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Thanks for being honest and looking out for the consumer. We don’t always see that! You’re a good guy for looking out for homeowners and educating them with the things we most likely won’t hear from brokers or banks.
You are the very 1st person to explain how you will owe the new loan amount. Everybody says get a undervalued home at 1 price, invest $ money to rehab/raise the value, then refinance. For weeks I wanted to know, will the new refinance be owed or the difference. Thanks for explaining. Lastly, I saw a comment to slow down talking. You don't need to pause in between your sentences. That would make the video longer and the shorter the video, the better it does on RUclips. Great vid.
Refinancing your house to lower the interest rate and, at times, to lower the monthly payment can be a good idea. I refinanced my second home after using one of those jumbo loan deals. I knew the loan would be due 5 years in. I paid extra payments during the 5 years that went to the principle only. I then took advantage of the economic downturn by refinancing during the downturn at a rate that was half of what I was already paying. My refinance ended up being 60 thousand on a house with a 230 thousand dollar value. I formed two plans to pay off the remaining 60 thousand. I figured that paying it at $1,000 towards principal each month would result in paying it off in nearly 5 years. I also figured a second plan for paying it off in two years, if I paid a lot more towards principal.
now this is how you make an explanation video. seems like a very smart guy and everything was well said. as a person who was already familiar with the “refinancing” term but didn’t know all the ins and outs, this simplified everything and cleared up a lot of loose details. I appreciate it, this was great, thanks!
My mortgage is a little over two years old. I am getting ready to refinance and after watching this video I feel more confident about it. Thank you for all the great tips. I will be back with the results when everything is settled.
So can take the equity cash and pay off the loan for example the home is $300000 and your equity is $200000 so your home is worth $500000. You take the cash out equity of $200,000 and payoff the $500,000. Now you're back to $300,000 with a lower interest rate... is that ok?
Great video and very informative! Quick question, I bought my house 12 years ago during the 2008 crisis. I had low/bad credit and they approved me for like 80k when I barely made 20-30k, probably hoping I would flop on it. I was somewhat smart and bought one for 38k. But, I got stiffed with a 6.6%. Interest rate AND early pay off penalties. Is it possible to refinance just for lower interest rate BUT go from 30yr down to like 20 year? And if so, would that be a good idea if I could get around 4% rate or lower? My credit score is now almost 800btw. Thanks.
I know cash out refinance amount will be added towards your mortgage balance with the other fees and then amortized for 25 to 30 years so not only loan amount changes, you will be paying interest for the very long time. Another draw back is when you sell property within few years you loose the advantage of refinance unless you made good profit selling it. Though heloc is other option if you get good interest rate and you can pay faster lump sum down the road.
Hi TheLiberianQueen, Thank you for watching and for commenting. Please let me know what know what tripped you up in the video so I can do a better job next time. Thank you. =)
We pretty much only made a $5k dent on our principal after under 2yrs in the house. With refi, the rate went down a lot but there’s fees (title and escrow) which will put us back to our original loan amount. Is it worth it to go from 4.25% to 2.99% at 30yrs term again, saving $285/mo but back to original loan amount because of fees? It feels like we just threw away $45k worth of previous payments. Please help!
Refinance to 2.99 then make a lot of additional principal payments. Play around with a mortgage calculator one that has an additional principle payment option and you can see what that does to your total interest. We are in the same boat, 4.375 interest 30 yr loan and we've been paying 2 years. We have not even paid 5k in principle. At this rate we will pay 100k in interest over the entire loan. We are going to refinance to a 15 year loan to get the lowest interest rate possible, this will drop us to around 25k interest. If we make additional principle payments we should get the total remaining interest around 10-15k and pay off our house in the next 5-8 years saving us about 90,000 dollars!
He's right, don't refinance yur home and go blow your equity, the higher payment could cause u to go into foreclosure & lose yur home, our homes are our fortress.
Great video, so has anyone refinance I like to hear your story. I currently have a FHA loan 4.5 interest rate on my home I own for 11 years a balance of $84k , good credit, I like to take advantage of lower interest rates. So my question is. If I refinance is it like resetting the loan back to 30 years. I recently stop making Mortgage interest on the loan, so my payments drop extra $40 dollars. Should I refinance?
My buddy refinanced his place, took out extra equity and went to the casino. Played the entire extra equity on the roulette wheel in one spin. And won! Paid off the entire loan right after that. Way to beat the system.
What about if you bought your home with FHA program and it’s been 5 years I never refinance before but interest rates are low right now and I would like to lower my interest rate, would I be able to get rid of fha loan? No right? But can I get rid of mortgage insurance?
The best things about your videos is that you aren’t somebody who praises real estate investing at all costs. A cash out refinance might be good for buying a rental property, but that could be risky as well. Can you talk about a reverse mortgage please?
Very informative, thank you so much. Now i understand the value of asking questions. I have a question tho, So when you do refinance does your new mortgage starts at the original amount? or from where you had paid off?
Hi Andrew, very informative video. If i paid off 20% and have no PMI on my current mortgage, Would refinancing cause me to have to pay PMI on the new mortgage? Do I have to pay 20% of the new mortgage in order to avoid PMI? Thanks
What do you thing about buying the rate down? I have a conventional loan for 10 year at 4.25% to get it at 2.25% I will have to paid about 1700 plus closing cost. My current mortgage is for 30 yrs. Thank you.
