Awesome strategy! I was planning on refinancing my 20 year loan @3.875% that has 12 years left on it to a 15 year lower rate. I have to double check the numbers , but I think you changed my mind to a 30 year loan and continue paying my current monthly payment. I liked your compelling comparison on interest rates and inflation.
money is cheap and you can get 30 years for 3% and 15 years for 2.75%. Only reason to get a 15 year is if you really want that mortgage paid off. But I personally like to pay off things when i have the FULL amount to put towards it. I'll do extra payments if I want to and when I have enough, just pay that sucker off!
I'm divorced. Retired at 48y. I own my first home all paid. I bought my second home through VA 0% at 410,000 Nov 5, 2019. Today, I owe $392,238.10 at 3.675% 30y fixed. Been paying the Principal aggressively. Lately, I've been receiving gazillion of letters in the mail to refinance at 2.5%. I'm adamant. I don't want to reset my time. Your videos are inspiring. My mortgage is my only debt. Am I doing the right thing not refinancing?
Considering you just started that loan, I would definitely try to get a lower rate. The loan balance is quite high so you’ll save a lot of money. But since you got a VA loan, will you need another VA loan? I wouldn’t bother unless you can get 3% 30 year loan.
@@MillennialFinance101 Looking at my schedule amortization, I already paid through early 2022. My original loan was $410,000 November. I started paying I think January 2020? But I sent $4,000 towards the Principal in December and I am paying extra towards principal every month. With the closing cost, I am resetting my time again and closing cost will be added towards my loan again.
Dolly Southerland check out my other video on how to compare loans. You can get very cheap loans with low rates right now. You won’t lose all that work you did either by paying extra. And make sure you check out my 5 mistakes video!
I was about to refi but then I stopped. Currently still owe $330K at 3.875% (still have about 21.5 years left) but I got a 15 year for 2.625%. The problem is that in Washington state, the closing costs are super high (like $10K?). It seems like it would be better for me to just pay down principal and have extra cash flow in case of emergency rather than being tied into a slightly higher monthly payment for 15 years. I am not sure about redoing another 30 years since I am already 45!
Check out my other video on how to compare loans and closing cost. There are many lenders out there and you should be able to get 2.5% 15 year fixed pretty easy with little closing.
Can you explain to me how come you went from a 3.75% interest to a 3.125% rate and saved almost $500 a month. My lender told me that if I re-finance my 4.75% rate to a 2.875% rate I would only save $300.
it could cost 10 grand to refinance. You have to make sure it's even worth it. I live in Massachusetts. The interest rates are high and my son refinance a costume almost 10 grand.
Here is your mistake @3.125 interest your payment will be $1,479.51 And @3.75 interested it will be $1,568.34 So by doing refinance you will be saving only $90!!! But in reality you will be loosing bigger. Look at my other comment.
$90 but my breakeven is so fast as you saw. The loan only cost me about $1200. Also, I intend to pay the same payment or more in my new loan so it will still shave off many years.
So just to make sure. Basically I'm similar to your example in video. I have a 3.75% now and thought you should only refinance if its at least 1% lower? The rate I can refinance today is like 2.875% so just under 1% should I still refinance to new rate?
yes. it depends on your principal balance also but generally yes. It doesn't need to be 1% lower. They just say this because the cost of a refinance can usually be high so the break even will take longer. If you find a great rate with low fees, you can refinance whenever your heart desires.
Huge mistake in your calculations p&i @ 3.125% interest will be more than $400 more. There's no point to refinance from 4 to 3% especially if you was making payments for 5 or more years. If you made payments for 5 years you have only 25 more years to go, and when you refinance you going back to 30 years but the problem is not 5 extra years, but apr that you have decreased in those 5 years. BIG MISTAKE
most people refinancing aren't going to pay off their home in the next 5 years. I mean i could but I'm not going to do that since it makes more sense for me to invest my money elsewhere. Locking in a low rate also allows positive cash flow if someone decides to rent out the property down the road, which means they will still be paying this mortgage and saving money.
Thank you very much for the video. I have a question. How come your closing cost is only $1286.31 on the spreadsheet? I used box home loans to calculate my refinancing. For rate 2.75%, the lender fees is $3700 and total cost is $6230. It would take me almost 8 years to break even.
Try a different rate. 2.75 is going to cost you. My rate was 3.125 and total cost was 1286.31. I paid 5200 out of pocket to close but just got my escrow refund from the old loan (~3900).
