I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks. got a refi quote with box home and 4 other lenders. Box beat them all and I haggled with all lenders and let them fight for my business for 4 days before continuing with Box. They say they close in 25 days, let's see!!
I highly suggest you switch out of that loan for a conventional 25/30 year. You'll get rid of that PMI and also get a lower rate. It's a win win at this point. Use my link and get a quote! You won't regret it!
A streamline just means you’ll be stuck in the fha still. Fha also has upfront insurance you have to pay which some can come from the previous loan but it’s just a waste. I highly sugggest a conventional and to get away from fha (if you qualify for conventional). Good luck!
I just refinanced to a 2.8%. Saving 227 a month. This is my forever home. They payed me. 640. After closing. The insurance company paid me. 34. And my old mortgage company sent me 1800. 😳👍🏼
That means you got a no cost refinance and for a great rate. Your escrow company will send you a refund too most likely if you haven’t got something already. Maybe it was that $1800 from your mortgage company :). Make sure you keep paying the old payment to accelerate that loan pay off!
Did you refinance to the amount left on your mortgage and to the original term? It's too good to be true. I don't believe it. Let's say you owe $100,000 left and you're into 20 years of your 30 years mortgage, did you refinance $100, 000 into 20 years or what? Explain.......
I am always skeptical when I see videos like this but after watching it I am giving you an *A.* Your information was spot on. The only time I refinanced is when going from a 30 year to a 15 year.
I’m a fan of 30 year loans and locking in a great low stress free rate. From there, pay extra to get it done in 15-20 years. Invest the remaining instead of dumping it all in there to save interest. I’ll talk about that strategy in another video some day since that’s how I paid off my 2nd home in 7 years :)
@@MillennialFinance101 True but a lot of fiduciaries will tell you it's not a good financial move to even pay off the house. Ric Edelman being one of those that says that.
I’m a fan of paying it off but what I would do is pay it off when you have enough. I see a lot of people sorta destroying their young years by attacking the mortgage with all they got. That’s why I say do the 15-20 year route, invest the rest and when you have enough to pay it all off, sell your investments and do it. Either way, you’re doing the right things and this will be faster. It’s not a race and this method will always beat saving/putting every penny against the mortgage. You’ll notice even Dave recommend this. Invest 15% is baby step 4 and step 6 is paying it off early. Take those investments and pay it off! I’m a fan of both ways and I’ve done it both ways. Both ways require sacrifice but it also lets you enjoy a little money that you’ve earned if you don’t want to invest it all. Hope that makes sense!
I’m so HAPPY I ran across your video. I just wanna cry! Your knowledge is helping so many of us. This will be our first refi, we have a balance of $385,170 at 4.25 interest rate we went VA purchased 4yrs ago. Plan on staying in the home should we refi with VA? We have no PMI
Go conventional if you can do you can l avoid a bunch of unnecessary insurances built into those loans. The rates will be lower for conventional. EDIT: IGNORE THIS COMMENT!!!!
Thank you so much for getting back to me. I went to Box home loans punched in the numbers and saw that they are offering VA 2.25% for a 30yr lender fees ($1509.05) and total cost ($196.45) would you still suggest we go conventional?
@@alycepowe292 that's an amazing rate and yes I would definitely definitely definitely do it. That's 2% lower than what you have now. The VA options look very good and I take back what i said about the unncessary fees VA charges (usually they have higher closing cost). In this case, it's nearly free for 2% lower than what you have!!! Get on that asap!!!!! your financial future depends on it!
Just compare between lenders and determine how much each will cost. The junk fees will always be there but it’s important to see what the true cost is. Usually you can’t remove anything but every lender has junk fees to make money.
Original mortgage was 228,800 at a 30 year fha loan @5.5 int rate. Almost 3years later I'm at 220k left. Same loan company called and offered to do a streamline refi ,30 yr @ 3.375 int rate. But the total would be $ 223850 now with $140 to close. I was paying 2k a month new payment would be 1600. Should I do it?
I would go for a conventional loan if I were you. It’s time to move on from fha. Lots of insurance for nothing in those loans. Don’t increase your principal balance to close a loan if you can.
Getting ready to refi and don't plan to ever leave my home. refinancing at rate to break even on closing costs results in the total cost of refi to be higher. If I take the lowest rate with the highest points, and load that cost into the loan, the overall cost is a lot cheaper for the same loan term; about $528 a year less. Why would I not want to do that? What angle am I missing? Yes I'm borrowing more, but the overall cost is lower. I get it if I don't know about my future with the house. The payback period is 12 year before discounting. But I don't expect to ever leave.
If you pay for points and front load the cost, yes you can save more money if you end up paying the minimum payments for the entire loan. Most people (from my experience do not do this). They usually end up paying it off 10 years early on a 30 year loan or 5 years early on a 10 year loan. So basically, you save less than you think. Also, life changes can happen, you might relocate and have to sell your home or get married/have kids and your house may not be compatible anymore. The forced sale means all those upfront prepaid points go to waste. Hopefully that helps you out. I would settle for something in the middle!
@@MillennialFinance101 thanks for the reply. I’m pretty settled on all of those matters. I just want to make sure I’m not missing some angle. I just don’t understand why a bank would give a better overall deal on a higher borrowed amount. BTW I checked out BoxHomeLoans and they gave the best deal. So thanks for that recommendation too!
No problem! Make sure you use that link to get an additional discount! Glad I was able to help! Share my video to your friends and family to help them save some money! Happy holidays!
I live in the Bay area and we just started to refinance my house. My mortgage payment is so high but I will check now on what they are charging us. I am currently refinance my home. Can start to refinance with a different company while I am refinances now.
Great job Millennial Finance 101! I wonder if I could take advantage on low mortgage rates. The cost of my house is about 275 grands. My mortgage is 7.7 years old, 3.25%. 30 years. The remaining of the loan is 125 grands. My credit is excellent for many years, I can prove good income and low debt. I would like to pay my house on 15 or 12 years and obviously, save money on closing and long run. If possible, please enlighten me and other on similar situation, Thanks.
@@MillennialFinance101 Thank you for your quick response, I believe that with adding $250 to my monthly payment I will get the loan paid on less than 15 years.
I love your videos my friend. Do you think I should refinance when my principal balance is only $87,000, but with 4.5 interest rate with a 19 years left on the loan or should I just continue paying additional $500 towards my principal monthly to pay off my balance fast? I just hate having to pay the closing fee...
Big yes. You can even do a 15 year loan and probably have similar payment as now. Check the math! Another 30 year wn't hurt with these low rates and you can just pay additional principal (preferred if you are young still, say your 30s or 40s)
So refinancing to buy another property isn’t a good option either? I have a lot of equity in my home and want to purchase a second home... going from 3.5 to 3.6 to take out $240K.
It’s not a bad idea if your renting it out since at least that loan will be a business expense write off. But just know that you can’t refinance it as a primary residence and move out until 12 months later. You could do an investment loan but the rates will be high. If you can get positive cash flow, I suppose it is fine but I would not do that if it’s negative or 0 cash flow. The housing market may go down and you’d be upside down on that rental and with negative cash flow, that’s a losing situation.
So glad I found ur channel. I bought my home 15 years ago, looking to refi +cash due to lost income with embrace loans at 2.75%, my current rate is 5%. Home equity around 200k, good idea?
Good idea to refinance but probably not good idea to take cash out. I guess it’s up to you but if would be my last resort to do a cash out to pay for bills. Maybe 10-15k max to get you by?
yes! never roll that into your loan. Financing closing cost over 20 years isn't wise at all. You could also get a slighly higher rate if you want break even to come sooner.
Millennial Finance 101 thank for the reply. The first guy I talked to tried the whole “skip two month payments” and said that would basically pay off closing costs. He even said escrow counted and my refi costs would be paid for immediately. I did not call him back
@@MillennialFinance101 Ok great thanks. I'm 53 years old, I have a pension and work post retirement because taxes are so high on my house (12,000 per year). My intention was to pay house down from current $260,000 to around 180,000 then refi to a lower payment (would save around $500 per month) then I could work part time instead..Thoughts ?
