6 Times When Refinancing Makes Sense! When Should You Refinance Your Mortgage
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- čas přidán 5. 12. 2022
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I was blessed to refinance my home from a 5.2 interest rate to a fixed 2.5. This was doing the pandemic and the interest rate was low.
Excellent - That is when it made a LOT of sense. Right not for most people it does not make sense to refinance. Congratulations!!
Interest rates all mess up now.
What a brilliant woman, I am a mortgage officer and I am learning a lot from you. God bless you🙏🏾
@naturegirlbb100 Thank you for watching
100% agreed about brilliant
Thank you for speaking slowly and clearly, much appreciated.
No problem, thanks for watching
That’s why I love watching her videos. It’s so much info and numbers being thrown out that I appreciate her clarity and it’s easy to follow.
I just came across your videos & I absolutely love the content you put out. You speak very calmly and without any rush. Definitely helps out the new people who are trying to grasp this. Thank you !
Awesome! Thank you!
Awesome!!
Thank you for sharing.
@lashondabattle2627 Thank you for watching
Thank you for often explaining a point in a few different ways, and repeating it, that is very helpful ❤
You are so welcome!
I was waiting for this one. Thanks sis!
Thanks for watching
Honest and devoted thanks
Thank you so much!
Thank you sis. Your video made the process a lot more clearer
You’re welcome 😊
Thank you 🙏🏼 💜🧡
You are so welcome
thanks for video
@andriyatomick9732 Thank you for watching
I haven't been in agreement with alot of these channels on home buying and whatnot..but this is actually a good video with correct information
Thank you!
Very helpful video
Glad it was helpful!
thanks!
Welcome!
Good info
Glad it was helpful!
Thank you for breaking it down. ✨️
Great Insight, I am considering Doing A cash out Refi for my property in Georgia soon. Thanks
Glad it was helpful!
I know this video is 5 months old at this point, but it's still really solid. For me, it does me no good to try refinancing my loan. I have a 2% rate on my VA loan, so no one will touch it. I've tried. So I have TONS of positive equity in my home, but I also don't really have a reason to refinance it either though. So I just keep paying my current rate.
Yes, it doesn't make sense to refi a 2% rate. Thanks for watching
Thank you very interesting
Thanks for the jewels. Can you make a video about questions a mortgage lender can't ask you.
This is the closest I have done to that czcams.com/video/JH2HOD2tXms/video.html and here is my mortgage options playlist czcams.com/play/PL6YdU_zvybVli4gCUXphAIN6yv2Xu7_Zf.html
Please do a segment on recasting a mortgage. I have paid down my mortgage. Paying down my mortgage aggressively and heard this may assist me.
Will do in 2023😊
I went thru the application process to to do a Chad out refi...went all the way to the closing table only to learn that I wouldn't be able to get 85%of the value of house but instead only 80%...that went from a 35000 cash out to 20000 cash out...I walked away because the 20000 would cover the repairs I want to do to have a income earning unit on my property....I was bummed...
Thanks for sharing, good for you for walking away. I will have to do an new video on Cash Out Refinancing Specifically.
I’m all Ear’s! Hi Shaheedah!
Hi😊
Mrs Shaheedah, thanks so much for the video, I was waiting for this one. I bought the house on FHA loan with 3.125% interest rate, the home now is appraised for 500k, where original price was 425k. We want to get rid of the MIP, but the rates are not lower. Would you suggest something for us?
You don't want to refinance just to get rid of mortgage insurance. Because if you do the math, you will likely end up with a higher overall mortgage payment with the higher interest rate even if you get rid of the mortgage insurance. So my advice is not to refinance unless you will be saving money - so do a break even analysis and know what your monthly payment will be with the higher interest rate. You would likely be doubling your interest rate right now to get rid of Mortgage Insurance - Don't do it. Here is my video on getting rid of mortgage insurance it goes into more detail. Good news ...as you pay down your mortgage your monthly mortgage insurance also decreases. czcams.com/video/M-VnXMwTPMI/video.html
@@ShaheedahHill this was the comment I was looking for. I have an FHA at 3.0% and I have over $100k in equity. Looking to refinance but I'll stick with my FHA loan. When I calculate it, I'll be paying more with a conventional at today's rates!!
