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..
After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?
Thank you for this video. I was going to refinance and pay points for a 2.875 rate..all closing cost are wrapped into the loan. I bought my house at a 3.375. After watching your video it's clear I'm not benefiting. I will keep my existing loan. Thanks 😊
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!!
Hello - I Liked your advise so much, I've just refinanced with Box Home Mortgage at a 3% - 30 year conventional. My final out of pocket cost is around $466 after all of the fees. My credit has always been excellent, with no second mortgage or liens. I am so disappointed from the initial rate of 2.75% request and point offer, to what I ended up with - just not to have so much out of pocket closing cost.. I literally, had to challenge every additional cost they tried to add, even for insurance cost I had already paid in full. By the time you get to the closing cost, it's always some additional type of "junk fees". They finally removed a couple of them, but it has been a headache. Now I'm concerned they will sell my loan to a little known or dishonest mortgager.
What kinda of fees were added? This was not my experience and I’ve used them many times. What I saw was what I got (estimates changed a little but always went down for me). The home insurance prepaid isn’t ideal for them if they have escrow account so you’ll end up just overpaying if you already paid it in full). You either have escrow or you don’t and they won’t let you prepay insurance only for example. My mortgage was sold to amerihome which has great user interface and calculators for calculating accelerating payoff and interest paid/ extra payments etc.
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!
Also, interest that is tax-deductible can only be applied to expenses that improve the home and not debt consolidation. Not a mistake as the tax laws were different then than now. Still a good video. Thank you.
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.......
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 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)
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!
FHA loan. Original principal 460k @ 3.625%. Been in home 1 year 450k principal balance. Refi into conventional at 470k @ 3.0% Closing (closing and new escrow) is rolled in looking to get out of PMI which is stuck for life of loan with FHA reason for refi. Home is worth 535k now. LTV doesn’t drop PMI yet but obviously will down the line with conventional. Looking to then take savings and pay down principal. Is the refi worth it?
Not worth it if your balance is going up 20k. Try to find a free conventional loan and pay the pmi, it’ll probably be cheaper and you’re about 22k away from dropping pmi. Make sure that balance doesn’t move up. Don’t let the lenders win
@@MillennialFinance101 Thanks for the quick reply. Same thing I thought I don’t want to borrow more. My thought was being able to get rid of PMI at some point vs not at all. If I wait for the LTV to be at 80% I don’t know what the rates will be at that time that is my concern. In your opinion makes no sense to refi though correct?
Yeah I meant you should refi now to a conventional but make sure to keep loan balance same and low closing cost. 2.75 or so should be achievable for this. Then work that loan to 80%
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 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!
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?
Home Box loans is terrible! They kept changing my quote every time we were “about to close”. They initially quoted me $4000 in closing costs and toward the end, the fees were $10,000! Highly dishonest!
Video is on time ... I am starting the process of RF. Previously had a 5.5% rate been in home for 2 years. New rate is 3.0% with $5000 in closing cost...??? Is it worth it??? Also term was 30 years initially. I choose a 25 year this go rounding was told I couldn’t get it because my approval came back with conditions!! And I need more income verification.🤨 ???
Try my lender in video description. 5.5% is too high. You can get 2.75 these days for little to no closing cost. You definitely need income verification.
Thx for replying... No!! my current rate is 5.2... the new one for RF is 3.0.% however I wanted a 25 year But lender is telling me I can’t only a 30 year because income??? Is this correct... can income stop you from 25 year term? # may have to read ? All over
@@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.
Looking for some advice in regards to refinancing. I currently have the following that I am 4 years into. - 30 year RHS loan - Current Principal: $130,000 - Interest rate: 4.5% I know I want to get away from this current loan above. I recently started the process of refinancing with my current lender but after learning a bit more I do not like what I am seeing. Note: My household income, stability, and credit score (800+) have all improved in the past 4 years. New possible: - 30 year conventional - $137,000 - 3.5% The issue is that if I am correct, it seems that my break even point on closing, etc would be over 6 years from now? Also, I feel like I should I have gotten a better rate? Idk, this is all very new to me and I can admit I don't understand.
