May
10
2006
 2

Up, Up, Up


The fed raised rates again. Aside from the more obvious deadline of the baby, there is the cost of renting each additional month, getting building materials before they go to Louisiana and Mississippi, and the race to get the house done before interest rates go up too much. We are on a construction loan, so our actual mortgage won’t happen until we are ready to move in. I really really hope this is the last boost to the interest rate before we’re done.
Speaking of rates and loans, Hakuna Matata Federal Credit Union, has continued to be the weak link in this project. They tried to send our bills to the construction site for months. Even if they had spelled the street name correctly, there was no mailbox there. Maybe they could have tried sending the bills to the same address they send our bank statement to instead of threatening to lower our credit rating for non-payment. When our bill finally arrived, it was pathetically marked up in ballpoint pen. Final payment was authorized via second hand voicemail (long story). I really wonder if they have ever done one of these loans before.
We’re looking into shopping for a different financial institution to handle our mortgage. I’m not sure if it means breaking a contract or paying closing costs a second time. Any advice, recommendations?

2 Comments for Up, Up, Up


Laurie
May 11, 2006, 11:47 pm

Ouch! I remember when we had our first house built I sweat bullets the entire time worrying about interest rate fluctuation, but with the feds raising rates, that really sucks! Hm. I don’t have any advice for interest rates and lenders. We had a hell of a time working on our current loan which is through the credit union, it was a total pain. Our first loan was much easier, with USAA, which is a bank for military personnel and their children, if you have anyone in the military in your family. My dad was in the air force, and USAA does have wonderful benefits…they’re really good at what they do ’cause EVERYTHING is from a distance. Sometimes I feel kinda guilty that I get USAA, since I’ve never worked for the military. But, then I think, “Ah, I had to move around a lot, I deserve it.”


Kevin
May 12, 2006, 1:24 pm

You may be stuck for the time being. If rates drop by a point or more, and you’re not too far along in your payments, you can refinance with another lender and save money over the long haul. Short term, though, refinancing costs $$$, and the fees won’t be worth it.

If you do end up refinancing, pit one lender against another. The bank that had my mortgage was not willing to negotiate on fees until I went to another lender and that bank (actually it was a credit union) requested my paperwork. Suddenly everything was negotiable!

USAA–Unless your parents/wife’s parents already have USAA, you aren’t eligible. (That’s assuming neither you nor they are active duty.)

By way of example–my father-in-law went to college on a military scholarship, served as a Naval officer for four years, and fought in Viet Nam, and HE is no longer eligible for USAA because he didn’t sign up within 18-months or something of leaving the service. Meanwhile, my brother, who has no military experience whatsoever, is a USAA member because his ex-wife’s step-father was in the Army for two years and he signed up while active duty.

Your kidding about Hakuna Matata Federal Credit Union, right?