⏩ Mortgage Refinance Explained - Refinance 101 -th-cam.com/video/vAq_Gz1aCHY/w-d-xo.html ⏩ 5 Mistakes to AVOID when refinancing - th-cam.com/video/en2vD13t37A/w-d-xo.html ✅ - Work Directly with My Team (Mortgage and Real Estate Nationwide) - www.jebsmith.net/referral
@JebSmith My current rate is 4.125% but I want o refinance so I can take cash out to pay debt, Car & possibly buy another property but if I do, my interest rate will increase to 6.2% conventional loan. Is it worth it, or should I wait?
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.
Thats sad you really hurting. But, what about people that don't have a $1000 dollars or living pay check to pay check. And Kamala taking their tax dollars to feed illegals, Medicare and social security. And to mention $25,000 to build a home. Maybe you should give them several grand of that $680, 000 to build them a home. Vote Trump and fix the problem.
You make a really good argument. When I first began investing on my own, the market was really taking advantage of me. Despite my initial skepticism, I hired a CFA, and I outperformed the market by over 9%. Until it occurred twice in a row, I believed it to be an anomaly, therefore I've continued to buy through an analyst.
I was able to refinance. I got my house in September 2023 at an IR of 7.625 and here I am in September 2024. I was able to refinance and got a rate of 4.621 with a $6100 credit, I only paid $5500 during closing to cover tax and interest rate which I was going to pay anyways. Fast forward, Doing the maths this refinance cost me like $1000,. All I can say is you can get a better interest rate right now. Remove the notion that it is expensive to refinance. Just work with your lender and make sure they get you a better deal. I called 10 lenders, Yes 10 lenders...until no one was able to match the best deal I got. Again make sure they don't increase your principal. Go get that better interest rate guys!!! It's easier than most people think.
I think if you can afford to wait you should. Rates will almost certainly continue to drop especially with the labor market slowing down and inflation some what slowing. If you absolutely need the relief now and the refinance number sounds decent then go for it. Personally I’m waiting for conventional to go to low 5s or to hopefully at 5. I got my home in August at 6.25. The payments suck but I continue them for at least a year to see how low rates actually do go.
I bought my house September 2023 at 7.625%. I was able to refinance to 4.625% and got a credit of $6100. and I will refinance again next year when i w get lower 3s. Don't wait, you can get a better rate now and it's not even expensive to refinance, you can get credit and pay interest and Taxes which you are going to pay anyways but make sure they don't jack up your principle to offset the cost.
I locked in a 4.990% which has reduced my monthly required payment by over $100/month. It was just a rate reduction refi, so time to recoup the costs just with difference in accrued interest is 23 months. If rates crash, I am 100% okay with "losing" the $5k of the fees i paid (especially if rates drop to 4% or lower).
Thank you for sharing some of the details about refinancing! So many people say “you can just refinance at a lower rate later” without mentioning any of the pitfalls.
I had a similar scenario where rocket mortgage tried to get me to refinance to a 20 year at 5.5% but didn't mention it costed 5k in points buy down and 2k in closing cost. They also tried comparing the potential savings to my original balance instead of my current balance to make it look like my payoff period was 1 year when it was actually 3 years
I have a relative who thinks she cannot own a home because her credit score is $530 and makes 72,000 annually. I think she can own a home and I tell her why don't she just sit down with a mortgage broker and have a conversation. What say you?
This is first of series cuts. And it will be at least around 5.5. Trajectory is down, speculation can argue it go up to 4 but realistically from 5.5 it probably will stay around 5s...up & down..