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.
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: ua-cam.com/video/vjz2RG6asks/v-deo.html
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
The house I have is valued at 200k. I owe 105k with 28 years left. It’s at 4.25% and I was offered 3% for refinance for 30 years. My payment would drop 80$ a month and closing costed are 5000$. What do you think?
Get more quotes. The rates are climbing fast though but I would definitely refinance (maybe not with them). Maybe find a cheaper loan but slightly higher rate. You get to remove your pmi by refinancing too if it’s still on there.
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.
@@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 have a VA loan, original loan amount 200k at 3.25, owe 175k after 4 years. Wanting to do a cash out refinance to pay off car and rental property that's at 5.25% with a 75k balance. The new loan would be for 275k at 2.99% with almost 6k closing costs. This would effectively wipe out my second mortgage and car loan. Making me debt free except for my mortgage. Do you think this is wise?
If I were you then, I would get 248k loan so you avoid pmi. Pay off the car with the cash out and leave the rest on the rental. The rental is a big tax expense and can offset your rental income (no taxes). Then work on paying the rental off
You’re missing a huge part in all of this. AMORTIZATION. You could go from a 25 yr to 30 But it’s from a 4% down to 3%. Pay the same payment you are making now and you can pay the home off after then the original 25yrs left... Also, saving $300 for a 3% at 3k closing costs means you just have to stay in home for 10 months to see the return on investment. That’s really good since you then have 29 years left making pure profit
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
That sounds crazy. I know jumbo loans are a different ball game but I would keep looking. 38000 is a lot to swallow! I found a few on boxhomeloan 3% for 10000 on 700k/850k (82% dti). I just used Santa Clara ca to see but check around! Seems like you can do better. Make sure you exclude escrow when comparing!
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?
So mortgage is 2yrs old with 4.6% interest. Purchased it for $350k and now owe $326k, a 30yr old loan. With interest rate down right now, is it advisable to refinance?
Yes. It probably appreciated in value and it’s a great time to get a low rate and possibly remove the pmi you are paying. Check Zillow to see what the approximate value is. If it’s over 400k, you are very close to removing the pmi
Thank you so much for the quick response. It is over 400k. I will definitely check out box home loans when I start shopping around. Keep up the good work.
Yes definitely get on this. You will save a lot of money (interest, monthly payment, and interest over the term). This is the #1 priority to get done ASAP!! Good luck
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
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.
I've called a few lenders to get refi quotes. About half of them asked me what my current rate is. Do you know why they ask for my current rate? What does it have anything to do with their rate quote?
I just did a Cash out refinance With the cash i am going to finish a studio in my place so that the rent from that studio goes back into the principal. I went from a %4.7 to a 3.9 with a 80k cash out Did I just did something stupid 😨?
Im refinancing because i have a 4.125% and right now is 2.8% and i only have 6 months with my mortgage im not taking any money out and im trying to bring my mortgage down is it a good thing to do lmk
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.
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
Millennial Finance 101 thanks! Clicked your link Box actually increased refinance rates “ artificially” d/t 500% increase in clients 🤣 At least they are honest! I love that.
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
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 about to refi from 4 to 2.75 percent . I have about 5k I can throw at the principal only. Would it be better to use that before the refi or after ?
If you want your mortgage payment to be lower, you can ask for a smaller loan (you would have more closing cost) but that’s where you can bring that $5k. Or just refinance take whatever payment it is and apply 5k to principal.
Hello thanks for your great advice.can i ask you if i owe 181,000 with 4.7% been there for 6months they gave me a quote to refine 3.7 but my loan went back up to 187,000 what the heck!!! Should i do it ???
Hello thanks for the information. I started my process. I have a 5.5% rate, they offered me a 2.9% at a 25 year loan. Is that a good option? Also I’m not to sure what’s an underwriting fee. It’s something they added for my closing cost .
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 :)
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.
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!!
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: ua-cam.com/video/vjz2RG6asks/v-deo.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 🙏
@ @@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
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.
After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?
