amazing visit to my bank saturday

[chad]

so, as some of you know, i'm in the process of buying a house on 10 acres of land.

anyway, i went to the bank saturday to meet with my lending officer and get a copy of the paperwork i'll be signing when i close. we get to talking, and the loan oficer says, do you want to set this up as an auto deduct from your account, or do you want to come in and pay with the coupon book each month?

i tell him i'd like to go the auto deduct route, but i want to set it up so that they take the payment out, plus an extra $200 a month to go towards principal.


confused look.

him: "huh, i'll have to check in to that. i haven't ever done that before."

me: "really?"

him: "yeah, i mean people come in all the time and make extra payments on their principal, but i've never seen one done to do it all the time."

me: "wtf?"

so, NOBODY does this? everyone;'s plan is to make house payments FOREVER?

i know people are broke and shallow consumers, but man, even i was surprised.

[MNeagle]

Sounds like an inexperienced loan officer.

Best of luck to you.

[chad]

Sounds like an inexperienced loan officer.

Best of luck to you.


has to be a new officer or something. there's no way this is out of the ordinary.

i need silver to hit $50 so i can pay it off quick ;D

[k-os]

I send in an extra 10-20% principal payment each month for my mortgage, but when things get tighter around here, (for example when I have a major repair), I adjust accordingly. I like the flexibility to turn it on/off when I want to or need to.

[iOWNme]

I make a payment every 2 weeks, instead of once a month. it is directly taken out via Wells Fargo. I could have set any amount i wanted to for them to take out.

[ximmy]

I could see if persons didn't want an extra 20% or whatever amount every month automatically, considering unforeseen circumstances.

I pay mine by check every month and add in $500.00 extra mo. principle... knowing, if I had too, i could write in less for principle if I needed emergency cash.

[mick silver]

chad set up a new acc just for your house payment to come out of . that way you know just what happen to your money and it easer to keeps up with . plus they can not get in to your main acc ....

[chad]

chad set up a new acc just for your house payment to come out of . that way you know just what happen to your money and it easer to keeps up with . plus they can not get in to your main acc ....


AWESOME idea mick! going to do it!

[Ash_Williams]

I imagine you just confused him by an odd phrasing of what you wanted to do.

What you're really doing is just shortening the term of the mortgage.

[cigarlover]

Why are you taking out a mortgage? You do realize that is just contributing to the problem right? This isnt an attack on you but on everyone here who take out mortgages. You cant sit here and bitch about the bankers creating money from thin air and bitch about the fed and then go out and use the very money your sitting here bitching about. Either find a private deal or pay cash.

[MarketNeutral]

My first thought...........

Your bank is open on Saturday?

[chad]

yep, open 9 am until noon. smalltown thing.

[chad]

Why are you taking out a mortgage? You do realize that is just contributing to the problem right? This isnt an attack on you but on everyone here who take out mortgages. You cant sit here and bitch about the bankers creating money from thin air and bitch about the fed and then go out and use the very money your sitting here bitching about. Either find a private deal or pay cash.


well, guilty as charged i guess. fwiw, i'm putting about 75% down. i was saving up for the 100% down plan, but the deal i got was too good to pass up (i know, everyone says that). :-[

[MetalsMan]

Why are you taking out a mortgage? You do realize that is just contributing to the problem right? This isnt an attack on you but on everyone here who take out mortgages. You cant sit here and bitch about the bankers creating money from thin air and bitch about the fed and then go out and use the very money your sitting here bitching about. Either find a private deal or pay cash.



Good point.

Anybody know of any good books/resources about how to set up
PRIVATE real estate deals with ALLODIAL TITLE, etc.??? :)

That's how it used to work in the "old days" before 1933 Rosenfelt socialism.
No mortgage, no property taxes, nobody had any power over your property
because it was 100% YOURS.

That's was WAS so cool about the USA. We lived like KINGS! (Not SERFS)

[chad]

what sucks most is even after i pay it off in the next 5 years (which is the plan), i'll never really own it, as i have to pay the township $3,061.58 in rent (taxes) every year. the township will be my landlord forever.

