Great information. The Math never lies and I liked how you mention you could get more bang for the buck by eliminating the Mortgage Insurance rather than buying down points.
Came over from Javier Vidana's channel, you two are such a great team! Here's related question to your topic today: Say you're buying a 300k house and you have 40k with which to spend on down payment (assuming closing costs are covered), going conventional. Not enough to cover 20% down, but 30k is enough to do 10% down. Does it make sense to use the remaining 10k to buy down your rate? Or would you be allowed to throw the whole 40k as your down payment at 13.33%? Buy down/out PMI if possible? Sounds like there are so many options! Thanks in advance, can't wait for more videos!
10 years is long enough at a property to buy down the interest rate. So there would be savings on the top of the equity the homes has made over time. If you are really creative use the incentives the builder is offering to buy down the interest rate and possibly do it for free with their money.
Hey Lizzy, I recently found your channel and it’s inspiring to me. It’s helping me in my current role. I started this summer as a LOA and I love it! I wanted to know if you recommend an NMLS prep book? Also, is the NMLS book state specific? I don’t think so but just checking. Thanks Lizzy!
Great videos, exactly what I was looking for, subbing and liking! Quick question Can i still buy out my premium mortgage insurance? After I already got a conventional Loan, is there a way to maybe pay it down, to lower the monthly cost? Thanks.
To ‘buy down’ your interest rate, look for ways to reduce the amount of interest you pay. This could include talking to your lender about interest rate reductions, shifting higher-interest debt to lower-interest loans, or consolidating multiple accounts. Doing so can help you save on overall interest payments and work towards your financial goals faster!
My credit score is 660 to 680 and I had to lock in a rate of 5.1 is a fha loan I think I should wait and refinance to a conventional Loan after 6 months ?instead of buying down
@@LizyHoeffer hi! Question! I’m thinking about buying out mortgage insurance but it’s only gonna knock off 62 dollars off the monthly payment. The cost for buyout is 4338. Background: 258k home, 5% down, conventional, 4.3% interest rate… I’m debating if I should just invest this money instead, have it go towards student loans , save it for home stuff etc. I’m not planning on this being a long term home.
May God bless your heart and thanks for these heartfelt advice for us, I'm looking forward to put in a good amount to my mortgage once our interest rates is up in December and fingers crossed that will be able to locked in a much lower interest rate that we've seen now here in New Zealand and continue to do the same until we paid it off, Thank God that we're debt free except for our house that makes us keep pushing forward in becoming 💯 % debt free, once again thank you so much and God bless ❤️🙏🌺
@@LizyHoeffer I'm a big "ummer". I have a hard time when the focus is on me too. Wife and kid are transitioning to "right". Must be why I picked it up in your video. Good day
PLEASE HELP! When I do the math, it makes perfect sense to pay points, almost too good to be true, where did I go wrong? At 3.125%, the total interest paid is 167k and at 2.625%, its 137k, Isn't it worth 3k upfront?
It really depends on how long you plan on being in the property. It isn’t just about the monthly savings you have to consider the addition time and payments you will be making plus the rest of the cost of refinancing... vs applying a lump sum principle reduction if that’s an option. Also I am not sure what your credit situation looks like but I might also shop that loan around.
@@LizyHoeffer thanks for the reply! Based on the video (5:34), the math said $3087 in points would be recooped in 3.1 years (3087/$82 less in monthly payments). I was presuming different math to buy points, needing only 2 yrs using the amortization schedule. At 3.125%, the interest paid on the first two years are 9558 + 9358 = 18916.. At 2.625%, first two years adds to 15862 (difference of 3k). In short, I used the total interest savings to recoop the points investment while the video uses the difference in monthly payment. Hope this makes sense, hope you can help!
Great video! I plan to have my forever home, however, What do you think of not paying any points, but instead paying $100-200 each month towards the principle? Would this strategy save more in the long run or paying points to lower interest rate?
could you recap on this this year? i just refinanced from 5.5% down to 2.65 reducing payments by 330 got jan feb "free"paid 2500 to do . fha no pmi can i reduced interest even further 720 credit?
Can the amount you used to buy down your interest rate be included in your itemized deductions when filing your taxes? Like is it considered prepaid interest? I hope my question makes sense
im paying 15% down payment and they STILL need me to pay an amount(dont know how much yet) to buy down the interest %. would it be better to pay 20% down instead so I don't have to pay the PMI and they will issue the loan.
