The Home Improvement Thread

I stripped and recaulked the base of my stand up shower AND replaced the filament on my weed whacker…All in one weekend!


also, because I know hutch is anxious to know…
got the  Clear to Close today for my 2.5% refi
Closing costs actually went down almost $2k since my September quote
Should be go to go this time and looking forward to paying $244 less a month for the life of this loan and zero due on closing

Fuckin awesome

Remarkable …they seem to keep going down


https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart

Yeah, didn't want to jinx it, but signed, sealed and money moved on 2.5% on a 30 yr fixed
saving over $320 a month is like getting a part-time minimum wage job
Was tempted to pay a little for 2 3/8'ths% for bragging rights
but if people are not refinancing their loans, they are leaving money on the table (unless they were already at a low 3% rate)
I basically spent 3-5 hours of work and now am getting 1.5 months of mortgage for free a year, for the life of this loan

The big problem for most Americans with such low rates, it impacts savings rates
I remember Ally was giving like 2% a year or so ago and it was one of if not the highest savings rate…and honestly that sucked
Now, getting .5% is the best you can do.  Ergo… you are losing money by keeping it in the bank
Meanwhile, the stock market has been going gangbusters so there are lots of winners and losers

I'm also upping my caulk game and re-doing the caulking on the seam on the kitchen counter and the splashboard
Guy who did it before did a horrible job, I think part of the problem is the entire counter isn't level, but they made the splashboard level, so there is a 1/4 gap on one side and almost none on the other. 

Also put up 3 shelves in the utility room and we can now see the floor again!

We are about to sign on a vacation property in Asheville at 2% for 15 year. Rates are insane.

Julian, wrote:
We are about to sign on a vacation property in Asheville at 2% for 15 year. Rates are insane.

Oooh a boardie vacation spot! Thanks Julian!

Julian, wrote:
We are about to sign on a vacation property in Asheville at 2% for 15 year. Rates are insane.

I hate to dox you, but this does look great. Awaiting the invite.

https://www.realtor.com/realestateandhomes-detail/24-Cary-Ln_Asheville_NC_28804_M54261-05671 

We do need some specifics. # beds/baths. Proximity to breweries. WiFi capabilities, etc. Boardie discount will presumably be substantial.

Nice J!

A house on the Eastern shore would be nice… maybe when negative mortgage rates arrive..

Am glad Sidehatch won’t have to get a second job at the Mickey Dees on Columbia Avenue

I wonder how low rates could go

It’s interesting how this year hasn’t affected everyone the same way…some people are benefiting financially- buying second homes and seeing their stock portfolio rise in value- while others are fighting to stay off the street…

Just wrote:
It’s interesting how this year hasn’t affected everyone the same way…some people are benefiting financially- buying second homes and seeing their stock portfolio rise in value- while others are fighting to stay off the street…

This is very true.

check out these masterclass carpentry skills!

HatchGate wrote:
but if people are not refinancing their loans, they are leaving money on the table (unless they were already at a low 3% rate)
I basically spent 3-5 hours of work and now am getting 1.5 months of mortgage for free a year, for the life of this loan

Did you run numbers on paying half your mortgage every two weeks instead of refinancing? 

Our rate is in the mid-3's and by budgeting an any every-two-week payment instead of a monthly payment, there was more long term savings to be had by structuring our payments that way rather then paying the refinance fees and looking for 1.5 less payments a month.  Over the last 25 years of the mortgage by paying 2 extra month of the mortgage per year, the savings are well into 6 figures and more than the savings from a lower rate (plus re-fi fees). 

As you said, especially while the interest rates on savings are so low, no sense paying less when paying more can save more money in the long run.     

Gets popcorn….

vansmack wrote:

HatchGate wrote:
but if people are not refinancing their loans, they are leaving money on the table (unless they were already at a low 3% rate)
I basically spent 3-5 hours of work and now am getting 1.5 months of mortgage for free a year, for the life of this loan

Did you run numbers on paying half your mortgage every two weeks instead of refinancing? 

Our rate is in the mid-3's and by budgeting an any every-two-week payment instead of a monthly payment, there was more long term savings to be had by structuring our payments that way rather then paying the refinance fees and looking for 1.5 less payments a month.  Over the last 25 years of the mortgage by paying 2 extra month of the mortgage per year, the savings are well into 6 figures and more than the savings from a lower rate (plus re-fi fees). 

As you said, especially while the interest rates on savings are so low, no sense paying less when paying more can save more money in the long run.   

Would that kind of philosophy work as well on a mortgage where one has 9-10 years left on a 15 year mortgage?

vansmack wrote:
Did you run numbers on paying half your mortgage every two weeks instead of refinancing?