Thank you for this video. I was going to refinance and pay points for a 2.875 rate..all closing cost are wrapped into the loan. I bought my house at a 3.375. After watching your video it's clear I'm not benefiting. I will keep my existing loan. Thanks 😊
Yes ma’am! The math should make sense before doing a refinance. If you can find a 2.875 with no closing, that’s a no brainer!
Great information on here
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
Thank you for the information!
Np!
Just finished watching the video. It was Extremely helpful and was wondering.
Awesome, thank you! What were you wondering?
WHY IS THIS GUY SO INTELLIGENT?
When we going to shoot pool
Hello - I Liked your advise so much, I've just refinanced with Box Home Mortgage at a 3% - 30 year conventional. My final out of pocket cost is around $466 after all of the fees. My credit has always been excellent, with no second mortgage or liens. I am so disappointed from the initial rate of 2.75% request and point offer, to what I ended up with - just not to have so much out of pocket closing cost.. I literally, had to challenge every additional cost they tried to add, even for insurance cost I had already paid in full. By the time you get to the closing cost, it's always some additional type of "junk fees". They finally removed a couple of them, but it has been a headache. Now I'm concerned they will sell my loan to a little known or dishonest mortgager.
What kinda of fees were added? This was not my experience and I’ve used them many times. What I saw was what I got (estimates changed a little but always went down for me). The home insurance prepaid isn’t ideal for them if they have escrow account so you’ll end up just overpaying if you already paid it in full). You either have escrow or you don’t and they won’t let you prepay insurance only for example. My mortgage was sold to amerihome which has great user interface and calculators for calculating accelerating payoff and interest paid/ extra payments etc.
One of the best explanations on the internet. Thanks!
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
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
Also, interest that is tax-deductible can only be applied to expenses that improve the home and not debt consolidation. Not a mistake as the tax laws were different then than now. Still a good video. Thank you.
Where did you hear that? That is not true it all shows up as interest on your tax form
Lol good video. I’m a lender and you are exactly right.
I respect the game lol
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
Thanks for the Video. Nice job. Mehran from San Diego
You are welcomw
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.
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!
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.......
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
Box home loans was terrible! They kept changing my disclosure quotes and in the end, I had to cancel. Highly disappointed!
Thank you so much. Very valuable information . Straight to the point.👍👍
thanks for watching! check out some of my other vids.
Those damn junk fees........🤕🤕🤕🤕🤕🤕🤕🤕🤕🤕🤕
Lol they hurt.
@@MillennialFinance101 🤣🤣🤣🤣🤣🤣
Great info!
Glad it was helpful!
You got a new subscriber here. Great information thank you.
Welcome
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
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)
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.
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!
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.
7:34 they will be adding a UA-cam fee soon.
Lol that’s a good one
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!
Great info! New subscriber!
You are most welcome!!
FHA loan. Original principal 460k @ 3.625%. Been in home 1 year 450k principal balance. Refi into conventional at 470k @ 3.0% Closing (closing and new escrow) is rolled in looking to get out of PMI which is stuck for life of loan with FHA reason for refi. Home is worth 535k now. LTV doesn’t drop PMI yet but obviously will down the line with conventional. Looking to then take savings and pay down principal. Is the refi worth it?
Not worth it if your balance is going up 20k. Try to find a free conventional loan and pay the pmi, it’ll probably be cheaper and you’re about 22k away from dropping pmi. Make sure that balance doesn’t move up. Don’t let the lenders win
@@MillennialFinance101
Thanks for the quick reply. Same thing I thought I don’t want to borrow more. My thought was being able to get rid of PMI at some point vs not at all. If I wait for the LTV to be at 80% I don’t know what the rates will be at that time that is my concern. In your opinion makes no sense to refi though correct?
Yeah I meant you should refi now to a conventional but make sure to keep loan balance same and low closing cost. 2.75 or so should be achievable for this. Then work that loan to 80%
Thank you! Great information.
Thanks for watching!
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!!
Thanks
No problem
Wait! You forgot send email fee and staple papers fee lol
Lol
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!
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!
Thank you!
