Thursday, June 6, 2013
Day 50: Sheet Rock Day 2 and NVR Rate Lock
The rest of the sheet rock was hung today and the house was cleaned of all the scraps and debris.
Another crew will come in and do the tape and texture. Didn't get an answer on when.
Still no masons. I guess they were supposed to be there today but it poured today. Weather looks better over next 4 days or so.
Received the closing letter with dates, times and location. Contacted NVRM and locked our rate. It was higher than when we started this journey. Not much higher and will not effect our payment much at all. So I'm not going to lose sleep and I never thought we would see rates as low as they are right now anyway.
I kind of figured this would happen though. If not just for our bad luck but because of two primary reasons. 1.) We are in the peak moving season which means the real estate market is doing very well compared to the dead of winter. 2.) When the real estate market is doing well, the rates are not artificially held low to attract new business. Darn the bad luck.
They gave us an offer to "buy-down" the rate to where it was when we started. At first this sounded like a good idea. In reality when I did the math, it was a horrible idea for us. This is a personal financial decision but it wasn't a good deal for us. Basically the LO told me that it would only be $2,000 to buy down a .25%. In reality we were also losing a $4,500 discount fee or credit for the point difference (line 802 on your GFE). So it was costing me $6,500 to buy .25%. The payment difference was less than $60 a month which would have take me nearly 9 years to recoup (not counting the Future Value of Money or calculations based on NPV). So the net result would have been us bringing an additional $4,500 to closing (we were already counting on bringing some anyway) or getting a check from RH for $1,700 at closing...hmmm. "Check Please!"