I get a free refinance with my new construction lender and i plan moving to a newer bigger home and renting the current one within the next year. Contemplating refinancing to a conventional from fha within the next 6 months to remove pmi as home has appraiced 20%
falling interest rates could definitely encourage homeowners to sell. Some who were hesitant to list their homes when rates were high might feel more confident now, knowing that buyers can afford larger mortgages
Right. This could help cool down some of the crazy price spikes we've seen due to limited inventory. More inventory could mean a more balanced market, which would benefit both buyers and sellers. Plus, for homeowners looking to upgrade, lower rates make it more affordable to take out a new mortgage for a bigger or better home
I got 1.5% interest rate in 2020 lol ... that is why i cant move to another state ..i want to sell my house but the interest is too high right now..i wait for it to go down to 3-4% before i sell my house in texas ... many of my friends are on the same boat..if the interest drop down to 3-4% like before... i think million of people will dump their house on the market so you will see supplies more than demands in 2025...
@@hynds92 I’m in the same boat and Im under contract now! My current rate is not locked and I’m waiting until around the 20th to loc. I had the option to buy down my rate but chose not to in return Im putting a bigger down payment down and hoping rates drop by the end of the month.
Im at 7.125 in the DC area and my current lender is offering a no cost refinance at 6.375 without extending our loan. It seems like a no brainer but other banks are offering 6% or lower with closing costs of $6000. We would prefer to refinance once and forget it but this doesn't seem like a good strategy after watching this video.
There's not a "science" behind it but it's a formula that he uses that has always worked. Just divide 125k into your loan amount and that will tell you how much you need to save in rate to make it make sense assuming costs are in line, etc....
@@JebSmith Okay, why has it worked? I know the formula from the video. I just want to know why it works. You are just making a statement and telling me it is true. Do you have evidence of it besides your personal experience?
Sold our home in July of this year. Went with builders lender on a new home because they offered a 2-1 buydown. 2.875,3.875 & 4.875(3-30years). I would refi if rates would be lower in the next two years but if not, I’d stay or sell and buy our dream home.
Jeb - Another great video. As always, very informative. I have a $1M loan at 7.3% (yes, I cry everyday lol) and I want to refinance but I am not planning to pay this mortgage for the next 30 years, Im hoping to have it finished in 6-8 years (if my financial situation doesn't change)... So I really don't want to pay closing cost to refinance because it'll be a waste. I had no idea some lenders attach your closing costs to a refinance to the loan (thats terrible). Im thinking to refinance in the next 4 months.
At this point, you should be able to find someone that can get you a much better rate and pay the closing costs so that you don’t have any out-of-pocket expenses
Help! I was told I have to wait until two tax seasons before I could qualify for a loan, or I can do a 12 months bank statement loan and qualify now. However, the lender said statement loans have higher interest rates by 1 to 2 percent. Should I wait until tax season 2026 to buy, or should I buy it now? I am also considering that interest rates are lowering. I am a first time home buyer...
Just refinanced from 7/6 arm 5.875% to 15 yr fixed 4.75%. Will refinance again when rates go lower next year but wanted to lock in the lower rate and start paying down my principal! I paid $3700 in total closing costs, hindsight I prob should’ve took a little higher rate but it’s okay in the grand scheme of things that amount isn’t a back breaker. If I never end up refinancing I’ll be happy, but if I do I will look to get 0 closing cost in the future.
@@Jack-rn2im yeah 5.5 is really good. The 15 year rates are better that’s why I was able to get 4 handle but honestly I still am confused bc the market avg is 5.6 or so for 15 year so I have no idea 🤷🏼♂️
@@aerialstudiosmedia Yes, that is probably why he recommended aiming to refi at your current term length you've paid down, instead of resetting to the original term length. that's a lot of extra interest. It may not matter as much if you know you're going to move or refinance at a lower rate and price later anyway. Hard to time the market in that regard, though
We are going to build an addition to our home and we will need to finance it. We are not touching our current rate, it’s in the 2s. So we are considering a HELOC or personal loan. How do I go about tracking rates for those?
Jeb - quick question, why do you say not to restart the 30 year term in a refinance and just to start from where ever the term period is. Wouldnt the payments be lower if you restart at a 30 year period? whats the advantage of not restarting from 30 years?