I also like to compare the “free loans” since you can track if it’s going up or down this way. If 2.75 is all that’s going to make sense, use the rate tracker to alert you when it drops
My correct rate is 3.25%. I guess it doesn’t make sense to try pushing it to 2.75%. Maybe stick with the current loan and see how the housing market goes is what I should do? Hopefully it will become even lower...
Darren Lee I would just keep what you have and wait. Your rate is very good already and it won’t make sense to refinance since it’ll be a while before you get your money back
I would look into removing that pmi ASap since home values are way up. You could do this by paying for an appraisal. I would not refinance as your rate is already low. Just call your lender if you think you’re at the 80% loan to value based on today’s crazy market prices!!
If i'm planning to only live in my home between 5-6 years, maybe less...is it even smart to refinance for a lower interest ... or to just continue paying more on my mortgage as is?
Are you planning on selling it? Or renting it out. If renting it out, you’ll want to lock a nice low 30 year fixed primary residence loan so your cash flow and profits will be high (investment loans will be much higher so lock that primary residence loan now, you only need to live there for 1 year). If you just plan on selling, it may not be worth it but if your interest rate is very high... say 4.25+, it will still be worth it even if you're gone 4-5 years later.
Our current interest rate is 4.8750... would it even make sense to refinance? I used the link for box but it would cost us $3500 or more in closing costs. What do you think? We have 26 more years on our loan.
I currently have a 30 year mortgage @ 4.625% and paid off 8 years so far. As a small business owner, I was only able to get a 30 year loan (bank statement loan) @ 3.875%. I’m hesitant to start the new loan because after 8 years of paying into my current loan, I’m now starting to slowly pay off my principal. Should I refi to the new rate of 3.875% and pay additional principal each month or stick with the current loan and pay additional principal each month?
You can do the math but I would refinance to say a 25 year loan and keep paying the same amount as your old loan. I guarantee it’ll be more principal than what you’re contributing now in the old loan in the current schedule. Hope that makes sense.
@@MillennialFinance101 How about switching to a 15 year loan instead of a 25 year loan? I was also thinking of paying additional $1,000 each month on top of my regular payment to shave off years on my current loan..... My #1 goal is to pay off my current loan in the next 5-7 years. I really appreciate your advice!
Here’s what I would do (and have done), pay the sam payment on new 25 year loan. Instead of dumping more in than already recommended, invest the rest (assuming no debt) in sp500 fund each month. Once you have a giant lump sum to pay off the loan, just sell the funds and pay it off. This is recommended if you’re young. Don’t get too crazy about paying off your home super fast and dumping it all in there. Invest the leftover you were thinking about paying extra and once you have enough, pay the whole thing off. Forget 15 year loan gimmicks.
I'm on an FHA 2.5 years in had put 3.5% down. Interest rate is 3.625%. would you recommend refinancing to get rid of PMI? Have over 20% paid on house value
Hi Sir, Question for you sir and I hope you will be able to give me a good advice about my refinancing plans. We are currently on 30 year fixed FHA Loan of 3.5% with PMI. This is our first and only home and we have been living/paying in this home for 3.5 years now (It means we still have 26.5 years left to pay off the loan). Currently we are paying approximately $3200 a month including the PMI, taxes, insurance, etc.. we were quoted and locked in a 2.75% 15 year conventional loan and the Monthly increased to $3800 including everything(no more PMI). The total cost for refinancing is $1300 since they are giving us lender credit. Is this a good path to take. Our plan is to pay it off ASAP. Thank you very much. Mark
Definitely get out of the fha if you can get rid of PMI. Sounds like you will be below 80% LTV too which is great. Only thing I would change is to get a 30 year loan instead of a 15. Just keep paying the same payment ($3800 if you like) you are paying and it’ll have a similar effect. Don’t force a $3800 payment on your budget. That’s crazy high and you might need dual income just to afford it. Don’t put that burden on yourself and just pay extra on 30 year fixed.
Millennial Finance 101 Thank you for a very quick reply. I am just confuse as to what happened to our equity. We now have a home equity of $120K. Also if we go 30yr fixed the interest rate they are giving us is 3.25% compare to our fha 3.5% which is not much but the good thing is no more PMI after.