[MetalsMan]

what sucks most is even after i pay it off in the next 5 years (which is the plan), i'll never really own it, as i have to pay the township $3,061.58 in rent (taxes) every year. the township will be my landlord forever.



Yes, but I think there may be a LOOPHOLE if you buy it 100% with no mortgage.

Allodial Title.

I'm in the middle of researching this stuff now... not sure it works in America.

[mick silver]

chad is your land for farming if so look for tax loop holes

[chad]

it's zoned agricultural, so i guess around $310 per acre is not so bad. if i lived in town it would be 10 times that. going o talk to all of the neighbors who farm their land and see what i can uncover.

[sunshine05]

It's a little unrealistic to say that no one should have a mortgage. I suppose we would be renting if we didn't have one and then we wouldn't get the tax right-off so we would be paying a LOT more taxes every year. I don't know. It would be great not having a house payment but just isn't possible a this point. We are about 1/3 paid off. It will be a while before we pay it off but we do pay extra each month.

[cigarlover]

Why are you taking out a mortgage? You do realize that is just contributing to the problem right? This isnt an attack on you but on everyone here who take out mortgages. You cant sit here and bitch about the bankers creating money from thin air and bitch about the fed and then go out and use the very money your sitting here bitching about. Either find a private deal or pay cash.


well, guilty as charged i guess. fwiw, i'm putting about 75% down. i was saving up for the 100% down plan, but the deal i got was too good to pass up (i know, everyone says that). :-[


Ok thats not so bad. Much better than 0 down and a 125% mortgage LOL.

[saint]

75% down - nicely done.

Pay it off early and screw em out of their interest.

And best of luck with the new homestead.

ST

[k-os]

Also, chad, make sure that there is no penalty for paying your mortgage off early. It sounds absurd, but . . . some mortgages have a penalty clause for early payoff.

[cigarlover]

There are a lot of people out there right now willing to do land contracts which is a deal you make with an owner of a property and basically you come to terms yourself with that owner. It eliminates the banks and doesnt create any new money in the system. I wrote a deal recently for 8% simple interest with homeowner. I pay *% a year but its not compounded.

100 years ago a mortgage used to be for 3-5 years. Then the government got involved with the creation of either fannie or freddie I forget which it was. That was created to make home ownership affordable for more Americans... Well, then mortgages went from 5 years to 10 and on up to the current 30 year we have now. I would contend that this was one of the forces behind inflation (yes fueled by the banks of course)

Nowadays the first 5 years of your mortgage is interest. In the old days that would have paid off your home.
Tax deduction? Lets say you pay 30k a year on your mortgage. You save 10k in taxes but have to spend 30k in interest to do that. Never seemed like a great plan to me. The only reason for this deduction in the first place is because the bankers bought congress and said this would create a greater percentage of wage slaves in the long run. Think about it. You gonna walk away from your miserable job when you have a huge mortgage to pay? I've always liked the freedom of going where I want when I want with no tie downs. I made an exception with this deal because I will pay the house off in 3 years or less. Then If I want to go somewhere I can go and not worry about a bank coming to take it away. I can then rent it out or sell it and still not be tied down.

[Sparky]

I've heard of auto payments, and I've heard of pre-payments, but I've never heard of auto pre-payments.

First, I am surprised that someone with a libertarian mindset would authorize auto payments in the first place. "Here, go into my account and take some of my money; just make sure you take the right amount." Huh? This from the same group that thinks that bankers are crooks?

Second, usually a pre-payment varies month-to-month based on cash flow. I'm not sure why you'd want to lock in an amount.

[chad]

I've heard of auto payments, and I've heard of pre-payments, but I've never heard of auto pre-payments.

First, I am surprised that someone with a libertarian mindset would authorize auto payments in the first place. "Here, go into my account and take some of my money; just make sure you take the right amount." Huh? This from the same group that thinks that bankers are crooks?