The advantage is that you stay on track to pay off your loan within a 30 year period of time versus starting to get over every time you refinance. Yes, the payments would be lower by going back to 30 year but you’re also restarting your loan every time.
@@JebSmithit’s it possible to refinance without starting over? My interest rate is 5.8% because I did buy down the point. However, would it be better to keep paying principal interest or refinance without starting over?
Im sitting around a 7.4% right now and my mortgage lender reached out to me about refinancing. Not sure if I should take him up on it now or suggest waiting a bit.
Clearly, that can be an issue but my guess is Holmes continue to appreciate the late for the next couple of years. If you’re in a market that has a lot of supply coming into the market then it’s a bit more questionable but even I don’t think are going anywhere.
It depends what type of loan? I bought my 1st property in San Diego in June 2009 for 175k with rate of 6.75. In 2012 my house dropped 150k and I was still able to refi at 2.75 under VA IRRRL at small cost. I was able to save almost $500 and pay it toward the principal. Now the property has 6 months remaining to pay it off
You can refinance as often as it makes sense............The 6 month "rule" is primarily there to protect the lender from having to repay compensation back.
I bought a home at 7.6 interest last October. hoping the interest rates drop down to 5 or lower so I can refinance next year. ive gotten calls about me qualifying for a cha streamline but lender is telling me to wait to refinance into a conventional from an aha
@@JebSmith so the fha streamline is worth looking into if I qualify now? I will be working towards turning the fha into a conventional loan by working on getting better credit before doing that
@JebSmith just saw your video on fha streamline, that something that can really benefit me now and for the conventional loan, I wouldn't be able to refinance into that until the end of next year. But the guy that recommended me to switch to fha streamline, I'm not sure who he is. He said he works with my lender company but my lender does not know him
@jakoblarson4597 I agree. Economic downturns happen pretty suddenly so we will see if anything really bad happens in the next few years due to China or some other reason.
@@AngelValdez-mr3fq yeah cus I was one of the guys “wait for rates to drop and wait for spring but rates will never go under 5 and home prices are gonna increase cus everyone is gonna want to buy in the spring
No, there's no requirement on the number of payments that need to be made. A lot of mortgage professionals want you to wait 6 months because if you refinance before that, they may have to pay back the money they made on the initial loan. Not all lenders have that policy so before refinancing, check with your original lender if you like them 😂
@@JebSmithmight be worth mentioning the VA specifics: Interest Rate Reduction Refinance Loan (IRRRL): You must wait at least 210 days from the first payment due date of the original loan and make at least six payments. VA cash-out refinance: There's typically no set waiting period, but most lenders prefer at least 6-12 months of payments on your current loan (for the reason you mentioned I'm sure)
You sound like you’re just burning money on these small interest rate changes. Having a TH-cam channel and have some good edits doesn’t mean this guy is above criticism. He’s making some dumbass moves.
clearly the Dr in front of your name does mean further education.......Did you watch the video? I refinanced 2x with ZERO costs. It doesn't take a DR to realize that's probably a good idea when it's saving me $400+ each time.
@@JebSmith you’re not very smart if you really think it didn’t cost you anything to refinance, they GOT GOT you Smfh they really need to stop selling podcast kits to just anyone… congratulations, you played yourself
@JebSmith Well , drill baby drill means reduction in transport costs. Heavy equip operations etc.. And , if you did a little research that alone reduces home costs up to 25%. Also , interests rates are closely tied to building costs and housing starts. STOP posting if you haven't got a clue !!!
@JebSmith PS, Finance gurus need money flow. But , liberal policies impede economic growth and burden the tax base with debt. So , vote for Harriis or the like and get mortgage rates into double figures. While Trump had them at 2-3%....