Ok so if I have a 15 year loan now at 2.25 rate will I cut my time in half by adding extra principal meaning matching what I pay now every month @Millennial Finance 101
Sorry I must have missed this. Your 15 year loan is already paying down quite a bit of principal each month so making extra payings won't half your loan term. You can use dave's calculator to see what you need to pay to achieve this though. www.ramseysolutions.com/real-estate/mortgage-payoff-calculator
@Millennial Finance 101 I am in Maryland just looking into refi. The original loan is 380 grand with 4% but the issue is the PMI monthly $170. We are 3 yrs into the loan, so not afraid of starting over and paying mostly interest again. My numbers tell me if we can get a 2.9% rate on the loan for 30 yr fixed, for a mortgage closing cost of around $7000 we would break even in just 21 months. Is this rate 2.9% feasible while getting rid of PMI. ANy lender you recommend? thanks. Great content, respect!
You should be able to snag a 2.75 for little to no closing cost these days. I would look at loandepot or boxhomeloans (if available). Hopefully your home has appreciated some by now to get you to 80% ltv during the refinance to get rid of the pmi.
Doesn’t really matter but Doing it sooner is better since you’ll pay less interest. Make sure you have enough cash to close though and some reserves (emergency fund).
A friend encouraged me to take a cash out refi since I have so much equity. Reason being, I have an old vehicle, need to do some work on my house, and possibly could get furloughed. Logic is if I have the refi cash, I could use it if needed. If not needed, I could pay it back to the mortgage and reduce principal balance. What are your thoughts?
Might be better to do loan forbearance and save cash each month from no mortgage vs a cash out refi. Basically the same thing except it’s slower. A lump sum is a dangerous game. But what you say is correct. A bug nest egg can be had this way and a refi while you have a job is wise if all of what you say is true. Also your mortgage will be higher post the cash out refi. This is a tough situation.
You essentially declare a day you will turn it into a rental property and everything will be based on that day. The depreciation will be based on original cost. I would talk to a cpa if you are unsure but that’s how it was for me. I had a cpa do my taxes that year until I figured out what he did
I have to admit that it took me around 20 working hours to reach what you just explained. Because I'm good in Math and I wanted to make my own Excel sheet. Thank you so much, you just proved my hypothesis as well. It is not a rocked science but I wanted to know how that is happening. And yest I watched a lot of videos but sometimes reading and applying what you learn is important. Thank you again for sharing. Really appreciate it.
My current rate is %4.375, was hesitating on the closing fees but will definitely pursue it now after our escrow has been calculated and the new amount increased by almost a $1000😏
@@MillennialFinance101 yes I have already just emailed the loan officer. Really crazy, the just did our mortgage or escrow recalculation and monthly payment jumped by 1000 about. Wow wow.
Ok question or clarification- So, you’re saying that I can refinance to a lower interest rate plus a monthly reduction. But still if I’m able to make the same monthly payment, Do I just put the difference $$ into the principal, is that what you’re saying?
yes. Just keep paying the same amount. Let's say your old mortgage was 1500 and refinance got you down to 1300. You pay 1300 + 200 additional principal. This will accelerate your payoff to make up for the reset on the refinance.
Millennial Finance 101 wow that’s awesome to know. I never pay any additional principal. But since I will be doing a stream line refinance, I will definitely be adding to the principal this time as a start! Thanks for replying so quick. Really appreciate it ❤️
Jane Yajsou streamline is fha yes? If so, try to get rid of that since they have junk MIP you are paying. If you have less than 80% LTV you should go conventional and not streamline fha
Millennial Finance 101 yes I have FHA. Conventional sounds great but i will prob need to work on my credit before switching to conventional. Or is that not necessary!? I sure do want to get rid of that MIP. Market value around my neighbor is appraised for a high of 280. My balance is at 189.
Jane Yajsou if you’ve been paying your mortgage this entire time, your credit should be much better. Best check your credit score as it’s cheap to find out. Then compare mortgages with fha (with MIP) vs conventional with no pmi. You’re well below the 80% LTV. It's time to get on the conventional side! Huge savings btw!
Awesome strategy! I was planning on refinancing my 20 year loan @3.875% that has 12 years left on it to a 15 year lower rate. I have to double check the numbers , but I think you changed my mind to a 30 year loan and continue paying my current monthly payment. I liked your compelling comparison on interest rates and inflation.
money is cheap and you can get 30 years for 3% and 15 years for 2.75%. Only reason to get a 15 year is if you really want that mortgage paid off. But I personally like to pay off things when i have the FULL amount to put towards it. I'll do extra payments if I want to and when I have enough, just pay that sucker off!