Hey Andrew. I have a question and I'm hoping you have the answer. Me and my 2 brothers are due to inherit a home in Los Angeles from my grandmother through a living trust. My grandmother got the home in 1999 for 235k$ and today its worth 664k$. We plan on just moving into it and living in it but here is where my question comes in. In 2015 my grandmother refinanced the home to bring the monthly payment down to 948$ per month. This means the home still has a mortgage on it. It has 177k$ remaining on the principal. Me and my two brothers are young (in our 20s) and don't have credit scores. Will the bank allow us to take over the mortgage? If they did that would be a massive blessing since real estate in LA has sky rocketed over the last 20 years. Thanks Andrew.
Hey Carlos! Great question! That really depends on your goal. Are you looking to fully cash out your equity (not recommended) or are you simply wanting to take a portion of your equity out for specific purposes? To better help out, here are a couple of videos: How a Home Equity Line of Credit Works: ruclips.net/video/G0rFjumfmGY/видео.html When Refinancing a Mortgage is a Good Idea: ruclips.net/video/ql020ZlYB58/видео.html Please let me know if you have any questions after watching the videos. =) What would you like to watch next? 3 Easy Ways to Help Our Tribe Grow - This is what the RUclips Algorithm likes and WE CAN DO IT TOGETHER! #StrongerAndBetterTogether 1. Subscribe and tap the bell icon for all notifications 2. Watch, Like, and comment on all videos 3. Share the videos on your social media
Do I have to refinance to remove the PMI from my mortgage? Or can I just get my home reappraised and have it removed after my home reaches 20% equity? I currently have an FHA loan and I want to lower my mortgage with a lower interest rate. Just trying to find the best way to lower my payments.
I want to go from FHA to conventional fixed rate for 2 reasons and wondering when the right time for that will be. One of the reasons is lowering the interest rate. Current rate is not bad which is 3.75%, but if I can get 3.5% or lower, always better. I think this will depend on my credit mostly which is really good and improving even more. Second reason is to drop out the mortgage insurance. I had to get FHA due to a foreclosure which was a short sale that didn't go well. The delinquency on my credit will fall off in a few months since 7 years have passed. I also paid more than half of the original value of the house. The moment the foreclosure record drops out of my credit report, I want to go for the refi. It also doesn't matter for me for the new duration of the loan, but I'm wondering what duration is best for the lowest rate. Because either the bank gives me 10, 15 or 30 year duration, according to my plans I will pay off the entire home in less than 5 years. I'm trying to even shorten that time with a lower rate no mortgage insurance refi, so that gained money can go further into the mortgage faster. What would you suggest for the best timing of this refi and also any insight on duration would be appreciated, too.
Andrew, Would it be a good move to refinance and lower the rate while cashing out with equity. Turning around using that equity to purchase another property? I love in Utah. I have around $215k in equity. Thinking of purchasing a small townhome in Las Vegas since I’m always there visiting my siblings. Would that make any sense? Please advise.
Hi Amberlynn, Great questions. Missed you in yesterday's livestream, there's always tomorrow's at 9am PST. ;) To the point... This one is really a matter of personal decision making. The one thing I'd suggest is to truly get clear on the reasons why you'd like to potentially purchase another property and ensure you're prepared to make both full mortgage payments if/ when needed. Both the new mortgage payment for your existing home and the rental property along with the monthly upkeep for each property. Another consideration is to ensure you have solid job-security and to run the #'s to double check your finanical comfort levels. That said, there's certainly plenty of examples of people that have taken this approach to slowly build up their real estat investments and now live off the monthly rents. It's up to you, I simply ask you to gain clarity and ensure you're making a well informed decision that's right for you for the reasons important to you. =)
Great information! I want to refinance to get a lower interest rate on my current property (not entirely interested in cashing out) and buy another property because I’m relocating. The new property will be my primary residence. I am wondering if its possible to refinance my current home by myself if someone else is on the loan? Also, since it’s technically a new loan when you refinance, is it required to live in my residence for at least a year before renting it out?
Good luck on your first purchase. My best advice is talk to many lenders and Realtors, talk to people you trust who have purchased homes, and take people you trust and who care about you to help you not fall in love with the home and overlook some things that you need to see. All advice I wish I'd had before my first purchase.
I am going to refinance, my home can pay the 3000.00 a month with two tenant. I'd one good I can pay with my salary. Am I going in the correct direction?
This was great Andrew!! I'm looking to get into purchasing properties for renting and employing a "brrrr" or other strategy! The whole cash out refinance concept was still confusing to me but now I get that you're basically just borrowing on your home depending on the equity that's present! So it seems like it can be negative if you don't find tenants and now you have higher payments due to a new mortgage on a higher value of your home?
my wife and I are at 5% interest bought our house 3 years ago we both have a very good credit value of the house is still around the same we wouldn't want to take any money out keep our equity and just lower our interest rate would we be good candidates to refinance?
Hi the40yogamer, Thank you for watching and for you awesome question! Quite possibly. A question that comes to mind is what is your present interest rate and what is the new interest rate. Generally, it can be a good idea to refi if the new interest rate is at least 0.5% better than your existing rate. Just be mindful the a refi isn't free, it's highly likely your closing costs will be rolled onto the backside of your loan balance. It will also reset your pay off timing. i.e. 27 years to go for what you have now compared to starting back at 30 years again. A refi can make the most sense for people looking to increase their monthly cashflow if the new mortgage is less than the existing. Please work the numbers to see if this is something that makes sense for ya'll to do. Sending ya'll positive mojo that everything works out well no matter what you choose to do moving forward! =)
We did it to lower our interest rate by 2 pts. When we bought our house I couldn’t get on the loan cause my credit was too bad. Since then I bought and paid off a car. Now my name is on the loan and we get $1900 cash out but my dad said he’d pay the out of cost price so we are actually getting $4700.
