Refinancing: How Sweet It Is
We’ve had a 6 percent 30-Year fixed mortgage since we bought our house in 2005. With rates at historic lows, we, like many people, started looking into refinancing earlier in the year, but had to put it on hold until we got tax extensions, and then returns, filed. When we spoke with the mortgage specialist…
We’ve had a 6 percent 30-Year fixed mortgage since we bought our house in 2005. With rates at historic lows, we, like many people, started looking into refinancing earlier in the year, but had to put it on hold until we got tax extensions, and then returns, filed. When we spoke with the mortgage specialist at Chase in February the conforming loan limit for a two-family house in Brooklyn was just south of $800,000. When we got on the phone yesterday morning we were pleased to learn that the conforming limit had recently been raised to $934,200; the single-family limit is $729,750. We were able to do a 90-day lock for a 1/4 point at 5 percent. Here’s where you have to start to question how low prices can really go: With rates where they are right now, you could, say, buy a $1.2 million house and lock in mortgage payments of $5,000 a month; assume you make $1,500 on your rental and you’re down to $3,500; throw in the tax breaks and you’re down to $2,500; add back in $1,000 a month for taxes and insurance and you’re back up to $3,500. $3,500 a month to own your own house in New York City and have, say, 2,400 square feet of living space for yourself (three out of four floors). The trickier part comes when you need to finance more than that $934,200. Have any readers gotten financing for significantly more than that recently? How did you structure it? We heard from Chase that HELOCs are quite hard to get right now?
Conforming limit on a 4 family is $1,403,400 million…
I think that is more interesting. There are a number of 4 family buildings in the Cobble Hill/Carroll Garden’s area that are south of $2mil asking.
Hell, this one is asking $1.6
http://brownstonelistings.com/index.cfm?page=details&id=1011
Offer $1.4 and you might be able to finance the entire thing…
Buy now or be priced forever. Ha!
I thought it would be at least 4 years before I read that old chesnut, according to MY models.
Those are reasonable considerations, What, but we’ve had our mortgage for about 3.5 years and are lowering our monthly nut by $1,000 which is pretty significant; also, and you’re not going to like to hear this, we have no plans to move…
I agree Mr. B. I think NYC housing has bottomed within 10% meaning a 500k ask might fetch 475k +/- and a 1mm ask might fetch 925k or so. I think that’s it for the housing crash here in NY. Before we all know it, it’ll be 2010 & nationally the crash started 4Q of 2005. By 2012 housing will start rising & perhaps even earlier based upon my models. By 2014-15, prices will be back to 2005-06 which put us in line with previous declines retracing back to the mean. With rates so low & tax credits being given to 1st time homebuyers, one would be a silly fool not to consider buying right here & now. Buy now or be priced out forever because this time next year that $8000 tax credit will be history & prices will be stable with a 50/50 split between buyers & sellers only to favor sellers as each month progress from there.
It works if you are refinancing and your house is appraised for at least $1,250,000.
To buy though, you will need to put more than 20% down. When hubby and I were looking at a house last fall, the mortgage broker said we’d need to put at least 30% down for that particular zip code (in Red Hook.). Is there a bank out there willing to lend $700,000 with 20% down?
Sounds like something that could work for many New Yorker’s .
If you people sit here and continue to complain you will get nowhere .
I am trying to refi with Astoria Federal now
my prob is – I have a good credit score, great rental income but I don’t make a lot of money.
so here’s hoping I get approved that would solve some of my issues 🙂
I was offered 5.2 plus a point b/c am trying a cash-out refi – but would still be way under the 934K
Astoria said they aren’t doing any HELOC anymore!
wow – how times have changed!!
Answer these questions Retards!
How many months have you paid into the first mortgage??????!!!!!
How much INTEREST have you paid into the first mortgage???!!!!!
Will the offset be less into the second mortgage?????!!!!!
Has the bell rung in your head when you realized you will make more that 360 mortgage payments plus fee’s??????!!!!!
Did you know the average stay in a house is 7 years and maybe NOT REFINANCING is a better way to go!!!!
Hey Brownstoner you got a MBA from Armpit OH Community College break out the Excel spreadsheet and tell what ya got, STUPID!
The What
Someday this war is gonna end…
also a great deal if you happen to work in a industry with any job security. some people just don’t get it.