I'm divorced. Retired at 48y. I own my first home all paid. I bought my second home through VA 0% at 410,000 Nov 5, 2019. Today, I owe $392,238.10 at 3.675% 30y fixed. Been paying the Principal aggressively.
Lately, I've been receiving gazillion of letters in the mail to refinance at 2.5%. I'm adamant. I don't want to reset my time. Your videos are inspiring. My mortgage is my only debt. Am I doing the right thing not refinancing?
Considering you just started that loan, I would definitely try to get a lower rate. The loan balance is quite high so you’ll save a lot of money. But since you got a VA loan, will you need another VA loan? I wouldn’t bother unless you can get 3% 30 year loan.
@@MillennialFinance101 Looking at my schedule amortization, I already paid through early 2022. My original loan was $410,000 November. I started paying I think January 2020? But I sent $4,000 towards the Principal in December and I am paying extra towards principal every month.
With the closing cost, I am resetting my time again and closing cost will be added towards my loan again.
My goal is to pay off my mortgage in 10y??? I am hopeful.
Dolly Southerland check out my other video on how to compare loans. You can get very cheap loans with low rates right now. You won’t lose all that work you did either by paying extra. And make sure you check out my 5 mistakes video!
Loving the videos. Live in the UK and currently on 2.58% and will be refinancing to 1.65% in January 2021. Thanks again Sue 👍
Thanks for watching! Math is universal so it will work in the UK also!
my rate is 4.375%.. My credit is excellent standing now on the cusp of 800! about to check lenders for good rates Thanks!
great time to look! Get it while it's low so you don't need to think about it again!
Interest rates are at an all time low right now, perfect time to refinance 👍
Absolutely!
I was abt to close a refi with a company and to my surprise the closing cost is 6K plus.. Thank God for this video and thanks for sharing.
Glad you found this!! Thanks for watching!
Great job! Such an important topic to understand!
Indeed! It’s the most expensive thing we’ll ever buy!
I was about to refi but then I stopped. Currently still owe $330K at 3.875% (still have about 21.5 years left) but I got a 15 year for 2.625%. The problem is that in Washington state, the closing costs are super high (like $10K?). It seems like it would be better for me to just pay down principal and have extra cash flow in case of emergency rather than being tied into a slightly higher monthly payment for 15 years. I am not sure about redoing another 30 years since I am already 45!
Check out my other video on how to compare loans and closing cost. There are many lenders out there and you should be able to get 2.5% 15 year fixed pretty easy with little closing.
Great Video, Minh!
thanks for watching.
great video, thank you
You’re welcome
We are refinancing from 4.25% to 3.125% no pmi thanks god and paying only 80$ extra a month from 30 to 15 years too!
Very slick!!!! Nice!!
Nicely done ✅, I wanna try velocity banking
Check out my link to compare rates with velocity!
Can you explain to me how come you went from a 3.75% interest to a 3.125% rate and saved almost $500 a month. My lender told me that if I re-finance my 4.75% rate to a 2.875% rate I would only save $300.
I prepaid my original mortgage quote a bit with the extra principal.
Dam!! TFCU is charging me $7,783. For closing on a 30 year fix refi!!!! I’m in NY
next! Try shopping around!
Hello Min which mortgage company you recomend for Re finance 15yr fix... please reply
11/22/20
Try boxhomeloans or loandepot for quotes. Check my video on how to compare loan cost
Yup, going to be looking into this as well.... what's the company you suggested to me... and eventually that Sally used to refinance???
Check the description for the link. It has a referral in it and rates are great today!!
it could cost 10 grand to refinance. You have to make sure it's even worth it. I live in Massachusetts. The interest rates are high and my son refinance a costume almost 10 grand.
Here is your mistake
@3.125 interest your payment will be $1,479.51
And @3.75 interested it will be $1,568.34
So by doing refinance you will be saving only $90!!! But in reality you will be loosing bigger. Look at my other comment.
$90 but my breakeven is so fast as you saw. The loan only cost me about $1200. Also, I intend to pay the same payment or more in my new loan so it will still shave off many years.
So just to make sure. Basically I'm similar to your example in video. I have a 3.75% now and thought you should only refinance if its at least 1% lower? The rate I can refinance today is like 2.875% so just under 1% should I still refinance to new rate?
yes. it depends on your principal balance also but generally yes. It doesn't need to be 1% lower. They just say this because the cost of a refinance can usually be high so the break even will take longer. If you find a great rate with low fees, you can refinance whenever your heart desires.