I am at 4.75% 7/6 ARM. Still have 6yrs left. Thinking of refinancing to lock in our rate but not sure if the rate will go down to what I have right now. 🥹
![[Full] 4 ต่อ 4 Celebrity EP.922 | 10 พ.ย. 67 | one31](http://i.ytimg.com/vi/zmV5HRIxIBI/mqdefault.jpg)
⏩ Mortgage Refinance Explained - Refinance 101 -th-cam.com/video/vAq_Gz1aCHY/w-d-xo.html
⏩ 5 Mistakes to AVOID when refinancing - th-cam.com/video/en2vD13t37A/w-d-xo.html
✅ - Work Directly with My Team (Mortgage and Real Estate Nationwide) - www.jebsmith.net/referral
Rates cuts baked in already.. No cut I'm hearing...
@JebSmith My current rate is 4.125% but I want o refinance so I can take cash out to pay debt, Car & possibly buy another property but if I do, my interest rate will increase to 6.2% conventional loan. Is it worth it, or should I wait?
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.
Thats sad you really hurting. But, what about people that don't have a $1000 dollars or living pay check to pay check. And Kamala taking their tax dollars to feed illegals, Medicare and social security. And to mention $25,000 to build a home. Maybe you should give them several grand of that $680, 000 to build them a home. Vote Trump and fix the problem.
You make a really good argument. When I first began investing on my own, the market was really taking advantage of me. Despite my initial skepticism, I hired a CFA, and I outperformed the market by over 9%. Until it occurred twice in a row, I believed it to be an anomaly, therefore I've continued to buy through an analyst.
Could you possibly recommend a CFA you've consulted with?
Her name is *Layan Talia Chokr* . Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I was able to refinance. I got my house in September 2023 at an IR of 7.625 and here I am in September 2024. I was able to refinance and got a rate of 4.621 with a $6100 credit, I only paid $5500 during closing to cover tax and interest rate which I was going to pay anyways. Fast forward, Doing the maths this refinance cost me like $1000,. All I can say is you can get a better interest rate right now. Remove the notion that it is expensive to refinance. Just work with your lender and make sure they get you a better deal. I called 10 lenders, Yes 10 lenders...until no one was able to match the best deal I got. Again make sure they don't increase your principal. Go get that better interest rate guys!!! It's easier than most people think.
@@K.E.A.N-vz5bm how in the world did you refinance to a 4.6!?
@@chrismistretta4801 Yeah my thoughts exactly.
@@K.E.A.N-vz5bm Do you mind sharing the best lender in your scenario?
Yeah, Rocket Mortgage wanted $10 in loan costs (not escrows) once I received the disclosures. Complete BS.
@@nala347 I used United Wholesale Mortgage
I think if you can afford to wait you should. Rates will almost certainly continue to drop especially with the labor market slowing down and inflation some what slowing. If you absolutely need the relief now and the refinance number sounds decent then go for it. Personally I’m waiting for conventional to go to low 5s or to hopefully at 5. I got my home in August at 6.25. The payments suck but I continue them for at least a year to see how low rates actually do go.
I’m going down a from 6.25 to 5.125 that will save me over $250 a month also over 100k in interest if the loan goes to term…it’s dumb to wait
I bought my house September 2023 at 7.625%. I was able to refinance to 4.625% and got a credit of $6100. and I will refinance again next year when i w get lower 3s. Don't wait, you can get a better rate now and it's not even expensive to refinance, you can get credit and pay interest and Taxes which you are going to pay anyways but make sure they don't jack up your principle to offset the cost.
@K.E.A.N-vz5bm proof or it never happened.
I’m under a 5 year ARM with 4.125% ending by 2027! I’m waiting until 2027 for sure. Btw good stuff Jeb!!
I locked in a 4.990% which has reduced my monthly required payment by over $100/month. It was just a rate reduction refi, so time to recoup the costs just with difference in accrued interest is 23 months. If rates crash, I am 100% okay with "losing" the $5k of the fees i paid (especially if rates drop to 4% or lower).
Perfect..........If you have considered it and it still makes sense then all good.