I can use my VA loan and my credit score is at 790; so with interest rates at near 5% now, does it make sense to do a buy down if you just going to put 10k down on a 415k loan?
Hi there!! First, thank you for service. Second, I want to personally invite you to my UA-cam Live tonight!! It is a great place to ask any and all of your questions! I will answer this there, and I will be sure to circle back and answer here if you cannot make it. I hope to see you soon!!
my loan officer said my rate is 2.625% but I need to pay $3000+ to buy down my rate to 2.25s% ，do you think it's worth it? The loan is $210.000, I'm self-employed it's so hard for me to get a loan, it gives me headache. And I need to pay insurance, HOA, and property tax, life is hard.
@@ndayembidi6781 update:i got the loan and paid a lot, now i only have like 170k,this is just the 1st year and i am so happy that i will pay this off in less than 10 yr
Great information. The Math never lies and I liked how you mention you could get more bang for the buck by eliminating the Mortgage Insurance rather than buying down points.
Nice video! I agree...I bought down the rate one time many years ago and then refinanced 18 months later 🤪Never again...
This information is Top notch! Editing is Awesome! The number crunching is really easy to follow! Keep up the great work Lizzy
Great explanation. Understood every part 👍
Came over from Javier Vidana's channel, you two are such a great team! Here's related question to your topic today: Say you're buying a 300k house and you have 40k with which to spend on down payment (assuming closing costs are covered), going conventional. Not enough to cover 20% down, but 30k is enough to do 10% down. Does it make sense to use the remaining 10k to buy down your rate? Or would you be allowed to throw the whole 40k as your down payment at 13.33%? Buy down/out PMI if possible? Sounds like there are so many options! Thanks in advance, can't wait for more videos!
Awesome info. Very well explained, thanks !
Why oh why would people call you a lizard? You are a LIZARD QUEEN. I am really enjoying this new style Elizabeth!!
What if the rate buydown is from seller credit and a sale price reduction isn’t an option?
If you only plan to live in a house for 2 or 3 years maybe you should consider renting? Paying closing costs every 2 to 3 years is expensive!
yes lower house price to were it should be from 2018 then a 4 percent is good
Awesome thank you very much tremendous information
Great info. Thank you 😊
10 years is long enough at a property to buy down the interest rate. So there would be savings on the top of the equity the homes has made over time. If you are really creative use the incentives the builder is offering to buy down the interest rate and possibly do it for free with their money.
Thank you for this valuable info
Nice video! Great insight.
Thank you for the information
Hey Lizzy, I recently found your channel and it’s inspiring to me. It’s helping me in my current role. I started this summer as a LOA and I love it! I wanted to know if you recommend an NMLS prep book? Also, is the NMLS book state specific? I don’t think so but just checking. Thanks Lizzy!
Awesome info!!!!
Great videos, exactly what I was looking for, subbing and liking! Quick question Can i still buy out my premium mortgage insurance? After I already got a conventional Loan, is there a way to maybe pay it down, to lower the monthly cost? Thanks.
To ‘buy down’ your interest rate, look for ways to reduce the amount of interest you pay. This could include talking to your lender about interest rate reductions, shifting higher-interest debt to lower-interest loans, or consolidating multiple accounts. Doing so can help you save on overall interest payments and work towards your financial goals faster!
My credit score is 660 to 680 and I had to lock in a rate of 5.1 is a fha loan I think I should wait and refinance to a conventional Loan after 6 months ?instead of buying down
Hi Sanita!! Great question!!! I would love to answer this tonight on my UA-cam live at 6PM MST! Would love to see you there!!!
Wow I am glad I found you!!
Hey Rafael!!! Thank you!! I would like to invite you to my UA-cam LIVE tonight at 6PM MST! Bring any and all of your questions! Hope to see you soon!
@@LizyHoeffer hi! Question! I’m thinking about buying out mortgage insurance but it’s only gonna knock off 62 dollars off the monthly payment. The cost for buyout is 4338.
Background: 258k home, 5% down, conventional, 4.3% interest rate…
I’m debating if I should just invest this money instead, have it go towards student loans , save it for home stuff etc. I’m not planning on this being a long term home.
@@RafaelPerez-vx4st Hi!! I am going LIVE at 6PM tonight and would love to answer this question and any other questions you may have!!
