All Forum Posts by: Mercedes Smith

On approx 500K loan closing costs would be 12K, so for me it doesn't make sense to pay the costs unless you think rates won't go any lower for the next 3.5 years. Call Assoc Mortgage (talk to Arni not Morgan) and see what they have to say. They think mortgage rates will fall more in the coming years.

Alright, I have the full story, I spoke with Arni at Associated Mortgage in Utah today. For a "high balance conforming" 30-year fixed the rate with no costs is 4.375%. 

Exact numbers: 

$680,000 purchase price/value

20% down

Loan of $544,000 single family primary residence for absolutely no costs (no points, no appraisals fees, no closing costs, literally zero cost to me whatsoever), the rate today is 4.375%. 

If you want to pay closing costs the rate is 3.75% today, no points. Cash-out refi is 4.5%. They tell me they can do this because their overhead is so low, they don't advertise, etc. Anyway, they insist they offer the best deal in town, so if anyone knows of a better rate with no fees, please pass it along. 

I'll have to get more information as this was just a quick conversation in passing today. We talked about a refi on a $679,000 single family primary residence with 20% down and 30 year fixed. There would be no fees, he would pay for appraisal and there would be no closing costs, and I believe the rate was going to be 4%, assuming excellent credit -I have to check back on all the exact numbers on Monday. 

I was mostly wondering if anyone has used or heard of Associated Mortgage in Utah and could recommend.

Hi, I just happened across Associated Mortgages in the Salt Lake City area of Utah. They have interest rates for 30 year conventional mortgages at 3.75% right now, March 9, 2019. This seems exceptionally low. Has anyone heard of them? According to their website they've been in business since 1989 and seemed legit when I met them in person today. I believe they only have 2 or 3 employees, so a very small outfit with no overhead -I assume that's how they are keeping their costs low? Has anyone heard of them? What advice do you have for working with such a small mortgage company? Thanks!

Hi Everyone! I have been lurking for a while and this is my first post. I have a steady full-time job that I love that pays well and I'm just looking to do REI on the side. I sold/flipped my last primary residence for a pretty penny and am now fortunate to be living in my dream house (I put 20% down and moved in just a few months ago).

I have approx 100-125K cash left that I would like to invest in RE. I have been reading a lot about BRRRR and I don't see many opportunities in my area of Salt Lake City that even barely meet the 1% rule. I feel if I want to BRRRR I should sit on the money and wait for the prices to go down in a few years. Overly conservative?

OR . . . .

Should I build a legal ADU (accessory dwelling unit) over my detached two-car garage in my backyard? I have had several architects and contractors out who have given me prices anywhere from 90-120K to build a 650sq ft apartment over my garage. (City will not permit an ADU to be larger than 650 sq ft.)

Cost to build: 100K  (estimates are 90 -120K, including architect and city fees, everything)

Financing Options -pay 100% cash or finance all or part (HELOC? other Loan?)

Income: at least $1000 a month, maybe $1200 if I make it a 2 bedroom

CapX: very little since it'll be brand new, I'll self manage, and the location is highly desirable so low vacancy

Refinance option: It's highly possible that my home will appraise for >125% of what I paid for it after the ADU is built, (maybe even 143%, but that's pushing it probably -and there are so few comps in the neighborhood as the city just started allowing ADUs a few months ago) I could refi and pull the cash out, but that might not be for another year (construction time) and I'm worried that the interest rates will be too high then to make total sense. (Since it's my primary residence I'm using the 125% instead of 143%, I hope that is correct.) Again, I am a newbie, help!

Many people wouldn't want renters in their backyard, but I live in a high density housing area with an unusually large/long backyard. The houses on either side of me are already closer than the garage unit would be, so to me, having a unit in the back is not much of an intrusion.

I am new to this, so fill me in if I am absolutely wrong in feeling there there no/very few properties in SLC right now that would rent for over $1000 and cost only $100K.... 

How would you choose to finance the unit if it were you? 

Would you save the money and wait for a lower priced market? 

Totally different better ideas?

Thanks in advance!