Saturday, April 6, 2013
Thursday, January 3, 2013
Just wanted to drop in with a New Years update!
My clinical internship is going well, and I am staying afloat financially. I will be done at the end of June, so I am almost half way there.
In July I will be back posting as I post my journey to get a "real job", pay off the massive amount of debt I accumulated from my divorce and internship, pay my dad for my 1/2 of the farmland we bought together and my journey to finally buy a "real house".
Did I mention a 2002 Dodge Viper is in the plans also ;)
Stay tuned, because in 6 months the real fun is going to start.
Until then I will be working and studying harder then anyone else in the laboratory :)
Posted by Chris at 4:29 AM
Thursday, July 5, 2012
Just wanted to stop back in to let everyone know I just made a lowball offer on 15 acres of land.
(10 acres have planted corn, and 5 acres of forest). My offer was accepted and I am closing in August. The land is about 7 miles west of my dads lake house on Lake Huron.
I now have a great investment, and a great place to bring friends to hunt deer in the fall.
Most people are financially destitute after a divorce, but my net worth just keeps growing! :)
Its funny what you can do when you have the power to take risks and chase your dreams.
See you next year when I get the new house to add to my growing real estate empire.
Posted by Chris at 2:33 PM
Wednesday, June 27, 2012
Posted by Chris at 4:32 AM
Tuesday, June 26, 2012
Wednesday, June 13, 2012
Just wanted to let give a final update to everyone who has been following my Harp 2.0 refinance saga since October 2011.
I just closed my Mortgage, and I now have my 15 year fixed 3.375% interest rate.
Just wanted to say thanks to everyone who has been visiting my blog, and reading my story over the past few months!
Posted by Chris at 1:59 PM
Tuesday, June 12, 2012
Thursday, June 7, 2012
My loan has came out of underwriting and I have been granted a final approval for my Harp 2.0 refinance. I am scheduled to close early next week. I will have a 3.375% interest rate on a 15 year mortgage. This is a really great thing because even though my mortgage payment is staying nearly the same as it is currently on my 30 year mortgage. I am taking years off my mortgage, saving tens of thousands of dollars in interest, and I believe I can have this house paid off in 5 years due to the fact my income is going to double next year.
I lost basically everything that really mattered to me last year, but it is nice to have a fresh start and have something good happen for once. It is also good to see people rewarded who did the responsible, and the right thing, instead of rewarding the deadbeats and flippers.
I began this Harp 2.0 process back in October 2011 when I first heard about it, and it has taken 8 months to get to this point.
I guess nothing good comes easy!
Posted by Chris at 5:27 PM
Wednesday, May 30, 2012
Wells Fargo was giving me one last fight on the insurance I had on my condo but now I finally have that resolved, I have met all of the underwriters conditions, and my file is now ready to be sent in for final approval on the Harp 2.0 Refinance.
Hopefully this gets back in time to close and fund by June 16th so I don't have to make an additional mortgage payment.
We are almost to the finish line.
Posted by Chris at 1:50 PM
Friday, May 25, 2012
"With the exception of Miami and Las Vegas, there are not
enough condos to go around anymore because that's all anybody can afford
now if they want to buy or even rent.
Posted by Chris at 2:27 PM
Wednesday, May 16, 2012
My appraisal is in for my Harp 2.0 refinance and it came in at $60,000 dollars. This was much higher than I expected and I am thrilled because I am now under 125% LTV and am all set for final approval on my refinance.
Due to the good news my quoted mortgage rate is dropping from 3.875% to a new rate of 3.350%. This is over 15 years. And I am now in good financial position to have this condo paid off in the next 5 years.
Final outcome of the Harp 2.0 Program for me....
6.50% 30 year mortgage reduced to a 3.35% 15 year mortgage.
Of course, the loan is not closed yet so anything can happen. But hopefully this all goes through successfully.
My monthly payment will be roughly the same but I will now have this place paid off 10 years earlier then I thought (If no extra payments are made). And I get to refinance the house in my name only which is good from a pride standpoint.
I will keep the blog updated with further details as they occur.
Posted by Chris at 4:33 PM
In this article written in 2008 I discussed how the price per square foot was over inflated in most area's of the country. I stated that 90-100 dollars was a good price per square foot for the average single family home and that prices would drop in the next 4 years to reflect that.
