Share your consumer debt success stories! - Page 2

kav122 · 12-28-2007, 09:07 AM

Those are the kind of questions that I was wondering if someone would help me with. I called a Dave Ramsey Real Estate ELP (endorsed local provider) and she said that she would suggest paying off that second, then calling her back for the re-fi. Also I found that strange, too, that the ARMs interest was so high, but I think that that was the going rate last June. Maybe I'm wrong. But I feel like I got taken for a ride, because it was our first time buying a home and our agent was a "friend's" husband. I had never thought about getting a loan at a lower interest rate (maybe from our credit union?) and paying off the 2nd with that. That would certainly seem like we could save some money, because 11.625% is VERY high!

Also, I just wanted to say that the balloon part of the 2nd doesn't bother me, because we are making 3-4X the payment per month, so I know that we won't get hit with the balloon. But when I see how much interest we pay on that one, (and on the first one too!) it just makes me sick. I realize that I will have to pay some interest no matter what, but that seems a little high. However, we HAD to do a stated income, not standard paper-trail income, and because of that, I think that that cancelled out the fact that I have never paid a single late payment in my entire life.

Oh well, I will look into the credit union 2nd mortgage thing, and see if they can offer us something below 11.625%

Julie Rains · 12-28-2007, 09:14 AM

I guess the rates that are advertised are the "best" rates and you may not have qualified then (or just weren't offered them) but you may qualify for a better rate now. Also, you do have some tax advantages associated with the second mortgage (I would think) that you may or may not get with other loans but you could do the calculations and see what is best. Your credit union may also have fixed rate loans that can help you replace both mortgages.

khorrell · 01-18-2008, 05:32 PM

kav - I second (or third, I'm not sure) the suggestion that you look into refinancing now. Especially if you belong to (or are eligible to join) a good credit union. My credit union does not require PMI unless you borrow 100% and their rates are great. Their underwriting requirements are more stringent than some of the advertising mortgage companies, but they are a rock-solid credit union with great customer service.

Good luck to you!

12-28-2007, 09:07 AM	#11
kav122 Senior Member Join Date: Dec 2007 Location: Minneapolis, MN Posts: 526 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (243)	Those are the kind of questions that I was wondering if someone would help me with. I called a Dave Ramsey Real Estate ELP (endorsed local provider) and she said that she would suggest paying off that second, then calling her back for the re-fi. Also I found that strange, too, that the ARMs interest was so high, but I think that that was the going rate last June. Maybe I'm wrong. But I feel like I got taken for a ride, because it was our first time buying a home and our agent was a "friend's" husband. I had never thought about getting a loan at a lower interest rate (maybe from our credit union?) and paying off the 2nd with that. That would certainly seem like we could save some money, because 11.625% is VERY high! Also, I just wanted to say that the balloon part of the 2nd doesn't bother me, because we are making 3-4X the payment per month, so I know that we won't get hit with the balloon. But when I see how much interest we pay on that one, (and on the first one too!) it just makes me sick. I realize that I will have to pay some interest no matter what, but that seems a little high. However, we HAD to do a stated income, not standard paper-trail income, and because of that, I think that that cancelled out the fact that I have never paid a single late payment in my entire life. Oh well, I will look into the credit union 2nd mortgage thing, and see if they can offer us something below 11.625% Last edited by kav122; 12-28-2007 at 09:15 AM. Reason: left out some info

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12-28-2007, 09:14 AM	#12
Julie Rains Wise Bread Blogger Join Date: May 2007 Location: North Carolina Posts: 401 Thanks: 1 Thanked 0 Times in 0 Posts Reputation: (189)	I guess the rates that are advertised are the "best" rates and you may not have qualified then (or just weren't offered them) but you may qualify for a better rate now. Also, you do have some tax advantages associated with the second mortgage (I would think) that you may or may not get with other loans but you could do the calculations and see what is best. Your credit union may also have fixed rate loans that can help you replace both mortgages.

01-18-2008, 05:32 PM	#13
khorrell Senior Member Join Date: Jan 2008 Location: near Washington DC Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (84)	kav - I second (or third, I'm not sure) the suggestion that you look into refinancing now. Especially if you belong to (or are eligible to join) a good credit union. My credit union does not require PMI unless you borrow 100% and their rates are great. Their underwriting requirements are more stringent than some of the advertising mortgage companies, but they are a rock-solid credit union with great customer service. Good luck to you!