From: owner-persfin-digest@lists.xmission.com (persfin-digest) To: persfin-digest@lists.xmission.com Subject: persfin-digest V5 #68 Reply-To: persfin Sender: owner-persfin-digest@lists.xmission.com Errors-To: owner-persfin-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes persfin-digest Saturday, November 21 1998 Volume 05 : Number 068 In this issue of the Personal Finance Digest: Educational position NPNC Mortgage Re: persfin-digest V5 #67 Re: Stock Options/Insider treatment Stocks Fw: FF miles Closed on No Points, No Closing Refinance. The messages posted to the Persfin-Digest are opinions and are not intended to substitute for qualified professional advice. Subscribers should seek the services of qualified professionals for such advice. The publisher, Internet provider, and Digest contributors cannot be held responsible for any loss incurred as a result of the application of any of the information provided here. 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Subscribe: e-mail majordomo@xmission.com, text: subscribe persfin-digest Unsubscribe: e-mail majordomo@xmission.net, text: unsubscribe persfin-digest ---------------------------------------------------------------------- Date: Tue, 17 Nov 1998 15:44:01 -0500 From: PowellFamily Subject: Educational position I have volunteered for the schools for the past 7 years. This year I would really like a paid position in addition to volunteering. One position that is really needed (but of course there is no funding for) is a resource person. Someone who will find funding for special projects, get donations of special equipment (such as computers), and procure other necessary items, particularly at the end of the year when funding is running out. Is there a way I could do this, pay myself a reasonable half time salary, and not be liable for any of the equipment, etc. that I got donated to the school? Sherri Powell Powellfamily@tri-countynet.net - - ------------------------------ Date: Tue, 17 Nov 1998 15:52:06 -0500 From: PowellFamily Subject: NPNC Mortgage From looking at this mortgage, it seems to me that the costs are rolled right in dues to the fees and higher interest rates. There is no such thing as "no cost". If you plan to keep your loan for a longer period of time, this method may not be worth it. Sherri Powell - - ------------------------------ Date: Tue, 17 Nov 1998 17:12:19 -0500 From: Subject: Re: persfin-digest V5 #67 persfin-digest Tuesday, November 17 1998 Volume 05 : Number 067 >Date: Thu, 12 Nov 1998 14:51:41 -0500 (EST) >From: >Subject: Are these NPNC Fees Reasonable >I have a 30 year Mortgage that was Just bought by PNC Mortgage Corp. >I have 25 years left with a balance of approximately 98,000. My current >interest rate is 8.125%. I asked PNC could they refinance my Loan >in house without any closing cost and Points. They could refinance the loan >today 10/12/98 >at 7.25 % with the following Fees. >Total $1120.00 >My Questions are: > 2. Is 7.25 a good interest rate to refinance a 8.125 interest mortgage ? This would give me a annual savings of about 600.00 per year. >3. In refinancing my 30 year mortgage in which I have paid 5 years into, >should > I get a new mortgage with a lower rate for the 25 years or should I >refinance for > 30 years ? I'm going to guess that your payments are currently about $750 a month ? Over the next 25 years, you will have paid about 136k in interest and 98k in principal. If you take that 1120 and make a lump payment now in addition to your mortgage payment, you will knock one year off and the result will be 129k interest paid and 98k principal. If you refinance at 7.25% over 25 years you will pay about 119k in interest and 98k in principal. Your monthly payment will be approximately $695. Keeping your monthly payment at $750 a month (since you are used to it anyway) you will have your mortgage paid off in about 20 years 2 months and will have paid about 93k in interest and 98k in principal. Is there even such a thing as a 25 year mortgage ? I've seen only 30 or 15 year residential with differrent flavors (fixed, variable, jumbo, balloon, front-loaded, back-loaded,etc.) > 4. Is there ever a situation you would refinance a mortgage for a longer >period than you > have left of your you current mortgage, even if the NEW interest rate >is lower ? IF so why ? If you really desired your monthly payments to be lower (about $670 per month) and: a) did not plan on making additional payments to principal or care that you were paying about $147k in interest or b) planned on making the same monthly payment as you are currently ($750) , thereby turning it into the same as the 20 year 2 month mortgage or c) planned on making a monthly payment that is more than