So i have 3 years paid on mortgage...basically thinking of Refinancing due to the need of funds...I am currently working but also part time agent trying to go fulltime..currently our funds are not going up but rather down...need to try and gain some time to survive....thoughts?
When you were talking about those "wanting the stuff", it's not just the upfront expense either. Many probably don't think to calculate in the additional expenses of property taxes, service fees, and major repairs (which likely require a dealership mechanic on those). ^_^
Can you please explain the VA 30 Year fixed loan. I want to refinance from 3.7% to a 2.5% 15 years VA fixed mortgage. Trying to pay off my mortgage sooner. NO PMI because of 100 percent disabled.
Hey Andrew I just would like your thoughts on my situation. I'm refinancing a home loan I I have 23 years left on this loan I'm going to refinance for the exacts fixed-rate that I had the only difference that it will be a 15 year loan and my payment is going to go up about $90 just wondering what your thoughts were on it
Just purchased home in 11/2018 with 5% fixed rate (no PMI since i put down 20%) Since then, credit scores have since improved to 800+. Given current climate, would it make sense to refinance? What's typical costs of refinancing?
As long as the interest you would save as a result of the refinance will repay your closing costs in a couple of years, then it makes sense. You may need to wait a few more months until Nov since you haven't held your mortgage more than 1 year yet. But knowing you could save at least 1.5% on your mortgage payments, probably a good idea IF you are planning on staying in that home for at least 5-10 more years. Your closing costs will vary depending on the amount of your loan. Hope that helps! Pamela LO in FL :-)
I pick up a short sale about two years ago honestly I was not prepared financially so I am paying PMI on the mortgage my interest rate is 4.75 I was thinking about refinancing this year. Do you think it's a good idea to go ahead and refinance now. Thanks.
A mortgage broker suggested to refinance is a good idea to renew the bathroom and kitchen. She moved from the bank to a private mortgage finance. 4 yrs later asked the bank because I thought bank have good interest rates and less fees.. HOWEVER jst learnd the bank has other undisclosed ways/system to reap me off my mortgage. I need to pay off loan faster.. How can I know the right person to ask for advise, lawyers cost $300 to $400/ hr..
You rock jsemeya! Thank you so much for your kind words and support! What would you like to watch next? 3 Easy ways to help our tribe grow: 1. Subscribe and tap the bell icon for all notifications - then enjoy watching the videos 2. Like and comment on videos 3. Share your favorite videos on your social media
Hi Moment Truth, Yay! I'm thrilled this video nailed it for you! Thank you for watching! What would you like to watch next? Wishing you all the best my friend with perfect health and safety always! =)
Lol School of Personal Finance! Some people say I speak too quickly, I can only imagine the Alvin & the Chipmunks sound at 2x! ROFL! What would you like to watch next?
So I have a question. Let's say a husband and wife are getting a divorce and both their names are on the title and she is in school and doesn't work very many hours because of school and the husband makes enough to cover the bills and the house payment but if they divorce neither one of them can buy the other one out. And the husband doesn't want to lose the house and go live in a apartment again, lol. Can he refinance the house and use the money to buy her half of the house and remover name from the title. ( Not going to ask her leave till she is financially stable and has another place to stay.) We have a 2 yr old son as well so would really like one of us to have the house that way our son has a familiar place to stay.
Whats the thoughts on cash out refinance in order to make home improvements that will keep my large family more comfortable in our existing house. Im thinking of 50,000 worth of additions. Pool and another bedroom possibly. We have a smoking good interest rate and a low mortgage and our areas homes that have what we want would TRIPLE our current mortgage which we dont want, who would
Klye, if you have equity in your home, don't refinance, just take out a Home Equity Line of Credit. Let's say you bought your house for $200k and now it's worth $300k. You could easily qualify for a home equity line of credit. With that, you just use the money as needed...similar to a credit card...for whatever improvements you want to do. And then you pay it back. It would be a 2nd lien on your house and a completely separate payment from your existing mortgage. The interest rate will be higher than a conventional mortgage since it is considered short term financing, but it will give you the freedom to use the equity in your home to make improvements that will ultimately increase the overall property value (don't use the money for a vacation...like he said!) Hope this helps. Pamela LO in FL
I'm about to refinance, I'm going from 5.25% to 4%, and about $200 monthly savings... BUT I still have PMI. The PMI is going to cost me $6600 (rolled into the new loan, plus other fees). In your opinion, would you still recommend me to go though with it?
Is there any way you can wait a little longer to pay down your principal to at least 80% LTV? It's kinda silly to refinance from one FHA product into another FHA product when that PMI will NEVER fall off. But, if you start paying more principal every month to build up your equity OR get some gift funds from a family member to help pay that down, then get into a conventional mortgage with NO PMI, that would be saving you a lot more! Also, you're still not getting the best rate at 4%, but that may be due to your credit score and the fact that you don't have much equity. You can get rates down to 3% if you work with a wholesale broker and your credit is at least 640. I don't think we will be seeing interest rates going up any time soon, so you have a little time to wait on this right now. I'm an LO in FL. Hope this helps. Pamela
@@pamelarachil3730 thank you for the reply Pamela! I do have conventional but with LPMI, and since I can't roll that over into the new loan, I would have to pay that new 6600 LPMI. I ended up not doing it because I'll be already in the hole $15k of just mortgage insurance, plus the closing and fees of $13k. I am gonna wait, thank you!
