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Today I answers the question “Should I refinance my mortgage?” and how to know.I
t’s important you understand that every mortgage refinance is different, and needs to be taken on a case-by-case basis. In this video, I explain some of the questions you need to ask yourself to know whether or not you should refinance, and goes through examples.
Don’t make the mistake of following general rules for mortgage refinancing! There is no such thing as a blanket rule that applies in every situation, and you should be wary of anyone who says there is. Only after you have answers to each of the questions in this video will you know if mortgage refinancing is right for you.
If you're considering refinancing your home or mortgage, download the Refinance Cost vs. Savings Checklist here: https://bit.ly/SWCheck
Hi everybody, Stephanie Weeks here and welcome to my channel.
I am a loan officer with over 15 years experience helping thousands of clients just like yourself, buying and selling and refinancing real estate.
And I have been in the top one percent in the nation in my field several years running, and I'm very excited about that 'cause my team works really hard to get us there.
Thank you for tuning in today.
If you are here to learn about, how do I know if I should refinance my mortgage, guess what, you have come to the right place and I'm happy that you're here.
There are so many myths out there, there is so much misconception.
There's so much information on Google it can just be overwhelming.
So, I want to break it down, make it as simple as possible, and then I'll also give you some links below to some checklists I've created to help with your specific situation and figure out how to crunch numbers to make sure if refinancing makes sense for you.
One of the big things that you want to consider when refinancing is, what is your goal, with this property?
Are you living in it forever?
Are you living in it for now and you're going to rent it out later?
Are you going to be selling it?
What's your plan, because that has a huge effect of whether or not a refinance makes sense for you.
As an example, and we'll get into more detail later, but as an example, if a refinance is gonna cost you $4,000 dollars and save you $100 bucks a month, that's a 40 month break even point.
So if you plan to sell your home in two to three years, that refinance is not for you, because you will end up losing money.
If that makes sense to you, put me a comment below because I would love to hear your feedback.
Don't forget to subscribe to the channel, hit the bell to be notified when I post new videos, and be sure to leave me comments
because I really appreciate the engagement and the feedback.
I am all about education.
What's the next thing you wanna consider?
You want to look at, how long that you have paid into your current mortgage, and what's left on that term.
So as an example, again, this is case by case but, let's say that you want to have your home paid off whenever you can, right?
You don't necessarily want a 30 year mortgage.
So you want your home paid off whenever you can, and you are in a 30 year mortgage that you've paid six years into.
Okay.
Then we want to look at, what's your current rate, and how much you've paid in so far as well as what's left?
Right?
Because if you're in a unique situation where maybe you need to extend the term, maybe you need to lower the payment because of what's going on, but maybe you don't.
So make sure that you realize that there are many terms to choose from.
There's 10, 15, 20, 25 and 30.
Yes, 10, 15, 20, 25 and 30.
There's not just 15 and 30 year refinances.
So you wanna keep that in mind and look for your situation.
I worked on some numbers for a client this morning, and we were able to get him to save money every single month.
We were able to lower his interest rate, and what makes me really happy because I'm super nerdy like that, and I'm like the only loan officer that gets happy when people pay off their mortgages.
Anyway, I got one up on a tangent there, but, so he had paid into his home for two and a half years.
Well, not only was I able to save him money in interest, not only was I able to save him money on his monthly payment, but he didn't even realize that we could do a 25 year term.
So instead of extending out to 30 years, when he had already paid in for two and a half, we were actually able to do a 25 year loan for him and save him tons of money, monthly and over the life of the loan.
So, how does that sound so far?
Make sure you leave some comments below because I'd love to hear what you have to say.
Also, another thing that you want to consider is, what are your plans with overall debt reduction?
Okay?
My philosophy is, if you owe money on anything besides your home that's what you want to pay off first, and then you want to work on paying off your home once you paid off all your other debt, right?
So there are things such as a cash out refinance, which may or may not make sense for you.
Nothing is blanket here when it comes to mortgage financing.
Nothing.
Don't use generalities when it comes to your money, please.
So you might wanna consider a cash out refinance.
There are lots of different types of refinances, cash out, there's rate and term, you might wanna shorten your term, you might wanna extend your term for a reason.
Maybe you're trying to remove somebody from the mortgage, maybe a spouse, an ex spouse, maybe a cosigner that you don't wanna have on there anymore.
Maybe you wanna buy somebody out of the property, maybe you wanna cash out to pay off debt.
There's a lot of different ways to structure potential refinances.
And I'm gonna repeat myself and say that everything is case by case, by case, by case, by case.
It is not a flat blanket statement that is correct that if you don't save two percent on your rate you shouldn't refinance,
Wrong, wrong, wrong.
Okay?
It is not an accurate blanket statement to say you should never pay points.
Wrong, wrong, wrong.
Guess what I'm gonna say again, case by case.