@@MillennialFinance101 I was contacted by a loan officer back in April and he told me he could get me a 3.5% rate by refinancing. I told him I would wait until rates dropped by at least another percentage point. He said rates won't go any lower. I haven't heard from him again.
Hi we’re looking into refinancing our home. We bought it for 242,000 back in July of 2016 so almost 5 years into our 30 year. We owe 221,00 and our current interest is 3.75. We’ve been quoted around a 2.8- 3.0. interest with fees on a new 30 year loan. Do you think we should wait, go ahead, keep looking or not refinance at all? We plan to keep this home as an investment and rent it out within this year. Our house is also now worth around 300,00.
Definitely refinance if you can get a low cost loan. You’ll get to remove your PMI in the process (lender insurance non sense) and also lock in a really low rate which will all help with positive cash flow when you are ready to rent it. Just make sure you don’t move in the next 12 mo (loan requirement but they won’t check ;)
Wow. I would wait. The rates are quite high right now it seems. The fed may be forced to lower the rates again so set up an alert with boxhomeloan like i show in this video: th-cam.com/video/vjz2RG6asks/w-d-xo.html
Awesome video! I was hoping you could give me some advice on my refinance situation! I just purchased my home in April with a 3.6% interest rate and was told I could refinance with a 2.5% interest rate. I was also looking into leaving my current loan alone and just making larger monthly payments to pay off my loan in 15 years. I am not refinancing for the lower monthly payments I am looking into it to save more money in the long run. Do you have any advice?
There was a lot of good info on this vid. However there is one bit of bad advice that snuck it's way in there. The bit about your mortgage being a tax deduction is just really bad out dated advice. First the standard deduction is high enough now that most people aren't going to be able to use that as a deduction. And even when the standard wasn't so high it only made _some_ sense if your interest rate was high. Say your mortgage was 200k and your rate was 5% that's 10k in interest. That allows you to reduce your taxable income by 10k. So if you itemized and made 100k you would be taxed as if you made 90k. At 22% tax rate that comes out to a difference of 2200. So you paid your mortgage company 10k so you could save 2200 on your taxes ... It's bad advice that needs to die
Appreciate the comment. I had to keep it simple for the viewers since explaining all those deductions, cap on state/local taxes, income tax bracket, and the fact that trump increased the standard deduction, may confuse a lot of viewers. Biden may revert those things in his new tax plan so this information may be relevant again. Yes, most are taking standard deduction (myself included) but we only have 1 year of trump tax left and it perhaps might go back to the way things were when Obama was president. Also consider that that interest is still tax deductible at the state level such as california so there is still benefit there. Thanks for the comment!
Yeah I understand that tax position might change and that it starts to get really complicated with states and other factors. And of course if someone qualifies to take they deduction they should do so. But I can't count how many times I've heard this advice morph into 'you shouldn't pay off your mortgage because you'll lose the tax deduction', or the dreaded 'a bigger mortgage is okay because you can just deduct the interest' The smoke and mirrors talk that helps hide exactly how much benefits you can take get out of your mortgage interest.
@@joey.kendall yes, it's bad advice and generally comes from realtors and home owners that have no clue on tax code or have no money to pay off their home. Deduction in my mind just means 25% savings (depends on tax rate). Since you have to pay $10000 in interest to save $2500 on your taxes (federal only). Effectively paying $7500 total. If you had no deduction/interest, you'd just pay the federal government $2500 more in taxes. So if we compare, that's $5000 more the home borrower pays vs paying it off. (100% more) Most don't have the option so it sounds better to just say they're saving money by buying a bigger house/paying more interest (silly). I think we'd get a long well in real life. We speak the same language lol.
Hello. We refinanced 4.5 yrs. ago on a 20 year loan with 3.75% rate. We are contemplating if we should refinance again. We owe almost $300 k ( approx. $ 700 k Home value) and thinking of going back to 20 yrs again on a 2.65 % ( or hopefully lower) and use that money that we will be saving monthly to apply to the principal. Is that a wise move or should we refinance to a 15 year with the 2.65% rate?
Yes it is wise if you plan to do what you said. You will pay it off in less time than keeping your old loan. Run the numbers but I’m sure it will work out to faster and saving more money at that principal balance
This started ok... but then saying that “negative points” is free is just so dumb. You are usually paying thousands and thousands on the higher interest rate. There is no generalizations in refinance. There is no one scenario applies to everyone.
@@MillennialFinance101 yes and those 2 things have to be taken into account. General broad statements like the one you made do not work for this. The statement you started with is correct and applies here too - nothing is free in finance, not even the “negative points” which is also known as lender credits. Lenders do not give you anything.
Except it is free if you had a higher rate and you’re getting a lower rate for no cost with the negative points (lender credits). 5% -> 2.75% (no cost loan) is lowering the cost (interest) of that loan over time too compared to the 5%. What is dumb about that? Math works the same for everyone.
@@MillennialFinance101 exactly, you gave an example here of where it could work..depending on other numbers. On the video you made a general statement saying negative points are a free cost loan. My point is that it is not something you can generalize about . There are many scenarios where the math will show you that you are actually paying more when you are getting on what you called negative points. Your statement in the video is wrong. It is too general. It is misleading and it does not involve the math required to get to that conclusion.
Can you explain FHA refi and a HUD lien hindering the deal. If someone was only $4k behind total on mortgage payments over 10 years ago but HUD put a lien on for 40k?
Fha refinance requires you to buy upfront mortgage insurance premium again. It’ll usually be rolled into your loan because no one wants to pay that. That’s why I hate fha loans for refinances. Part of your old loans upfront mip will be refunded if you do an fha refinance and apply to the new loan so it won’t be the full amount. But at the end of the day, none of it goes towards the loan payoff. Go with conventional if you can to get rid of junk fees like mortgage insurance premiums. The hud lien is most likely a second loan given to folks requiring downpayment assistance. They do this by giving the purchaser a 40k loan for example to apply as a down payment to get the loan. So basically it’s like a second mortgage on the property. So the seller has to cover both loans when selling the home. Hope that helps.
@@MillennialFinance101 Makes perfect sense! Thank you for even responding!! They said they can do conventional (no PMI) vs the current FHA. However the HUD lien was do to a modification 10 years ago. Refi will be changed to a cash out to cover that lien. There is plenty of equity, income and good credit but the mortgage will go up a bit and the initial rate will also. The rate will still be less than the current. Closing costs will be all rolled in. Not sure if proceeding is a good idea. Thoughts with all that being added?
One simple conventional loan is the way to go. If it’s under 80% ltv, that’s the best kind of loan. I imagine you can go with any lender and find a loan large enough to pay both loans off and just have 1. See if you can find one that has low closing cost so you don’t increase the loan balance too much
No heloc. Heloc basically turns your equity in your house into a credit card. Best to avoid unless you like playing those kinda of games. If you are, just take out 0% credit cards and pay them off in full
Thanks for the video. I recently contacted my lender to see if I should refinance my loan. She advised me it wouldn’t be worth it. I want yo know your thoughts on this. Loan balance $267k at 3.65%. 5 years in of 30 year mortgage. Any suggestions?
Your current rate is already low and great so I would just stick with what you got. If you can find a 2.5% or 2.75% for little cost, I would consider it.
Great content. I do have a question. I am in the process of refinancing but loan officer kinda fishy. Should I refinance my current rate is 3.25% to 2.875% loan amount is $460k, closing cost is $9k with option impound which mean escrow will withhold 6 month homeowners insurance and 4 months properly tax? They told me no point no cost. Thanks
Try loan depot or boxhomeloans. That seems too high and $9000 closing is crazy for that rate. I know your impounds are part of that but subtract that out to understand the true closing cost. You should be able to find decent rates loke what you were quoted for low cost right now.
Nope. You’re basically prepaying interest when buying down a rate. Not the best move since things can change down the road! You could sell or refinance and lose that savings.
