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All Encompassing Mortgage and Real Estate Thread


UTPhil2006

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19 hours ago, Skipper said:

My wife really wanted this damn house. So just in case there actually was other competition, I definitely led him to believe I would be hiring an agent to sell my existing house, and that if things go well and we can close this deal, it might as well be him, so I used his shady demeanor against him.  Of course I ended up listing my prior house myself, then after a deal was on the rocks over repairs (largely due to another shitty realtor that refused to (i) explain to his buyer I accepted the offer below list on an "as is" basis and (ii) then counsel his first time buyer that not everything in the damn inspection report needs to be fixed) ended up renting it out and have been a landlord for the last 7+ years while the property value appreciated very nicely.  So on one hand, I owe that shitty realtor for forcing me to make a great investment decision.

very unfair assumption.  Sometimes the client refuses to listen, and at the end of the day we act at the direction of the client.

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4 minutes ago, Gil Bang said:

very unfair assumption.  Sometimes the client refuses to listen, and at the end of the day we act at the direction of the client.

You're just going to have to trust me on this one.  Agent was some mid to late 20's jackass.   Ended up communicating with the Buyer directly and it was clear Agent had never relayed my clear expectations when I agreed to a reduced listing price.  The Agent just thought he could get the deal done.   I mean we went from crystal clear understanding of an "as is" expectation from my side and don't bother me with repair request unless you find something major to a laundry list of every single thing possibly noted in the inspection report.  It was just horrible deal management by that clown that pissed everyone off in the process and pretty much killed any chance of a deal. I believe they ended up firing him after that.  

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So I have a few questions that I was hoping to get answered...  I own a rental house that has roof damage but the contractor said it was hail and wind during a recent named storm. (It's a well known roofing company and not a storm chaser.)

My deductible is 2% or which is about $9300 for wind and hail damage for named storms.  I have the cash but have 200K in equity built up in the property. Is it better to go with a HELOC or a refurbishment loan with the current rates?  ( I have an excellent credit rating so that shouldn't be an issue...) 

Separately, I was planning on a HELOC on my house for college payments as I'd like to take advantage o the equity I've got in my own house and not just pay cash. 

Questions - do I do the HELOC for my house first as it'll be a larger amount?  Does a HELOC (or refurb loan) on the rental give me a credit hit that would make the HELOC on my house tougher? Where do you get HELOC's? Mortgage companies or via a different lender? And I assume that filing a claim on the roof for the rental will also increase the premium... (Filed a claim a few years ago for burst pipes during the big blackout/freeze...)

PM me if one of you guys want to discuss offline...

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7 minutes ago, Grimas said:

So I have a few questions that I was hoping to get answered...  I own a rental house that has roof damage but the contractor said it was hail and wind during a recent named storm. (It's a well known roofing company and not a storm chaser.)

My deductible is 2% or which is about $9300 for wind and hail damage for named storms.  I have the cash but have 200K in equity built up in the property. Is it better to go with a HELOC or a refurbishment loan with the current rates?  ( I have an excellent credit rating so that shouldn't be an issue...) 

Separately, I was planning on a HELOC on my house for college payments as I'd like to take advantage o the equity I've got in my own house and not just pay cash. 

Questions - do I do the HELOC for my house first as it'll be a larger amount?  Does a HELOC (or refurb loan) on the rental give me a credit hit that would make the HELOC on my house tougher? Where do you get HELOC's? Mortgage companies or via a different lender? And I assume that filing a claim on the roof for the rental will also increase the premium... (Filed a claim a few years ago for burst pipes during the big blackout/freeze...)

PM me if one of you guys want to discuss offline...

I’d be happy to talk through it with you if you want. I’m not going to do the loan for you bc a regional bank or CU would do it better and cheaper than me but I’d be happy to talk through the scenarios with you. 
832-557-1095. 