Second, usually a pre-payment varies month-to-month based on cash flow. I'm not sure why you'd want to lock in an amount.


i figured it would be easier if i set up a dedicated account for this (like mick said). i'm out of town a lot, so i thought it would make my life simpler. dunno, maybe not- good point.

as for the $200, i've been putting that much each month since i was 18 in to retirement accounts (up until a year or so ago when i cashed out). i'm used to coming up with it (20 years now). working extra, eating rice + beans, i've always been able to scrounge $200 together. i figured since i'm used to it, might as well keep it up, only put it in to the house instead of more ag + au.

[Phenix Pawn]

About a month ago, a close friend spoke to me about his mortgage with "FunTrust Bank". He explained that he had been prepaying several hundred dollars extra per month along with his regular mortgage payment. When he recently contacted the bank VP about the loan balance, he was unpleasantly surprised to find it (balance) to be $11,000-12,000 more then he estimated. Apparently, FunTrust had applied the prepayment to the"tail end of the loan". The principle had NOT been prepay-ed, only tail end interest! Upon examination, the VP said that FunTrust would make the proper review of the prepayment history, and would apply any adjustments. So, it is VERY IMPORTANT to specify "Principle Prepayment" as well as tracking the loan balance.

Congrads on your land "Ownership". Enjoy a Proud Moment for Yourself!

[Twisted Titan]

I make a payment every 2 weeks, instead of once a month. it is directly taken out via Wells Fargo. I could have set any amount i wanted to for them to take out.


[i][b]To each there own but I will say this

NEVER

I REPEAT NEVER ALLOW ANY COMPANY TO AUTO DEDUCT ANYTHING !!!!

Once you give the consent to the bank account they run hog wild

Or sure they'll begin by taking the funds out only on the 15th but just you wait until the 15 ( or whatever day it is) lands on a Sunday or a Holiday

The ALWAYS pull the funds out early

Get pissed off at them and try to shut the acct down the bank wont allow you to do that with a open draft and you soon find yourself at the mercy of these pricks.


I just had a buddy call me no less then 4 days ago begging me for a couple hundread bucks

Why is that ???

The draft day was going to land on Easter or Good friday and the Mortagage company did just what I said pulled there money a few days before and completely wrecked my buds account to the tune of almlost 450 dollars in overdraft fees



So You dont want the the headache of writing a check? Fine.

Every bank has electronic billpay where you set up the draft day and can cancel it at a moments notice.

BUT

NEVER

EVER

EVER

ALLOW SOMEONE ACCESS TO YOUR BANK ACCOUNT.

IT WILL END IN DISATER EVERYTIME.


T

[Twisted Titan]

One more thing:


If you want to send additional payments to the moratage co

You should do it in a SEPERATE CHECK and write in the memo line MUST APPLY TO PRINCIPAL ONLY

as long as your acct is in good standing they MUST do just that.



T

[Korbin Dallas]

Absolutely correct TT. I got hit with the same BS due to auto deductions, fortunately only cost me 45 FRN in fees. The hard part was switching back to paper billing. Some F.I.'s make it like pulling teeth.

[chad]

hmm. perhaps i will do it all manually after all.

[Libertytree]

I liked paying mine with money orders because they always posted immediately , none of that "it didn't clear in time' BS.

[goldleaf]

Chad, I'm a Town Chairman here in Wisconsin as I think I remember you saying that
you were in western Wi. It probably won't help much on 10 acres, but if you were to
fence off as much of it as you can and get your self a few head of livestock or rent it
out your accessed value would be at $55.00/acre. one cow won't do it though. If you
were to get, say, 5 steers that would help you alot. You'd also have your own meat and
could maybe offer some to relatives or neighbors and make enough to pay your property
taxes. Try to keep your yard area to maybe an acre.

[chad]

Chad, I'm a Town Chairman here in Wisconsin as I think I remember you saying that
you were in western Wi. It probably won't help much on 10 acres, but if you were to
fence off as much of it as you can and get your self a few head of livestock or rent it
out your accessed value would be at $55.00/acre. one cow won't do it though. If you
were to get, say, 5 steers that would help you alot. You'd also have your own meat and
could maybe offer some to relatives or neighbors and make enough to pay your property
taxes. Try to keep your yard area to maybe an acre.


great ideas! thanks!