May God bless your heart and thanks for these heartfelt advice for us, I'm looking forward to put in a good amount to my mortgage once our interest rates is up in December and fingers crossed that will be able to locked in a much lower interest rate that we've seen now here in New Zealand and continue to do the same until we paid it off, Thank God that we're debt free except for our house that makes us keep pushing forward in becoming 💯 % debt free, once again thank you so much and God bless ❤️🙏🌺
Great video/advice/I,m buying my 1st 🏡 next year & I,m going with a conventional loan...🤓📶
We can go
Great video. Are u california?
What if you can roll the buy down into the loan?
It seems ", right?" Is the new "like" or "umm". Same purpose, different word.
I will say that recording videos is hard for me. I have worked hard on reducing the number of filler words
@@LizyHoeffer I'm a big "ummer". I have a hard time when the focus is on me too. Wife and kid are transitioning to "right". Must be why I picked it up in your video. Good day
PLEASE HELP! When I do the math, it makes perfect sense to pay points, almost too good to be true, where did I go wrong?
At 3.125%, the total interest paid is 167k and at 2.625%, its 137k, Isn't it worth 3k upfront?
It really depends on how long you plan on being in the property. It isn’t just about the monthly savings you have to consider the addition time and payments you will be making plus the rest of the cost of refinancing... vs applying a lump sum principle reduction if that’s an option.
Also I am not sure what your credit situation looks like but I might also shop that loan around.
@@LizyHoeffer thanks for the reply! Based on the video (5:34), the math said $3087 in points would be recooped in 3.1 years (3087/$82 less in monthly payments). I was presuming different math to buy points, needing only 2 yrs using the amortization schedule. At 3.125%, the interest paid on the first two years are 9558 + 9358 = 18916.. At 2.625%, first two years adds to 15862 (difference of 3k).
In short, I used the total interest savings to recoop the points investment while the video uses the difference in monthly payment.
Hope this makes sense, hope you can help!
Where does that 82 came from?
Great video! I plan to have my forever home, however, What do you think of not paying any points, but instead paying $100-200 each month towards the principle? Would this strategy save more in the long run or paying points to lower interest rate?
Hey there I answered this in tomorrows FAQ
could you recap on this this year? i just refinanced from 5.5% down to 2.65 reducing payments by 330 got jan feb "free"paid 2500 to do . fha no pmi can i reduced interest even further 720 credit?
Stay in home 30 years..savings?
I would say own 5-10 years if not longer
Can the amount you used to buy down your interest rate be included in your itemized deductions when filing your taxes?
Like is it considered prepaid interest?
I hope my question makes sense
Yes it is
But if i reduce my payment from 1800 to 1650 and i can rent the place for 1900 is nothing but profit tho!!!
im paying 15% down payment and they STILL need me to pay an amount(dont know how much yet) to buy down the interest %. would it be better to pay 20% down instead so I don't have to pay the PMI and they will issue the loan.
I can use my VA loan and my credit score is at 790; so with interest rates at near 5% now, does it make sense to do a buy down if you just going to put 10k down on a 415k loan?
Hi there!! First, thank you for service. Second, I want to personally invite you to my UA-cam Live tonight!! It is a great place to ask any and all of your questions! I will answer this there, and I will be sure to circle back and answer here if you cannot make it. I hope to see you soon!!
@@LizyHoeffer What time is the live chat since I am in Hawaii?
@@fortgrove3166 3PM your time! It looks like AZ is 3 hours ahead of Hawaii time. :)
Not clearly explained.
What specifically are you wanting to understand better
Smart and beautiful ! 😘
my loan officer said my rate is 2.625% but I need to pay $3000+ to buy down my rate to 2.25s% ，do you think it's worth it? The loan is $210.000, I'm self-employed it's so hard for me to get a loan, it gives me headache. And I need to pay insurance, HOA, and property tax, life is hard.
Ahahahahahah
@@ndayembidi6781 update:i got the loan and paid a lot, now i only have like 170k,this is just the 1st year and i am so happy that i will pay this off in less than 10 yr
What if i am thinking ahead and buy the house that has already big enough for a big family. 5 beds 3 bathrms? Does it makes sense to buy of 1.5%?
3.125% interest... welcome to 2024.
This video was recorded in 2020
We got pregnant??? I've never heard of a male give birth 🤔
Awesome content thanks!
🦎🦎🦎🦎🦎 Queen
Great job, I'm really enjoying the education. Keep up the good work.
very helpful!
Almost commented 🦎 👸, glad I waited to the end of the video so I didn't do that 😂