Seems high in both rate and closing cost (make sure you don’t include escrow prepaids). 3% for little to no closing is what you are after. Less than 3% may exist also.
yes, the closing cost is 4504 without escrow, I can't get a 3% rate without purchasing the points because my score is fair, I have another question for you, the better company, is it a good company to make Refinance? Thank you so much
Hi , I currently have a fha loan at 295, 000 at 4.1% I was call by a lender saying he can give me a streamline fha at 2.5 and drop my mortgage payment by 300 buck . No income veri. No cost , no appraisal and no credit check ,nothing and it will take only a few weeks don’t know much about this , but sound good , is there some major cons to this? Thanks
Definite no! The streamline means a new fha which means new upfront mortgage insurance premium. Don’t trust that lender. Get yourself a nice conventional loan now that you probably have great equity and loan to value. You’ll be paying way less with a conventional since you will have no pmi. I got another video on fha i made early on! Check it out! I hate fha loans :)
We're in our late 50s still working, have 64,000 left to pay home. It is worth around 250,000. Have it through Wells Fargo looking to refinance to buy 2nd home cash out 50,000 ? Can you give me some ideas ? Better lenders ? God bless !
I purchased my home last year for 400k through FHA at 3.5%. I’m currently in the middle of refinancing at a 2.99% and getting rid of PMI. I told my Lender, I would like a lender credit to offset the closing cost fees. My lender is telling me that the fees are being offset from the months that I don’t have a mortgage payment plus the refund I am getting from escrow. What should I tell them ?
Tell them to get you a slightly higher rate to reduce closing cost. What they said is how they get people… you want that in addition to the low rate/closing!!
@ @@MillennialFinance101 - thanks for the quick response. I have been on a couple of calls with a few lenders, who mostly want personal details before providing a rate
How about if you're using the cash out to purchase another property for rental and to pay off some debts? In my case, I'm doing a cash out refi,i had to extend back to a 30yr loan, from 22yrs i currently have and of course my payments will go up by about 200 bucks. I was planning to put a 20% down payment on another property and use my current one as a rental. I'm in the process now. Is this a wise decision? Or I'm i better off getting a heloc? Thank you
You can’t refi as a primary residence loan if you plan to rent it out unless that’s a year later. Paying off debt isn’t a bad thing on a cash out but don’t get too crazy with it. Buying another property is fine too but just keep in mind leveraging your current home to get a 2nd home there’s a possibility of losing both. Just make sure you have a lot of reserves and you’ll be winning
I'm so torn! I feel like just keeping my current loan and paying extra is the way to go. I am 5 years into my 30 year @ 4% and I plan to accelerate it by paying down the principal. Although a 2.25% for 15 years does sound inciting I don't want to restart my loan or pay lots of $$$$$$ to restart it. big sigh!
get a 25 year loan at 2.75% or so. You'll be winning more with that! Forget the 15 year if you're young. Just pay extra each month and lock in that low rate. Try boxhomeloan or Vertext financial group or Better Mortgage!
Okay so this is my current offer. 15 years 2.25% payment of 1389..00 Closing cost are $2914.00 and Insurance and tax escrow are $1922.00 My current payments is 1,285.00 25 years left with 4%. I just want to make sure I'm doing the right thing by staying put. Oh and why does it look like my new loan is $8,000 more than my loan now???
@@sonyacurti the new loan looks like that because they are trying to scam/trick you!!!! make sure the payoff amount is the same as the loan balance! Good eye!! 2.25-2.375 15year loan should be achievable for little closing cost (without changing loan balance!). You'd pay escrow but it'd be refunded from old loan. Check out my video on how to get free loan quotes here: th-cam.com/video/vjz2RG6asks/w-d-xo.html I suggest a 30 or 25 year loan still!!
what state Sonya? Looks like they wrapped in your closing costs. You dont need to go to a 15 if the loan has no prepayment penalties. You can turn a 30 year loan into a 15 if you pay extra each month.
Thanks so much!!!! I loved your video and I've decided to keep my current loan and pay it off quicker by making EXTRA because I wanna keep my equity and DO NOT want to reset! Thanks again 🙏
How do you qualify for your rental property home equity with good credit and low paying job. Renters cover rent now and would cover with refinance cash out?
Thanks for posting. i have a $197,000 loan amount left in a $251,000 sale price home. Bought in 2019 at 4.75%, trying to refinance at 2.75%. my confusion is this. on the loan estimate, the loan amount went up to $200,800, plus there is a closing cost of $3812. Why?. Is the difference of $3800 (208-197) for this years taxes/initial escrow at closing? I have no PMI, but i have escrow attached to the mortgage. I have about $3500 in my escrow account with my current lender. i know that i will be refunded the money if i close before this years tax is paid. I want to pay closing cost out of pocket. Please help......
Watch my refinance comparison video but it sounds like you understand the fees well. I would get another quote somewhere else. The cost seems like it’s about $5000 or more due to the principal increasing and subtracting our the escrow.
We're trying to refinance and the new loan cost came out to be 5000$ more.. with the possible around 2000$ refund at cost.. does that sound right if we say we're paying about 3000$ in fees?
Hmm I got a new video coming later today that you should check out! It’ll be how to compare loans and true cost. What you stated sounds right and it seems like you are increasing your balance on your loan in the refinance.
@@MillennialFinance101 thank you soo much for your reply! the estimate got so much of those junk fees you mentioned so I already lost my interest in this officer! 😂 Thank you for your awesome videos!
Hello... I know I’m a month late from this comment... My loan officer wants to put me at a 3.3/8% from a 4.625% we locked the interest today. Is this too high? If so, can I back out of the deal even though we locked?
@@simplyshantal you may have to pay fees if you back out. I'm not sure i understand what a 3.3/8% is? You can probably get 3.25-3.375 for little cost today. Gess it depends how much you need to borrow
im looking to refinance my 190k home ive spoken to one loan agent.. no out of pocket what so ever he can drop interest from 4.25 to 3% but heres the catch.. my new loan is 200k.. wth! why is he charging me 10k to close? any advise please?
@@MillennialFinance101 thank you sir im actually watching your refinance video rt now.. i really do appreciate you taking time to help us poor people... i do not trust banks .
See if you can get a quote from United wholesale. I just reviewed one of their quotes and it wasn’t too bad. Or boxhomeloans if available in your area.
What are your thoughts of a FHA streamline refinance..i just got a quote from mid America they are saying no closing cost yet my loan is 164 870 now the new cost 172,518.do you have an email i can reach you.
Check my channel page as I have my email there. And they are increasing your balance to make it “no cost”. Please do not do that loan. Try to get on a conventional loan so you don’t pay upfront mortgage insurance premiums and monthly insurance premiums (MIP).
My credit score is 560 and they approved fha cash out refinance? Will they approved for me or they just joking ? in process right now my equity is $300,000 what is best way to use this money ?
Does it make sense to refi from a 3.75% FHA 30-year fixed to a 3.75 Conventional 30-year fixed so I can get rid of the MIP premium of $168.00/month? The refi would bring my loan balance from $255K to about $262k. My house is worth about $325k. Thanks!
The principal balance increase would take 3.5 years to recoup. I would say no. But I’m sure you could get a 3.5 loan for no cost (no balance increase) so find a better lender! I would support and advise you to do that. Fha is lame once you don’t need it.
First of all, MAAAN‼️ your video is so detailed and good, thanks so much for those 5 very important points when it comes to refinance our house. 🙏🏼✨ THANKS SO MUCH. I just received a card on my mail from THE MERIDIAN TEAM OF SUPREME LENDING / To refinance my house with them. The deal is so tempting because I just bought my house 18 months ago and my APR in my house is 3.2 fixed rate. They are giving us 2.25% fixed. I can not imagine the amount of money we can safe as years goes by if I take this deal, but in the same time I have heard that refinancing is not good so NOW IM CONFUSED 😩😩😭 do you have an email, so we can talk my friend please, I would be so thankful if you could help me out with this process….
Check my channel info page. My email is there. The rates are much higher now so be careful with that offer. All interest rates are way up as of January 2022
Hi, I bought my house 4 yrs ago for 260k with 4.25 interest fha loan 30yrs fixed , I wanted to refi for lower monthly payments should I aim for conventional or fha with lower interest rate and lcok forn30yrs again?