No problem
Thank you so much 😊
you are welcome
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?
Home Box loans is terrible! They kept changing my quote every time we were “about to close”. They initially quoted me $4000 in closing costs and toward the end, the fees were $10,000! Highly dishonest!
You’re the first I’ve heard with bad experience. That’s too bad. Hopefully you can find another lender with good rates!
The closing cost is 4-5K.
Yours? Or mines? I already got a refund for my escrow and after all is said and done, it was about $1200.
Video is on time ... I am starting the process of RF. Previously had a 5.5% rate been in home for 2 years. New rate is 3.0% with $5000 in closing cost...??? Is it worth it??? Also term was 30 years initially. I choose a 25 year this go rounding was told I couldn’t get it because my approval came back with conditions!! And I need more income verification.🤨 ???
Try my lender in video description. 5.5% is too high. You can get 2.75 these days for little to no closing cost. You definitely need income verification.
Thx for replying... No!! my current rate is 5.2... the new one for RF is 3.0.% however I wanted a 25 year But lender is telling me I can’t only a 30 year because income??? Is this correct... can income stop you from 25 year term? # may have to read ? All over
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.
Looking for some advice in regards to refinancing.
I currently have the following that I am 4 years into.
- 30 year RHS loan
- Current Principal: $130,000
- Interest rate: 4.5%
I know I want to get away from this current loan above. I recently started the process of refinancing with my current lender but after learning a bit more I do not like what I am seeing. Note: My household income, stability, and credit score (800+) have all improved in the past 4 years.
New possible:
- 30 year conventional
- $137,000
- 3.5%
The issue is that if I am correct, it seems that my break even point on closing, etc would be over 6 years from now? Also, I feel like I should I have gotten a better rate?
Idk, this is all very new to me and I can admit I don't understand.
Email me millennialfinance1985@gmail.com
That loan looks like they are raising your balance to cover closing cost. The rate seems very high too.
@@MillennialFinance101 got ya. emailed you a little bit ago
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.
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: ua-cam.com/video/vjz2RG6asks/v-deo.html
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 👍
The house I have is valued at 200k. I owe 105k with 28 years left. It’s at 4.25% and I was offered 3% for refinance for 30 years. My payment would drop 80$ a month and closing costed are 5000$. What do you think?
Get more quotes. The rates are climbing fast though but I would definitely refinance (maybe not with them).
Maybe find a cheaper loan but slightly higher rate.
You get to remove your pmi by refinancing too if it’s still on there.
@@MillennialFinance101 I don’t have pmi. I’ve been making payments for only 2 years so I have 28 years left on the mortgage I have now.
3% sounds reasonable for that cost. The rates are rising fast!!
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.
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?
Great info, thanks!
No problem! Thanks for watching
I have a VA loan, original loan amount 200k at 3.25, owe 175k after 4 years. Wanting to do a cash out refinance to pay off car and rental property that's at 5.25% with a 75k balance. The new loan would be for 275k at 2.99% with almost 6k closing costs. This would effectively wipe out my second mortgage and car loan. Making me debt free except for my mortgage. Do you think this is wise?
Only if 275k is 80% ltv on the new loan. I would do it and you sound discipline
@@MillennialFinance101 Well my home is appraised at 310k. I think I'm right at the treshold.
If I were you then, I would get 248k loan so you avoid pmi. Pay off the car with the cash out and leave the rest on the rental. The rental is a big tax expense and can offset your rental income (no taxes). Then work on paying the rental off
Thanks, this was helpful
I used your link to check out rates and so much for no junk fees.
Commitment Fee $895.00
lol
Those lamers LOL. Must be new
Very nice!!
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
You’re missing a huge part in all of this. AMORTIZATION. You could go from a 25 yr to 30 But it’s from a 4% down to 3%. Pay the same payment you are making now and you can pay the home off after then the original 25yrs left... Also, saving $300 for a 3% at 3k closing costs means you just have to stay in home for 10 months to see the return on investment. That’s really good since you then have 29 years left making pure profit
I’m aware :) . I made other videos discussing how to combat the longer term
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!