Thank for your information but would you speak slowly. I have to rerun your video three times in order to obtain and understand all your informations. Thank ahead!
Glad it was helpful Lui V! Thank you so much for watching! Thank you for watching. What would you like to watch next? 3 Easy Ways to Help Our Tribe Grow - We can do it together! #StrongerAndBetterTogether 1. Subscribe and tap the bell icon for all notifications 2. Like and comment on the videos 3. Share your favorite videos on your social media
My lender is after me to refinance my townhome I bought for 420k at 4.1%. He said he wants to bring it down to 3.3% with out any cost to me? It hasn’t been a full year since I purchased the home. This raises a question in my mind, what’s the catch! I need to hear it from someone else who is knows what this all means. Help me! 🙁
They'll add the fees and price of doing the refinance to your loan. So technically you won't pay out of pocket. but you will pay for it monthly. I can be beneficial if it drops the payment a bit. My advice is drop the monthly payment decreasing what you owe on interest and use the freed up money to make a payment on the principal. You'll pay off you house quicker. Just doing this after 2-3 years will drop your monthly payment as well. Looks like it might drop your payment maybe 150-200 dollars a month. That's up to you to look into and decide.
Hi Henrietta Jacquez, Yay! I'm glad that video nailed it for you! Thank you for watching! What would you like to watch next? Wishing you all the best my friend with perfect health and safety always! =)
Hey Gab! Thank you for checking out this video and for your kind words! You're the best! It took some time to get things right and on a better track. Success to me is best defined as personal growth getting 1% better everyday over time. =) What would you like to watch next? Sending you positive mojo for an incredible day my friend!
@@AndrewFinney No problem at all :) I like that 👍 I would certainly like to learn more about long term investing (i.e. put the money in at 25 and take it out after retirement)- but I say keep the content you have rolling as it is working out great 🙌
Hi Aaron! That's certainly a possibility as long as you move into the next property you're getting an FHA loan on and qualify holding two mortgages. Review your options with your loan officer. What would you like to watch next?
Thank you for a helpful and comprehensive presentation on refinancing. I particularly appreciated your heartfelt counsel on reasons why not to refinance. Thank you for this clearly given valuable information.
Question: What would you like to watch next?
🆓 FREEBIE 🆓
📘 Download the FREE Home Buying Process 101 Infographic
➡ www.hometribeteam.com/homebuyingprocessinfographic
🔍 Get Connected with a TOP Real Estate Agent Near You 🔍
➡ homeandmoney.com/andrew/
---- Or, if you're planning on buying or selling your home in the Las Vegas, NV region, let's
connect: calendly.com/andrewfinneyteam
Realtor Near Me Finder
💰 Reach your financial goals with ScoreMaster, the average credit score increases by +61 points in 20 days*
➡ www.scoremaster.com/andrewfinney
Thanks for being honest and looking out for the consumer. We don’t always see that! You’re a good guy for looking out for homeowners and educating them with the things we most likely won’t hear from brokers or banks.
lol now i understand why Brian gets mad at Stewie in family guy...... lol the way he says 'finance'.
You are the very 1st person to explain how you will owe the new loan amount. Everybody says get a undervalued home at 1 price, invest $ money to rehab/raise the value, then refinance. For weeks I wanted to know, will the new refinance be owed or the difference. Thanks for explaining. Lastly, I saw a comment to slow down talking. You don't need to pause in between your sentences. That would make the video longer and the shorter the video, the better it does on RUclips. Great vid.
Hey Andrew just want to compliment you on the content. You did a great job explaining the entire picture.
Refinancing your house to lower the interest rate and, at times, to lower the monthly payment can be a good idea. I refinanced my second home after using one of those jumbo loan deals. I knew the loan would be due 5 years in. I paid extra payments during the 5 years that went to the principle only. I then took advantage of the economic downturn by refinancing during the downturn at a rate that was half of what I was already paying. My refinance ended up being 60 thousand on a house with a 230 thousand dollar value. I formed two plans to pay off the remaining 60 thousand. I figured that paying it at $1,000 towards principal each month would result in paying it off in nearly 5 years. I also figured a second plan for paying it off in two years, if I paid a lot more towards principal.
You are very good at explaining things clearly, really appreciate the video. You are the best at explaining this process
Mmmtttte
He speak fast, but this is the only channel where I understood everything clearly & I watched a lot of channels💯.
I enjoyed your speed in speaking. I hate when people drag a video on.
Exactly!!!!!!
now this is how you make an explanation video. seems like a very smart guy and everything was well said. as a person who was already familiar with the “refinancing” term but didn’t know all the ins and outs, this simplified everything and cleared up a lot of loose details. I appreciate it, this was great, thanks!
Hey Joe Cool! Thank you for watching and for your support. I'm thrilled this video nailed it for you! Hooray!
What would you like to watch next?
I'm glad there is videos like this that still exists on RUclips 🙌🏽.
My mortgage is a little over two years old. I am getting ready to refinance and after watching this video I feel more confident about it. Thank you for all the great tips. I will be back with the results when everything is settled.
If you haven't refinanced already, you should do it now.
