Stock market on Monday (PREDICTIONS)

[I AM NOT THAT GUY 5,715]

4% on 15 years with my current balance is fine.

15 year loan is the way to go. The ratio of principal to interest increases fast, so if you can live with your current rate, no reason to refi. There is no better feeling that making that last house payment. I paid my 15 year loan off in 10 years.

[dalegg 143]

No points/ no fees? Or paying fees? (Application fee, appraisal, credit report, etc.)? If so, how much?

I'm in 15yr/4.0% now and would ratchet down again to 3.5% but only for no points/no fees. My broker wants me to pay the $275 appraisal, and I'm worried about my neighborhood comps......

No points, but the cost to closing the loan is about $5000, so kind of there is a point.

"Estimated Prepaid items" $2,839.84- I think this includes tax and insurance for the first month.

"Estimated closing costs" $2,774.76

I had to pay almost $500 for appraisal too. It's okay because over the next 13 years I will be saving over $21,000 on interest. Neighborhood was a problem this time--first time ever. I had to pay $20,000 to pay down my mortgage to avoid PMI. Big thing for me was that the time is finally right where fixed mortgage rates are almost as low as my adjustable home equity, which was the main reason I wanted to lock now.

[I AM NOT THAT GUY 5,715]

No points, but the cost to closing the loan is about $5000, so kind of there is a point.

"Estimated Prepaid items" $2,839.84- I think this includes tax and insurance for the first month.

"Estimated closing costs" $2,774.76

I had to pay almost $500 for appraisal too. It's okay because over the next 13 years I will be saving over $21,000 on interest. Neighborhood was a problem this time--first time ever. I had to pay $20,000 to pay down my mortgage to avoid PMI. Big thing for me was that the time is finally right where fixed mortgage rates are almost as low as my adjustable home equity, which was the main reason I wanted to lock now.

Are they still letting you keep your home equity credit line open? One of the first things that happened to me after the bubble burst was that they wanted to fully document my undocumented HELOC. I just went ahead and paid off the balance I had, and closed the credit line. For a $40,000 HELOC that I only had a $5,000 balance on, it was not worth independently getting a third party appraisal and hiring an accountant to establish my credit worthiness.

[scandal 951]

No points, but the cost to closing the loan is about $5000, so kind of there is a point.

"Estimated Prepaid items" $2,839.84- I think this includes tax and insurance for the first month.

"Estimated closing costs" $2,774.76

I had to pay almost $500 for appraisal too. It's okay because over the next 13 years I will be saving over $21,000 on interest. Neighborhood was a problem this time--first time ever. I had to pay $20,000 to pay down my mortgage to avoid PMI. Big thing for me was that the time is finally right where fixed mortgage rates are almost as low as my adjustable home equity, which was the main reason I wanted to lock now.

Yeah, the prepaids are your T&I. That should cover more than the first month- typically they take several months up front. I have no escrow, so I don't pay my T&I through the mortgage, I pay them directly when they come due. So you are paying an origination fee etc. For your loan balance/savings, that seems worthwhile. For me, the only way a refi makes sense is if it's at zero cost to me. Which it looks like I got tonight!

Email from my loan broker:

On Fri, Aug 19, 2011 at 6:29 PM, <********@******.com> wrote:

Ron:

Sorry for the delay on my end.

We can do 15 Year Fixed at 3.50% right now. No fees or points.

Let me know and I will get the ball rolling on it. Kept watching and watching and we got it.

Next step I would update your application and get everything out to you. I would give you a list of updated info we need from you.

[dalegg 143]

Are they still letting you keep your home equity credit line open? One of the first things that happened to me after the bubble burst was that they wanted to fully document my undocumented HELOC. I just went ahead and paid off the balance I had, and closed the credit line. For a $40,000 HELOC that I only had a $5,000 balance on, it was not worth independently getting a third party appraisal and hiring an accountant to establish my credit worthiness.

Actually my original mortgage company gave me a $600 incentive last year to close down my home equity line so I took it. This meant I couldn't take any more out, but was still under the same payment terms. Up until that time they had been offering me $5000 to pay it off, but that offer unfortunately no longer stands. That would have been great.

So, for a little while I am done with lines of credit.

[mawilson 2,133]

Which it looks like I got tonight!

Sweet!

[scandal 951]

I'll just do this. Current futures:

Remember this? Everyone in a panic in August when S&P downgraded the US debt, shortly after we had the debt-ceiling crisis?

Here are the closing numbers after a big rally today:

Market Summary

Dow 11,808.79 +267.01 +2.31%

Nasdaq 2,637.46 +38.84 +1.49%

S&P 500 1,238.25 +22.86 +1.88%

[mawilson 2,133]

Remember this? Everyone in a panic in August when S&P downgraded the US debt, shortly after we had the debt-ceiling crisis?

Here are the closing numbers after a big rally today:

Market Summary

Dow 11,808.79 +267.01 +2.31%

Nasdaq 2,637.46 +38.84 +1.49%

S&P 500 1,238.25 +22.86 +1.88%

Yeah. My gut feeling tells me it's not gonna last. US companies have been

remarkably resilient and are still pulling record earnings out of a hat, but

the only way for them to keep growing is via a stronger economy or further

cost-cutting (including more layoffs, potentially.) Slower growth in other

regions of the world (Europe and Asia) will also hit their bottom line soon enough.

[웃 910]

Remember this? Everyone in a panic in August when S&P downgraded the US debt, shortly after we had the debt-ceiling crisis?

Here are the closing numbers after a big rally today:

Market Summary

Dow 11,808.79 +267.01 +2.31%

Nasdaq 2,637.46 +38.84 +1.49%

S&P 500 1,238.25 +22.86 +1.88%

And little did we know we were seeing the top of a nice lean hogs run up...Remember, next time there is doom and gloom short the lean hogs!

From July 24th:

Should have got me some lean hogs a few months back! Anyone stock up the barn? Spooks?

Edited October 21, 2011 by Lord Infamous