Hello and thank you for the info. How can I be reconsidered for another refinance loan? I did one last year but was denied this year
It depends on why you were denied. If you fixed that issue you should be able to reapply. Anytime you are denied financing the creditor is required to explain why in writing.
I want to refinance for a lower interest rate at the moment. But I have a question I have been paying my mortgage for a little over a year now and I've noticed I've only paid for interest not for the principal. If I refinance again for 30 years what happened to all the money I paid on that first year of my original loan? Do I have to start all over again paying from 30 years and they kept all the money I paid that first year on my original loan?
In the first few years of your mortgage you will be paying primarily interest but some is going to principal. You need to get your amortization table they gave you at closing and that will tell you exactly what you are paying towards principal and interest each month. You will not get those interest payments back when you refinance. You are refinancing your current loan balance. @alnett22 Thank you for watching
HELLO!, question, would getting 3 quotes from 3 different banks make a difference considering mortgage interest rate are about the same no matter which bank you chose? what other factors should you look into when choosing a bank for a mortgage? Thanks :)
Here is my mortgage options playlist czcams.com/play/PL6YdU_zvybVli4gCUXphAIN6yv2Xu7_Zf.html . All banks do not have similar interest rates, rates can be vary widely, but to answer your question you also want to look at fees the lender charges, their ability to close in a timely manner and communication - you want to be able to contact your lender as needed during the home buying process.
@@ShaheedahHill Thank you :)
Shaheedah, what happens if our home goes down in price in the next couple of years when we’re planning on refinancing? What can be done in that situation?
It will be more difficult to refinance, but not impossible. If you have a Gov't backed loan (FHA, USDA, VA) - you may be able to still do a Streamline refinance even if your home is worth less than you owe. But I do caution buyers, to make sure the initial mortgage is one that you can comfortably afford so you are not dependent on a refinance for affordability in the future.
What are you thoughts on a second mortgage? I was told to NEVER get a second mortgage, and they are just trouble. I really don't know why people do this anyway, it's having TWO mortgages not he same house. Your thoughts?
It really depends of what you are planning to do with the money.
Hi Mrs. Shaheedah, I have a question about putting a down payment on a Va loan? The rate is 5.75, and I wanted to know is it worth it to put down 20k on a VA loan? Or should I wait to refinance? Suggestions please. Tia have a blessed night! 🙏🏾
Will putting money down lower your rate? I did a live last month all about VA loans... watch that it should help.
@@ShaheedahHill No putting money down will not lower the rate, does it make sense to make a down payment? Do you have the link for the video? TIA
@@cjackson06 I will make a difference in your monthly payment
Currently have an fha loan and definitely looking to refinance to something lower (at least the 1% you mention). We have 17% equity so far and I am wondering if refinancing, putting the other 3% in to lower pmi is a good idea. My biggest concern is, if we do that, we won't have much $$ left towards closing costs. If we ask to roll the closing costs into the loan, wouldn't that then lower our equity to under 20%? I'm not entirely sure how this works.
Depending on what you interest rate is now, it may not make sense to refi to coventional at the higher interest rate just to remove the PMI. Use some mortgage calculators to play around with the numbers to see at what rate refinancing would make sense for you. Remember also, as your mortgage balance decreases, so does that amount on mortgage insurance you pay. Lastly, yes rolling the closing costs into the loan will decrease your equity, but they will send an appraiser out anytime you refinance. @laurah863 Thank you for watching
Hi, does this make sense? I make about 20k a month but I have alot of expenses and debt with high interest rate & my credit score is on the lower side. My rationale is take the 100k from cash out refinance to pay off debts & eliminate monthly expenses which would increase my credit score & I would have more cash on hand. Essentially Ill be ok with the higher interest rate with monthly mortgage & would refinance when the rates drops? Goal here is to eliminate debt & expenses to increase credit score for future business endeavors. Any thoughts or suggestions?