Huge mistake in your calculations p&i @ 3.125% interest will be more than $400 more. There's no point to refinance from 4 to 3% especially if you was making payments for 5 or more years. If you made payments for 5 years you have only 25 more years to go, and when you refinance you going back to 30 years but the problem is not 5 extra years, but apr that you have decreased in those 5 years. BIG MISTAKE
most people refinancing aren't going to pay off their home in the next 5 years. I mean i could but I'm not going to do that since it makes more sense for me to invest my money elsewhere. Locking in a low rate also allows positive cash flow if someone decides to rent out the property down the road, which means they will still be paying this mortgage and saving money.
Question: Due to the pandemic, I'm on leave from work (and collecting unemployment). Must I wait to resume work before refinancing? Or can I refi now?
It’ll be hard. I would try and see. Won’t cost you much money and a little time to find out
Great info...but my new mortgage is 2.375 most $$ go to principal. Is it better to invest or purchase 2nd property. ♥️♥️ THE SHOW MINH
Both options sound like investing to me!! Real estate is quite pricey right now so maybe some sp500 index fund until it cools down.
Thank you very much for the video.
I have a question. How come your closing cost is only $1286.31 on the spreadsheet? I used box home loans to calculate my refinancing. For rate 2.75%, the lender fees is $3700 and total cost is $6230. It would take me almost 8 years to break even.
Try a different rate. 2.75 is going to cost you. My rate was 3.125 and total cost was 1286.31. I paid 5200 out of pocket to close but just got my escrow refund from the old loan (~3900).
I also like to compare the “free loans” since you can track if it’s going up or down this way. If 2.75 is all that’s going to make sense, use the rate tracker to alert you when it drops
My correct rate is 3.25%. I guess it doesn’t make sense to try pushing it to 2.75%. Maybe stick with the current loan and see how the housing market goes is what I should do? Hopefully it will become even lower...
Darren Lee I would just keep what you have and wait. Your rate is very good already and it won’t make sense to refinance since it’ll be a while before you get your money back
What if I am in a 2.75% interest rate on a $440k home but I am paying $250in PMI. Is it smart to refi at a 3% rate
I would look into removing that pmi ASap since home values are way up. You could do this by paying for an appraisal. I would not refinance as your rate is already low. Just call your lender if you think you’re at the 80% loan to value based on today’s crazy market prices!!
Is it okay to refinance after 6months of buying a house?
Yes if your rate is significantly more say 1% more. Make sure you find a good rate with low cost so it makes refinancing decisions a little easier
No Hawaii for boxhomeloans ;(
Lame! Hehe try boxhomeloan or load depot or quicken loans
If i'm planning to only live in my home between 5-6 years, maybe less...is it even smart to refinance for a lower interest ... or to just continue paying more on my mortgage as is?
Are you planning on selling it? Or renting it out. If renting it out, you’ll want to lock a nice low 30 year fixed primary residence loan so your cash flow and profits will be high (investment loans will be much higher so lock that primary residence loan now, you only need to live there for 1 year).
If you just plan on selling, it may not be worth it but if your interest rate is very high... say 4.25+, it will still be worth it even if you're gone 4-5 years later.
If I paid off my home how can I Take out a loan
You can do a home equity loan but I would advise against that. Congrats on paying off your home!!
I owe 330 now and with the refinance it’s going up 345
yea, they are rolling in your closing cost into your loan. Don't do it! find someone else.
What is the cost of your new loan?
~$1286
bro im in the process of refinancing from 3.25 down to 2.25 is that a good idea?
Yes. If your principal balance is high, double yes.
Our current interest rate is 4.8750... would it even make sense to refinance? I used the link for box but it would cost us $3500 or more in closing costs. What do you think? We have 26 more years on our loan.
Yes yes and yes. Get a free loan. Your rate is so high!
@@MillennialFinance101 ok thank you!
I currently have a 30 year mortgage @ 4.625% and paid off 8 years so far. As a small business owner, I was only able to get a 30 year loan (bank statement loan) @ 3.875%. I’m hesitant to start the new loan because after 8 years of paying into my current loan, I’m now starting to slowly pay off my principal. Should I refi to the new rate of 3.875% and pay additional principal each month or stick with the current loan and pay additional principal each month?
