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Old 09-18-2010, 08:10 AM   #21
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RE: the bank should 'bend over backwards'...

Originally Posted by Keim View Post
Why should they? Because I am an excellent customer of their's (I have a great credit rating, pay my bills on time, etc) that they could lose to another bank that is willing to treat me better. It's the beauty of competition.
Yes, but it seems you are finding the competition isn't interested in offering a better rate on that size loan w/o significant fees. So free markets rules say your bank does not need to 'bend over backwards' if the competition isn't.

I did make a deal, and I have stuck to it. That deal was for a 30 yr fixed rate loan at 6% with no penalty for early termination. How am I not sticking to it by trying to negotiate a better deal? THey did say early termination was okay in the original contract. Its no different then looking for a job offer, then going back to your current employer and asking them to beat it.
Agreed - my 'you make a deal, you stick to it' comment was in reference to those Australian style loans. You are sticking to your deal, because your deal included the option to pre-pay. I'm just having trouble following your idea that the bank should be bending over backwards to offer you a lower rate.

If you find a place willing to give you a good deal, you could always take that to your bank and see if they can better it. At that point, your good history may have enough value for them to do something to keep you. They are probably counting on you having trouble getting a re-fi for $49K, and/or $49K is just too small of an amount for them to spend any time negotiating or to even be on their radar screen.

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Old 09-18-2010, 09:46 AM   #22
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Originally Posted by FIREdreamer View Post
...I would pay off the mortgage personally.
Unless you could get somebody else to pay if off for you ..

(Sorry, the made me do it)...
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Old 09-19-2010, 05:47 PM   #23
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Based on what you've posted, I think you can fund your IRAs from taxable savings, if need be. I'd keep the loan at least until you sort out your health issues. In the meantime, pay a little extra each month if you can.
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Old 09-23-2010, 06:28 PM   #24
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Another poster approached it how I would ... how secure are your jobs?
If you feel that they are pretty secure, I would just go ahead and pay off the mortgage.
If you did lose your jobs, that would be one less payment you would need to find a way to cover, and less risk of being evicted and having to move out after you only owed $49K on the house.

For such a small loan, you could possibly find some "hard money" loans as long as there are no other liens on the house.
A private party would just pay off your mortgage and then become 1st TD with your house as collateral for your repayment.
Maybe you can find someone who would do it for 3-4%/year as a source of guaranteed return since the house is worth a lot more than $49K (im assuming)
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And now you know the rest of the story...
Old 09-27-2010, 03:46 PM   #25
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And now you know the rest of the story...

We haven't actually done it yet. But, we will be paying of the mortgage. Decided our emergency stash would still remain comfortably large, while the improved cashflow would give us some breathing room every month. Most of that money will be used to increase our annual investing rate.

Gonna feel good to be debt free.
You can't enlighten the unconscious.
But you can hit'em upside the head a few times to make sure they are really out...
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