Jo Laranjo since you have FhA, you are paying mortgage insurance premiums(MIP) that never go away. If your home has appreciated, refinance into a 30 year conventional. Your loan to value is probably well below 80% now which means no PMI (similar to the MIP for FhA). You’ll be saving a ton of interest with a conventional. Then keep paying the same payment on the new loan because you’re probably gonna be 300-400 cheaper with the new loan.
You can find free loans for 3%-3.25% which is over 1% less than what you’re paying so you’ll break even quick and save a ton. I highlyyyyy suggest you refinance. You will only need to stay in your home for 1 year before you can sell it
I have a fha 3.8 loan $300 pmi I want to refi out of fha to conventional loan I paid extra $1000 a month on loan so I’m at year two on payment chart by doing this Should I refi or just keep attacking the principal?
Actually I borrowed the 260k from Chase and in 3 yrs time bec I paid extra to principal my balance went down to 190k which is equivalent to 10 yrs of my 25 yrs mortgage. . Is refi the best course to take? Ty
Thank you so much for sharing this awesome video! I am trying to understand more about mortgage and it is great to learn from you. Based on my research, interest rate looks not bad in recent deals: rate.exposed Do you think it is a good time to buy a house or the rate will further go down? Any advice would be helpful and appreciated!
I'm planning a new video soon about low interest rates & high home prices vs high interest rates & lower home prices. I would say I prefer the latter but that is because I have more cash on hand to buy. A lot of folks fall into the former since it's appealing to be able to afford something due to lower interest rates. But remember, if you get the latter, you can always refinance down the road to get a lower rate or pay down principal or get cheap homes. The latter is my preferred option so I would say no, it's not a good time to buy a house right now.
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Nice video, I want to refinance my house the interest rate I have is too high 7.25 , which bank you can recommend for refinance with lower interest , you think is better refinance over internet then regular local bank like pnc bank?
I really like this video thank you so much! There's lot of good information.I am getting ready to refinance my house after removing Ex-spouse name. The current balance is $70,000 with 5.10%. I don't plan to move or sale it anytime soon but I plan on paying my house off in 5 years or sooner or if I can get it refinance with a lot lower rate how many years should I stick with I have 13 years left now can you please advise
Get that new loan in place and enjoy some lower interest and no pmi. Then start paying extra each month and saving / investing and once you have enough, you can decide to get rid of it or not! I would personally get a 30 year because times are crazy and who knows. Just pay extra so it's like a 15 year. But then again I'd probably get a 15 year since you have 13 years left.
@@kukinoooo you left a question on my other video but i can't seem to find it. Yes your daughter can claim it if she files herself and you don't claim her on 2020. It's unclear if 17 years olds can get the first 2 stimulus. I imagine if he can file taxes, he can claim it. Just try it and let me know! He also should definite include his w2 info since the IRS probably took some of his taxes so he can get that back also. If you end up claiming him, you will not get stimulus for him as he's 17. But you WILL get the 3rd stimulus since the dependent definition got updated for that.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
WHY IS THIS GUY SO INTELLIGENT?
When we going to shoot pool
Thank you for the information!
Np!
Thanks. got a refi quote with box home and 4 other lenders. Box beat them all and I haggled with all lenders and let them fight for my business for 4 days before continuing with Box. They say they close in 25 days, let's see!!
Very nice
One of the best explanations on the internet. Thanks!
Just finished watching the video. It was Extremely helpful and was wondering.
Awesome, thank you! What were you wondering?
Thank you clear and straight to the point
5yrs in. 216000 left. Fha. Pmi is for the life of the loan. 3.75%. Ground rent still being paid $180. 3000 cap. Maryland
I highly suggest you switch out of that loan for a conventional 25/30 year. You'll get rid of that PMI and also get a lower rate. It's a win win at this point. Use my link and get a quote! You won't regret it!
@@MillennialFinance101 no.streamline fha
A streamline just means you’ll be stuck in the fha still. Fha also has upfront insurance you have to pay which some can come from the previous loan but it’s just a waste. I highly sugggest a conventional and to get away from fha (if you qualify for conventional). Good luck!
@@MillennialFinance101 thank you
Thanks for the Video. Nice job. Mehran from San Diego
You are welcomw
This was good my dude. Well done!
Glad I could help. When lenders make it sound so easy to refinance, I had to see what tricks they were playing!
Subscribed! It's very informative man. I'm in the middle of lender shopping to refinance. I'm really glad I came across your video. Thank you!
great, let me know if you have questions
Box home loans was terrible! They kept changing my disclosure quotes and in the end, I had to cancel. Highly disappointed!
Those damn junk fees........🤕🤕🤕🤕🤕🤕🤕🤕🤕🤕🤕
Lol they hurt.
@@MillennialFinance101 🤣🤣🤣🤣🤣🤣
I just refinanced to a 2.8%. Saving 227 a month. This is my forever home. They payed me. 640. After closing. The insurance company paid me. 34. And my old mortgage company sent me 1800. 😳👍🏼
That means you got a no cost refinance and for a great rate. Your escrow company will send you a refund too most likely if you haven’t got something already. Maybe it was that $1800 from your mortgage company :). Make sure you keep paying the old payment to accelerate that loan pay off!
May I ask what company/lender you used to refinance?
kaitlinlcrs sure. I live in Florida. They are called C2 financial.
@@griselleisara3799 thanks
Did you refinance to the amount left on your mortgage and to the original term? It's too good to be true. I don't believe it. Let's say you owe $100,000 left and you're into 20 years of your 30 years mortgage, did you refinance $100, 000 into 20 years or what? Explain.......
Thank you so much. Very valuable information . Straight to the point.👍👍
thanks for watching! check out some of my other vids.
Great job!
This was perfect for what I'm considering. Straight to the point. Common sense overview. I really enjoyed the information.
Glad it helped!!! Thanks for watching
Thank you!
No problem
Great advise! Cash out loans are a suckers game.
Can be good for investments but I wouldn’t pull cash on my primary home. Best to wait.
We're in the middle refinancing right now..where was this video before. Could use your guy 😆
you have my cell number, you can just ask me lol
You got a new subscriber here. Great information thank you.
Welcome
How about using the money to fix up your home? Refinance mortgage plus cash out!
I wouldn’t unless it’s absolutely necessary. Better to use emergency fund to fix your home.
Thankyou.
No prob!
thank you so much
You are welcome!!
Thank you so much 😊
you are welcome
Great show of valuable information. Thanks
thanks for watching
I am always skeptical when I see videos like this but after watching it I am giving you an *A.*
Your information was spot on. The only time I refinanced is when going from a 30 year to a 15 year.
I’m a fan of 30 year loans and locking in a great low stress free rate. From there, pay extra to get it done in 15-20 years. Invest the remaining instead of dumping it all in there to save interest. I’ll talk about that strategy in another video some day since that’s how I paid off my 2nd home in 7 years :)
@@MillennialFinance101 True but a lot of fiduciaries will tell you it's not a good financial move to even pay off the house. Ric Edelman being one of those that says that.
I’m a fan of paying it off but what I would do is pay it off when you have enough. I see a lot of people sorta destroying their young years by attacking the mortgage with all they got. That’s why I say do the 15-20 year route, invest the rest and when you have enough to pay it all off, sell your investments and do it. Either way, you’re doing the right things and this will be faster. It’s not a race and this method will always beat saving/putting every penny against the mortgage. You’ll notice even Dave recommend this. Invest 15% is baby step 4 and step 6 is paying it off early. Take those investments and pay it off! I’m a fan of both ways and I’ve done it both ways. Both ways require sacrifice but it also lets you enjoy a little money that you’ve earned if you don’t want to invest it all.
Hope that makes sense!
7:34 they will be adding a TH-cam fee soon.
Lol that’s a good one
Thanks, this was helpful
Glad I could help!
I’m so HAPPY I ran across your video. I just wanna cry! Your knowledge is helping so many of us. This will be our first refi, we have a balance of $385,170 at 4.25 interest rate we went VA purchased 4yrs ago. Plan on staying in the home should we refi with VA? We have no PMI
Go conventional if you can do you can l avoid a bunch of unnecessary insurances built into those loans. The rates will be lower for conventional.