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10 year looking good in pre-market

image.png.abed2eccc1d198b66bd3bdb7333c1101.png

But look who's speaking at 9am

image.png.8aefba53aff7c1bb2e3271b8cc1d86b9.png

ugh. please don't fuck us

 

Edit: Nevermind. It's a FedListens event. Powell just read a generic statement and didn't say shit. Now they are listening to panel people talk

Edited by Neonmoon
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This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.

Fuck all ya'll insurance companies.

 

Edited by CooterBrown
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29 minutes ago, CooterBrown said:

This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.

Fuck all ya'll insurance companies.

Mind telling us which insurer(s)?

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My Liberty rates for home insurance doubled in December. Car insurance also increased significantly. I promptly found a smaller company (Grange) that only resulted in a very modest increase to both. 

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1 hour ago, South Austin said:

Mind telling us which insurer(s)?

Home insurance is Liberty Mutual and auto is Progressive.

LM and Progressive must be owned by the same parent company because when I switched my auto from LM to Progressive, I was able to keep all my LM discounts.  At the time, when my kid turned 16, Progressive was a lot cheaper for adding a teen driver.  

 

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2 hours ago, UTPhil2006 said:

There’s a thread on CYHMWT about insurance and auto but ping @C-Man and see if he can possibly help.  He has some numbers and parameters on the thread of where he can best help. Def worth a shot 

Plus one for @C-Man. If he could beat USAA I'd go back to him a heartbeat.  If you don't qualify for USAA, definitely talk to him. 

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6 minutes ago, hornian said:

Plus one for @C-Man. If he could beat USAA I'd go back to him a heartbeat.  If you don't qualify for USAA, definitely talk to him. 

I'm with @C-Man, and definitely agree. 

What I've never understood are the requirements to qualify for USAA.  For instance, my Dad served a short stint in the Navy before a 4F for asthma, and my wife's parents both served (mom an officer, dad enlisted).  As far as I know, none of the 3 every had USAA insurance.  Does my wife qualify?

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Just now, jimmyjazz said:

I'm with @C-Man, and definitely agree. 

What I've never understood are the requirements to qualify for USAA.  For instance, my Dad served a short stint in the Navy before a 4F for asthma, and my wife's parents both served (mom an officer, dad enlisted).  As far as I know, none of the 3 every had USAA insurance.  Does my wife qualify?

USAA definitely loosened the rules for eligibility in the last decade or so to let more and more people qualify. Personally, I think it's hurt the brand in that it has stretched them thin.

To my knowledge, you don't have a dedicated agent that is your go-to person at USAA. It's a call center. For everything.

My clients get me, my primary account manager -- and then a team of other account managers in my office in the event that neither one of us is immediately available.

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This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.
Fuck all ya'll insurance companies.
 
I'll take that home insurance hike any day over the Florida insurance shit show.
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2 hours ago, C-Man said:

USAA definitely loosened the rules for eligibility in the last decade or so to let more and more people qualify. Personally, I think it's hurt the brand in that it has stretched them thin.

You’d probably know better than me, but in my opinion it’s changed the makeup of the risk pool from veterans to mostly civilians, and that’s otherwise equalized the claims between it and other insurers (where previously they could afford to be cheaper because veterans were more likely to be risk averse, I.e., not speeding, not letting deferred maintenance on a house get out of hand, etc.).  
 

When I had USAA I watched my car insurance double in two years because I lived in 78702, or so they told me. 

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6 hours ago, CooterBrown said:

This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.

Fuck all ya'll insurance companies.

 

It's what happens when consumers get gouged on prices - it's more expensive to replace so the premiums and deductibles must go up

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14 minutes ago, LCHorn said:

You’d probably know better than me, but in my opinion it’s changed the makeup of the risk pool from veterans to mostly civilians, and that’s otherwise equalized the claims between it and other insurers (where previously they could afford to be cheaper because veterans were more likely to be risk averse, I.e., not speeding, not letting deferred maintenance on a house get out of hand, etc.).  
 