You can do the math but I would refinance to say a 25 year loan and keep paying the same amount as your old loan. I guarantee it’ll be more principal than what you’re contributing now in the old loan in the current schedule. Hope that makes sense.
@@MillennialFinance101 How about switching to a 15 year loan instead of a 25 year loan? I was also thinking of paying additional $1,000 each month on top of my regular payment to shave off years on my current loan..... My #1 goal is to pay off my current loan in the next 5-7 years. I really appreciate your advice!
Here’s what I would do (and have done), pay the sam payment on new 25 year loan. Instead of dumping more in than already recommended, invest the rest (assuming no debt) in sp500 fund each month. Once you have a giant lump sum to pay off the loan, just sell the funds and pay it off. This is recommended if you’re young. Don’t get too crazy about paying off your home super fast and dumping it all in there. Invest the leftover you were thinking about paying extra and once you have enough, pay the whole thing off. Forget 15 year loan gimmicks.
Can I pay my closing cost with a credit card? I’m debt free
They won’t allow that. Only wiring funds (eg cash)
I'm on an FHA 2.5 years in had put 3.5% down. Interest rate is 3.625%. would you recommend refinancing to get rid of PMI? Have over 20% paid on house value
Yes. Fha is the worse loan type so get yourself a conventional and free yourself of pmi
What is mortgage🤔
It’s borrowed money (a loan) to buy a home
How were your closing costs so cheap on that refinance?
I found a really good loan that had enough lender credits to cover the closing cost.
Tell us about these credits of lenders and how we can get them please
Hi Sir,
Question for you sir and I hope you will be able to give me a good advice about my refinancing plans. We are currently on 30 year fixed FHA Loan of 3.5% with PMI. This is our first and only home and we have been living/paying in this home for 3.5 years now (It means we still have 26.5 years left to pay off the loan). Currently we are paying approximately $3200 a month including the PMI, taxes, insurance, etc.. we were quoted and locked in a 2.75% 15 year conventional loan and the Monthly increased to $3800 including everything(no more PMI). The total cost for refinancing is $1300 since they are giving us lender credit. Is this a good path to take. Our plan is to pay it off ASAP. Thank you very much.
Mark
Definitely get out of the fha if you can get rid of PMI. Sounds like you will be below 80% LTV too which is great. Only thing I would change is to get a 30 year loan instead of a 15. Just keep paying the same payment ($3800 if you like) you are paying and it’ll have a similar effect. Don’t force a $3800 payment on your budget. That’s crazy high and you might need dual income just to afford it. Don’t put that burden on yourself and just pay extra on 30 year fixed.
Millennial Finance 101 Thank you for a very quick reply. I am just confuse as to what happened to our equity. We now have a home equity of $120K. Also if we go 30yr fixed the interest rate they are giving us is 3.25% compare to our fha 3.5% which is not much but the good thing is no more PMI after.
Mark Petalcorin try boxhomeloans and see if you can land 3% for little cost to no cost.
Millennial Finance 101 I did and all of their loan officers are busy and nobody can call me at this time. Thanks for all the help though.
Mark Petalcorin you should be able to just check online for their rates and closing cost. Super easy.
Ok so if I have a 15 year loan now at 2.25 rate will I cut my time in half by adding extra principal meaning matching what I pay now every month @Millennial Finance 101
Any info please from my comment
@Millennial Finance 101
Sorry I must have missed this. Your 15 year loan is already paying down quite a bit of principal each month so making extra payings won't half your loan term. You can use dave's calculator to see what you need to pay to achieve this though. www.ramseysolutions.com/real-estate/mortgage-payoff-calculator
支持支持!!! 房屋贷款的Refinance(重置贷款) 30年的贷款利率已经到了3.0以下 是不是合适的时间做Refinance?
是否划算？分析重置贷款的优点和缺点 千万不要被免费贷款的经济给忽悠了 th-cam.com/video/UQWaJMRjNBg/w-d-xo.html
what>?>
Great but speak slower lol
lol sorry. Try .75x hehe
@Millennial Finance 101 I am in Maryland just looking into refi. The original loan is 380 grand with 4% but the issue is the PMI monthly $170. We are 3 yrs into the loan, so not afraid of starting over and paying mostly interest again. My numbers tell me if we can get a 2.9% rate on the loan for 30 yr fixed, for a mortgage closing cost of around $7000 we would break even in just 21 months. Is this rate 2.9% feasible while getting rid of PMI. ANy lender you recommend? thanks.
