Search found 26 matches

by karwosts
Sat Apr 23, 2022 8:48 am
Forum: Personal Investments
Topic: Treasury Direct - Account Opening Failure
Replies: 23
Views: 4529

Re: Treasury Direct - Account Opening Failure

Two tips: 1) You can get a "signature guarantee" instead of a "medallion signature". I thought I needed medallion, but our Bank of America banker said this is much more time consuming and onerous to get. She was able to give me a signature guarantee on the spot, instead of a medallion which had to be submitted to some office and provide a bunch of paperwork and documentation. The back of the TD form suggests both are acceptable. 2) You can email the form to treasurydirect instead of mailing it. My banker stamped the signature guarantee yesterday, I emailed it to treasurydirect's contact email (Treasury.Direct@fiscal.treasury.gov) last night, and just got an email today that my account had been unlocked, and just made an...
by karwosts
Fri Apr 22, 2022 3:59 pm
Forum: Personal Investments
Topic: Treasury Direct - Account Opening Failure
Replies: 23
Views: 4529

Re: Treasury Direct - Account Opening Failure

Two tips: 1) You can get a "signature guarantee" instead of a "medallion signature". I thought I needed medallion, but our Bank of America banker said this is much more time consuming and onerous to get. She was able to give me a signature guarantee on the spot, instead of a medallion which had to be submitted to some office and provide a bunch of paperwork and documentation. The back of the TD form suggests both are acceptable. 2) You can email the form to treasurydirect instead of mailing it. My banker stamped the signature guarantee yesterday, I emailed it to treasurydirect's contact email (Treasury.Direct@fiscal.treasury.gov) last night, and just got an email today that my account had been unlocked, and just made an ...
by karwosts
Tue Nov 02, 2021 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Familyman2012 wrote: Tue Nov 02, 2021 7:06 am Divide $6500(cost) by your monthly saving. That’s how long it will take for you to break even. Most people on the sub would go for a no cost.
You need to divide 6500 by the difference in monthly interest, not the difference in monthly payment. The smaller rate loan has a larger percentage of the total payment going to principal each month. If you don't account for that, you make the higher rate loan look more favorable than it really is.
by karwosts
Fri Oct 15, 2021 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

For anyone who's tried to take a second bite of Better/Amex's apple (after 6 months), how did you time it?

Do you wait 6 months after funding to apply again? Or can you apply at ~5 months, and time it so that your second closing/funding occurs 6+ months after the first closing/funding?

Since the lock window expires 9/13/22, wondering if I'll get a chance to get two more refinances with credit next year, might be tight. Assuming inflation and rates aren't up to 10% by then :shock:
by karwosts
Tue Oct 12, 2021 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Calculate monthly P&I for each scenario. You get $2,078 more credits going from 2.875% to 3%. Divide $2,078 by (P&I at 3% - P&I at 2.875%). This gives you the number of months it'll take to recoup the lost credits by going with 2.875%. You get $2,920 more credits going from 2.75% to 2.875%. Divide $2,920 by (P&I at 2.875% - P&I at 2.75%). This gives you the number of months it'll take to recoup the lost credits by going with 2.75%. I don't think this calculation is correct to calculate breakeven. You don't want to use P&I to calculate breakeven, just the difference in I only. I'll give you an example using my mortgage. For my $756000 loan, I looked at 3% vs 2.75%. The P&I for 3% was $3,187, and for 2.75% was $3,...
by karwosts
Mon Oct 11, 2021 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

I just closed refinancing (went from 2.975% -> 3%) at Better and nobody said a peep about this being a problem. My loan was a jumbo though, so the rules may be different than conforming loans, not sure. Probably depends on the state. So I assume you refinanced just for the $2k credit (and any other net credits), at a cost of 0.025%? Same loan term? No one at Better even asked you why you were increasing your interest rate? Amex credit is $6K for Jumbo, plus another $8K in lender credits. But no they didn't ask, nor care. When I applied they gave a rate table with rates from 2% to 4%, and I chose 3%. The agent offered to help me walk through the options to understand them, but I declined and said I knew what I wanted. I could have taken 4% ...
by karwosts
Sat Oct 09, 2021 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Ok sounds good. Since I don't mind doing a refi in the future, whether near or far, would sticking with a higher rate be somewhat better so that I could refi to a lower rate later? I believe I saw discussion earlier in this thread of it being difficult or even impossible to refi at the same rate do to some rule or regulation maybe? For example, if I chose the lowest rate available to me at 2.5% rate, that essentially leaves me no room to refi to a lower rate in the future since finding rates less than 2.5% on 30-yr loans are rare, even during great times to refi like right now, correct? What reasons would there be to refi to a higher rate other than to maybe make some money of lender credits? This assumes a lot I am sure, such as rates sta...
by karwosts
Tue Oct 05, 2021 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

heponly wrote: Mon Oct 04, 2021 10:03 pm My Current 15 year fixed mortgage balance with Loandepot 301,000 is at 1.99% with 14 years remaining

Better's offer for 15 year fixed at 1.875% is :
Section A + B + C = $2160
Lender credit - $600
Amex offer = $2000

Based on the above calculation, the closing cost is almost zero.

