6 Times When Refinancing Makes Sense! When Should You Refinance Your Mortgage

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  • Опубліковано 3 лис 2024

КОМЕНТАРІ • 129

  • @lasavinegivens1756
    @lasavinegivens1756 Рік тому +85

    I was blessed to refinance my home from a 5.2 interest rate to a fixed 2.5. This was doing the pandemic and the interest rate was low.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +7

      Excellent - That is when it made a LOT of sense. Right not for most people it does not make sense to refinance. Congratulations!!

  • @naturegirlbb100
    @naturegirlbb100 9 місяців тому +16

    What a brilliant woman, I am a mortgage officer and I am learning a lot from you. God bless you🙏🏾

  • @michelletxrealtor
    @michelletxrealtor Рік тому +24

    I just came across your videos & I absolutely love the content you put out. You speak very calmly and without any rush. Definitely helps out the new people who are trying to grasp this. Thank you !

  • @rosesolis1868
    @rosesolis1868 Рік тому +20

    Thank you for speaking slowly and clearly, much appreciated.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      No problem, thanks for watching

    • @michelletrimble4222
      @michelletrimble4222 Рік тому +1

      That’s why I love watching her videos. It’s so much info and numbers being thrown out that I appreciate her clarity and it’s easy to follow.

  • @OrthodoxChristianWife
    @OrthodoxChristianWife 10 місяців тому +6

    Thank you for often explaining a point in a few different ways, and repeating it, that is very helpful ❤

  • @jaahnnn
    @jaahnnn Рік тому +7

    I haven't been in agreement with alot of these channels on home buying and whatnot..but this is actually a good video with correct information

  • @primroseblake5343
    @primroseblake5343 Рік тому +5

    I was waiting for this one. Thanks sis!

  • @SJJsolomonSJJ
    @SJJsolomonSJJ Рік тому +5

    Thank you sis. Your video made the process a lot more clearer

  • @2024CorvetteE-Ray
    @2024CorvetteE-Ray Рік тому +5

    I know this video is 5 months old at this point, but it's still really solid. For me, it does me no good to try refinancing my loan. I have a 2% rate on my VA loan, so no one will touch it. I've tried. So I have TONS of positive equity in my home, but I also don't really have a reason to refinance it either though. So I just keep paying my current rate.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +1

      Yes, it doesn't make sense to refi a 2% rate. Thanks for watching

    • @lavernhoyte8474
      @lavernhoyte8474 5 місяців тому

      Thank you very interesting

  • @lashondabattle2627
    @lashondabattle2627 11 місяців тому +3

    Thank you for sharing.

    • @ShaheedahHill
      @ShaheedahHill  11 місяців тому

      @lashondabattle2627 Thank you for watching

  • @worldchanges10
    @worldchanges10 Рік тому +5

    Honest and devoted thanks

  • @roxannerosa2708
    @roxannerosa2708 3 місяці тому +1

    Thank you! This was very helpful!

    • @ShaheedahHill
      @ShaheedahHill  2 місяці тому +1

      @roxannerosa2708 Thank you for watching

  • @alnett22
    @alnett22 10 місяців тому +5

    I want to refinance for a lower interest rate at the moment. But I have a question I have been paying my mortgage for a little over a year now and I've noticed I've only paid for interest not for the principal. If I refinance again for 30 years what happened to all the money I paid on that first year of my original loan? Do I have to start all over again paying from 30 years and they kept all the money I paid that first year on my original loan?

    • @ShaheedahHill
      @ShaheedahHill  10 місяців тому +3

      In the first few years of your mortgage you will be paying primarily interest but some is going to principal. You need to get your amortization table they gave you at closing and that will tell you exactly what you are paying towards principal and interest each month. You will not get those interest payments back when you refinance. You are refinancing your current loan balance. @alnett22 Thank you for watching

  • @andriyatomick9732
    @andriyatomick9732 7 місяців тому +2

    thanks for video

    • @ShaheedahHill
      @ShaheedahHill  7 місяців тому

      @andriyatomick9732 Thank you for watching

  • @TahoeRnnr
    @TahoeRnnr 7 днів тому

    I am working on a refi. 6.7 now and locked in 5.6... ~4000 in closing costs. Worth it??