EDIT: IGNORE THIS COMMENT!!!!
Thank you so much for getting back to me. I went to Box home loans punched in the numbers and saw that they are offering VA 2.25% for a 30yr lender fees ($1509.05) and total cost ($196.45) would you still suggest we go conventional?
@@alycepowe292 that's an amazing rate and yes I would definitely definitely definitely do it. That's 2% lower than what you have now. The VA options look very good and I take back what i said about the unncessary fees VA charges (usually they have higher closing cost). In this case, it's nearly free for 2% lower than what you have!!! Get on that asap!!!!! your financial future depends on it!
Millennial Finance 101 Ok, Thank you! I appreciate your willingness to enlighten us. 🙂
@@alycepowe292 Thats awesome
My first time refinancing
Any suggestions?
I have PMI my LTV is noy 80% yet FHA
So now I found out what a junk fee is (underwriting). What do I tell my loan officer about that? How do I get rid of it?
Just compare between lenders and determine how much each will cost. The junk fees will always be there but it’s important to see what the true cost is. Usually you can’t remove anything but every lender has junk fees to make money.
Original mortgage was 228,800 at a 30 year fha loan @5.5 int rate. Almost 3years later I'm at 220k left. Same loan company called and offered to do a streamline refi ,30 yr @ 3.375 int rate. But the total would be $ 223850 now with $140 to close. I was paying 2k a month new payment would be 1600. Should I do it?
I would go for a conventional loan if I were you. It’s time to move on from fha. Lots of insurance for nothing in those loans. Don’t increase your principal balance to close a loan if you can.
Wait! You forgot send email fee and staple papers fee lol
Lol
Getting ready to refi and don't plan to ever leave my home. refinancing at rate to break even on closing costs results in the total cost of refi to be higher. If I take the lowest rate with the highest points, and load that cost into the loan, the overall cost is a lot cheaper for the same loan term; about $528 a year less. Why would I not want to do that? What angle am I missing? Yes I'm borrowing more, but the overall cost is lower. I get it if I don't know about my future with the house. The payback period is 12 year before discounting. But I don't expect to ever leave.
If you pay for points and front load the cost, yes you can save more money if you end up paying the minimum payments for the entire loan. Most people (from my experience do not do this). They usually end up paying it off 10 years early on a 30 year loan or 5 years early on a 10 year loan. So basically, you save less than you think.
Also, life changes can happen, you might relocate and have to sell your home or get married/have kids and your house may not be compatible anymore. The forced sale means all those upfront prepaid points go to waste.
Hopefully that helps you out. I would settle for something in the middle!
@@MillennialFinance101 thanks for the reply. I’m pretty settled on all of those matters. I just want to make sure I’m not missing some angle. I just don’t understand why a bank would give a better overall deal on a higher borrowed amount. BTW I checked out BoxHomeLoans and they gave the best deal. So thanks for that recommendation too!
No problem! Make sure you use that link to get an additional discount! Glad I was able to help! Share my video to your friends and family to help them save some money! Happy holidays!
I live in the Bay area and we just started to refinance my house. My mortgage payment is so high but I will check now on what they are charging us. I am currently refinance my home. Can start to refinance with a different company while I am refinances now.
Good idea. This is your biggest purchase so make sure you fully understand it!!
Great job Millennial Finance 101! I wonder if I could take advantage on low mortgage rates. The cost of my house is about 275 grands. My mortgage is 7.7 years old, 3.25%. 30 years. The remaining of the loan is 125 grands. My credit is excellent for many years, I can prove good income and low debt. I would like to pay my house on 15 or 12 years and obviously, save money on closing and long run. If possible, please enlighten me and other on similar situation, Thanks.
Probably not worth your time on 125k loan and you already have a low interest rate!
@@MillennialFinance101 Thank you for your quick response, I believe that with adding $250 to my monthly payment I will get the loan paid on less than 15 years.
@@lukegeorgetown5545 that's the dream!
I went to this website and the processing fee is $890. Plus there are two appraisal fees totaling $1000. Talk about getting ripped off.
Most folks don’t even look and just sign sign sign! Glad this video is allowing folks to review some of this :)
I love your videos my friend. Do you think I should refinance when my principal balance is only $87,000, but with 4.5 interest rate with a 19 years left on the loan or should I just continue paying additional $500 towards my principal monthly to pay off my balance fast? I just hate having to pay the closing fee...
Big yes. You can even do a 15 year loan and probably have similar payment as now. Check the math! Another 30 year wn't hurt with these low rates and you can just pay additional principal (preferred if you are young still, say your 30s or 40s)
So refinancing to buy another property isn’t a good option either? I have a lot of equity in my home and want to purchase a second home... going from 3.5 to 3.6 to take out $240K.
It’s not a bad idea if your renting it out since at least that loan will be a business expense write off. But just know that you can’t refinance it as a primary residence and move out until 12 months later. You could do an investment loan but the rates will be high. If you can get positive cash flow, I suppose it is fine but I would not do that if it’s negative or 0 cash flow. The housing market may go down and you’d be upside down on that rental and with negative cash flow, that’s a losing situation.
Cash-out for divorce
Lolll
So glad I found ur channel. I bought my home 15 years ago, looking to refi +cash due to lost income with embrace loans at 2.75%, my current rate is 5%. Home equity around 200k, good idea?
Good idea to refinance but probably not good idea to take cash out. I guess it’s up to you but if would be my last resort to do a cash out to pay for bills. Maybe 10-15k max to get you by?
So should I just pay the 2400 dollar closing cost up front that I was quoted? I’d rather pay it now than pay it over 20 years like you were saying.
yes! never roll that into your loan. Financing closing cost over 20 years isn't wise at all. You could also get a slighly higher rate if you want break even to come sooner.
Millennial Finance 101 thank for the reply. The first guy I talked to tried the whole “skip two month payments” and said that would basically pay off closing costs. He even said escrow counted and my refi costs would be paid for immediately. I did not call him back
Lol well it’s a good try! Hehe I wouldn’t ignore him lol. Maybe just be aware of the games and try to get a good price still
@@thesurplusfirearm2374 good call 👍
When you refi can they raise your taxes as that the refi info gets filed with your municipality ?
Nope. The reassess only happens on a sale.
@@MillennialFinance101 Ok great thanks. I'm 53 years old, I have a pension and work post retirement because taxes are so high on my house (12,000 per year). My intention was to pay house down from current $260,000 to around 180,000 then refi to a lower payment (would save around $500 per month) then I could work part time instead..Thoughts ?
I like it. As long as it’ll give you a comfortable retirement. Sounds like you won’t have a big nest egg at retirement to pay it off?
I’m looking into cash out refinance
Be careful lol
This guy is the real deal, however, I would suggest not refinancing yet. Rates are headed much lower.
1.5% is imminent.
If it drops that low... I’ll be refinancing again. That’s like free money
@@MillennialFinance101 I was contacted by a loan officer back in April and he told me he could get me a 3.5% rate by refinancing. I told him I would wait until rates dropped by at least another percentage point. He said rates won't go any lower. I haven't heard from him again.
Lol what a loser
Millennial Finance 101 Wow! Do you honestly think it would dip in that range?
@@kurpal8904 yes, however it will take some time.
Hi we’re looking into refinancing our home. We bought it for 242,000 back in July of 2016 so almost 5 years into our 30 year. We owe 221,00 and our current interest is 3.75. We’ve been quoted around a 2.8- 3.0. interest with fees on a new 30 year loan. Do you think we should wait, go ahead, keep looking or not refinance at all? We plan to keep this home as an investment and rent it out within this year. Our house is also now worth around 300,00.
Definitely refinance if you can get a low cost loan. You’ll get to remove your PMI in the process (lender insurance non sense) and also lock in a really low rate which will all help with positive cash flow when you are ready to rent it. Just make sure you don’t move in the next 12 mo (loan requirement but they won’t check ;)
@@MillennialFinance101 thanks! Do you think we should wait for the rates to be lower or is 3% good ?