Metro Areas: Most Expensive to Least Expensive (Price Per Square Foot)
|Rank||Metro Area||PPSF||Year-Over-Year Price Change|
|1||San Jose, CA||$418.54||-8.8%|
|2||San Francisco, CA||$367.28||-13.3%|
|3||Los Angeles, CA||$325.42||-16.6%|
|4||New York, NY||$292.07||2.0%|
|5||San Diego, CA||$264.17||-21.2%|
|14||Las Vegas, NV||$136.61||-25.4%|
|20||St Louis, MO||$105.66||-3.0%|
As you can see, As I predicted most of the country with the exception of NYC and California has dropped below the 100 dollar per square foot threshold that I stated indicated where housing should be in terms of inflation. However, I feel that when you look at places like Ohio/Michigan for example you can see that some area's are selling for 60 dollars a square foot now which is far below where prices should be historically.
In most places the "housing crash" simply took house prices down to normal...Florida and Phoenix for example now have a healthy real estate market in terms of affordability and price per square foot just as I predicted would happen in 2008.
The key though...Is that the industrial Midwest has crashed to 1980's level prices, and based on my analysis they are a screaming buy at these levels. Purchasing a house in Ohio or Michigan for 60 dollars a square foot almost guarantees you will make a 30 dollars per square foot profit when prices return back to the historical average adjusted for inflation (IE 1999 Prices). A 1000 sqft house in Michigan now lists for about 65000, In a normal market this house would sell for 90000. That is a 25000 dollar projected profit. And remember that this profit is not based on another housing bubble occurring (2005), it is simply based on the real estate market coming back from the grave and returning to (1999) prices.
Detroit house prices will return to the magical 90-100 dollars per sq foot price where they should be. And those who are in the financial position to buy a house now, at about 40% off their regular price, will be glad they did when this occurs.
Posted by Chris at 5:10 AM
Thursday, May 10, 2012
I have received a "conditional" approval from the mortgage underwriter. I have the appraiser coming out here tomorrow to appraise my condo.
(And I will refinance my mortgage with another lender, no matter what the closing costs, just out of spite. They will not continue collecting 6.5% interest on me... This I promise.)
Posted by Chris at 2:35 PM
Wednesday, May 2, 2012
This will def. be the first order of business when I buy a real house/condo someday.
Posted by Chris at 6:16 PM
Friday, April 27, 2012
My mortgage was initially approved using the computer underwriter. My loan has been sent to a human underwriter to look at to see if it is 100% approved, and then to get a commitment to lend letter. It is nice of my mortgage broker to make sure that I get a 100% concrete approval before he charges me for the appraisal fee.
I will let you all know when I get that final approval letter, and the results of my appraisal when that occurs.
Posted by Chris at 1:26 PM
Tuesday, April 10, 2012
Why was my rate locked in at 3.875% for a 15 year mortgage when rates are around 3.00%?
Unfortunately if your house is more than 125% LTV you have to pay a premium on your mortgage rate with the Harp 2.0 program due to the higher risk involved in refinancing such an underwater home. I don't mind because 3.875% still beats 6.500% any day.
Hopefully if my condo does come in at 124% LTV during the appraisal my mortgage rate will drop even lower at closing. I highly doubt my appraisal will be that favorable but we will see what happens.
Posted by Chris at 12:42 PM
Mortgage guy called and said that Wells Fargo edited their DU Software to allow for unlimited LTV. I went into the office today and I was approved at unlimited LTV.
I decided to go with a 15 year mortgage refinance, and my rate was locked in at 3.875%. I am currently paying 6.50% on a 30 year mortgage so my new monthly payment is roughly the same as my current 30 year payment. I am also taking my mom off the mortgage, which is worth its weight in gold knowing that the condo is in my name only, and that she is no longer responsible for it.
I decided to go with the 15 year mortgage because I am shaving 10 years off my current mortgage, and 15 years off what would have been a 30 year refinance. I am saving myself thousands of dollars in interest, and paying down principal at a much faster rate.
I think I am scheduled to close on this loan around May 15th. I will keep you updated.
Posted by Chris at 12:35 PM