My friend Its been a year how did your refi go? Ill be refinancing my home in a few weeks.Can you recommend a lender?
I watched like 5 videos about this topic before finding your and yours hands down was the most clear and concise one I’ve seen. Excellent work.
Thank you! I'm glad this video was helpful to you! Sending you positive vibes everything goes your way! 🤩
This should be the number 1 watched RUclips video on refinance. Thank you!
I would give you my business when the time comes, just for being straight forward and to the point.
So can take the equity cash and pay off the loan for example the home is $300000 and your equity is $200000 so your home is worth $500000. You take the cash out equity of $200,000 and payoff the $500,000. Now you're back to $300,000 with a lower interest rate... is that ok?
Nice no bullshit video without making it unnecessarily long. Thank you!
Great video and very informative! Quick question,
I bought my house 12 years ago during the 2008 crisis. I had low/bad credit and they approved me for like 80k when I barely made 20-30k, probably hoping I would flop on it. I was somewhat smart and bought one for 38k.
But, I got stiffed with a 6.6%. Interest rate AND early pay off penalties.
Is it possible to refinance just for lower interest rate BUT go from 30yr down to like 20 year? And if so, would that be a good idea if I could get around 4% rate or lower? My credit score is now almost 800btw.
Thanks.
Best video I've found for understanding the pros and cons of refinance. Thank you!
I know cash out refinance amount will be added towards your mortgage balance with the other fees and then amortized for 25 to 30 years so not only loan amount changes, you will be paying interest for the very long time. Another draw back is when you sell property within few years you loose the advantage of refinance unless you made good profit selling it. Though heloc is other option if you get good interest rate and you can pay faster lump sum down the road.
I had to watch this video a hundred times to fully understand what he’s talking about 😩 but thank you so much for this video!
Hi TheLiberianQueen,
Thank you for watching and for commenting. Please let me know what know what tripped you up in the video so I can do a better job next time.
Thank you. =)
Wisdom coming at you at rapid speed 👍🏼
We pretty much only made a $5k dent on our principal after under 2yrs in the house. With refi, the rate went down a lot but there’s fees (title and escrow) which will put us back to our original loan amount. Is it worth it to go from 4.25% to 2.99% at 30yrs term again, saving $285/mo but back to original loan amount because of fees? It feels like we just threw away $45k worth of previous payments. Please help!
Refinance to 2.99 then make a lot of additional principal payments. Play around with a mortgage calculator one that has an additional principle payment option and you can see what that does to your total interest. We are in the same boat, 4.375 interest 30 yr loan and we've been paying 2 years. We have not even paid 5k in principle. At this rate we will pay 100k in interest over the entire loan. We are going to refinance to a 15 year loan to get the lowest interest rate possible, this will drop us to around 25k interest. If we make additional principle payments we should get the total remaining interest around 10-15k and pay off our house in the next 5-8 years saving us about 90,000 dollars!
He's right, don't refinance yur home and go blow your equity, the higher payment could cause u to go into foreclosure & lose yur home, our homes are our fortress.
Great video, so has anyone refinance I like to hear your story. I currently have a FHA loan 4.5 interest rate on my home I own for 11 years a balance of $84k , good credit, I like to take advantage of lower interest rates. So my question is. If I refinance is it like resetting the loan back to 30 years. I recently stop making Mortgage interest on the loan, so my payments drop extra $40 dollars. Should I refinance?
My buddy refinanced his place, took out extra equity and went to the casino. Played the entire extra equity on the roulette wheel in one spin. And won! Paid off the entire loan right after that. Way to beat the system.
Thank you; this was really helpful. I liked the pace as it covered many things in short period of time.
Fantastic Dr. Kaur!
Thank you for watching and for your kind words!
What would you like to watch next?
This was such an eye opener! Thank you for all of the valuable information. It’s given me a lot to think about!
What about if you bought your home with FHA program and it’s been 5 years I never refinance before but interest rates are low right now and I would like to lower my interest rate, would I be able to get rid of fha loan? No right? But can I get rid of mortgage insurance?
The best things about your videos is that you aren’t somebody who praises real estate investing at all costs. A cash out refinance might be good for buying a rental property, but that could be risky as well. Can you talk about a reverse mortgage please?
Very informative, thank you so much. Now i understand the value of asking questions.
I have a question tho, So when you do refinance does your new mortgage starts at the original amount? or from where you had paid off?
Hi Andrew, very informative video. If i paid off 20% and have no PMI on my current mortgage, Would refinancing cause me to have to pay PMI on the new mortgage? Do I have to pay 20% of the new mortgage in order to avoid PMI?
Thanks
Great, I have same question. Does any one knows answer?
Thanks
What do you thing about buying the rate down? I have a conventional loan for 10 year at 4.25% to get it at 2.25% I will have to paid about 1700 plus closing cost. My current mortgage is for 30 yrs. Thank you.
Hey Andrew. I have a question and I'm hoping you have the answer.
Me and my 2 brothers are due to inherit a home in Los Angeles from my grandmother through a living trust. My grandmother got the home in 1999 for 235k$ and today its worth 664k$. We plan on just moving into it and living in it but here is where my question comes in. In 2015 my grandmother refinanced the home to bring the monthly payment down to 948$ per month. This means the home still has a mortgage on it. It has 177k$ remaining on the principal. Me and my two brothers are young (in our 20s) and don't have credit scores. Will the bank allow us to take over the mortgage? If they did that would be a massive blessing since real estate in LA has sky rocketed over the last 20 years. Thanks Andrew.