Wow. I would wait. The rates are quite high right now it seems. The fed may be forced to lower the rates again so set up an alert with boxhomeloan like i show in this video: th-cam.com/video/vjz2RG6asks/w-d-xo.html
Awesome video! I was hoping you could give me some advice on my refinance situation! I just purchased my home in April with a 3.6% interest rate and was told I could refinance with a 2.5% interest rate. I was also looking into leaving my current loan alone and just making larger monthly payments to pay off my loan in 15 years. I am not refinancing for the lower monthly payments I am looking into it to save more money in the long run. Do you have any advice?
Go for it! Just take a 30 year and py additional principal to make it shorter. You will win this way
am i able to refinance a heloc which is 5.5percent and my mortgage is 3.5 is good ... which one should i focus first to pay off quickly
Get rid of that heloc or see if you can refinance and consolidate both those loans into just a 30 year fixed conventional
There was a lot of good info on this vid. However there is one bit of bad advice that snuck it's way in there. The bit about your mortgage being a tax deduction is just really bad out dated advice. First the standard deduction is high enough now that most people aren't going to be able to use that as a deduction.
And even when the standard wasn't so high it only made _some_ sense if your interest rate was high. Say your mortgage was 200k and your rate was 5% that's 10k in interest. That allows you to reduce your taxable income by 10k. So if you itemized and made 100k you would be taxed as if you made 90k. At 22% tax rate that comes out to a difference of 2200. So you paid your mortgage company 10k so you could save 2200 on your taxes ... It's bad advice that needs to die
Appreciate the comment. I had to keep it simple for the viewers since explaining all those deductions, cap on state/local taxes, income tax bracket, and the fact that trump increased the standard deduction, may confuse a lot of viewers. Biden may revert those things in his new tax plan so this information may be relevant again.
Yes, most are taking standard deduction (myself included) but we only have 1 year of trump tax left and it perhaps might go back to the way things were when Obama was president.
Also consider that that interest is still tax deductible at the state level such as california so there is still benefit there.
Thanks for the comment!
Yeah I understand that tax position might change and that it starts to get really complicated with states and other factors.
And of course if someone qualifies to take they deduction they should do so. But I can't count how many times I've heard this advice morph into 'you shouldn't pay off your mortgage because you'll lose the tax deduction', or the dreaded 'a bigger mortgage is okay because you can just deduct the interest'
The smoke and mirrors talk that helps hide exactly how much benefits you can take get out of your mortgage interest.
@@joey.kendall yes, it's bad advice and generally comes from realtors and home owners that have no clue on tax code or have no money to pay off their home.
Deduction in my mind just means 25% savings (depends on tax rate). Since you have to pay $10000 in interest to save $2500 on your taxes (federal only). Effectively paying $7500 total.
If you had no deduction/interest, you'd just pay the federal government $2500 more in taxes.
So if we compare, that's $5000 more the home borrower pays vs paying it off. (100% more)
Most don't have the option so it sounds better to just say they're saving money by buying a bigger house/paying more interest (silly).
I think we'd get a long well in real life. We speak the same language lol.
Whats the best way to refi without a broker?
Compare quotes online. You can try credible www.credible.com/ if boxhomeloan is not in your area.
Subscribe!!! Most common sense video on refi.
Thx
Hello. We refinanced 4.5 yrs. ago on a 20 year loan with 3.75% rate. We are contemplating if we should refinance again. We owe almost $300 k ( approx. $ 700 k Home value) and thinking of going back to 20 yrs again on a 2.65 % ( or hopefully lower) and use that money that we will be saving monthly to apply to the principal. Is that a wise move or should we refinance to a 15 year with the 2.65% rate?
Yes it is wise if you plan to do what you said. You will pay it off in less time than keeping your old loan. Run the numbers but I’m sure it will work out to faster and saving more money at that principal balance
@@MillennialFinance101 thank you!
This started ok... but then saying that “negative points” is free is just so dumb. You are usually paying thousands and thousands on the higher interest rate. There is no generalizations in refinance. There is no one scenario applies to everyone.
You’re comparing 2 different things here. Cost of refinance vs cost of loan over time
@@MillennialFinance101 yes and those 2 things have to be taken into account. General broad statements like the one you made do not work for this. The statement you started with is correct and applies here too - nothing is free in finance, not even the “negative points” which is also known as lender credits. Lenders do not give you anything.
Except it is free if you had a higher rate and you’re getting a lower rate for no cost with the negative points (lender credits). 5% -> 2.75% (no cost loan) is lowering the cost (interest) of that loan over time too compared to the 5%. What is dumb about that? Math works the same for everyone.
@@MillennialFinance101 exactly, you gave an example here of where it could work..depending on other numbers. On the video you made a general statement saying negative points are a free cost loan. My point is that it is not something you can generalize about . There are many scenarios where the math will show you that you are actually paying more when you are getting on what you called negative points. Your statement in the video is wrong. It is too general. It is misleading and it does not involve the math required to get to that conclusion.
Can you explain FHA refi and a HUD lien hindering the deal. If someone was only $4k behind total on mortgage payments over 10 years ago but HUD put a lien on for 40k?
Fha refinance requires you to buy upfront mortgage insurance premium again. It’ll usually be rolled into your loan because no one wants to pay that. That’s why I hate fha loans for refinances. Part of your old loans upfront mip will be refunded if you do an fha refinance and apply to the new loan so it won’t be the full amount. But at the end of the day, none of it goes towards the loan payoff. Go with conventional if you can to get rid of junk fees like mortgage insurance premiums.
The hud lien is most likely a second loan given to folks requiring downpayment assistance. They do this by giving the purchaser a 40k loan for example to apply as a down payment to get the loan. So basically it’s like a second mortgage on the property. So the seller has to cover both loans when selling the home.
Hope that helps.
@@MillennialFinance101 Makes perfect sense! Thank you for even responding!! They said they can do conventional (no PMI) vs the current FHA. However the HUD lien was do to a modification 10 years ago. Refi will be changed to a cash out to cover that lien. There is plenty of equity, income and good credit but the mortgage will go up a bit and the initial rate will also. The rate will still be less than the current. Closing costs will be all rolled in. Not sure if proceeding is a good idea. Thoughts with all that being added?
One simple conventional loan is the way to go. If it’s under 80% ltv, that’s the best kind of loan.
I imagine you can go with any lender and find a loan large enough to pay both loans off and just have 1. See if you can find one that has low closing cost so you don’t increase the loan balance too much
@@MillennialFinance101 Thank you so much! Your such a blessing! Thank you for your time! Stay safe!
Good luck!! Simple loans are the best loans!!
Hi thanks for the video. I feel mor confident now. What’s the bank you use?
Boxhomeloan
Bank of America
Really good video. What about a HELOC vs a cash our refinance? Does a Heloc have advantages?
No heloc. Heloc basically turns your equity in your house into a credit card. Best to avoid unless you like playing those kinda of games. If you are, just take out 0% credit cards and pay them off in full
Thanks for the video. I recently contacted my lender to see if I should refinance my loan. She advised me it wouldn’t be worth it. I want yo know your thoughts on this. Loan balance $267k at 3.65%. 5 years in of 30 year mortgage. Any suggestions?
Your current rate is already low and great so I would just stick with what you got. If you can find a 2.5% or 2.75% for little cost, I would consider it.
Great content. I do have a question. I am in the process of refinancing but loan officer kinda fishy. Should I refinance my current rate is 3.25% to 2.875% loan amount is $460k, closing cost is $9k with option impound which mean escrow will withhold 6 month homeowners insurance and 4 months properly tax? They told me no point no cost. Thanks
Try loan depot or boxhomeloans. That seems too high and $9000 closing is crazy for that rate. I know your impounds are part of that but subtract that out to understand the true closing cost. You should be able to find decent rates loke what you were quoted for low cost right now.
@@MillennialFinance101 thanks for replying.
I ask my bank , my loan would be 125,000, looking to refinance. Although I bank with them, the closing costs were close to 6,000 .
What is the name of your Lender again, i did not get the name, thanks in advance.
Boxhomeloan. Also try loan depot
@@MillennialFinance101 , is buying down a loan from 4% to 2% what the cost, if the loan is over $500k
Nope. You’re basically prepaying interest when buying down a rate. Not the best move since things can change down the road! You could sell or refinance and lose that savings.
