Refinancing existing home

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  #1  
Old 05-18-2020, 11:19 AM
tvbound tvbound is offline
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Default Refinancing existing home

Recognizing that a larger than normal percentage of TV homes are purchased entirely with cash, I'm sure there are still plenty that although they didn't really need to, financed at least a portion (which we've been contemplating) of their purchase. While the thought of not having a monthly mortgage is very enticing, so is the idea of having a small and easily managed mortgage, while also having a healthy extra 6 figures in the bank.

I'm just curious, given the current low mortgage interest rates, if there are any people who have been thinking of refinancing and maybe taking out some equity built up since purchasing. The idea of even giving a 70 year old a 30 year mortgage is a thread in itself.LOL I can't help but think if there are some who have found their calculations of savings & investments in retirement aren't working out to what they thought they would be (due to higher costs, extended longevity or both), are looking to refinance to make up for it.

I believe I read that most banks aren't doing HELOC's right now, so I'm thinking that refinancing (even with closing and other costs) would be the only way to access cash in the equity built up in the last number of years.
  #2  
Old 05-18-2020, 11:47 AM
vintageogauge vintageogauge is offline
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Quote:
Originally Posted by tvbound View Post
Recognizing that a larger than normal percentage of TV homes are purchased entirely with cash, I'm sure there are still plenty that although they didn't really need to, financed at least a portion (which we've been contemplating) of their purchase. While the thought of not having a monthly mortgage is very enticing, so is the idea of having a small and easily managed mortgage, while also having a healthy extra 6 figures in the bank.

I'm just curious, given the current low mortgage interest rates, if there are any people who have been thinking of refinancing and maybe taking out some equity built up since purchasing. The idea of even giving a 70 year old a 30 year mortgage is a thread in itself.LOL I can't help but think if there are some who have found their calculations of savings & investments in retirement aren't working out to what they thought they would be (due to higher costs, extended longevity or both), are looking to refinance to make up for it.

I believe I read that most banks aren't doing HELOC's right now, so I'm thinking that refinancing (even with closing and other costs) would be the only way to access cash in the equity built up in the last number of years.
I don't know how long you have had your current mortgage but if you re-finance you'll be starting all over paying mostly interest and very little on your principal.
  #3  
Old 05-18-2020, 12:03 PM
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Originally Posted by vintageogauge View Post
I don't know how long you have had your current mortgage but if you re-finance you'll be starting all over paying mostly interest and very little on your principal.
Having sold my long-owned home last fall, and yet to purchase in TV, I currently have no mortgage.

As to building equity because of paying mostly interest instead of it going to principal, at this age and stage of life - I'm curious as to why some people think it matters? If someone is determined to maximize what their heirs will receive (ie: increased equity in existing home), maybe then it would be a concern I suppose. That being based on the hope that the house equity outperforms the extra 6 figures a person would have in the bank, that could be invested in a number of ways.
  #4  
Old 05-18-2020, 01:07 PM
bagboy bagboy is online now
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Everyone has different circumstances and financial needs. Two points, ONE, a borrower cannot be discriminated against when applying for a mortgage due to age. If an 85 year old qualifies financially, they will get a loan. And TWO, there ARE lenders/credit unions that are currently offering home equity lines of credit
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Old 05-18-2020, 01:15 PM
retiredguy123 retiredguy123 is offline
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Banks have no reason to discriminate against a borrower because of advanced age. They don't expect anyone who gets a mortgage to make 30 years of payments.
  #6  
Old 05-18-2020, 01:28 PM
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Banks have no reason to discriminate against a borrower because of advanced age. They don't expect anyone who gets a mortgage to make 30 years of payments.
As a few finacial experts have told me, at this age why spend your money when you can spend someone elses. Everything is about cash flow. Now, if I was in my 50's or 60's that might be different.
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  #7  
Old 05-18-2020, 01:49 PM
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If one has a use for the money why not get a 10 or 15 year mortgage? They are dirt cheap.
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  #8  
Old 05-18-2020, 01:56 PM
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Quote:
Originally Posted by tvbound View Post
Having sold my long-owned home last fall, and yet to purchase in TV, I currently have no mortgage.

As to building equity because of paying mostly interest instead of it going to principal, at this age and stage of life - I'm curious as to why some people think it matters? If someone is determined to maximize what their heirs will receive (ie: increased equity in existing home), maybe then it would be a concern I suppose. That being based on the hope that the house equity outperforms the extra 6 figures a person would have in the bank, that could be invested in a number of ways.
Got confused with the title of your post asking about re-financing existing home vs mortgage.
  #9  
Old 05-18-2020, 02:28 PM
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Originally Posted by vintageogauge View Post
Got confused with the title of your post asking about re-financing existing home vs mortgage.
That's why I stated - "financed at least a portion (which we've been contemplating) of their purchase."
  #10  
Old 05-18-2020, 05:14 PM
thelegges thelegges is offline
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OPM ( other People’s Money). If your investment make more than the current interest rate it’s a win. Your financial advisor should be more help then here
  #11  
Old 05-18-2020, 06:05 PM
capecoralbill capecoralbill is offline
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I'm thinking of doing this too, and I'm going to use "Citizens First" Bank, i believe it is owned by the Developer. Then when my house gets swallowed up by a SINKHOLE, I'll just be able to walk away.
  #12  
Old 05-18-2020, 09:11 PM
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I'm thinking of doing this too, and I'm going to use "Citizens First" Bank, i believe it is owned by the Developer. Then when my house gets swallowed up by a SINKHOLE, I'll just be able to walk away.
Keep telling yourself that.

  #13  
Old 05-18-2020, 10:19 PM
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We looked into refinancing but would have to pay $4000 in closing costs plus all the paperwork. Decided to pass it up.
  #14  
Old 05-19-2020, 05:34 AM
gsovas gsovas is offline
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Default Mortgages

I personally took a very large mortgage when I moved here even though I had the moany to pay for this home. I did it for two reasons:1. as we get older, many find it is necessary to do a reverse mortgage because they are running out of cash (this is very costly) 2. It allowed me to have a substantial amount of cash if I wanted to travel, buy a new car or whatever. So using these excuses above, it allowed me to invest the money which allowed me to make between 10 & 25% in the market while my interest rate on the mortgage was only 3.25%. Also as one person said, why do I want to leave the value of this home to someone else when I can be enjoying the money while I am still alive?
So if you can refinance at a very low rate and avoid the big costs by shopping on line, I would do it!




Quote:
Originally Posted by tvbound View Post
Recognizing that a larger than normal percentage of TV homes are purchased entirely with cash, I'm sure there are still plenty that although they didn't really need to, financed at least a portion (which we've been contemplating) of their purchase. While the thought of not having a monthly mortgage is very enticing, so is the idea of having a small and easily managed mortgage, while also having a healthy extra 6 figures in the bank.

I'm just curious, given the current low mortgage interest rates, if there are any people who have been thinking of refinancing and maybe taking out some equity built up since purchasing. The idea of even giving a 70 year old a 30 year mortgage is a thread in itself.LOL I can't help but think if there are some who have found their calculations of savings & investments in retirement aren't working out to what they thought they would be (due to higher costs, extended longevity or both), are looking to refinance to make up for it.

I believe I read that most banks aren't doing HELOC's right now, so I'm thinking that refinancing (even with closing and other costs) would be the only way to access cash in the equity built up in the last number of years.
  #15  
Old 05-19-2020, 06:21 AM
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You should look into the Pros and Cons of doing a Reverse Mortgage!
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