Great content, respect!
You should be able to snag a 2.75 for little to no closing cost these days. I would look at loandepot or boxhomeloans (if available). Hopefully your home has appreciated some by now to get you to 80% ltv during the refinance to get rid of the pmi.
@@MillennialFinance101 thanks , appreciate the reply!
this is exactly my strategy for paying off my home. bravo
It works well!! Especially when rates are so low!
If you have 20k cash to put down.. Would you pay it down before refinancing or pay it down at closing of refinance??
Doesn’t really matter but Doing it sooner is better since you’ll pay less interest. Make sure you have enough cash to close though and some reserves (emergency fund).
Nicely explain min, but one question, didnt you already paid your home before i remeber that other video
This is my 2nd home!! I converted my 1st home I paid off into a rental property
A friend encouraged me to take a cash out refi since I have so much equity. Reason being, I have an old vehicle, need to do some work on my house, and possibly could get furloughed. Logic is if I have the refi cash, I could use it if needed. If not needed, I could pay it back to the mortgage and reduce principal balance. What are your thoughts?
Might be better to do loan forbearance and save cash each month from no mortgage vs a cash out refi. Basically the same thing except it’s slower. A lump sum is a dangerous game. But what you say is correct. A bug nest egg can be had this way and a refi while you have a job is wise if all of what you say is true. Also your mortgage will be higher post the cash out refi. This is a tough situation.
@@MillennialFinance101 Minh, you are awesome. I'm so glad I found you channel. I'm going to watch more vids this evening when I get home.
Im thinking about doing this myself. Thanks for the advise!
No prob! Got other videos on this topic!
How come I’m paying 15,000 in closing cost added to my loan
That’s one of the scams they play!!! Check my other video on refinancing mistakes to avoid!
I have a 301k left on 30yr with 3.75.. will this work?
Your rate is already low but if you can snag a 30 year @ 2.75 or 2.875 for little closing, it will definitely help
Thank you, Q:how do you turn your primary home to an investment property and the tax impact on a 200,000 home?
You essentially declare a day you will turn it into a rental property and everything will be based on that day. The depreciation will be based on original cost. I would talk to a cpa if you are unsure but that’s how it was for me. I had a cpa do my taxes that year until I figured out what he did
@@MillennialFinance101 Thank you!!
I have to admit that it took me around 20 working hours to reach what you just explained. Because I'm good in Math and I wanted to make my own Excel sheet. Thank you so much, you just proved my hypothesis as well. It is not a rocked science but I wanted to know how that is happening. And yest I watched a lot of videos but sometimes reading and applying what you learn is important. Thank you again for sharing. Really appreciate it.
thanks for watching!
My current rate is %4.375, was hesitating on the closing fees but will definitely pursue it now after our escrow has been calculated and the new amount increased by almost a $1000😏
Wow. Get in before these rates go up even more!
@@MillennialFinance101 yes I have already just emailed the loan officer. Really crazy, the just did our mortgage or escrow recalculation and monthly payment jumped by 1000 about. Wow wow.
Ok question or clarification- So, you’re saying that I can refinance to a lower interest rate plus a monthly reduction. But still if I’m able to make the same monthly payment, Do I just put the difference $$ into the principal, is that what you’re saying?
yes. Just keep paying the same amount. Let's say your old mortgage was 1500 and refinance got you down to 1300. You pay 1300 + 200 additional principal. This will accelerate your payoff to make up for the reset on the refinance.
Millennial Finance 101 wow that’s awesome to know. I never pay any additional principal. But since I will be doing a stream line refinance, I will definitely be adding to the principal this time as a start! Thanks for replying so quick. Really appreciate it ❤️
Jane Yajsou streamline is fha yes? If so, try to get rid of that since they have junk MIP you are paying. If you have less than 80% LTV you should go conventional and not streamline fha
Millennial Finance 101 yes I have FHA. Conventional sounds great but i will prob need to work on my credit before switching to conventional. Or is that not necessary!? I sure do want to get rid of that MIP. Market value around my neighbor is appraised for a high of 280. My balance is at 189.
Jane Yajsou if you’ve been paying your mortgage this entire time, your credit should be much better. Best check your credit score as it’s cheap to find out. Then compare mortgages with fha (with MIP) vs conventional with no pmi. You’re well below the 80% LTV. It's time to get on the conventional side! Huge savings btw!