When I had USAA I watched my car insurance double in two years because I lived in 78702, or so they told me. 

Is USAA still tiered, where Officers and such get better rates?  I know I was CIC (child of) member and I ended up shopping USAA around about 4 years ago. Once hail claim for roof and no auto claims in 28yrs and I was able to cut my auto by 50% and my home owners by almost 70% for almost identical coverage.  They made it real clear they didn't care and thanks for not shopping around sooner. Kicking myself for not doing just that.

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12 minutes ago, LCHorn said:

You’d probably know better than me, but in my opinion it’s changed the makeup of the risk pool from veterans to mostly civilians, and that’s otherwise equalized the claims between it and other insurers (where previously they could afford to be cheaper because veterans were more likely to be risk averse, I.e., not speeding, not letting deferred maintenance on a house get out of hand, etc.).  
 

When I had USAA I watched my car insurance double in two years because I lived in 78702, or so they told me. 

USAA was concerned about the death of the auto policy.  Whether it be self driving car manufacturers or OS writers for said cars - they were quite concerned that "auto insurance" would look markedly different in the future.  In an effort to remain relevant, they sought to deepen their relationships with current members (LOTS OF CROSS SELLING) and expand their pool of members.  Since the most of the officers who were elligible were members and using USAA, that left little room to grow without opening up the criteria for membership.  The risk pool is pooled into different sub insurers based on categories.  USAA (auto) is still officers only.  Sub groups make up the new members.  Garrison P&C is for family.  There is a county mutual outfit too.  Depending on how you qualify, your auto rates may be great, good, or shit.  

While I take umbrage with their rates, they are still pretty competitive.  I quit giving them benefit of the doubt when their claims handling procedures changed so dramatically.  When I lost the benefit of being treating like family, they lost the benefit of deference when their rates increased.  

AllCat can suck a dick.  IF you have a property claim and AC is assigned, do everything in your power to refuse them and get an actual USAA employee to look at your damage.  

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1 hour ago, Dendox said:

USAA was concerned about the death of the auto policy.  Whether it be self driving car manufacturers or OS writers for said cars - they were quite concerned that "auto insurance" would look markedly different in the future.  In an effort to remain relevant, they sought to deepen their relationships with current members (LOTS OF CROSS SELLING) and expand their pool of members.  Since the most of the officers who were elligible were members and using USAA, that left little room to grow without opening up the criteria for membership.  The risk pool is pooled into different sub insurers based on categories.  USAA (auto) is still officers only.  Sub groups make up the new members.  Garrison P&C is for family.  There is a county mutual outfit too.  Depending on how you qualify, your auto rates may be great, good, or shit.  

You might be right, but I feel like their push to expand the risk pool began more than a decade ago and preceding any common concern about the automobile market changing much (not only that, but from friends who've worked there, it's run a lot like the military where changes only occur incrementally and no one is getting rewarded for making a risky bet on what the future might hold, even if it works out). 

I also think USAA auto is available beyond officers--I was able to get it and I'm (was) a shitbag enlisted USMC grunt. 

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The shift did begin more than 10 years ago.  I can tell you the self driving car was a significant part of the calculus. 

You are right about no one is rewarded for betting risky.  Very conservative at its core.  

I misspoke - USAA means something very specific in this context (United Services Automobile Association) and was originally officers only, then opened up to the following groups - officers, pre-commission officers and e7 and up.  

USAA CIC is typically who insures the enlisted 

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Does anyone have any experience with Qualified Opportunity Zones or a Delaware Statutory Trust? I am looking to sell a small property with decent capital gains exposure (no debt). I don't need the monthly income at this time (due to current tax rate) and not sure I want to be a landlord again. I could invest in something else not in real estate but that would mean paying the higher capital gains rate. 