I need refinancing to my home for 20 years, i got quotes from a better company to rate 3.37% and the closing cost is 5648, can you advise me is good?
Seems high in both rate and closing cost (make sure you don’t include escrow prepaids). 3% for little to no closing is what you are after. Less than 3% may exist also.
yes, the closing cost is 4504 without escrow, I can't get a 3% rate without purchasing the points because my score is fair, I have another question for you, the better company, is it a good company to make Refinance?
Thank you so much
Whats your old rate? I’ve never heard of that company.
@@MillennialFinance101 5%
Hi thank you so much for the video. Is there any way I can reach out to you? I have some questions regarding refinancing to get an investment property
I about to refinance and I have a 4.37 ...to refinance to a 3.12 ??? Help
Sounds like something you should pursue
I need refinance my home, but self-employed, cannot show the tax document, it is too low income, what should i do ? Thanks
Do you have 2 years of history to show? I saw there is a new rule for self employed.
@@MillennialFinance101Thanks for the quick response. I have two years but about $5000 each. where can I find new rule for self employed ?
Hi , I currently have a fha loan at 295, 000 at 4.1% I was call by a lender saying he can give me a streamline fha at 2.5 and drop my mortgage payment by 300 buck . No income veri. No cost , no appraisal and no credit check ,nothing and it will take only a few weeks don’t know much about this , but sound good , is there some major cons to this? Thanks
Definite no! The streamline means a new fha which means new upfront mortgage insurance premium. Don’t trust that lender. Get yourself a nice conventional loan now that you probably have great equity and loan to value. You’ll be paying way less with a conventional since you will have no pmi. I got another video on fha i made early on! Check it out! I hate fha loans :)
Ok thanks , good to know. I’ll check out the other video, which one is it?
th-cam.com/video/54Fa5G1b1E0/w-d-xo.html
We're in our late 50s still working, have 64,000 left to pay home. It is worth around 250,000. Have it through Wells Fargo looking to refinance to buy 2nd home cash out 50,000 ? Can you give me some ideas ? Better lenders ? God bless !
Should be OK thing to do since you'll be well below 80% LTV.
I purchased my home last year for 400k through FHA at 3.5%. I’m currently in the middle of refinancing at a 2.99% and getting rid of PMI.
I told my Lender, I would like a lender credit to offset the closing cost fees. My lender is telling me that the fees are being offset from the months that I don’t have a mortgage payment plus the refund I am getting from escrow. What should I tell them ?
Tell them to get you a slightly higher rate to reduce closing cost. What they said is how they get people… you want that in addition to the low rate/closing!!
Am I tripping or do you have a 4runner channel too? Lol
you ain't tripping lol
welcome lol
Thanks for this information but I realize that boxhomeloans is not in NY :-(
There are many lenders out there! Just compare those fees with box so you know what’s junk and what isn’t!
@ @@MillennialFinance101 - thanks for the quick response. I have been on a couple of calls with a few lenders, who mostly want personal details before providing a rate
dkumar50 unfortunately that may be the case for a lot of lenders.
Try credible
@@@MillennialFinance101 - thanks - not in NY as well.
How about if you're using the cash out to purchase another property for rental and to pay off some debts? In my case, I'm doing a cash out refi,i had to extend back to a 30yr loan, from 22yrs i currently have and of course my payments will go up by about 200 bucks. I was planning to put a 20% down payment on another property and use my current one as a rental. I'm in the process now. Is this a wise decision? Or I'm i better off getting a heloc? Thank you
You can’t refi as a primary residence loan if you plan to rent it out unless that’s a year later. Paying off debt isn’t a bad thing on a cash out but don’t get too crazy with it. Buying another property is fine too but just keep in mind leveraging your current home to get a 2nd home there’s a possibility of losing both. Just make sure you have a lot of reserves and you’ll be winning
@@MillennialFinance101 thank you very much. I appreciate your response
I'm so torn! I feel like just keeping my current loan and paying extra is the way to go. I am 5 years into my 30 year @ 4% and I plan to accelerate it by paying down the principal. Although a 2.25% for 15 years does sound inciting I don't want to restart my loan or pay lots of $$$$$$ to restart it. big sigh!
get a 25 year loan at 2.75% or so. You'll be winning more with that! Forget the 15 year if you're young. Just pay extra each month and lock in that low rate. Try boxhomeloan or Vertext financial group or Better Mortgage!
Okay so this is my current offer. 15 years 2.25% payment of 1389..00
Closing cost are $2914.00 and Insurance and tax escrow are $1922.00
My current payments is 1,285.00 25 years left with 4%. I just want to make sure I'm doing the right thing by staying put. Oh and why does it look like my new loan is $8,000 more than my loan now???
@@sonyacurti the new loan looks like that because they are trying to scam/trick you!!!! make sure the payoff amount is the same as the loan balance! Good eye!!
2.25-2.375 15year loan should be achievable for little closing cost (without changing loan balance!). You'd pay escrow but it'd be refunded from old loan.
Check out my video on how to get free loan quotes here: th-cam.com/video/vjz2RG6asks/w-d-xo.html
I suggest a 30 or 25 year loan still!!
what state Sonya? Looks like they wrapped in your closing costs. You dont need to go to a 15 if the loan has no prepayment penalties. You can turn a 30 year loan into a 15 if you pay extra each month.
Thanks so much!!!! I loved your video and I've decided to keep my current loan and pay it off quicker by making EXTRA because I wanna keep my equity and DO NOT want to reset! Thanks again 🙏
How do you qualify for your rental property home equity with good credit and low paying job. Renters cover rent now and would cover with refinance cash out?
what about taking out $$ to make improvements aka ADU?
I wouldn’t...
"I have fell"?
Thanks for posting. i have a $197,000 loan amount left in a $251,000 sale price home. Bought in 2019 at 4.75%, trying to refinance at 2.75%. my confusion is this. on the loan estimate, the loan amount went up to $200,800, plus there is a closing cost of $3812. Why?. Is the difference of $3800 (208-197) for this years taxes/initial escrow at closing? I have no PMI, but i have escrow attached to the mortgage. I have about $3500 in my escrow account with my current lender. i know that i will be refunded the money if i close before this years tax is paid. I want to pay closing cost out of pocket. Please help......
Watch my refinance comparison video but it sounds like you understand the fees well. I would get another quote somewhere else. The cost seems like it’s about $5000 or more due to the principal increasing and subtracting our the escrow.
When you get a new quote, get a quote for 197k for the loan amount. That way you will know true cost of refinance
@@MillennialFinance101 why's the initial escrow attached to loan amount? I don't want to pay interest on my escrow amount
@@MillennialFinance101 ok
Escrow should be separate in the quote. Looks like they just increased balance to lower your closing cost, even though it’s still high and ridiculous.
Hi i am 1 year into my 30 year 2.75% would it make since to refi? What about a cash out refi?
Definitely doesn’t. Depends how badly you need this cash
We're trying to refinance and the new loan cost came out to be 5000$ more.. with the possible around 2000$ refund at cost.. does that sound right if we say we're paying about 3000$ in fees?
Hmm I got a new video coming later today that you should check out! It’ll be how to compare loans and true cost. What you stated sounds right and it seems like you are increasing your balance on your loan in the refinance.
@@MillennialFinance101 thank you soo much for your reply! the estimate got so much of those junk fees you mentioned so I already lost my interest in this officer! 😂 Thank you for your awesome videos!
@@Bloomingp-t3m No problem! My next video will be of interest if you want to save a ton of money refinancing!!
@@MillennialFinance101 I went to boxhomeloan you recommended and they're bombarded with customers, can't even apply anymore :/
Bummer. Try United wholesale
Is the referral discount fee of $625 is applicable in any amount of loan ?
From box home loans?
It’s a percentage of the loan amount. 1/8 a point I believe.
Can you recommend a lender to do a heloc?
