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2nd mortgage question

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littleroc02us
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2nd mortgage question  Reply with quote  

Hey guys and gals,

So I have a question regarding my second mortgage. Back in 2006 I was stupid and got bought at the top of the market, but I got a fixed rate and knew I could afford the payment unless of course I lost my job. We love the house and it's in a great neighborhood that has done quite well in the housing market. Right now were at a break even point, I just refied the 1st mortgage last year and got a 4% rate which is great. So my second mortgage is 40k and I no longer want to pay the 9% interest rate on it. I tried calling CitiMortgage and unless your underwater and haven't made a payment they aren't willing to drop the rate. They punch their numbers into a computer and spit out the answer without much intelligent thought. I have the money to pay it off within a year and half. I'm going to go to a couple of credit unions to see if I can get some type of a loan with a lower interest rate, if I cannot then I just bust my butt to pay this loan off asap. Any other ideas?

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue Oct 09, 2012 1:23 pm
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Wino
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I was in a similar situation, except my second was a bit less, and my payoff a bit quicker.

I just busted butt and got rid of it.

And I've never looked back.
Post Tue Oct 09, 2012 4:46 pm
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coaster
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My guess is they're not interested in refi'ing because it's pure gravy right now; a new loan they can't sell in the secondary market because it's too small; can't make any money that way and so they're quite happy to rake in the interest and don't give a heck about whether or not they keep an account.

You might have some luck with a credit union if you've got a sizable chunk of new money to bring to a new account; make it known that's conditional on getting refied. I'm guessing buy-in is probably $20K or more new money.

Though if that means liquidating appreciated assets and paying the cap gains; I think you'll discover the numbers favor taking Wino's advice. Smile

~Tim~
Post Wed Oct 10, 2012 6:23 am
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littleroc02us
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I'm already on the on ramp as we speak to that suggestion and solution.

Thanxxx

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Oct 10, 2012 7:51 pm
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Balboa Capital
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Mortgage Refinance  Reply with quote  

This thread is old, but I am hoping the original person who started it gets my response. The mortgage rates in the US are at or near all-time lows as of this post, and I was able to refinance my 30-year fixed mortgage to a 15-year fixed mortgage and my payments are only slightly higher (with my new 15-year program.) I contacted my bank and asked if they could do this without any closing costs, and they said "yes." I only had to pay for a notary, which was $40. You might want to look at a 15, 20 or 30-year refinance plan in order to save money.
Post Thu Oct 11, 2012 10:35 pm
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littleroc02us
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Re: Mortgage Refinance  Reply with quote  

quote:
Originally posted by Balboa Capital
This thread is old, but I am hoping the original person who started it gets my response. .


Are you sure this isn't spam your writing, this post was written on the 9th of October. I guess it's 3 days old.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Fri Oct 12, 2012 1:40 pm
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Balboa Capital
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Yes, the original post is from 2009.
Post Wed Nov 14, 2012 7:44 pm
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Publius
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The original post is from 10/10/2012. Little joined in 2009, perhaps that was the date you are referring to?
Post Wed Nov 14, 2012 7:49 pm
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Balboa Capital
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Yes, you are correct  Reply with quote  

I just joined and have been using my tablet, and I can't see the "join date" too well as the font is small. I apologize for that!
Post Wed Nov 14, 2012 8:00 pm
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littleroc02us
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Do you have something to contribute?

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Nov 14, 2012 8:19 pm
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oldguy
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quote:
I have the money to pay it off within a year and half. I'm going to go to a couple of credit unions to see if I can get some type of a loan with a lower interest rate, if I cannot then I just bust my butt to pay this loan off asap


If your cars are mostly paid down (from your previous posts, I'm guessing they are) a CU will take them as collateral. If your put up the Pilot & the Mits for 4 years, you can probably convert your 9% loan into 5% loans. Since the term will be shortened, it will cost way more per month to servive the debt - but, if you were planning on prepaying anyway - that's not a factor.

I did this on a rental house where I was foolish enough to get a balloon note when I purchased it - a few yrs later I refi'd my Pickup to move the debt from the house to the truck. Worked well.
Post Thu Nov 22, 2012 6:26 pm
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littleroc02us
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Makes perfect sense, I didn't think of that. I'm going to give that a try. I'm still going to pay it off in less then 2 years, but if I can save interest I'm all about that Thanks!

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Sat Nov 24, 2012 2:28 am
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Balboa Capital
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Low Interest Rates, Improved Housing  Reply with quote  

I just read some encouraging news about the US housing market and consumer confidence index. Both have made significant increases, and the articles indicate that the rock-bottom mortgage rates (which are at or near historic lows) are a key reason for this.
Post Thu Nov 29, 2012 12:57 am
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jerrodmerit
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Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate. You can refinance instead and keep a very low rate. In the long run a second mortgage will just cost you money in interest charges.
Post Fri Dec 07, 2012 5:46 pm
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