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Does anyone have any experience with Qualified Opportunity Zones or a Delaware Statutory Trust? I am looking to sell a small property with decent capital gains exposure (no debt). I don't need the monthly income at this time (due to current tax rate) and not sure I want to be a landlord again. I could invest in something else not in real estate but that would mean paying the higher capital gains rate. 

Yep. Sold some of my aapl last year and rolled gains into one. I invest with origin investments in several of their funds.

10 year hold totally eliminates the capital gain and begins to reduce it after 4 years. Also get other benefits of depreciation etc on growth.
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44 minutes ago, Neonmoon said:

I was out of pocket today. Was there a particular reason the MBS market shit its pants? Or just reacting to PCE and spending data from Friday?

Brief moment of clarity? And/or the REIT chickens starting to coming home to roost on the end of a quarter?

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15 minutes ago, South Austin said:

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

Treasuries are considered the risk free (default) rate.  Commercial property assets are expected to generate a yield (or Cap Rate) at a spread above the risk free rate (the riskier the asset, the higher the spread).  If the income generated by the asset doesn’t change, the only way for the asset to generate a higher Cap Rate is for the asset’s value to be decreased.

Similar for residential mortgages without the Cap Rate- more just a spread above treasuries.

Or so I’ve been told 

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38 minutes ago, South Austin said:

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

Borrowing money more expensive. (Interest rates above 7%. Mortgage applications have/will take a dive)

People no want to borrower expensive money

No buyers. 

Home prices could trickle down more. 

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2 hours ago, South Austin said:

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

Borrowing more expensive. Potentially less money to borrow. It’s not an oh my god level up from last week, but it also really hasn’t been trending down in the last few months either minus a couple blips. 

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9 minutes ago, UTPhil2006 said:

but it also really hasn’t been trending down in the last few months either minus a couple blips. 

I would think there is little reason for rates to trend down more until the Fed takes action, no?

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5 minutes ago, jimmyjazz said:

I would think there is little reason for rates to trend down more until the Fed takes action, no?

Pretty much. And that can has been kicked down the road a couple times already. March, May, and now June for cuts. We’ll see what happens when June rolls around 

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As someone with a house on the market since just before Spring Break, the buyer's market is really, really quiet right now.  I've got a lot of equity in my home, but unless I decide to suck it up and rent for a year or so, I'm going to make a lot less than I had thought at the beginning of the year.

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5 minutes ago, jimmyjazz said:

I would think there is little reason for rates to trend down more until the Fed takes action, no?

Sort of?  The MBS market is in competition with the Fed and pricing spread between the two securities is subject to market demand.  We’ve seen increased demand for MBS based on projections of what the Fed will do, and decreased demand when the news appears to favor “higher for longer”.  All of this is upriver of retail prices but if you want cheap mortgages you need to convince CALPERS to buy the bonds that collateralize them.  
 

This is my prediction, but once the Fed does reduce rates (in June or whenever), the MBS market will probably quickly narrow down the spread (so maybe a 25 bps cut on T bills gets us 50 or 100 bps subsequent improvement over maybe the next month).  
 

But who knows, there’s massive commercial loan risk exposure by the depository banks and they are also competing with Fannie/Freddie to issue collateralized debt.  It might be that six months from now, GSE money is the only game in town and we’ve seen them happily return profits to shareholders rather than adjust pricing to incentivize borrowing.  

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10 minutes ago, South Austin said:

As someone with a house on the market since just before Spring Break, the buyer's market is really, really quiet right now.  I've got a lot of equity in my home, but unless I decide to suck it up and rent for a year or so, I'm going to make a lot less than I had thought at the beginning of the year.

My advice, considering you moved in with your SO and not homeless, is to wait it out rather than reduce price.  The rate environment is significantly distorting demand and it isn’t likely to be as seasonally driven as 2014-2019.  It might be that demand peaks in October because rates are in the 5’s.  
 

I also think the previous prejudice against houses that have been sitting isn’t as strong.

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