Is it worth refinancing ?
Check out box E as well, those should be included in closing costs for the purposes of deciding if you want to refinance or not.
by karwosts
Mon Oct 04, 2021 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Replies: 1772
Views: 196824

Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

My interpretation of an "employee" is anyone receiving a W-2. In that sense, non-WA residents also receive W-2 provided they're working for some employer. However, I don't know if non-residents can opt-out of something they aren't even part of. Does the Nov 1 deadline even apply for them? I mean that's your interpretation, but the state has a webpage and it literally says: "Our definition of an employee is this", which enumerates a big legal list of jargon involving working in the state of washington, for an employer registered in the state of washington, with a state of washington tax id, etc. I have not seen any blog or article anywhere which tries to clarify what this all means for someone who is not currently a resi...
by karwosts
Mon Oct 04, 2021 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Replies: 1772
Views: 196824

Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Are we sure the non-WA residents can opt-out of Washington State Long Term Care Trust Act that they aren't even eligible for, and not getting taxed starting next year? They should contact the ESD directly to confirm this. Bad advice on this front can lead to non-WA residents unnecessarily purchasing a policy they don't need. I'm a bit dubious. I haven't scrubbed every word of their legal rules, but according to the rules it sounds like only "Employees" can submit the waiver. https://app.leg.wa.gov/RCW/default.aspx?cite=50B.04.085 (1) An employee who attests that the employee has long-term care insurance purchased before November 1, 2021, may apply for an exemption from the premium assessment under RCW 50B.04.080. An exempt employ...
by karwosts
Tue Sep 28, 2021 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

GoldenFinch wrote: Tue Sep 28, 2021 12:32 pm About to close with Better Mortgage on a refi, but they use The Money Source to service the loan and of course the loan might get sold. The Money Source has some bad reviews and it makes me uncomfortable. Has anyone here had problems with them? I just want to set up auto pay and be done.
I'm fairly certain that no person in history has ever written a positive review for their mortgage servicer. If there are no problems, then they are invisible, and nobody gives it a thought. I wouldn't worry about it personally.
by karwosts
Mon Sep 20, 2021 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Can someone confirm if the Better.com Amex Credit, which is listed on a loan estimate in section H (Other), is this expected to still be listed on the final closing disclosure, or is it not present there? I'm sure this has been asked a dozen times, but my closing is bearing down on me and I couldn't find this quickly.

I asked my LO if it's supposed to be there but he'll get back to me.
by karwosts
Thu Aug 26, 2021 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Not a new member, but an infrequent poster. This thread is amazing! Thank you all for contributing and sharing your knowledge! Not sure which product to choose? Currently in a 15 yr fixed at 3.3% (couldn't refinance earlier because prepayment penalty just expired). Condominium- only one lender provided mortgages for the new build, and since I was one of the 1st 30 apts purchased in the building they required 30% down and a prepayment penalty (that was the explanation I was given at the time). Loan amount: $425,000 FICO credit score >760 1) Loan Flight: 1.875- 10 yr fixed no lending credits, no points, closing costs: $1,152 (includes title insurance $585, settlement fee $425, signing agent fee $175, overnight fee $25, recording services $7,...
by karwosts
Wed Aug 25, 2021 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

How do you determine home value in this crazy market? When I refinanced last year I just went a tiny bit above what I bought it for 5 years ago. Should I be using Zillow or Redfin for an estimate for a better LTV? Does it matter that much? I just put in an amount that got me under 70% loan to value, as I think those round numbers matter sometimes, and it wasn’t much more than I paid 3 years ago. Putting in a value to get me under 60% would have been unreasonable given comps so I didn’t want to mess with that. My appraisal was waived so it was fine I guess. Maybe play around on bankrate or better etc before applying and see if crossing any of those thresholds changes the rate a bunch, then you can decide if it’s reasonable to use that value...
by karwosts
Wed Aug 25, 2021 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Any thoughts on which of these scenarios is better? Home Value: 850k Current Loan Payoff: 291k Credit: 800+ No cash flow issues on any options Current Loan: 3.125% 30 year Local Bank Servicer Plan to payoff within 10 years Better (Option 1) 2.0% - 15 year 2k AMEX Credit 0 Points May be able to eek out a small lender credit if I goto battle Still "plan" to payoff in 10 but less concerned with making additional principle payments Better (Option 2) 2.325% - 20 year 2k AMEX Credit 0 Points May be able to eek out a small lender credit if I goto battle Still "plan" to payoff in 10 but less concerned with making additional principle payments Better (Option 3) 2.625% - 30 year 2k AMEX Credit 0 Points May be able to eek out a sm...
by karwosts
Fri Aug 20, 2021 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

I'm looking at various scenarios with Better for a jumbo refinance and am considering the higher end of the rate table that comes with significant lender credits. The reasons this strategy makes sense for me is beyond the scope of this post, but I'm trying to figure out if there is a maximum amount of lender credit that Better will allow. I know I'm bound to take no more than $2k out in cash to borrower to avoid it being a cashout refi. I'm timing this so they'll require collection of property taxes due soon, and am considering adding an escrow account (which I usually don't do) to suck up even more credit. Essentially my question boils down to how far can I push this? Once I've gotten the credit to cover upcoming property taxes and the 2 ...
by karwosts
Wed Aug 18, 2021 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Delete
by karwosts
Wed Aug 18, 2021 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

frugalNY wrote: Wed Aug 18, 2021 1:32 pm
Does this make sense or am I getting ripped off?

frugalNY
I mean, you're getting ripped off by NY state, but nothing you can do about that. :shock: I didn't realize tax would be so high on a refi.

