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Freedom Mortgage and Escrow
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Our loan was sold to Freedom Mortgage about two years ago. We haven’t really had issues except for our escrow. They did an escrow analysis which deemed we were going to be short by a little over $3000. We asked about it and they said it was due to property taxes and insurance increasing. We could either pay it in full or add $500 to our mortgage for a year. We just paid the amount since we had the money. A year later, the same thing happened. We didn’t have the money to pay it in full, so our mortgage increased $500. Which doesn’t make sense to me since we were short a little over $3000 again and an extra $500 a month for 12 months is $6000 but, I could be missing something.
My husband is 100% disabled vet and he gets a reduction in property taxes in our state. We submitted all the necessary paperwork to get that exemption approved. On top of that, we had to get the lender’s home insurance because we were dropped by our insurance due to our rookie homeowner mistake. However, it did decrease our insurance premium by $2000. We’ve called twice for them to do another escrow analysis. We keep getting “give it a week” but, nothing seems to be getting done. Our insurance is paid and we have enough in escrow to cover property taxes for the year and then some, so there should be no reason that we are paying $500 extra to keep our escrow current. What would our next steps be? Besides just paying the insurance and property taxes ourselves.
Top Comment:
I would look at all the transactions from the escrow account and check if the math adds up. It could be that Freedom Mortgage just wants a higher minimum amount of funds in the account, I think it's the minimum amount after paying all taxes that they're mostly worried about. But it could also be something strange.
For example, you mentioned you were dropped by your insurance; did you receive a big check for any prepaid coverage from the insurance company? If that insurance was paid from your escrow account in the first place, and the lender then also deducted its own insurance costs from the escrow account, there could very well be a 'shortage' since two insurance policies were paid.
Also, how the hell did you insurance decrease by 2k by being placed on the lender's insurance?! I've never heard of that, but congrats on the sweet deal.
mortgage broker forgot to lock my rate : personalfinance
Main Post: mortgage broker forgot to lock my rate : personalfinance
Freddie Mac Reports 6.84% Mortgage Rate As Grant Cardone Warns Of Homeownership Crisis
Main Post: Freddie Mac Reports 6.84% Mortgage Rate As Grant Cardone Warns Of Homeownership Crisis
Top Comment:
No one should be taking Cardone seriously.
This dude is Jordan Belfort for dudes who get to see their kids every other weekend.
He’s got like 12K apartments - he wants a homeownership crisis
Is there a mortgage calculator that shows the interest savings for people that make one lump sum payment and small extra payments every month?
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As the title says, I'm trying to determine the savings if I make one large lump sum payment and small monthly payments towards my mortgage. My mortgage details are as follows:
Total amount borrowed - $240,000
Interest - 4.74% fixed for 5 year term
Regular mortgage payment - $1,243
Term - 30 years
So, I want to see how much interest I can save if I make one payment of $25,000 and also pay an extra $500 every month. Also, how it will affect the length of the repayment period.
Top Comment:
You will be very happy with the savings, I recommend starting asap (I do not like debt, other people like using their house equity as a means to fund other growth... )!!
https://itools-ioutils.fcac-acfc.gc.ca/MC-CH/MortgageCalculator.aspx
How do i replicate my bank's numbers using excel/mortgage calculator?
I have a home loan with NAB that is about 9.5 years into a 30 year term. As you can see from the image, they calculate my current monthly P&I payment as $4,071.39/month. I've tried a few home loan calculators to try to replicate this number but can't get it exact which makes me wonder what i'm doing wrong. I want to replicate it with a calculator (ideally excel) so i can then play with a few numbers to look at some scenarios.
Original total loan was $1.08 million with 360 payments of $5,565.94 at 4.63% (variable obviously, now it's 6.14%)
Anyone know how i can calculate it, replicating this $4,071.39 number, ideally with Excel/google sheets? PMT function never gives me the right answer, presumably i'm doing something wrong (maybe because it's compounded daily, paid monthly? don't think PMT function can do that).
thanks
Top Comment:
Not gonna be able to help you with the math on a Friday night (brains turned off) but NAB doesn't actually adjust the repayment amounts when your rates go down so perhaps you were on 6.5 (for example) and now u're on 6.14 but still paying the same amount, just that more goes into the principal/redraw part of the loan.
