Big decision made today

The fridges are so much bigger than on the boat that the stuff has more room to move around. We condense items to fill one or two shelves before moving and use refrigerator bars so nothing rolls out when we open the doors on arrival. Been working so far.
 
Man, that part about how much time the boat takes away from your marriage, though…
 
So, it’s been a year this weekend that we sold the boat and took delivery of our coach. Looking back, I would not do much differently.
I had the opportunity to be a guest on a friends boat for a very prestigious weekend multi club cruise to Tinsley Island in the heart of the Delta. I enjoyed the weekend immensely and being around some of the nicest boats in Nor Cal but I can honestly say that I do not miss boating in general. I think had we not sold the 44DB and made the move up to the 506 Carver, we would still be enjoying boating. My advice to those thinking of a similar move, think long and hard about it. Many of you wise friends gave very sober advice to me that I did not ignore but did not heed. Life goes on and for me I don’t tend to brood over past decisions, especially about discretionary things. I think back at all the good times that were had on the boat and trading experiences with you all here on CSR and consider it all a part of a life well lived.
Cheers
Rusty
 
Carpediem44DB said:
So, it’s been a year this weekend that we sold the boat and took delivery of our coach. Looking back, I would not do much differently.
I had the opportunity to be a guest on a friends boat for a very prestigious weekend multi club cruise to Tinsley Island in the heart of the Delta. I enjoyed the weekend immensely and being around some of the nicest boats in Nor Cal but I can honestly say that I do not miss boating in general. I think had we not sold the 44DB and made the move up to the 506 Carver, we would still be enjoying boating. My advice to those thinking of a similar move, think long and hard about it. Many of you wise friends gave very sober advice to me that I did not ignore but did not heed. Life goes on and for me I don’t tend to brood over past decisions, especially about discretionary things. I think back at all the good times that were had on the boat and trading experiences with you all here on CSR and consider it all a part of a life well lived.
Cheers
Rusty
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Good write up, thanks. I wonder about this some days as well.

BTW, you should update your signature "EX owner of 2006 44DB CARPE DIEM and 2000 Carver 506 TREVI - now loving RVing"
 
IsaacMartin said:
I just stumbled upon your post from last year and couldn't help but reflect on the major decision you and your wife made. It's incredible how a little honest communication can make such a significant impact. Sometimes, it's easy to get caught up in routines or habits that we think bring us joy when, in fact, they've become more of a stressor.Also, I wanna remind you about coin flip online. It's a site that simulates the experience of flipping a coin to help make decisions. In your case, you didn't need the flip of a coin; you both took the plunge based on sincere dialogue.
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Spammer
 
Glad to hear you're using it!

I just changed the oil and filters on my rig this past weekend. From last year we did over 7k miles in trips plus put on about 115 hours on the generator. That's with both of us working full time, one still in school, and we still use the boat.

I decided to make an investment in real estate (yes, I know horrible market timing) and I'm contemplating getting out of boating like yourself. I love it, but frankly the sunk cost every month continues to climb even before the boat moves and it's making me more frustrated by the day.
 
douglee25 said:
I decided to make an investment in real estate (yes, I know horrible market timing) and I'm contemplating getting out of boating like yourself. I love it, but frankly the sunk cost every month continues to climb even before the boat moves and it's making me more frustrated by the day.
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I am in the same boat, pun intended. I've been looking for a 2nd house waterfront properly, came real close to making an offer about 3 weeks ago, but then learned about all the new LLPA's for second homes (points and closing costs for example) and pumped the brakes. I need to decide if I want to use cash now. If you have not looked into LLPAs do yourselve a favor and do so.
 
mrsrobinson said:
I am in the same boat, pun intended. I've been looking for a 2nd house waterfront properly, came real close to making an offer about 3 weeks ago, but then learned about all the new LLPA's for second homes (points and closing costs for example) and pumped the brakes. I need to decide if I want to use cash now. If you have not looked into LLPAs do yourselve a favor and do so.
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LLPA's have always been there...they just adjusted them slightly. Typically for persons with better credit, the fees are 'more reasonable'.
 
douglee25 said:
LLPA's have always been there...they just adjusted them slightly. Typically for persons with better credit, the fees are 'more reasonable'.
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Well, per the mortgage broker I was working with, there were significant LLPA changes in April for second homes. The investors buying these mortgages want to reduce the risk. I have excellent credit, his mortgage was three points plus about $10,000 in closing cost.