Thank you for sharing some of the details about refinancing! So many people say “you can just refinance at a lower rate later” without mentioning any of the pitfalls.
I had a similar scenario where rocket mortgage tried to get me to refinance to a 20 year at 5.5% but didn't mention it costed 5k in points buy down and 2k in closing cost. They also tried comparing the potential savings to my original balance instead of my current balance to make it look like my payoff period was 1 year when it was actually 3 years
Good morning Jeb thanks for the notification smashed the thumbs up I appreciate the updated information
I have a relative who thinks she cannot own a home because her credit score is $530 and makes 72,000 annually. I think she can own a home and I tell her why don't she just sit down with a mortgage broker and have a conversation. What say you?
@@gregb3443that’s really bad?
With a 530 credit score she would need a decent down payment. She would be way better off working on her credit and then trying to buy a house.
Good stuff Jeb! 💯
Thank you 🙏🏻
Really helpful breakdown of the pros and cons of refinancing in today’s market!
Good stuff Jeb. I’m glad you’re getting some relief. I know it was a tough decision to buy at the time.
No doubt! appreciate it.
Waiting for the rates to drop in order to refinance
What rate are you waiting on?
@@JebSmith We’re waiting for 5.
@@JebSmith somewhere in the 5’s
I’m at a 6 right now!
This is first of series cuts. And it will be at least around 5.5.
Trajectory is down, speculation can argue it go up to 4 but realistically from 5.5 it probably will stay around 5s...up & down..
@@JebSmith I am at a 8.25 and have a bond program in Texas. House is $262,000.
I LOVE THIS GUY!!
Update video, please! The fed just cut rates by 50 points.
Great information, I will look into refinance soon
I get a free refinance with my new construction lender and i plan moving to a newer bigger home and renting the current one within the next year. Contemplating refinancing to a conventional from fha within the next 6 months to remove pmi as home has appraiced 20%
falling interest rates could definitely encourage homeowners to sell. Some who were hesitant to list their homes when rates were high might feel more confident now, knowing that buyers can afford larger mortgages
Right. This could help cool down some of the crazy price spikes we've seen due to limited inventory. More inventory could mean a more balanced market, which would benefit both buyers and sellers. Plus, for homeowners looking to upgrade, lower rates make it more affordable to take out a new mortgage for a bigger or better home
I got 1.5% interest rate in 2020 lol ... that is why i cant move to another state ..i want to sell my house but the interest is too high right now..i wait for it to go down to 3-4% before i sell my house in texas ... many of my friends are on the same boat..if the interest drop down to 3-4% like before... i think million of people will dump their house on the market so you will see supplies more than demands in 2025...
Interest rates are never going under 5 unless there is another recession 5-6 is the new normal now
I’m just trying to figure out if I should buy down my rate or put more money towards my principal on my new home.
@@hynds92 I’m in the same boat and Im under contract now! My current rate is not locked and I’m waiting until around the 20th to loc. I had the option to buy down my rate but chose not to in return Im putting a bigger down payment down and hoping rates drop by the end of the month.
Going to refinance because VA IRRL is about 4.9
Currently sitting at 6%.
Thanks for the info. I’ve recently been trying to understand how this process works.
Im at 7.125 in the DC area and my current lender is offering a no cost refinance at 6.375 without extending our loan. It seems like a no brainer but other banks are offering 6% or lower with closing costs of $6000. We would prefer to refinance once and forget it but this doesn't seem like a good strategy after watching this video.
Thanks so much for this information. It is super helpful. Can you bring clarity to why your lender's method to determine if a refinance is effective?
There's not a "science" behind it but it's a formula that he uses that has always worked. Just divide 125k into your loan amount and that will tell you how much you need to save in rate to make it make sense assuming costs are in line, etc....
@@JebSmith Okay, why has it worked? I know the formula from the video. I just want to know why it works. You are just making a statement and telling me it is true. Do you have evidence of it besides your personal experience?