I cannot
So i only been in my home since nov 2019 I'm looking to refinance from 4.5% to 2.99% it is 1 point tho, omg this is so confusing 😳
4.5% is way too high for today. Suggest you try refinancing your 2.75%
Hello... I know I’m a month late from this comment... My loan officer wants to put me at a 3.3/8% from a 4.625% we locked the interest today. Is this too high? If so, can I back out of the deal even though we locked?
@@simplyshantal you may have to pay fees if you back out. I'm not sure i understand what a 3.3/8% is? You can probably get 3.25-3.375 for little cost today. Gess it depends how much you need to borrow
Box Home Mortgage is apparently not in NY State. Do you have another rec for a good company that is in NY? Thanks!
Loan depot, watermark mortgage are a few
@@MillennialFinance101 Thanks!
im looking to refinance my 190k home ive spoken to one loan agent.. no out of pocket what so ever he can drop interest from 4.25 to 3% but heres the catch.. my new loan is 200k.. wth! why is he charging me 10k to close? any advise please?
He’s rolling your closing cost into your loan!!! Don’t fall for it! Get another quote. I’ll be doing a video soon on how to compare loans!
I talk about this at 3:35 in this video
@@MillennialFinance101 thank you sir im actually watching your refinance video rt now.. i really do appreciate you taking time to help us poor people... i do not trust banks .
tudo cervera just spreading knowledge! Thanks for watching!
See if you can get a quote from United wholesale. I just reviewed one of their quotes and it wasn’t too bad. Or boxhomeloans if available in your area.
What are your thoughts of a FHA streamline refinance..i just got a quote from mid America they are saying no closing cost yet my loan is 164 870 now the new cost 172,518.do you have an email i can reach you.
Check my channel page as I have my email there. And they are increasing your balance to make it “no cost”. Please do not do that loan. Try to get on a conventional loan so you don’t pay upfront mortgage insurance premiums and monthly insurance premiums (MIP).
@@MillennialFinance101 thanks much
Is a 96% tip high
My credit score is 560 and they approved fha cash out refinance? Will they approved for me or they just joking ? in process right now my equity is $300,000 what is best way to use this money ?
Cash out refi or apply for a HELOC?
Depends what you're trying to do. Personally, neither.
credit card you pay off in full every 2 weeks
Why are your replies not viewable?
I have no clue!! Is this one viewable??
Does it make sense to refi from a 3.75% FHA 30-year fixed to a 3.75 Conventional 30-year fixed so I can get rid of the MIP premium of $168.00/month? The refi would bring my loan balance from $255K to about $262k. My house is worth about $325k. Thanks!
The principal balance increase would take 3.5 years to recoup. I would say no. But I’m sure you could get a 3.5 loan for no cost (no balance increase) so find a better lender! I would support and advise you to do that. Fha is lame once you don’t need it.
@@MillennialFinance101 Perfect. Thank you!
First of all, MAAAN‼️ your video is so detailed and good, thanks so much for those 5 very important points when it comes to refinance our house. 🙏🏼✨ THANKS SO MUCH.
I just received a card on my mail from THE MERIDIAN TEAM OF SUPREME LENDING / To refinance my house with them. The deal is so tempting because I just bought my house 18 months ago and my APR in my house is 3.2 fixed rate. They are giving us 2.25% fixed. I can not imagine the amount of money we can safe as years goes by if I take this deal, but in the same time I have heard that refinancing is not good so NOW IM CONFUSED 😩😩😭 do you have an email, so we can talk my friend please, I would be so thankful if you could help me out with this process….
Check my channel info page. My email is there. The rates are much higher now so be careful with that offer. All interest rates are way up as of January 2022
Hi I, my name is Jo I want to refi I need guidance I'm in Seattle
Let me know in the comments and I will help if I can!!!
Hi, I bought my house 4 yrs ago for 260k with 4.25 interest fha loan 30yrs fixed , I wanted to refi for lower monthly payments should I aim for conventional or fha with lower interest rate and lcok forn30yrs again?
Jo Laranjo since you have FhA, you are paying mortgage insurance premiums(MIP) that never go away. If your home has appreciated, refinance into a 30 year conventional. Your loan to value is probably well below 80% now which means no PMI (similar to the MIP for FhA). You’ll be saving a ton of interest with a conventional. Then keep paying the same payment on the new loan because you’re probably gonna be 300-400 cheaper with the new loan.
My plan is to stay here 5 or more years
You can find free loans for 3%-3.25% which is over 1% less than what you’re paying so you’ll break even quick and save a ton. I highlyyyyy suggest you refinance. You will only need to stay in your home for 1 year before you can sell it
Hey can I use this to combine all 3 of my timeshares ?
I’m not sure I follow… you mean cash out refi and pay off your timeshare?
I have a fha 3.8 loan $300 pmi
I want to refi out of fha to conventional loan
I paid extra $1000 a month on loan so I’m at year two on payment chart by doing this
Should I refi or just keep attacking the principal?
Yes. Your home may have appreciated and you might be at 80% ltv. Definitely look into conventional
I’m going to try the company you suggested
You can get instant quotes on their website
Your chart was too small to read and therefore no benefit.
Sorry! Forgot about my mobile viewers!!
Wait... i shouldnt buy a Tesla??? O.O lol
Get a few more rentals and then maybe you "should".
Actually I borrowed the 260k from Chase and in 3 yrs time bec I paid extra to principal my balance went down to 190k which is equivalent to 10 yrs of my 25 yrs mortgage. . Is refi the best course to take? Ty
The math will still work out similar
Thank you so much for sharing this awesome video! I am trying to understand more about mortgage and it is great to learn from you. Based on my research, interest rate looks not bad in recent deals: rate.exposed Do you think it is a good time to buy a house or the rate will further go down? Any advice would be helpful and appreciated!
I'm planning a new video soon about low interest rates & high home prices vs high interest rates & lower home prices. I would say I prefer the latter but that is because I have more cash on hand to buy. A lot of folks fall into the former since it's appealing to be able to afford something due to lower interest rates. But remember, if you get the latter, you can always refinance down the road to get a lower rate or pay down principal or get cheap homes. The latter is my preferred option so I would say no, it's not a good time to buy a house right now.
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Thank you! Great information.
Thanks for watching!
Nice video, I want to refinance my house the interest rate I have is too high 7.25 , which bank you can recommend for refinance with lower interest , you think is better refinance over internet then regular local bank like pnc bank?
The internet will get you better prices. Try boxhomeloans, rocket, loandepot. 7.25% is robbery! Get on that ASAP
@@MillennialFinance101 yes it is theft, but I am a little afraid to refinance through the internet
@@MillennialFinance101 Which of the 3 has the best rate? at the moment
I use boxhomeloans but it’s not always available in all states so you can try loan depot or rocket mortgage
Great information on here
I really like this video thank you so much! There's lot of good information.I am getting ready to refinance my house after removing Ex-spouse name. The current balance is $70,000 with 5.10%. I don't plan to move or sale it anytime soon but I plan on paying my house off in 5 years or sooner or if I can get it refinance with a lot lower rate how many years should I stick with I have 13 years left now can you please advise
Get that new loan in place and enjoy some lower interest and no pmi. Then start paying extra each month and saving / investing and once you have enough, you can decide to get rid of it or not!
I would personally get a 30 year because times are crazy and who knows. Just pay extra so it's like a 15 year. But then again I'd probably get a 15 year since you have 13 years left.
@@MillennialFinance101 thank you so much 🙏
The rates may be shooting up soon (as they are already since December!). Make it top priority !
@@MillennialFinance101 you are awesome thank you so much
@@kukinoooo you left a question on my other video but i can't seem to find it. Yes your daughter can claim it if she files herself and you don't claim her on 2020. It's unclear if 17 years olds can get the first 2 stimulus. I imagine if he can file taxes, he can claim it. Just try it and let me know! He also should definite include his w2 info since the IRS probably took some of his taxes so he can get that back also. If you end up claiming him, you will not get stimulus for him as he's 17. But you WILL get the 3rd stimulus since the dependent definition got updated for that.
Thank you! box home loans don't service nyc...can you recommend another? thank!
Try quicken or Loan depot
@@MillennialFinance101 thank you! 😊
@@MillennialFinance101 ok..quicken services nyc not the other...thanks again!