  • @bosslady874
    @bosslady874 9 місяців тому +2

    Awesome!!

  • @jujubee90275
    @jujubee90275 8 місяців тому +2

    Very helpful video

  • @matthewgilliard4978
    @matthewgilliard4978 Рік тому +1

    Great Insight, I am considering Doing A cash out Refi for my property in Georgia soon. Thanks

  • @arkomaxwell9645
    @arkomaxwell9645 Місяць тому +4

    I need help my current interest rate is 6.7 and am offer 5.25 % should I go for it even though I have my house for two years

    • @kayonnaroberts1988
      @kayonnaroberts1988 Місяць тому

      I’m in the same boat, but I’m only 7mons in

    • @MrTee12
      @MrTee12 Місяць тому

      Do the math and see if the upfront costs to lower your monthly payment are worth it and when you will break even

    • @BooBae123
      @BooBae123 Місяць тому

      Who is your mortgage with please. I was offered a rate much higher.

    • @TheChartingQueen
      @TheChartingQueen Місяць тому

      Please who is the mortgage lender

    • @murgy1221
      @murgy1221 17 днів тому

      ​@@TheChartingQueenTalk to all banks, even the really small ones (they need the customers)

  • @curtdiego3448
    @curtdiego3448 Рік тому +3

    Thanks for the jewels. Can you make a video about questions a mortgage lender can't ask you.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +1

      This is the closest I have done to that ua-cam.com/video/JH2HOD2tXms/v-deo.html and here is my mortgage options playlist ua-cam.com/play/PL6YdU_zvybVli4gCUXphAIN6yv2Xu7_Zf.html

  • @LAND_Academics
    @LAND_Academics Рік тому +3

    Thank you 🙏🏼 💜🧡

  • @saritamoorebansa4485
    @saritamoorebansa4485 Рік тому +3

    Please do a segment on recasting a mortgage. I have paid down my mortgage. Paying down my mortgage aggressively and heard this may assist me.

  • @kareembacon8058
    @kareembacon8058 8 місяців тому +2

    Good info

  • @shahrinaalam1805
    @shahrinaalam1805 Рік тому +10

    Mrs Shaheedah, thanks so much for the video, I was waiting for this one. I bought the house on FHA loan with 3.125% interest rate, the home now is appraised for 500k, where original price was 425k. We want to get rid of the MIP, but the rates are not lower. Would you suggest something for us?

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +5

      You don't want to refinance just to get rid of mortgage insurance. Because if you do the math, you will likely end up with a higher overall mortgage payment with the higher interest rate even if you get rid of the mortgage insurance. So my advice is not to refinance unless you will be saving money - so do a break even analysis and know what your monthly payment will be with the higher interest rate. You would likely be doubling your interest rate right now to get rid of Mortgage Insurance - Don't do it. Here is my video on getting rid of mortgage insurance it goes into more detail. Good news ...as you pay down your mortgage your monthly mortgage insurance also decreases. ua-cam.com/video/M-VnXMwTPMI/v-deo.html

    • @rahshayle
      @rahshayle Рік тому +1

      @@ShaheedahHill this was the comment I was looking for. I have an FHA at 3.0% and I have over $100k in equity. Looking to refinance but I'll stick with my FHA loan. When I calculate it, I'll be paying more with a conventional at today's rates!!

  • @aprilmonique7639
    @aprilmonique7639 Рік тому +4

    Thank you for breaking it down. ✨️

  • @2024CorvetteE-Ray
    @2024CorvetteE-Ray Рік тому +2

    What are you thoughts on a second mortgage? I was told to NEVER get a second mortgage, and they are just trouble. I really don't know why people do this anyway, it's having TWO mortgages not he same house. Your thoughts?

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      It really depends of what you are planning to do with the money.