I got a quote for 2.9 my loan is $700,000 with total cost of about $38,000.00 reducing my APR from 4.5 to 2.99 is that a good deal
That sounds crazy. I know jumbo loans are a different ball game but I would keep looking. 38000 is a lot to swallow! I found a few on boxhomeloan 3% for 10000 on 700k/850k (82% dti). I just used Santa Clara ca to see but check around! Seems like you can do better. Make sure you exclude escrow when comparing!
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
So mortgage is 2yrs old with 4.6% interest. Purchased it for $350k and now owe $326k, a 30yr old loan. With interest rate down right now, is it advisable to refinance?
Yes. It probably appreciated in value and it’s a great time to get a low rate and possibly remove the pmi you are paying. Check Zillow to see what the approximate value is. If it’s over 400k, you are very close to removing the pmi
Thank you so much for the quick response. It is over 400k. I will definitely check out box home loans when I start shopping around. Keep up the good work.
Yes definitely get on this. You will save a lot of money (interest, monthly payment, and interest over the term). This is the #1 priority to get done ASAP!! Good luck
Subscribe!!! Most common sense video on refi.
Thx
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!!
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 .
thank you so much
You are welcome!!
I've called a few lenders to get refi quotes. About half of them asked me what my current rate is. Do you know why they ask for my current rate? What does it have anything to do with their rate quote?
To scam you probably or figure out a deal to scam you haha. Not sure why they need to know that info.
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 just did a Cash out refinance
With the cash i am going to finish a studio in my place so that the rent from that studio goes back into the principal.
I went from a %4.7 to a 3.9 with a 80k cash out
Did I just did something stupid 😨?
Nope. That’s pretty smart if it all works out and you can cash flow and increase property value. This is similar to an ADU
Im refinancing because i have a 4.125% and right now is 2.8% and i only have 6 months with my mortgage im not taking any money out and im trying to bring my mortgage down is it a good thing to do lmk
It's only wise if you plan to stay in the home long term to reap the benefits of the refinance. But yes, I would do it.
Hi thanks for the video. I feel mor confident now. What’s the bank you use?
Boxhomeloan
Bank of America
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.
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
Thankyou.
No prob!
I’m looking into Better.com to refinance mainly to save money on closing costs by skipping the “middleman”
Is boxhomeloans similar if not better?
Similar yes. They end up selling the loans off the secondary market.
Millennial Finance 101 thanks! Clicked your link Box actually increased refinance rates “ artificially” d/t 500% increase in clients 🤣
At least they are honest! I love that.
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%
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 about to refi from 4 to 2.75 percent . I have about 5k I can throw at the principal only. Would it be better to use that before the refi or after ?
If you want your mortgage payment to be lower, you can ask for a smaller loan (you would have more closing cost) but that’s where you can bring that $5k. Or just refinance take whatever payment it is and apply 5k to principal.
You could also pay it now so the payoff off balance is less during refinance.
@@MillennialFinance101 Yes.. Seems like the 5k would lower now, giving me a little smaller monthly payment after
Hello thanks for your great advice.can i ask you if i owe 181,000 with 4.7% been there for 6months they gave me a quote to refine 3.7 but my loan went back up to 187,000 what the heck!!! Should i do it ???
I would not do that refinance. They rolled all your closing cost into the principal balance! Get another quote! Don't let them trick you!
New subscriber
Welcome!!
07:32 Processing fee is junk fee?
Most lenders have this fee!
Hello thanks for the information. I started my process. I have a 5.5% rate, they offered me a 2.9% at a 25 year loan. Is that a good option? Also I’m not to sure what’s an underwriting fee. It’s something they added for my closing cost .
It’s just junk fees they tack on. It’s only important to look at final cost to see how much it’ll cost.
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.
You get one free credit report per year can I waive that fee?
You cannot. They require their own report and a recent one
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?
ua-cam.com/video/54Fa5G1b1E0/v-deo.html
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
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.
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 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 ?
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!!
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: ua-cam.com/video/vjz2RG6asks/v-deo.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 🙏
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.