Sold our home in July of this year. Went with builders lender on a new home because they offered a 2-1 buydown. 2.875,3.875 & 4.875(3-30years). I would refi if rates would be lower in the next two years but if not, I’d stay or sell and buy our dream home.
Those are great rates..........congrats.
We have thought about moving to be with grandson. But our interest rate is 2.875. Doesn't look like we're going anywhere anytime soon.
Hard to let go of 2.875%............There's a lot of people in a similar position which is keeping inventory from coming to the market.
Jeb - Another great video. As always, very informative.
I have a $1M loan at 7.3% (yes, I cry everyday lol) and I want to refinance but I am not planning to pay this mortgage for the next 30 years, Im hoping to have it finished in 6-8 years (if my financial situation doesn't change)... So I really don't want to pay closing cost to refinance because it'll be a waste. I had no idea some lenders attach your closing costs to a refinance to the loan (thats terrible). Im thinking to refinance in the next 4 months.
At this point, you should be able to find someone that can get you a much better rate and pay the closing costs so that you don’t have any out-of-pocket expenses
@@macfahad I’m almost in the same boat as you at 7.125 but loan amount is half of that. Hopefully it drop to 5 percent at year end. Good luck, bro!
Smith manoeuvre is ur best option to pay off faster!
Hi Jeb- which lender did you use. Can you recommend. 🙏
When you mean credit did you choose a higher rate that had the credit attached? and did you change your loan amount each time refinancing?
Im at 6.75 and after letting lenders fight each other I got 4.75 with lower closing costs 👌 Definitely refinancing
Great info!
Thanks for watching!
Help! I was told I have to wait until two tax seasons before I could qualify for a loan, or I can do a 12 months bank statement loan and qualify now. However, the lender said statement loans have higher interest rates by 1 to 2 percent. Should I wait until tax season 2026 to buy, or should I buy it now? I am also considering that interest rates are lowering. I am a first time home buyer...
Just refinanced from 7/6 arm 5.875% to 15 yr fixed 4.75%. Will refinance again when rates go lower next year but wanted to lock in the lower rate and start paying down my principal! I paid $3700 in total closing costs, hindsight I prob should’ve took a little higher rate but it’s okay in the grand scheme of things that amount isn’t a back breaker. If I never end up refinancing I’ll be happy, but if I do I will look to get 0 closing cost in the future.
4.75%！！！ wow，very good. Mine is from 6.5 to 5.5%. The broker told me that is the best right now.
@@Jack-rn2im yeah 5.5 is really good. The 15 year rates are better that’s why I was able to get 4 handle but honestly I still am confused bc the market avg is 5.6 or so for 15 year so I have no idea 🤷🏼♂️
@@rockyp19 mine is 15 years 😓
@@Jack-rn2im interesting! What state are you located in?
@@rockyp19 GA
If you refinance doesn’t your interest get front loaded again so you’re paying more to interest?
@@aerialstudiosmedia Yes, that is probably why he recommended aiming to refi at your current term length you've paid down, instead of resetting to the original term length. that's a lot of extra interest.
It may not matter as much if you know you're going to move or refinance at a lower rate and price later anyway. Hard to time the market in that regard, though
We are going to build an addition to our home and we will need to finance it. We are not touching our current rate, it’s in the 2s. So we are considering a HELOC or personal loan. How do I go about tracking rates for those?
Jeb - quick question, why do you say not to restart the 30 year term in a refinance and just to start from where ever the term period is. Wouldnt the payments be lower if you restart at a 30 year period? whats the advantage of not restarting from 30 years?
The advantage is that you stay on track to pay off your loan within a 30 year period of time versus starting to get over every time you refinance. Yes, the payments would be lower by going back to 30 year but you’re also restarting your loan every time.
@@JebSmithit’s it possible to refinance without starting over? My interest rate is 5.8% because I did buy down the point. However, would it be better to keep paying principal interest or refinance without starting over?
@@claudiabucknor7159Yes, he talks about that in this video.