  • @34july8
    @34july8 Рік тому +2

    Hello and thank you for the info. How can I be reconsidered for another refinance loan? I did one last year but was denied this year

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      It depends on why you were denied. If you fixed that issue you should be able to reapply. Anytime you are denied financing the creditor is required to explain why in writing.

  • @g-mawof5310
    @g-mawof5310 Рік тому +3

    I’m all Ear’s! Hi Shaheedah!

  • @HealingSunHouse
    @HealingSunHouse Рік тому +3

    I went thru the application process to to do a Chad out refi...went all the way to the closing table only to learn that I wouldn't be able to get 85%of the value of house but instead only 80%...that went from a 35000 cash out to 20000 cash out...I walked away because the 20000 would cover the repairs I want to do to have a income earning unit on my property....I was bummed...

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +5

      Thanks for sharing, good for you for walking away. I will have to do an new video on Cash Out Refinancing Specifically.

  • @yulesisyul6807
    @yulesisyul6807 2 місяці тому +1

    hi. ive been watching your videos and yours has been very helpful. your voice is clear and your thought process is direct concise and informative. you are a natural teacher. if i may ask, say the original loan amount was for 300k at lets say 6%. you have been paying extra every month in the principal because you never know when the rate is going down. after 5 years rate is at 3% and my home is valued at lets say 400k. and having paid extra to my principal for 5 yrs my loan went down to 230k. i decided to refinance. my question is do i refinance a new loan at 230k which is the remaining balance? or do i start back to the original 300k value of the home i bought disregarding all the advanced payments i had on the principal or do i start back on the 400k which is the new value of the house after 5 yrs? thank you for your clarification! more support to your channel

    • @ShaheedahHill
      @ShaheedahHill  2 місяці тому

      When you refinance you would be paying off the original loan with a new loan, so if your balance at the time of the refinance is $230K then the new lender will pay of the first loan of $230K and you will begin to pay the new lender. However, if you want to access the estimated $170K in equity you have, then you have the option of doing a cash out refinance. Here is some info on cash out refinances and how equity works - ua-cam.com/video/9JsX3X6Fx_M/v-deo.html

  • @margarettecharles4852
    @margarettecharles4852 Рік тому +3

    Very helpful video

  • @akiwifer
    @akiwifer 2 місяці тому +1

    Hi there! Rewatching now that rates have dropped! Can you please clarify what you mean by closing costs? Are you referring to the difference between the current outstanding balance on the existing loan and the new loan amount after refinancing? Or the total costs of all the line items for closing (origination fees, lender credits, prepaid, etc), or the cash to close when refinancing?

    • @ShaheedahHill
      @ShaheedahHill  2 місяці тому

      Lender fees for closing the loan, you will in most cases required to establish a new escrow account, that will include your pre-paid items. I have some new videos coming up on this topic soon.

  • @StaCey777
    @StaCey777 Рік тому +3

    Hi, does this make sense? I make about 20k a month but I have alot of expenses and debt with high interest rate & my credit score is on the lower side. My rationale is take the 100k from cash out refinance to pay off debts & eliminate monthly expenses which would increase my credit score & I would have more cash on hand. Essentially Ill be ok with the higher interest rate with monthly mortgage & would refinance when the rates drops? Goal here is to eliminate debt & expenses to increase credit score for future business endeavors. Any thoughts or suggestions?

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +2

      You can do that and the payment would likely be lower than your other debt especially credit card debt., but you are putting your home at risk if you are unable to make payments, with the debt currently not attached to your home they cannot come after your home if you cannot pay. The main risk is putting your home as collateral for you debt. I would rather you tighten your budget since you have a good income and pay the extra to your debt. But get a quote and see what makes sense for you. Thanks for watching.

  • @gabrielleveray1
    @gabrielleveray1 Рік тому +4

    I got an interest rate for 3.8%. I don’t see the rates going lower than that again. When do you suggest refinancing? I have a conventional loan.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +3

      Only refinance that rate if it drops about 1% lower than you current rate. It doesn't may sense for most people to refinance now. Just follow this video checklist and you should be good.

