All Forum Posts by: Nick Dillaha

@Jerry Padilla current rate is 4.25, new rate is 3.75. I would have to make an additional $6k payment to drop PMI all together. I would be happy paying the $58 for PMI vs spending the additional $6k.

Hi @Aaron Bonne the loan I would be refinancing with is a credit union. Best rates around and my PMI payment drops to $58/month vs $212 now. My goal is to buy more rental properties and this process would just be additional savings in my pocket every month towards my goal. You wouldn't spend the $5700 to save $8100? Thank you so much for your time.

@Theresa Harris Thank you for your time! I am a definite saver and am looking to lower my payments to increase my savings to buy more properties. I would make my initial $5700 back in the first 19 months so anything after would just be additional. I will definitely look into how much more I can pay towards principle. Thanks again for your expertise. 

@Barry Pekin I've been running all of this through my head! My plan was to invest the money, and still is. But, I started exploring other options since I don't have any immediate use for the savings. We just refinanced our rental property to get out of a 10/1 arm and have a new fixed rate at 3.5% for 30 years. Our next decision is to refinance our primary residence, the interest rate is only 0.5% less currently but there's $150/month in PMI savings/month, plus $150 savings in payment. So around $300/month in savings, plus more payment going towards principle. My current mortgage doesn't allow PMI to come off until the loan reaches 75/25 for the first 5 years of the loan. So, December 2021 is when PMI would fall off because we would have reached 80/20. That's 27 months of payments or $8100 in savings over that period ($300*27 months). Simple math, $5700 to refinance (paid up front), $8100 in savings plus the interest savings from the remaining loan balance. Thoughts??

counting 

Hello BP!

I'll try to make this short. My wife's parents invested in her name over 14 years ago and destroyed her credit with 2 foreclosures and a bankruptcy. It's now off her credit but our local credit union whom her parents had a mortgage with wants $5,200 to become a member again. I'm currently refinancing our rental property through them and am looking to refinancing my primary residence. My wife isn't on the rental property but is on our primary residence. The interest rate is .25% (3.5%) lower and we would also save $150/month in PMI making our total savings of $354/month on a 30yr fixed. We currently have a 4.25% with $212/month in PMI. We wanted some advice on whether or not we should pay off the $5,200 to be able to refinance through this credit union. With $4200+ year savings it sounds like the right decision. Because she is on the loan we can't refinance with this credit union without paying the balance off. Any suggestions?

Hi, primary residence question. Currently have a townhouse rented and my primary residence. My PMI payment on my house is $212/month. I just had an appraisal completed and because I have only had the loan for less than 5 years I am required to have 75/25 loan to value. With that said, that's a $27k payment towards my mortgage to remove PMI. That's $2544/year that wouldn't be wasted. I have $50k saved so that would be a big hit. I could wait it out intil 2021 when I'll be at 80/20 and PMI will come off the loan anyways, but that's an $5k gone to nothing.

Thoughts??

I’ve been saving for another investment but I don’t currently have anything available in my area. Not sure if it’s worth to spend the money. Thanks for your help!

Hey @Ray Johnson, thanks for your response. The ARV is $170k, but the home needs a total rehab ground to ceiling. My end goal is to sell it after the rehab, I just didn't want to waste anyone's time making an offer lower than what the bank took it back for if that just doesn't happen in today's market. Asking is $90k, rehab $40k? (It's a 1021 sq ft box), + realtor/holding/closing/unexpected costs... My realtor stated it won't go for near asking price and that because It's a total gut that they'll probably accept an offer based on the land only. Thoughts?

I’m assuming you’re renting the property you mentioned? 

Question BP family, Do banks ever accept cash offers less than they get a property back for? For instance, I’m looking at a local foreclosure and the price is $90k, and the county website shows they took back the property at 90k. Do they ever accept lower offers if paid in cash?! The ARV should be around $160k to be safe and needs around $25k in repairs. Thanks!!

Thank you for your quick response! My gut is telling me to hold, I am just not saving as quickly as I'd like to so I'm looking for leverage. The loan is a 10/1 ARM, but I still have another 6 1/2 Year's until I technically will consider refinancing for a fixed rate. The tenant pays on time and is relatively low maintenance. Thank you again for your time!

Hello, BP! I currently own a townhome that I purchased for $123k in 2014. Current payoff is around $105k, with a 3.25% loan. The townhomes in my community sell for around $170-185k depending on condition. Current rent is $1500, netting me $370/month in income. Should I take advantage of the equity and sell to buy a small multi-family?? Should I keep it?? 

Thank you CJ Witmer! Although, potentially not the best news, I appreciate the response.

Mark Holencik I wouldn't have been able to put the new property in an LLC, nor did I want to. I spoke with someone at my local branch and they mentioned that I can transfer to an LLC but I may have just been given a wrong answer, looking back. Keeping the property as is makes me unprotected and vulnerable, don't you agree? I'll check with a CPA/lawyer to see what my options are.