Did you ever get the answer to your question my good man?
Andrew. Should I REFI or HELOC?
Hey Carlos!
Great question!
That really depends on your goal.
Are you looking to fully cash out your equity (not recommended) or are you simply wanting to take a portion of your equity out for specific purposes?
To better help out, here are a couple of videos:
How a Home Equity Line of Credit Works: ruclips.net/video/G0rFjumfmGY/видео.html
When Refinancing a Mortgage is a Good Idea: ruclips.net/video/ql020ZlYB58/видео.html
Please let me know if you have any questions after watching the videos. =)
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@@AndrewFinney
Awesome.
I got it. Now Andrew sir. Which one should I choose Personal LOC or HELOC?
Omg! Thank you so much for breaking it up for me. I totally understand more of this process
You're so welcome Rosy! That's great to hear! What would you like to watch next?
Do I have to refinance to remove the PMI from my mortgage? Or can I just get my home reappraised and have it removed after my home reaches 20% equity? I currently have an FHA loan and I want to lower my mortgage with a lower interest rate. Just trying to find the best way to lower my payments.
I had to login to my YT acct to just say thank you!!! You explain everything clearly and straight to the point!
Thank you Diana! I greatly appreciate you watching and for your kind words!
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I want to go from FHA to conventional fixed rate for 2 reasons and wondering when the right time for that will be.
One of the reasons is lowering the interest rate. Current rate is not bad which is 3.75%, but if I can get 3.5% or lower, always better. I think this will depend on my credit mostly which is really good and improving even more.
Second reason is to drop out the mortgage insurance. I had to get FHA due to a foreclosure which was a short sale that didn't go well.
The delinquency on my credit will fall off in a few months since 7 years have passed.
I also paid more than half of the original value of the house.
The moment the foreclosure record drops out of my credit report, I want to go for the refi. It also doesn't matter for me for the new duration of the loan, but I'm wondering what duration is best for the lowest rate. Because either the bank gives me 10, 15 or 30 year duration, according to my plans I will pay off the entire home in less than 5 years. I'm trying to even shorten that time with a lower rate no mortgage insurance refi, so that gained money can go further into the mortgage faster.
What would you suggest for the best timing of this refi and also any insight on duration would be appreciated, too.
Andrew,
Would it be a good move to refinance and lower the rate while cashing out with equity. Turning around using that equity to purchase another property? I love in Utah. I have around $215k in equity. Thinking of purchasing a small townhome in Las Vegas since I’m always there visiting my siblings. Would that make any sense? Please advise.
Hi Amberlynn,
Great questions. Missed you in yesterday's livestream, there's always tomorrow's at 9am PST. ;)
To the point... This one is really a matter of personal decision making. The one thing I'd suggest is to truly get clear on the reasons why you'd like to potentially purchase another property and ensure you're prepared to make both full mortgage payments if/ when needed. Both the new mortgage payment for your existing home and the rental property along with the monthly upkeep for each property.
Another consideration is to ensure you have solid job-security and to run the #'s to double check your finanical comfort levels.
That said, there's certainly plenty of examples of people that have taken this approach to slowly build up their real estat investments and now live off the monthly rents.
It's up to you, I simply ask you to gain clarity and ensure you're making a well informed decision that's right for you for the reasons important to you. =)
@@AndrewFinney Is it possible to cash out equity and down payment mortgage with it?
Great information! I want to refinance to get a lower interest rate on my current property (not entirely interested in cashing out) and buy another property because I’m relocating. The new property will be my primary residence. I am wondering if its possible to refinance my current home by myself if someone else is on the loan? Also, since it’s technically a new loan when you refinance, is it required to live in my residence for at least a year before renting it out?
Thank you for this video🙏🏾❤️
I’m trying to soak up as much info as I can before purchasing my 1st home
Good luck on your first purchase. My best advice is talk to many lenders and Realtors, talk to people you trust who have purchased homes, and take people you trust and who care about you to help you not fall in love with the home and overlook some things that you need to see. All advice I wish I'd had before my first purchase.
sha Pride-Hinton best wishes!
I am going to refinance, my home can pay the 3000.00 a month with two tenant. I'd one good I can pay with my salary. Am I going in the correct direction?
This was great Andrew!! I'm looking to get into purchasing properties for renting and employing a "brrrr" or other strategy! The whole cash out refinance concept was still confusing to me but now I get that you're basically just borrowing on your home depending on the equity that's present! So it seems like it can be negative if you don't find tenants and now you have higher payments due to a new mortgage on a higher value of your home?
my wife and I are at 5% interest bought our house 3 years ago we both have a very good credit value of the house is still around the same we wouldn't want to take any money out keep our equity and just lower our interest rate would we be good candidates to refinance?
Hi the40yogamer,
Thank you for watching and for you awesome question!
Quite possibly. A question that comes to mind is what is your present interest rate and what is the new interest rate. Generally, it can be a good idea to refi if the new interest rate is at least 0.5% better than your existing rate. Just be mindful the a refi isn't free, it's highly likely your closing costs will be rolled onto the backside of your loan balance. It will also reset your pay off timing. i.e. 27 years to go for what you have now compared to starting back at 30 years again.
A refi can make the most sense for people looking to increase their monthly cashflow if the new mortgage is less than the existing.
Please work the numbers to see if this is something that makes sense for ya'll to do.