    • @gabrielleveray1
      @gabrielleveray1 Рік тому

      @@ShaheedahHill Thank you!

  • @comments.cuestionsandconcerns
    @comments.cuestionsandconcerns Рік тому +2

    thanks!

  • @MzBern
    @MzBern 2 місяці тому +2

    How/ where do I get streamline refinance information. I just purchased home interest high 7% need to refinance lower

    • @ShaheedahHill
      @ShaheedahHill  2 місяці тому +1

      Ask your current lender, credit union or online bank. Let them know you are interested in a streamline refinance...maybe wait until September that is likely when you will see the first Fed rate cut.

  • @h3arithere224
    @h3arithere224 Рік тому +4

    I have a question I closed last month . They asked me for more earnest money during but I never put more down. Now that I have closed the sales team said “hey we just realized you never paid the extra earnest money. Can you pay it now?” I already closed. Is that normal and they gave me a check a closing said I wired too much. Hope you can help with this question

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +2

      This is NOT legal advice. I wouldn't do it willingly unless you are legally required to. Review your closing disclosure and everything should be spelled out there. If you didn't have the funds required they should have not let you close. Have your agent refer you to an attorney that might be able to give you some free council. Put the money aside just incase you are legally required to do so. But I have never had this happen, seems like the seller/builder made a mistake and now they are trying to get some money back, but they may have to eat whatever the amount is on their end.

  • @amazonkee74
    @amazonkee74 Рік тому +6

    Hello, I have 30 year fha loan that I owe $143,000 balance at 3.75%. I purchased th3 home in 2006 for $225,000. It is valued at $420,000 and i have started the process and suppose to close in two days on a cash out refi fha loan and the rate will now be 5.99%. I want to use the money to do home improvements.such as nee roof, newdeck, upgrade furnace, water heater and etc.. i think i want to not follow through with it because the nee payment is making me nervous. Going from $1270 to $2125. With the appraisal and other paperwork beeing done already will i still be responsible for fees if i do not close the loan. Confused in michigan with 🚀🏡.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +14

      I wouldn't do it. Your mortgage payment is going up $855, if you have that extra money each month put that money aside and start doing some of the upgrades to your home little by little, furnaces and water heater should be covered in year 1, see if your homeowners insurance will cover the roof - if it has storm damage they will typically give money for replacement, talk to a roofing company - that is how I got mine replaced and only paid the deductible., the new deck is likely a want and not a need so save up for that - if the deck is a safety issue then a contractor can come and bring it up to a safety standard without replacement. Good luck - If you back out you are typically only out of your appraisal fee, but ask the lender to be sure.

    • @amazonkee74
      @amazonkee74 Рік тому +13

      @@ShaheedahHill thank you VERY much. I was feeling that way and sent an email to the refi team canceling right after I made that comment. The previous three nights i felt like I wasnt making the right decesion. I slept like a baby last night, resting in the fact those were wants, not needs. Thank you so much for replying and giving sound. Solid advice. God bless🥰

  • @JackMeyHoffer562
    @JackMeyHoffer562 2 місяці тому +1

    Hi Shaheedah,
    I have a primary 30 year FHA mortgage at 6.25% and a silent second from down payment assistance. Total is about $385K.
    Right now my gameplan is to payoff credit card debt, about $3500, then see how close rates get to 4-4.5% then a full refinance including appraisal and tap into approximately 30K in equity since we bought the house to pay closing cost and payoff silent second mortgage which is required from the state dpa program.
    I'm wanting to take my monthly payment from about $3,050 to around $2000 to $2300
    What do you think of the plan?

    • @ShaheedahHill
      @ShaheedahHill  2 місяці тому

      How much is the State DPA program balance? Find out from the state program, if you would still need to pay it off if you do a streamline refinance. I don't know if I would wait until it drops 2 full points.

  • @HAYLINGTONG
    @HAYLINGTONG 10 місяців тому +2

    Hello Mrs Shaheedah Hill . I closed my house in 2023 with 20% down payment , convention loan and my interest rate 8.375% my question is do I need to refinance for low rate . I live in Arkansas, 72762. Thank you .