That coupled with the high interest rates, kind of turned me off.

"Conventional Loans have Loan Level Pricing Adjustments (LLPA’s) for various risk factors and 2nd homes carry a substantial pricing adjustment. These LLPA’s for 2nd homes were actually increased dramatically last year (around April 2022) and have remained in place since.

Investors do not seem to have an appetite for 2nd homes as evidenced by the pricing. While the rate itself is not that much higher right now for a 2nd home compared to a primary residence, the main difference in pricing is in the discount points charged upfront.

Investors know there is no money in 30-year fixed rates because once rates start to fall, everyone is going to refinance and the investors will not realize any long-term interest income. Because of that, they are having to collect income upfront to incentivize them to lend money on 2nd homes."
 
mrsrobinson said:
Well, per the mortgage broker I was working with, there were significant LLPA changes in April for second homes. The investors buying these mortgages want to reduce the risk. I have excellent credit, his mortgage was three points plus about $10,000 in closing cost.

That coupled with the high interest rates, kind of turned me off.

"Conventional Loans have Loan Level Pricing Adjustments (LLPA’s) for various risk factors and 2nd homes carry a substantial pricing adjustment. These LLPA’s for 2nd homes were actually increased dramatically last year (around April 2022) and have remained in place since.

Investors do not seem to have an appetite for 2nd homes as evidenced by the pricing. While the rate itself is not that much higher right now for a 2nd home compared to a primary residence, the main difference in pricing is in the discount points charged upfront.

Investors know there is no money in 30-year fixed rates because once rates start to fall, everyone is going to refinance and the investors will not realize any long-term interest income. Because of that, they are having to collect income upfront to incentivize them to lend money on 2nd homes."
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We bought a new condo in July. Paid cash, but then decided to get a mortgage. We went 7 year ARM because, well, interest rates on fixed are crazy. LLPA was 6 basis points for us. It was just noise at that point. Both of our credit scores are perfect.
 
highslice said:
We bought a new condo in July. Paid cash, but then decided to get a mortgage. We went 7 year ARM because, well, interest rates on fixed are crazy. LLPA was 6 basis points for us. It was just noise at that point. Both of our credit scores are perfect.
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highslice said:
We bought a new condo in July. Paid cash, but then decided to get a mortgage. We went 7 year ARM because, well, interest rates on fixed are crazy. LLPA was 6 basis points for us. It was just noise at that point. Both of our credit scores are perfect.
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I thought LLPA went away for mortgages with perfect credit scores.
 
More from the mortgage broker I've been talking to:

"Credit score is one of the factors included in LLPA’s but there are other loan characteristics that are part of LLPA’s including occupancy, down payment, etc.

In May, the LLPA grid was restructured by Fannie Mae and Freddie Mac to increase affordability for borrowers with lower credit scores and lower down payments.

Overall, borrowers with lower credit scores and smaller down payments still have LLPA’s much higher than well-qualified borrowers even though those LLPA adjustments may have been reduced back in May in certain areas within the grid.

The unfortunate consequence is that for very well-qualified buyers (especially those with higher credit scores and larger down payments) there are now adjustments in place that are higher than they were previously or that were not there at all prior to May.

Prior to May, there would not have been an LLPA adjustment based on your credit score and down payment.

If you put less money down (15%) the LLPA would drop to .250% or if you put more money down (25%), the LLPA would disappear."

image001.jpg
 
sbw1 said:
LLPA kicks in for credit scores below 740 and down payments of less than 40%.
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We couldn't have gotten the loan with a credit score below 800. So I paid 6 basis points for something, I assumed it was LLPA. Funny, I am a CFO and I would never let this slip through on one of my companies without questioning it. But when it's my personal stuff I don't think twice about it. Drives the Admiral crazy.
 
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