Sending ya'll positive mojo that everything works out well no matter what you choose to do moving forward! =)
@@AndrewFinney thanks for the replay and info its something I think I'm gonna take a close look at now. I'm glad I found your channel
We did it to lower our interest rate by 2 pts. When we bought our house I couldn’t get on the loan cause my credit was too bad. Since then I bought and paid off a car. Now my name is on the loan and we get $1900 cash out but my dad said he’d pay the out of cost price so we are actually getting $4700.
So i have 3 years paid on mortgage...basically thinking of Refinancing due to the need of funds...I am currently working but also part time agent trying to go fulltime..currently our funds are not going up but rather down...need to try and gain some time to survive....thoughts?
When you were talking about those "wanting the stuff", it's not just the upfront expense either. Many probably don't think to calculate in the additional expenses of property taxes, service fees, and major repairs (which likely require a dealership mechanic on those). ^_^
Can you please explain the VA 30 Year fixed loan. I want to refinance from 3.7% to a 2.5% 15 years VA fixed mortgage. Trying to pay off my mortgage sooner. NO PMI because of 100 percent disabled.
i want to refinance for a lower interest rate and lower monthly payments. So what happens to the equity will it rollover or something?
Slowed down the playback speed. He sounded a little drunk, but was easier to comprehend all the points made.
Huh. I loved the fact that he speaks at a reasonable rate and I didn’t have to speed up the video like I usually have to do...
I didn’t have to speed it up unlike a lot of other videos. Love the playback speed feature!
Love the way you explained everything
Hey Andrew I just would like your thoughts on my situation. I'm refinancing a home loan I I have 23 years left on this loan I'm going to refinance for the exacts fixed-rate that I had the only difference that it will be a 15 year loan and my payment is going to go up about $90 just wondering what your thoughts were on it
Just purchased home in 11/2018 with 5% fixed rate (no PMI since i put down 20%) Since then, credit scores have since improved to 800+. Given current climate, would it make sense to refinance? What's typical costs of refinancing?
As long as the interest you would save as a result of the refinance will repay your closing costs in a couple of years, then it makes sense. You may need to wait a few more months until Nov since you haven't held your mortgage more than 1 year yet. But knowing you could save at least 1.5% on your mortgage payments, probably a good idea IF you are planning on staying in that home for at least 5-10 more years. Your closing costs will vary depending on the amount of your loan. Hope that helps! Pamela LO in FL :-)
I pick up a short sale about two years ago honestly I was not prepared financially so I am paying PMI on the mortgage my interest rate is 4.75 I was thinking about refinancing this year. Do you think it's a good idea to go ahead and refinance now. Thanks.
How about cash-out refi for a down-payment towards a rental property? 🤔
Thank you for the video. I am considering refinancing and this helped me out.
Awesome! I'm super happy this video helped you Syliva Silva! Yay!
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Thank you for this..where are you located?
A mortgage broker suggested to refinance is a good idea to renew the bathroom and kitchen. She moved from the bank to a private mortgage finance. 4 yrs later asked the bank because I thought bank have good interest rates and less fees.. HOWEVER jst learnd the bank has other undisclosed ways/system to reap me off my mortgage. I need to pay off loan faster.. How can I know the right person to ask for advise, lawyers cost $300 to $400/ hr..
Thank you so much! Best explanation I've ever heard.
Andrew, you are fantastic!! Thanks for all you do! 🤛
You rock jsemeya! Thank you so much for your kind words and support!
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When they ask what are you gonna do with the money?could your answer affect their decision
when you refinance and the bank could give you 100-200k$ , if i use that money to buy a plex is that a smart way to use that extra money ?
Your refinance breakdown is clearly explained and straight to the point. Great information!
Hi Moment Truth,
Yay! I'm thrilled this video nailed it for you!
Thank you for watching!
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Wishing you all the best my friend with perfect health and safety always! =)
Nice video! Just watched on 2x speed and my head is spinning lol.
Lol School of Personal Finance! Some people say I speak too quickly, I can only imagine the Alvin & the Chipmunks sound at 2x! ROFL! What would you like to watch next?
Thank you for this info. Please pause between sentences.
Talking too fast man. Stopped listening at 2 minutes and 57 seconds.
Excellent info! Just too quick.
I slowed it down..helps.
Useful. People are calling me offering me free refinance
So I have a question. Let's say a husband and wife are getting a divorce and both their names are on the title and she is in school and doesn't work very many hours because of school and the husband makes enough to cover the bills and the house payment but if they divorce neither one of them can buy the other one out. And the husband doesn't want to lose the house and go live in a apartment again, lol. Can he refinance the house and use the money to buy her half of the house and remover name from the title. ( Not going to ask her leave till she is financially stable and has another place to stay.) We have a 2 yr old son as well so would really like one of us to have the house that way our son has a familiar place to stay.
Whats the thoughts on cash out refinance in order to make home improvements that will keep my large family more comfortable in our existing house. Im thinking of 50,000 worth of additions. Pool and another bedroom possibly. We have a smoking good interest rate and a low mortgage and our areas homes that have what we want would TRIPLE our current mortgage which we dont want, who would
Klye, if you have equity in your home, don't refinance, just take out a Home Equity Line of Credit. Let's say you bought your house for $200k and now it's worth $300k. You could easily qualify for a home equity line of credit. With that, you just use the money as needed...similar to a credit card...for whatever improvements you want to do. And then you pay it back. It would be a 2nd lien on your house and a completely separate payment from your existing mortgage. The interest rate will be higher than a conventional mortgage since it is considered short term financing, but it will give you the freedom to use the equity in your home to make improvements that will ultimately increase the overall property value (don't use the money for a vacation...like he said!) Hope this helps. Pamela LO in FL
Very well explained. Good job and thank you
Glad it was helpful Alexxus! Thank you so much for watching! Sending you positive vibes everything is going your way!