    • @ShaheedahHill
      @ShaheedahHill  10 місяців тому +1

      It would likely make sense for you to refinance because you should be able to save at least 1.5% or more now that rates are lower. However, if rates go even lower then you may want to refinance again. Refinances cost money that they typically roll into the loan. I would be in communication with at least 2 lenders, the one you used when you bought your home and another to see if you should wait until rates go down some more or go ahead and do it now. Make sure you are getting at least 2 quotes and estimates with the quotes including all the fees. @HAYLINGTONG Thank you for watching

    • @HAYLINGTONG
      @HAYLINGTONG 10 місяців тому

      @@ShaheedahHill thank you very much , I do love all your videos is help a lot people🙏🙏🙏

  • @mari.5690
    @mari.5690 Рік тому +3

    Shaheedah, what happens if our home goes down in price in the next couple of years when we’re planning on refinancing? What can be done in that situation?

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +3

      It will be more difficult to refinance, but not impossible. If you have a Gov't backed loan (FHA, USDA, VA) - you may be able to still do a Streamline refinance even if your home is worth less than you owe. But I do caution buyers, to make sure the initial mortgage is one that you can comfortably afford so you are not dependent on a refinance for affordability in the future.

  • @laurah863
    @laurah863 4 місяці тому +1

    Currently have an fha loan and definitely looking to refinance to something lower (at least the 1% you mention). We have 17% equity so far and I am wondering if refinancing, putting the other 3% in to lower pmi is a good idea. My biggest concern is, if we do that, we won't have much $$ left towards closing costs. If we ask to roll the closing costs into the loan, wouldn't that then lower our equity to under 20%? I'm not entirely sure how this works.

    • @ShaheedahHill
      @ShaheedahHill  4 місяці тому

      Depending on what you interest rate is now, it may not make sense to refi to coventional at the higher interest rate just to remove the PMI. Use some mortgage calculators to play around with the numbers to see at what rate refinancing would make sense for you. Remember also, as your mortgage balance decreases, so does that amount on mortgage insurance you pay. Lastly, yes rolling the closing costs into the loan will decrease your equity, but they will send an appraiser out anytime you refinance. @laurah863 Thank you for watching

  • @shannonroberts7242
    @shannonroberts7242 Рік тому +3

    HELLO!, question, would getting 3 quotes from 3 different banks make a difference considering mortgage interest rate are about the same no matter which bank you chose? what other factors should you look into when choosing a bank for a mortgage? Thanks :)

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      Here is my mortgage options playlist ua-cam.com/play/PL6YdU_zvybVli4gCUXphAIN6yv2Xu7_Zf.html . All banks do not have similar interest rates, rates can be vary widely, but to answer your question you also want to look at fees the lender charges, their ability to close in a timely manner and communication - you want to be able to contact your lender as needed during the home buying process.

    • @shannonroberts7242
      @shannonroberts7242 Рік тому

      @@ShaheedahHill Thank you :)

  • @cjackson06
    @cjackson06 Рік тому +4

    Hi Mrs. Shaheedah, I have a question about putting a down payment on a Va loan? The rate is 5.75, and I wanted to know is it worth it to put down 20k on a VA loan? Or should I wait to refinance? Suggestions please. Tia have a blessed night! 🙏🏾

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      Will putting money down lower your rate? I did a live last month all about VA loans... watch that it should help.

    • @cjackson06
      @cjackson06 Рік тому

      @@ShaheedahHill No putting money down will not lower the rate, does it make sense to make a down payment? Do you have the link for the video? TIA

    • @Mrzdavis11
      @Mrzdavis11 Рік тому

      @@cjackson06 I will make a difference in your monthly payment

  • @barbarasaunders2160
    @barbarasaunders2160 5 місяців тому +1

    If you do a refinance after the 6 months, do you have to pay closing costs again.

    • @ShaheedahHill
      @ShaheedahHill  5 місяців тому

      Yes, with most lenders, some lenders are waiving the refinance fees if you use them for the refinance.