Your numbers make sense to me now. Given that your rate is going down, and you're getting a couple hundred cash, I see no reason not to proceed, assuming you can't find a better deal elsewhere.
by karwosts
Wed Aug 18, 2021 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

NEW LOAN Here is the high level details from the final disclosures: Loan amount: 652,300 Interest Rate: 2.875% ( 28 year fixed term) Monthly PE: 2,828.70 (No Escrow) Cost at Closing Closing Costs (-$2,721.64) Cash to Close (To Borrower) $459.66 Closing Cost Details D+I $10,021.85 Lender Credits (-13,260.19) How did I make out on this refi? Closing is on 8/25. Is it worth going through still? Thanks again, frugalNY Just curious, how did you get to $10,000 in D+I? Are they including prepaid taxes or something? You said it's a no cost loan but it looks like you're getting a decent payout? If your loan is "no cost" but they're prepaying anything like taxes you would have had to pay anyway that's like free money to you. Also I thought...
by karwosts
Wed Aug 18, 2021 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

toblerone wrote: Wed Aug 18, 2021 12:16 am My initial loan estimate had no lender credits. By the time I signed papers Better had increased credits from zero to just above $2k. This follows what a few others have recently reported.
Did the apprasial come in high over your initial estimate? If your apprisal is higher than estimated, your LTV goes down and that qualifies you for better rates and credits. Just a possibility.
by karwosts
Tue Aug 17, 2021 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 1169
Views: 229404

Re: Relationship mortgage discounts for moving a million assets

Who are you all getting in touch with at BoA for the discount for moving assets?

My LO wasn't aware of any discounts like that for moving assets and told me to ask a relationship manager, but she wasn't aware of anything like that either, and just said they can give me $600 for Preferred Rewards, but nothing like a rate reduction in exchange for assets, and just told me to ask my Loan Officer. Does this program have a name or is your LO just making up some deal on the spot?
by karwosts
Tue Aug 17, 2021 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1276566

Re: Refinance Mega Thread

Is the rate table visible, once you lock the rate ? No, the table disappears, but if you ask your LO he can still produce it for you. Mine told me that for Jumbos you can still move in the table afterward, but each row in the table can represent a different buyer for the mortgage, and if you change after locking it might cause some disruption since they have to restart some things on the backend to change to the different buyer, and it could possibly cause delays. So he said try to lock with what you really want the first time, if possible. Make sure you scrutinize all the rows in the table, there can be some surprising discontinuities. Better offered me a $5K lender credit at 2.99% APR, and an $8K lender credit at 3.00% APR. (I guess each...
by karwosts
Wed Feb 06, 2019 9:18 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?
Replies: 62
Views: 7458

Re: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?

jambadoc wrote: Wed Feb 06, 2019 8:52 am It appears Taxact has fixed the glitch. I'm not sure if anyone else has been able to do it, and it didn't work for me yesterday, but it seems to be working again today. :D
+1 confirmed for me too. 8606 looks about right, didn't have to check or uncheck any boxes extraordinarily on my w2.

One thing about BD Roth that wanted to check, I don't think TaxAct ever asked me anything about the total value of my traditional IRAs for Pro-Rata calculation. My total tIRA is 0, but just a little confused that it never asked that, nor are there any values filled out on lines 6-12 on 8606, just $5500 on lines 1, 3, 5, 13, 16.

Does TA not do Pro-Rata calculation? Not that I need it, just wondering if I missed a checkbox somewhere...
by karwosts
Sat Feb 02, 2019 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?
Replies: 62
Views: 7458

Re: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?

Tamales wrote: Sat Feb 02, 2019 6:37 pm Is Taxact's issue with form 8606 fixed yet?
Not for me as of yesterday.
by karwosts
Tue Jan 29, 2019 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?
Replies: 62
Views: 7458

Re: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?

neurosphere wrote: Tue Jan 29, 2019 11:45 am I sent you a private message with the link. I see that you are a brand new forum member. Welcome! You can click on "private messages" at the upper right of most forum pages to see your messages.
Thanks! I've casually lurked for a while but this was the first thing that infurated me enough that I had to +1 it. I'll be monitoring here to hear if you ever find a resolution.
by karwosts
Tue Jan 29, 2019 9:44 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?
Replies: 62
Views: 7458

Re: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?

Oh thank you, I was having the exact same issue this morning and it was driving me crazy. Enter nondeductible IRA contribution, program hangs at saving forever and locked out.

Have a link to that tweet you cited? Couldn't find it on twitter.