Building Confidence

[Riverpigusmc]

Wanna enjoy gettin in a car? Crawl through the window of a late model where the frame sits 3 inches off the ground. Thise days are long gone

[FfNJGTFO]

Originally Posted by sdmc530

RIGHT!! My wifes SUV and my POS truck are great. A work buddy has some fancy schmancy Hyundai, I need a jib crane to get out of the damn thing. I will never own a car ever again. Besides how in heck do you haul a harvested animal in a car?

The first car I ever bought was a Camaro/Berlinetta (which, sadly, I discovered later was a "chick car" - I needed to get the Z28 but I didn't see one with an "automatic" trans).


After that, I was SUV all the way. Love the ability to see over the top of some things, and being able to get in/out of it with relative ease, unlike some of these things I rent these days.

[BlackKnight]

Originally Posted by Riverpigusmc

Wanna enjoy gettin in a car? Crawl through the window of a late model where the frame sits 3 inches off the ground. Thise days are long gone

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[Semper Paratus]

Any picture of me getting into the General Lee or similar will have a wrecker or crane boom in it with me in a harness.

[DrHenley]

Originally Posted by FfNJGTFO

I thought I had seen a blurb where Chevy is talking about a "full blown" electric Corvette.

If they go the way Ford did with the electric Mustang, it'll look something like this:

[FfNJGTFO]

Update: And a not so good one. I hit a bit of a snag in terms of the Solar project. I was within 1-2 days of closing on the HECM loan. And then, the mortgage co. decided to call my Homeowner Insurance agent and demand they raise the "Dwelling" coverage to get a lot closer to the "appraised value" of the property.... not necessarily the "replacement cost" of the property, but the "appraised value." This would result in an increase in my annual premium of over $435.00 to $2159.00 a year. And this doesn't include the additional premium bump of $350.00 if I go with a Solar array that produces more than 10.00 KWH in DC.


Sadly, this made the Solar array, no longer affordable, and I have decided to cancel it and, cancel the HECM loan altogether. I'm left now with having to finance the roof only (and maybe the HVAC, but I can live without that). I'll work on that financing independently with the vendor. I'll get that done. I have to, before 03/2023 or my homeowner's policy will not be renewed. I'll get it done, even if I have to save all the cash and pay for it that way.



I knew that HECM thing was too good to be true. Maybe it was a good omen that I killed it. And what with interest rates going up (and this being an "adjustable rate" program) lately, it just wasn't worth the trouble.



I'll keep you posted. Hopefully, now, I can get back to building my 2nd AR.

[FfNJGTFO]

Another Update: I'm looking at a different option, now. There's a finance company called "Point." Apparently, what they do is almost like a Reverse Mortgage (they call it a HEI - Home Equity Investment). You get to borrow a certain amount, based on the appraised value of your property. You do not have to make monthly payments on the loan, but the loan is settled at the time you decide to sell the property or your executor sells it. The contract is for 30 years, unless you decide to re-negotiate it at that time (at which point, the property is re-appraised). You can also elect to buy out the contract sooner. Whenever you do decide to terminate the contract (either by selling the house, refinancing with HELOC, or paying cash), they re-appraise the property. They then take a certain percentage (20-30%) of that revised appraisal as "their share" of the equity (representing all the interest they would have charged for the loan if it were a regular mortgage), as well as the original principal they lent you. You then get the proceeds after closing.



Example: Say your property initially appraises at $300K. They adjust it down slightly by 15% (down to $261,000.00) to account for a potential decrease in the value (if it goes below that, you don't pay more of a share). This adjusted value determines what principal they'll offer you. You receive that amount. You don't make monthly payments on that amount.



When you get ready to sell the property (or buy out the contract), they re-appraise the property (say it's up to $350K). At the time of closing (or buyout), you pay the original principal back plus "their share" of the re-appraised value (about 20%). Therefore, if you borrow $30K, you'd pay them that plus 20% of $350,000.00 (about $70K + 30K (principal)) = $100K. You'd then get $250K at the time of closing. Of course, if the property decreases in value over that time, then "their share" is a lot less.


I'm still thinking it over. I really don't like putting the equity in my property at risk, but I gotta get my roof replaced, so.... Since I don't make payments during the life of the contract (there actually is no way to do that), what I *can* do is pay myself those payments into a savings account or something and have enough to pay off the principal + "their share" by the time I'm ready to buy them out (10yrs, I think). I can calculate that monthly payment before I sign the contract, It should be doable in 10 years, which is as long as I'd want it to be (I'd be in my 70's by then and not sure if Social Security will still be there).



Anyway, thoughts?



And I promise I'll start my 2nd build soon, after the new roof gets on.

[FfNJGTFO]

Well, in light of the potential to close off Lake City's production of 5.56 Green Tip, I just scored another 1000 rounds at .50/round. I did see it at .47 per round but those were out of stock.



I'll keep you posted on the Point Finance deal, but it does seem to be moving forward. We'll see. Cautiously optimistic.

[Caleb]

So if you pay it back (buy out) early, are there any fees?

$70k profit (your example) seems a bit excessive for a $30k loan. Have you tried a credit union?


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[FfNJGTFO]

Originally Posted by Caleb

So if you pay it back (buy out) early, are there any fees?

No, none for paying off early. Just the standard costs for the re-appraisal and other "buy-out" doc fees (very nominal).

Originally Posted by Caleb

$70k profit (your example) seems a bit excessive for a $30k loan. Have you tried a credit union?

I actually miscalculated that. The percentage is not based on the 2nd appraisal value, but on the delta between the two appraisals.



Example: Initial appraisal is $300,000 like before. They adjust it by 15% to cover their "depreciation margin." Thus, we start at $261,000.00.


The percentage of "their share" is based in part on the amount I draw, initially. I can draw a total of $59,000.00. I did bump it up from $30,000 to $40,000. As a result, the percentage is now 43.2% of the delta between the adjusted initial value ($261,000) in this case, and the resultant appraisal (at the time I buy them out). Say that's $315,000.00 Their "share" would then be ($315,000 - $261,000) * .432 = $23,328.00 + the principal I drew. If it depreciates below $261,000 in the time the contract is active, then I would owe less "principal" money. I don't even think that will happen because if they can project that, they would not accept the loan, initially.



At one point I was considering going up to $50,000.00 in principal, but they told me the percentage would be over 50% in that case. I told them to keep it at $40,000.00.



So, given the above numbers, and if I put away, say, $800.00 a month in a savings account for 8-10 years, I should be able to buy them out completely and get all my equity back. Even if their share comes to $60K to my $40K principal. That's $100K total. I should be able to cover that within 8-10 years.


We'll see. They might still deny me if they think it's not worth the investment. We'll see.