  • @momof4121
    @momof4121 Рік тому +2

    Can you refinance from a conventional to an FHA?

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      You can, but usually it doesn't make sense if you have 20% equity in the home, refinancing to convential will allow you to avoid mortgage insurance. Thanks for watching.

  • @yeyem6678
    @yeyem6678 Рік тому +3

    What about mortgage recast?

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +1

      Totally different...I might do a video on recasting in the future,

  • @smitarastogi
    @smitarastogi Рік тому +2

    Hello Shaheedah thank you for sharing this info..I have a client who is interested in a property coming soon. The seller bought the house Sept 2021 on purchase price 415k for 2048sqft house. Loan of 425K VA loan and in Oct 2022 the seller took a loan of 20k as a stand alone loan. Can my buyer ask for assuming the VA loan as a condition in the offer letter. The buyer is able but not a VA.TIA God bless you dear for the good work you are doing.

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +1

      Yes, here is my video on loan assumption - ua-cam.com/video/FBs7_RwW2hk/v-deo.html
      Have your broker assist you with the wording to include in the offer.

    • @smitarastogi
      @smitarastogi Рік тому

      @@ShaheedahHill Thank you.

  • @oneandonly2416
    @oneandonly2416 5 місяців тому +1

    Hello, I know this video is old, but i need your advice, please. I have an FHA loan at 7.25%. I brought the house in November 2023, and my monthly payment is 3237.00. I am drawing already. What advice do you have for me?

    • @ShaheedahHill
      @ShaheedahHill  5 місяців тому +1

      Here is a video that I did on how to save. A refinance would not make sense because rates are about the same. Watch this video and see if any of these would apply to you ua-cam.com/video/U9HckhFbbeI/v-deo.html
      If none of those apply, can you get a roommate or rent a room to get help with the payment? Rent is really high so people are looking for more affordable housing options.

    • @oneandonly2416
      @oneandonly2416 5 місяців тому

      @@ShaheedahHill thank you so much for your prompt response. I will watch the video. I live in an HOA community with limited options.

  • @yd8210
    @yd8210 Рік тому +1

    Do you have a video on Reverse Mortgage?

  • @kwakuawuah9553
    @kwakuawuah9553 Рік тому +4

    What are your options when your refinance appraisal comes in higher? For example, $300K home appraised for $355K

    • @ShaheedahHill
      @ShaheedahHill  Рік тому +5

      If you are doing a cash out refinance you have more money to potentially take out, but not much else. If you have 20% conventional then you can get rid of PMI

    • @kwakuawuah9553
      @kwakuawuah9553 Рік тому +1

      @@ShaheedahHill thank you. What if you’re refinancing to reduce your interest rate or move from ARM to Fixed and the appraisal comes in higher? I hope my question makes sense…

  • @Mrzdavis11
    @Mrzdavis11 Рік тому +2

    Now you have to wait 12 months

    • @ShaheedahHill
      @ShaheedahHill  Рік тому

      Thanks for sharing and watching. It does typically depend on the lender. If you do with a new lender, there is no wait time.

  • @amonraimages
    @amonraimages 2 місяці тому +1

    Make sure you join Ms,.Hill's FACEBOOK GROUP
    facebook.com/groups/HillsFirstTimeBuyers/?ref=share&mibextid=NSMWBT

  • @amonraimages
    @amonraimages 2 місяці тому +1

    THE MASTER CLASS & Digital Handbook will take you through the homebuying process, so you avoid costly mistakes. bit.ly/47s4pT7

  • @whitneypolk9170
    @whitneypolk9170 Рік тому +2

    Do you make a down payment on a refinance?

  • @charnamosely372
    @charnamosely372 Рік тому +2

    Nope. It does not make sense

    • @jaahnnn
      @jaahnnn Рік тому +6

      The video makes sense. But now is not to the time time to be refinancing because of high interest rates

  • @KarLaLoVe
    @KarLaLoVe Рік тому +2

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