Can you refinance if the home price fall after the purchase? For example, home price reduces from 1.2M to 1.1M, initially purchased with 20% down.
you can't because you are still owe more than what the home is worth. Unless you are willing to make up the difference.
@@jaklee86ca typical you need 20% equity with conventional but I think you can refi even underwater with FHA, VA.
Even looking at online forums, I can't find any lenders who do a true no closing cost refinance. Where did you find yours?
@@RipRomp ask your loan officer?
🤯 Do we really think rates will drop much lower, or is it better to refinance while rates are still decent?
Im sitting around a 7.4% right now and my mortgage lender reached out to me about refinancing. Not sure if I should take him up on it now or suggest waiting a bit.
Did you watch the video?
@@collinneff5528 same as me idk should i wait or refinance now
What happens if you try to refinance later but the home value drops and doesnt meet the appraisal value to loan? The answer is clear.
Home values aren't going to drop that much.
Clearly, that can be an issue but my guess is Holmes continue to appreciate the late for the next couple of years. If you’re in a market that has a lot of supply coming into the market then it’s a bit more questionable but even I don’t think are going anywhere.
It depends what type of loan? I bought my 1st property in San Diego in June 2009 for 175k with rate of 6.75. In 2012 my house dropped 150k and I was still able to refi at 2.75 under VA IRRRL at small cost. I was able to save almost $500 and pay it toward the principal. Now the property has 6 months remaining to pay it off
How much home value you think gonna drop by early 2025?
@@iishyxvietxboyii1 it won't.
How often can you refinance. Is the 6 months wait between refinance true ?
You can refinance as often as it makes sense............The 6 month "rule" is primarily there to protect the lender from having to repay compensation back.
You can refi as many times as you’d like assuming not a cash-out.
GREAT video. How common is it for lenders to offer cost free refinances ?
@@dmavs4131 I’m a veteran and I’m able to refi every 210 days at no cost.
@@dmavs4131 I need to know who is this lender with cost free re finance please provide info
What about first stream line f h a when does that make sense
The question is how did you refinance without paying the fees
a lender credit.
Subscribed, I actually had to buy a house because I moved states due to work and locked in at a terrible rate, lol
hahaha, I get it.............Good news, you are likely going to be able to lower that rate over the next few months.
@@JebSmith Yes hopefully closing costs aren't a barrier for that but I'm at 7.89 so I think anything less than 6% would save me tons
when you say lender gave you a credit, how does that work? how does the lender not make anything on you refinancing?
They make money based on their agreement with the lender but lenders can offer a credit by using the yield spread premium on a rate.
Rates aren't going lower than 5.5 anytime soon
If they get to 5.5%, that will help a lot of people.
Schoolsfirst credit union is at 30 year 5.875 no points today, I think rates will go under 5.5 soon.
I bought a home at 7.6 interest last October. hoping the interest rates drop down to 5 or lower so I can refinance next year. ive gotten calls about me qualifying for a cha streamline but lender is telling me to wait to refinance into a conventional from an aha
I think you should consider the FHA streamline now.............Rates in the low 5% range. How would you qualify for a conventional now?
@@JebSmith so the fha streamline is worth looking into if I qualify now?
I will be working towards turning the fha into a conventional loan by working on getting better credit before doing that
@JebSmith just saw your video on fha streamline, that something that can really benefit me now and for the conventional loan, I wouldn't be able to refinance into that until the end of next year. But the guy that recommended me to switch to fha streamline, I'm not sure who he is. He said he works with my lender company but my lender does not know him
Are you license in Florida? I have 3 properties that need to refinance
yes, our team is licensed there.......reach out.
If I'm not going to pay any fees on refinancing i would refinance for every 0.1% percentage.
U saved $800 a month . That’s good .
But how much each time cost you to refinance?
Zero each time............The lender gave me a credit back to cover my costs.