A cool guide to mortgage rates Americans are eyeing to buy a new home. What’s your number?
Main Post: A cool guide to mortgage rates Americans are eyeing to buy a new home. What’s your number?
Top Comment:
Some of these states are in La La land. The world would have to burn for it to drop to 2-3% again. Which could happen- anything’s possible. But wowza. That was the lowest rate in history, that’s just what so many people expect now?
What can we responsibly afford? Having trouble understanding mortgage calculators
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My wife and I married about two years ago, and since then we have taking independent savings we had + money left over from our wedding fund (yes, we actually over-saved for it!) and have turned it into a large general savings fund for a home purchase. As of today, it's grown to about $70K and we're planning/thinking to save for another 2 years before purchasing something.
Here's how our income breaks down:
- My job pays me a base salary of 156K a year.
- In addition to this is a 15% bonus that nets an additional 23.4K if the bonus is fully funded, which isn't a guarantee. It's my first year here so I don't know how often it happen, and due to when I started, my 2025 bonus will prorated, so I won't get a complete bonus until 2026.
- I also have RSUs with my company that vest once a year. It's hard to tell exactly what the value will be since the stock is pretty volatile, but right now it's another $29K a year.
- My wife's job is a flat 60K a year with no additional bonus or RSUs.
- We presently have 0 debt.
So that makes our joint income about $216,000 a year on base salaries, and potentially 268,000 if I add my bonus and stocks. In addition to this I do max a 401K, Roth IRA, and HSA every year so that does have an impact on my actual income. I'm not sure which of these values of the right one for determining our purchasing power in the eyes of homeownership. We also both have excellent credit int the 790-800 range. When I plug these values into mortgage calculators like nerdwallet or others I get truly insane results, telling me I can afford a home at $950,000 with a $5000 monthly mortage payment.
This seems insane to me. Currently we pay $2300 a month to rent a 1600 sqft home in Austin Texas, and that feels very manageable. I'd love to have a mortgage at that rate but realistically we could afford something higher (though i'm not sure how high) since we obviously wouldn't need to be saving for a house anymore once we'd purchased one. We are adamant about making a 20% downpayment on whatever we get.
Currently I would say I feel like i've just kind of been aimlessly saving without much thought towards a specific target or adjusting, we just pay for things and live our lives and there's always money left over at the end of each month. I just checked and we've been saving at a rate of roughly $16K a year without trying to be particularly budget-conscious, but this is also before I worked at a company of RSUs. I suspect in two years we could probably have $120K put away without any drastic changes to lifestyle (positive or negative) or employment.
We do not have kids and do not plan to have them in the future. Our jobs are reasonably but probably not completely mobile (as in we can likely move and keep them but probably not just anywhere). I know where we would like to live (it's not Austin, but it is an HCOL area) but without getting into the specifics of that I'd just like to know what figure we should realistically target given the what i've laid out for salaries, our cash on hand, and a sensible monthly payment WRT to our income.
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Redfin or Rocket mortgage realtors?
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So I went to realtor today and they charge a $500 retainer fee. I've been told most realtors dont charge this and to look elsewhere. I was contacted a few times by Rocket mortgage and Redfin with their own realtors. Any advice or experience working with these realtors for looking for a new home?
Thank you in advance.
Top Comment:
I would suggest avoiding Rocket mortgage for anything, they are the kiss of death for making offers. I will never advise a seller to accept an offer with a Rocket Mortgage preapproval, they are worthless.
I once had a Rocket Mortgage buyer preapproved...who had 5 dollars in the bank. Incredible.
What mortgage rate are you guys getting?
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Hey guys what mortgage rate are you guys getting for a 30 year. We plan on putting 20% down for a 405k PP
We have a 60 day close, so rates should go down even more. Right now I think we are getting a 6.5 no points. We are getting 10k closing costs.
If you don’t mind please post your lender
We might do a 2-1 buy down.
Top Comment:
Thank you u/beast2891 for posting on r/FirstTimeHomeBuyer.
Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.