From one Vet to another...OOHRAH!!
Semper Fi Mr Hollister! Thank you for watching buddy!
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I'm about to refinance, I'm going from 5.25% to 4%, and about $200 monthly savings... BUT I still have PMI. The PMI is going to cost me $6600 (rolled into the new loan, plus other fees). In your opinion, would you still recommend me to go though with it?
Is there any way you can wait a little longer to pay down your principal to at least 80% LTV? It's kinda silly to refinance from one FHA product into another FHA product when that PMI will NEVER fall off. But, if you start paying more principal every month to build up your equity OR get some gift funds from a family member to help pay that down, then get into a conventional mortgage with NO PMI, that would be saving you a lot more! Also, you're still not getting the best rate at 4%, but that may be due to your credit score and the fact that you don't have much equity. You can get rates down to 3% if you work with a wholesale broker and your credit is at least 640. I don't think we will be seeing interest rates going up any time soon, so you have a little time to wait on this right now. I'm an LO in FL. Hope this helps. Pamela
@@pamelarachil3730 thank you for the reply Pamela! I do have conventional but with LPMI, and since I can't roll that over into the new loan, I would have to pay that new 6600 LPMI. I ended up not doing it because I'll be already in the hole $15k of just mortgage insurance, plus the closing and fees of $13k. I am gonna wait, thank you!
looking to do a cash out refinancing on a four unit i have free and clear to buy another property to rent ...any advice
Nice video. Yes it definitely depends on the client. I get questions about this everyday.
This was super helpful and laid out in simple terms which I better understand. Thank you, appreciate it!
Great video!! Very informative and clear 👌🏼
Awesome video, thank you!
Thank for your information but would you speak slowly. I have to rerun your video three times in order to obtain and understand all your informations. Thank ahead!
That was a great video and very informative. Thank you!
Glad it was helpful Lui V! Thank you so much for watching!
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Thanks for the clarity of this subject. Ur THE man!!
If I had a co-signer who wants to get off from the mortgage, if I refinance do I need another one to replace that person?
Super clear explanation, thank you so much!
Thank you Ramesh! I'm glad this video nailed it for you. What would you like to watch next?
Thank you for sharing that knowledge bud.
Thank you for explaining this so well it was very helpful
Thank you for watching Blondie! I'm thrilled this video nailed it for you! Yay! What would you like to watch next? 🤔
My lender is after me to refinance my townhome I bought for 420k at 4.1%. He said he wants to bring it down to 3.3% with out any cost to me? It hasn’t been a full year since I purchased the home. This raises a question in my mind, what’s the catch! I need to hear it from someone else who is knows what this all means. Help me! 🙁
They'll add the fees and price of doing the refinance to your loan. So technically you won't pay out of pocket. but you will pay for it monthly. I can be beneficial if it drops the payment a bit. My advice is drop the monthly payment decreasing what you owe on interest and use the freed up money to make a payment on the principal. You'll pay off you house quicker. Just doing this after 2-3 years will drop your monthly payment as well. Looks like it might drop your payment maybe 150-200 dollars a month. That's up to you to look into and decide.
This was very educational! U answered my questions that I was looking for.
Hi Henrietta Jacquez,
Yay! I'm glad that video nailed it for you!
Thank you for watching!
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Wishing you all the best my friend with perfect health and safety always! =)
Thank you. Very easy to understand.
Damn, peep the USMC Combat Veteran 👀 nice to see a stud transition to civilian life! Keep on killing it Andrew 🙌🙌
Hey Gab!
Thank you for checking out this video and for your kind words!
You're the best! It took some time to get things right and on a better track. Success to me is best defined as personal growth getting 1% better everyday over time. =)
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Sending you positive mojo for an incredible day my friend!
@@AndrewFinney No problem at all :) I like that 👍 I would certainly like to learn more about long term investing (i.e. put the money in at 25 and take it out after retirement)- but I say keep the content you have rolling as it is working out great 🙌
What do you guys think of Quicken loans? Good or scammy? Thanks
Andrew great article! I totally understand home loan refinance now. You made this make perfect sense.
What if you already own the home fully & you want to get a mortgage?
Thank you this was very helpful and informative 👍👍
I want to refi to get rid of PMI and my FHA. Then I want to apply for another FHA on a duplex.
Hi Aaron!
That's certainly a possibility as long as you move into the next property you're getting an FHA loan on and qualify holding two mortgages. Review your options with your loan officer.
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Very helpful! Thank you!
Thank you for the info I am going to do the refinance so I can lower the interest rate.
Your welcome Joan!
That sounds like a great plan my friend!
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Great, honest video. Very informative. Gave you a subscribe.
Honest Guy. Thank you 🙏🙏🙏🙏🙏
Great video! That was super helpful!
Thank you for a helpful and comprehensive presentation on refinancing. I particularly appreciated your heartfelt counsel on reasons why not to refinance. Thank you for this clearly given valuable information.
I thought you would mention starting your own business to refinance as well!