We are in our forever home that we purchased less than 3 years ago so knocking off 1.5% in interest was a no brainer. Real estate in Hawaii is insane so after closing cost which was around $15k, we still saved $200k in overall cost which includes a $600 a month savings!! It was a no brainer for us! Love your videos!!
Hi my teacher! I love your video, and I want to pay off my mortgage, but I don’t know what step I need to do, because my mortgage is commercial property, the interest rate is too high, and it’s not easy to pay off please help me thanks
Hello, I understand the importance of increasing cash flow by reducing the actual payment, but don’t you think the amortization schedule should be taken into account? Shouldn’t the principle/interest split be calculated when refinancing?
Thanks for your comment! I’m not sure I get your question. Yeah the amortization schedule should be taken into account. The principal and interest split is just math. You could always pay more to principal if you want to accelerate the pay down.
*YES!* It's most impactful to make extra principal payments at the beginning of the loan. Once you get into the back-end, you're mostly paying principal, and so there's almost no advantage to make extra payments, particularly since a house has poor liquidity.
We still owe $85,000 with 22 years left at 3.5%. And starting in about 6 months we plan on paying an extra $1,000 plus each month to pay it off quickly. Would it still make sense to also refinance to 2.5% supposedly only $600 fee to do that? Something about fha keeping fee lower.
If you plan on staying in the house I think it makes sense. You will save close to $850 in just the first year if u can drop the rate by 1% so your break even with the fee is less than one year.
@@SchoolofPersonalFinance ok awesome thanks yeah we are staying paying it off and turning it into a rental that rents for 1500 a month and can pay for our next mortgage.
Finally got a quote from my Bank yesterday... (Currently we are on a 30 yr at 4.375%) Already payed off 6yrs. Option 1) 15 yrs 2.75%, Total closing fees: 5,326.00 ($2019.54 Escrows). Monthly payment: 1,242.00 (inc insurance & taxes) Option 2) 20 yrs 2.99%, Total closing fees 5,243.00 ($2019.54 Escrows) Monthly payment: 1075.76 Option 3) 30 yrs 2.99%, Total closing fees 5,133.00 (2,019.54 Escrows) Monthly payment: $897.00 GONNA LOOK INTO THIS TONIGHT BUT YOUR VIDEO WAS SUPER HELPFUL!!! CAME AT THE RIGHT TIME!! THANKS!! Hey I got a video idea! What about refinancing AND paying more towards the interest monthly??? Would that be a good "hack" or a waste of money???
Thanks for your comment Eileen!! Make sure to check out the video I did a few weeks back where I discuss a 15 year mortgage vs a 30 year mortgage -ruclips.net/video/SYxAQAAhJ1w/видео.html I do think refinancing to lower your rate and then paying more towards your principal is a great idea (not more to interest you wouldn’t do that) Good luck with your decision. I don’t think there is a wrong option. It really all depends on your specific goals and situation. 👍🤑
@@SchoolofPersonalFinance He just told me that it was something I should look in to. Not the answer I was looking for, hence my search for a new "money" guy.
Have you refinanced recently? What is your current mortgage rate? Let me know in the comments 👇
You made this so easy to understand. For reallll, I appreciate this so much. I was so stressed out before
Thanks!!
Went from 30 year 4.25 to 15 year 2.87. Paying extra every month. We want to retire mortgage free. Great video.
Awesome!! Thanks for your comment! I’m sure you will get there 👍
I truly like your videos. Easy and simple to understand 👍🏼
Very well explained! Thank you!
Thanks!
We are in our forever home that we purchased less than 3 years ago so knocking off 1.5% in interest was a no brainer.
Real estate in Hawaii is insane so after closing cost which was around $15k, we still saved $200k in overall cost which includes a $600 a month savings!! It was a no brainer for us! Love your videos!!
That is awesome!! Thanks so much for your comment! 👍
Well explained.