I have 6.25. I'm hoping for at least 4.5. A miracle would be 4.
it could happen but it's going to be a while.
Interest rates are never going under 5 unless there is another recession 5-6 is the new normal now
@jakoblarson4597 I agree. Economic downturns happen pretty suddenly so we will see if anything really bad happens in the next few years due to China or some other reason.
@@AngelValdez-mr3fq yeah cus I was one of the guys “wait for rates to drop and wait for spring but rates will never go under 5 and home prices are gonna increase cus everyone is gonna want to buy in the spring
The real problem is home prices for home buyers.
That's a legit problem but as long as there is demand, home prices will remain stable.
I need a professional to guide me in the process, I would like to refinance.
Reach out at jebsmith.net/referral
I thought you had to make 6 payments before you could refinance???
No, there's no requirement on the number of payments that need to be made. A lot of mortgage professionals want you to wait 6 months because if you refinance before that, they may have to pay back the money they made on the initial loan. Not all lenders have that policy so before refinancing, check with your original lender if you like them 😂
@@JebSmithmight be worth mentioning the VA specifics:
Interest Rate Reduction Refinance Loan (IRRRL): You must wait at least 210 days from the first payment due date of the original loan and make at least six payments.
VA cash-out refinance: There's typically no set waiting period, but most lenders prefer at least 6-12 months of payments on your current loan (for the reason you mentioned I'm sure)
Anyone under .5mil loan wait a year minimum.
Take that to the bank.
im at 7.6 interest rate-_- hopefully I get to refinance next year to a lower rate
Rates are available now where you could refinance that loan............Talk to a mortgage pro.
If you paid 500k and now your house is 450k you’re not refinancing
well most of the US shouldn't have a problem then.
@@JebSmith the people that over paid the last few years will. Prices are going down
@@deanschanzenbach7506 where’s your data? Price went down but not much. Do not believe the crash bros
It doesn’t matter how much your house is worth when you refinance dude
@@mikevbushy yes it does dude!
Watching this video sitting on a 2.3% 🤷 info is info
@@byranttaylor1535 😂
If someone says I refinanced from 7% to 6.5% I’m gonna listen to you. You don’t know what you’re doing. 😂
Okay then move along!
@@miliiboy Usually 1 point is good enough I heard but I’m not in the mortgage industry so 🤷♂️.
If it didn’t’t cost him anything, it is a positive for him. Sounds like a smart move.
@@Fhijjgdse refi cost money, no?
You sound like you’re just burning money on these small interest rate changes.
Having a TH-cam channel and have some good edits doesn’t mean this guy is above criticism. He’s making some dumbass moves.
clearly the Dr in front of your name does mean further education.......Did you watch the video? I refinanced 2x with ZERO costs. It doesn't take a DR to realize that's probably a good idea when it's saving me $400+ each time.
@@JebSmith you’re not very smart if you really think it didn’t cost you anything to refinance, they GOT GOT you Smfh they really need to stop selling podcast kits to just anyone… congratulations, you played yourself
WaIT , for Trump !!!
is that going to be good or bad?
@JebSmith Well , drill baby drill means reduction in transport costs. Heavy equip operations etc.. And , if you did a little research that alone reduces home costs up to 25%. Also , interests rates are closely tied to building costs and housing starts.
STOP posting if you haven't got a clue !!!
@JebSmith PS,
Finance gurus need money flow. But , liberal policies impede economic growth and burden the tax base with debt. So , vote for Harriis or the like and get mortgage rates into double figures. While Trump had them at 2-3%....
Horrible advice, can't guarantee a Trump wins. Do what ever you think is right, don't wait for your "savior" to maybe win.
I am at 4.75% 7/6 ARM. Still have 6yrs left. Thinking of refinancing to lock in our rate but not sure if the rate will go down to what I have right now. 🥹
I would personally stay put for a bit to see how low rates go............you have time on your side.
I’m just trying to figure out if I should buy down my rate or put more money towards my principal on my new home.