that is high with a higher interest rate? I don't know what to do right now...just stay put?
I don't want to stay put, then the market crashes right? I'll lose all of my equity.
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Sell it. take your gains, purchase a motor home and wait it out.
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Maybe put 1/2 of the rental income into the mortgage, and 1/2 into investments?
With 20% down, its not like you're going to be underwater - so its really up to you on which way you want to go. Investments should bring in more than 4.3% return.
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Check with your bank. You might be able to pay for a re-appraisal (like $500) and if it appraises for 75-78% Loan-to-(new)-Value - they'll let you drop PMI.
Depends on what type of loan you got though. Example such as an FHA loan - you can no longer drop PMI, ever, I believe.
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I just got an appraisal done that's how I know it's at 560k. I definitely have the Loan-to (new) Value percentage, but I'm pretty sure I have an FHA loan...
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- May 2, 2007
Thanks B Sox for the info, never knew about that
How would you know though if the realtor or seller has someone fake bidding though just to get you up to your max???
Kind of what they do on eBay
How would you know though if the realtor or seller has someone fake bidding though just to get you up to your max???
Kind of what they do on eBay
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- Aug 19, 2015
If you have FHA - you might be locked into PMI unless you re-finance. But now that rates are up, refinancing can end up costing more too. Probably less than $330/mo PMI, though.
Don't know the details of your loan, but it looks like re-finance rates can be had for 4.75% right now. If you are at 4.3% currently, it is probably still worth it to switch.
I just threw these #'s in, but 500k loan with 20% down at 4.3% (without including Homeowner's Insurance, taxes, etc.) comes out to $1,979.49 per month. Add in $330 in PMI, and it comes out to: $2309.49 per month.
500k loan with 20% down at 4.75% = $2,086.59
https://www.calculator.net/mortgage...&xm10=10&xy10=2018&csbw=1&printit=0&x=90&y=23
https://www.calculator.net/mortgage...&xm10=10&xy10=2018&csbw=1&printit=0&x=85&y=22
Even with the increased interest rate, you'd still be saving $200+ per month by dropping the PMI.
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I actually tried, but it doesn't make sense. I'm not at 4.3 currently. I'm at 3.25% currently.
The new loan would be about 5%, could be 4.75, but they said it'll be other fees that end up costing me more. They crunched the numbers and I would only save "chicken scratch" AND my loan gets reset to another 30 years...
EDIT: I actually tried to do a cash out refi and take off PMI because my mortgage co keep sending me offers, and they said my house was worth 610k so I said, let's do it. End up doing it, but the appraisal didn't hit 610k, but it landed at 560k which killed the deal I had smh...stupid mortgage company made me waste money on an appraisal for no reason smh
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Who gave you the 5% number? You could try different banks and see if they offer better rates. I got my mortgage from a credit union about 3.5 years ago. They had the best rate, and they covered my closing costs up to $5k.
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5ish is about where conventional loans are right now for most banks.
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Either way, even a quarter of a point (5 to 4.75) it wouldn't make sense. I'm at 3.25% currently and I bought this house a little over 3 years ago.
Reset to 30 years to drop PMI, but pay almost the same difference with the new higher interest rate smh...
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funniest thing I've read in a while.
How much would the property rent for, as a traditional rental? How much would it rent for as AirBNB? Are you eligible to take out a HELOC for 60-80K? That could buy & rehab a 2-4 unit property depending on your market, if you want to invest & make money. Also depends if you NEED a bigger home or just WANT a bigger home. You may want to contact a CPA as I would be curious about the 140K and whether or not that's subject to cap gains tax, think it's a state-state thing?
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- Jun 12, 2006
funniest thing I've read in a while.
How much would the property rent for, as a traditional rental? How much would it rent for as AirBNB? Are you eligible to take out a HELOC for 60-80K? That could buy & rehab a 2-4 unit property depending on your market, if you want to invest & make money. Also depends if you NEED a bigger home or just WANT a bigger home. You may want to contact a CPA as I would be curious about the 140K and whether or not that's subject to cap gains tax, think it's a state-state thing?
LOL. It wasn't funny when it happened though lol. I wouldn't want to rent it out or AirBNB it either. HELOC wouldn't work because they only give you up to 80% of value which out of 560k is 448k and I owe about 422k so i'd only be able to get like 20k which i don't think is worth it because if I just sold the house, i'd make about 140k and I have a lot of options.
Downside to that is, i'll probably buy a house that's overpriced and be stuck with a higher interest rate. Not sure if I should stay put or not, plus the 6% REA fee would kill my profits anyway. I believe in CA the cap gains tax is over 250k gained so I'd be alright...
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- Feb 22, 2013
Damn, didn’t know this thread was a thing.
Anyone into RE Investments? I’ve been doing flips for about 4 years now. I actually became a direct lender for hard money loans.
I have programs that can get you up to 90% LTV PLUS 100% Renovation Funds.
Anyone into RE Investments? I’ve been doing flips for about 4 years now. I actually became a direct lender for hard money loans.
I have programs that can get you up to 90% LTV PLUS 100% Renovation Funds.
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Anyone have any experience with HELOC or home equity loans? Planning on a doing a BRRRR on a multifamily and wanted to see if anyone have tried this? HELOC/Home Equity Loan probably wouldn't cover the entire cost, so it may be better to house hack, do a FHA, and have the tenants pay the mortgage.
Thoughts?
Goal is longterm cashflow. Location is Texas. C Class homes in C/B neighborhoods or C/D+ homes in C Class Neighborhoods.
I can probably save the HELOC for a BRRRR.
Thoughts?
Goal is longterm cashflow. Location is Texas. C Class homes in C/B neighborhoods or C/D+ homes in C Class Neighborhoods.
I can probably save the HELOC for a BRRRR.
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What part of the country are you located?
solewoman
Staff member
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Anyone have experience with building their home in the DMV area?
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i wanna buy an apartment complex
best-case scenario: airbnb all apartments out (basically owning a hotel)
worst-case scenario: rent money breaks even with the mortgage payments + all the other costs
im willing to travel to get the best deal possible... anyone have any leads? I don't mind paying PMI if the NOI is crazy
best-case scenario: airbnb all apartments out (basically owning a hotel)
worst-case scenario: rent money breaks even with the mortgage payments + all the other costs
im willing to travel to get the best deal possible... anyone have any leads? I don't mind paying PMI if the NOI is crazy
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- Dec 19, 2013
Be careful with AirBnB. I know of few cities in California have passed ordinances banning short term rentals. SMH
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- Feb 22, 2013
Florida, but I lend nation wide.
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Yup. Here in SD, Air BNB is limited to primary residences only.