…

Over the last 25 years of the mortgage by paying 2 extra month of the mortgage per year,

How is 1/2 a mortgage payment every 2 weeks "2 extra month of the mortgage per year"? 26 1/2 payments = 13. What am I missing?

well I always pay a little extra on the principal with payment, but wouldn't say that I averaged out to one full month payment EOY (maybe half a payment)
But you are right, paying extra monthly makes a big difference as once you pay over the payment, that goes directly to the principal

That type of payment plan works out great if you get paid bi-weekly, I get paid twice a month (and have for a while now)
But when I did…used to love it when you had two months a year where you got 3rd paycheck.  May debt paydowns or wild weekends were had with those magical 3rd paychecks

I know for a fact that my refi has me paying almost $100k less in interest over the life of the loan and I'm paying $320 less a month
Now if I took that savings and paid the same amount, that could easily shave 5 years off my loan too…but money is tight and that $320 is actually making a difference


Honestly, you could refi at the lower rate AND pay every two weeks…then you'd save millions, I tell you, Millions!
I mean if we are being honest, don't get a loan and pay cash, then you really make out…but only Julian can do that
That is by far one of the most depressing moments when they show you that page that says you basically are paying Double for your loan

also, for the last two tax years…I didn't even get to write off my mortgage interested…Thanks Trump
the new standard deduction is so high.  So people should think twice when they factor in mortgage interest deduction into their 'savings' on owning a home

Julian, wrote:
How is 1/2 a mortgage payment every 2 weeks "2 extra month of the mortgage per year"? 26 1/2 payments = 13. What am I missing?

he does have a point…but one full month worth of principal payment can have a big impact
but I can see why if he used that math the savings was better than taking a point off his loan

Space, there are calculators out there and you can put in what you owe and your term
then you can see how many years you will take off your loan by adding extra payments
guaranteed paying extra every month will save you money in the long run, no doubt about it

here is the key part of smakie's proposal too

vansmack wrote: there was more long term savings to be had 

So lowering monthly payments was not a concern in the smakie home, wish I could say that was the same for me
I actually increased my term (only a year) and increased my loan by wrapped in the closing costs (so also 'skiped' a whole months payment too)
between that and the stimulus check, it was a good month in the Hatchhold

Julian, wrote:
How is 1/2 a mortgage payment every 2 weeks "2 extra month of the mortgage per year"? 26 1/2 payments = 13. What am I missing?

Sorry, I should have been more clear here.  It's not quite two months (but pretty close) with the interest saved by making more frequent payments over the equivalent of a year, in addition to making the ACTUAL extra payment.

HatchGate wrote:That type of payment plan works out great if you get paid bi-weekly, I get paid twice a month (and have for a while now)

Yes, a benefit of me and the Mrs being on different pay schedules.  I'm monthly, she's every two weeks (salary). I don't exactly know when her commission is paid.

HatchGate wrote:
I know for a fact that my refi has me paying almost $100k less in interest over the life of the loan and I'm paying $320 less a month

Yes, but did you factor in origination fee (~1.5% of the loan) and costs?  And I assume those costs were rolled back into the mortgage?  This is where I realized that the money saved in interest, minus total closing costs, was not a cheaper alternative to keeping my current loan but just paying more.  EVEN if I did both.  I will revisit this when the loan amount is reduced and the closing costs are lower.  That was the crux of my original question. 

HatchGate wrote:but money is tight and that $320 is actually making a difference

Well, this of course makes a huge difference.  I only asked because you mentioned that keeping money in the bank was a losing proposition at the moment and the market has been going gang busters…seemed as though you were looking for alternatives.

HatchGate wrote:
I mean if we are being honest, don't get a loan and pay cash, then you really make out…

Not true.  Money is cheap right now and you SHOULD take advantage of it, so long as you can make more money else where.  Do you have enough money for the new car?  Sure.  But if you are given a zero percent loan and can make 3% with the money elsewhere, that is something you should do.

HatchGate wrote:also, for the last two tax years…I didn't even get to write off my mortgage interested…Thanks Trump
the new standard deduction is so high.  So people should think twice when they factor in mortgage interest deduction into their 'savings' on owning a home

We lose ~$11k in mortgage and property tax deductions annually with the new tax bill.  Another reason why we won't consider selling as were grandfathered in and would lose even more if we moved!  So that with the other deductions we're no longer allowed to take because of the cap are painful.

Space wrote:

Would that kind of philosophy work as well on a mortgage where one has 9-10 years left on a 15 year mortgage?

I find it hard to believe that a data analyst for the Federal Government doesn't know his way around a spreadsheet to calculate and compare, but OK. 

Google Docs has many pre-populated spreadsheets to compare the two.  Many web sites will also do the same….