specified in the mortgage but less than you are currently paying, thereby turning it into a shorter-than-30-year mortgage. or d) planned on making the $670 per month payment and investing the $80 per month you would otherwise spend on the current mortgage payment ($750 - 670) into a fairly risk-free fixed income fund earning more than 7.25% (if you can find one), then by the end of your mortgage you will have done better than scenario b). then yes, I would finance longer because it would give me an option to mimick the shorter-term mortgage. This assumes you do not have a prepayment penalty. Some (most ?) mortgages have an embedded option in them to the borrower: you have the ability to fully pay the balance due any time you want without penalty. Stephen Foulks, does this generally agree with your experience in personal finance ? Most of my experience has been with securities trading, institutional investing, and portfolio analysis. If you are reading this one, I'm going to defer to your advice. > 5. Based on the Prime Interest rate at anytime what would be considered a >good and fair mortgage loan rate ? > Prime + ? As far as I know, this really varies from state to state. I've seen Pennsylvania rates recent;y as low as 6.5%, 0 points, 5% down. - ---------------------------------------------------------------- The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. - - ------------------------------ Date: Tue, 17 Nov 1998 18:53:07 -0500 From: Rich Carreiro Subject: Re: Stock Options/Insider treatment >I have some stock options in my company and the company has not yet >gone public. If I leave my present job and chose to exercise some of >these options, would I still be considered an insider when the company >goes public? In particular, I am interested in knowing if the >restriction of not being able to trade exercised shares for a period >of 6 months will apply to me in this case. Look to the actual text of your stock option agreement, articles of incorporation of the company, and your employment agreement (if any). If there's a stand-off provision, it should be in one or more of those agreements. Also check the agreements to see if the company has the right to buy the stock off you when you leave. Many not-public companies have such provisions, so don't assume you'll be able to leave the company and continue to hold the stock. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.1 - - ------------------------------ Date: Tue, 17 Nov 1998 20:46:40 EST From: Purplvegas@aol.com Subject: Stocks I have several stocks which are no longer listed. Can you help me locate this stock to tell me if it is valuable any longer. The company name is is Pyramid Industries. Thank you. - - ------------------------------ Date: Tue, 17 Nov 1998 20:04:50 -0500 From: "Ken Bozzi---Excalibur" Subject: Fw: FF miles you wrote== A while ago, someone posted a message saying that they had bought magazines >using Frequent Flyer points. Can you tell me which airlines participate in >this? Thanks. I use Northwest but so far haven't seen anything but I may >have missed something. I was one of the posters. In my case the airline was United. I called them and asked if they had such a program. In the case of United, I was told to call a second number and was helped over the phone. On other occasions, other airlines have sent me order forms for magazines unsolicated. I'd call the Northwest Frequent Flyer program number on your statement and ask if they have such a program in place. ========================================================== IF YOU HAVE UNUSED MILES, PLEASE LET ME KNOW. I AM IN DESPERATE NEED FOR TICKET FOR MY DAUGHTER. Kenneth J. Bozzi---President Excalibur Commercial Mortgage Company 1 Mill Park Lane Little Mill Woods Marlton, NJ 08053 voice 609-983-1556 fax 609-983-2267 email bozzi@excal.com - - ------------------------------ Date: Sat, 21 Nov 1998 23:06:33 -0500 From: hic@world.std.com (Howard I Cohen) Subject: Closed on No Points, No Closing Refinance. Hello: A few weeks ago I mentioned my fondness for the No Points, No Closing cost mortgage, and generated a brief thread. Anyway I'm pleased to announce that I finally closed this past Thursday, 6 3/4%, 30 year fixed. The only charges were $30 for the bank to close out my old mortgage, and $15 for someone to FEDEX papers to me. The broker even picked up a $200. appraisor's fee. And best of all, I met with the lawyer in a Starbuck's and she paid for the coffee. Howard I. Cohen - - ------------------------------ End of persfin-digest V5 #68 **************************** - To unsubscribe to persfin-digest, send an email to "majordomo@xmission.com" with "unsubscribe persfin-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.