Refied a few months ago. Went from a 4.8 to a 2.8 on a 30 yr fixed. I got hammered on closing costs. 10k mortgage was for 181k
I just closed on my FIRST HOME in September,Im LEARNING a lot already and i just came across your videos while at work
You break it down sooooooo CLEARLY.....Thanks
Awesome!! Congrats!!
I like the way you explain everything.
Thank you!
Hi my teacher! I love your video, and I want to pay off my mortgage, but I don’t know what step I need to do, because my mortgage is commercial property, the interest rate is too high, and it’s not easy to pay off please help me thanks
Hello,
I understand the importance of increasing cash flow by reducing the actual payment, but don’t you think the amortization schedule should be taken into account? Shouldn’t the principle/interest split be calculated when refinancing?
Thanks for your comment! I’m not sure I get your question. Yeah the amortization schedule should be taken into account. The principal and interest split is just math. You could always pay more to principal if you want to accelerate the pay down.
*YES!* It's most impactful to make extra principal payments at the beginning of the loan. Once you get into the back-end, you're mostly paying principal, and so there's almost no advantage to make extra payments, particularly since a house has poor liquidity.
Very honest
Thank you for the great options for refinancing.
Thanks!! So glad you found it helpful 😄💰
We still owe $85,000 with 22 years left at 3.5%. And starting in about 6 months we plan on paying an extra $1,000 plus each month to pay it off quickly. Would it still make sense to also refinance to 2.5% supposedly only $600 fee to do that? Something about fha keeping fee lower.
If you plan on staying in the house I think it makes sense. You will save close to $850 in just the first year if u can drop the rate by 1% so your break even with the fee is less than one year.
@@SchoolofPersonalFinance ok awesome thanks yeah we are staying paying it off and turning it into a rental that rents for 1500 a month and can pay for our next mortgage.
Finally got a quote from my Bank yesterday... (Currently we are on a 30 yr at 4.375%) Already payed off 6yrs.
Option 1) 15 yrs 2.75%, Total closing fees: 5,326.00 ($2019.54 Escrows). Monthly payment: 1,242.00 (inc insurance & taxes)
Option 2) 20 yrs 2.99%, Total closing fees 5,243.00 ($2019.54 Escrows) Monthly payment: 1075.76
Option 3) 30 yrs 2.99%, Total closing fees 5,133.00 (2,019.54 Escrows)
Monthly payment: $897.00
GONNA LOOK INTO THIS TONIGHT BUT YOUR VIDEO WAS SUPER HELPFUL!!! CAME AT THE RIGHT TIME!! THANKS!!
Hey I got a video idea! What about refinancing AND paying more towards the interest monthly??? Would that be a good "hack" or a waste of money???
Thanks for your comment Eileen!! Make sure to check out the video I did a few weeks back where I discuss a 15 year mortgage vs a 30 year mortgage
-ruclips.net/video/SYxAQAAhJ1w/видео.html
I do think refinancing to lower your rate and then paying more towards your principal is a great idea (not more to interest you wouldn’t do that)
Good luck with your decision. I don’t think there is a wrong option. It really all depends on your specific goals and situation. 👍🤑
If I have a finance question, how can I reach out to you?
Anna Shrayer hi you can email me at rich@schoolofpersonalfinance.com or you can schedule a call through my website www.schoolofpersonalfinance.com
Give us a lender for Dallas tx area
Wished my CFP could have given me this information when I asked him if it would be worth it to refinance. ☹️
Hey Gary! Did they tell you it wasn’t worth it? Or that it was?
@@SchoolofPersonalFinance He just told me that it was something I should look in to. Not the answer I was looking for, hence my search for a new "money" guy.
Currently trying to refinance for 1.625 less than what I currently have. Process is going well. Currently in underwriting.
I would be happy to discuss working together if you are interested. Shoot me an email rich@schoolofpersonalfinance.com.
It is February 2025 the rate is still high
I am not sure if you got my email.
Yes just sent u one back