You can do that and the payment would likely be lower than your other debt especially credit card debt., but you are putting your home at risk if you are unable to make payments, with the debt currently not attached to your home they cannot come after your home if you cannot pay. The main risk is putting your home as collateral for you debt. I would rather you tighten your budget since you have a good income and pay the extra to your debt. But get a quote and see what makes sense for you. Thanks for watching.
What about mortgage recast?
Totally different...I might do a video on recasting in the future,
Do you have a video on Reverse Mortgage?
No, not at this time.
I have a question I closed last month . They asked me for more earnest money during but I never put more down. Now that I have closed the sales team said “hey we just realized you never paid the extra earnest money. Can you pay it now?” I already closed. Is that normal and they gave me a check a closing said I wired too much. Hope you can help with this question
This is NOT legal advice. I wouldn't do it willingly unless you are legally required to. Review your closing disclosure and everything should be spelled out there. If you didn't have the funds required they should have not let you close. Have your agent refer you to an attorney that might be able to give you some free council. Put the money aside just incase you are legally required to do so. But I have never had this happen, seems like the seller/builder made a mistake and now they are trying to get some money back, but they may have to eat whatever the amount is on their end.
What are your options when your refinance appraisal comes in higher? For example, $300K home appraised for $355K
If you are doing a cash out refinance you have more money to potentially take out, but not much else. If you have 20% conventional then you can get rid of PMI
@@ShaheedahHill thank you. What if you’re refinancing to reduce your interest rate or move from ARM to Fixed and the appraisal comes in higher? I hope my question makes sense…
Hello Shaheedah thank you for sharing this info..I have a client who is interested in a property coming soon. The seller bought the house Sept 2021 on purchase price 415k for 2048sqft house. Loan of 425K VA loan and in Oct 2022 the seller took a loan of 20k as a stand alone loan. Can my buyer ask for assuming the VA loan as a condition in the offer letter. The buyer is able but not a VA.TIA God bless you dear for the good work you are doing.
Yes, here is my video on loan assumption - czcams.com/video/FBs7_RwW2hk/video.html
Have your broker assist you with the wording to include in the offer.
@@ShaheedahHill Thank you.
I got an interest rate for 3.8%. I don’t see the rates going lower than that again. When do you suggest refinancing? I have a conventional loan.
Only refinance that rate if it drops about 1% lower than you current rate. It doesn't may sense for most people to refinance now. Just follow this video checklist and you should be good.
@@ShaheedahHill Thank you!
Can you refinance from a conventional to an FHA?
You can, but usually it doesn't make sense if you have 20% equity in the home, refinancing to convential will allow you to avoid mortgage insurance. Thanks for watching.
Hello Mrs Shaheedah Hill . I closed my house in 2023 with 20% down payment , convention loan and my interest rate 8.375% my question is do I need to refinance for low rate . I live in Arkansas, 72762. Thank you .
It would likely make sense for you to refinance because you should be able to save at least 1.5% or more now that rates are lower. However, if rates go even lower then you may want to refinance again. Refinances cost money that they typically roll into the loan. I would be in communication with at least 2 lenders, the one you used when you bought your home and another to see if you should wait until rates go down some more or go ahead and do it now. Make sure you are getting at least 2 quotes and estimates with the quotes including all the fees. @HAYLINGTONG Thank you for watching
@@ShaheedahHill thank you very much , I do love all your videos is help a lot people🙏🙏🙏
Why would it be Court Ordered?
I don't understand this question, in relation to this video.
@@ShaheedahHill I think you mentioned it when elaborating unless I mistakenly heard you.
💕💕💕🌴
Thanks for watching!
If you do a refinance after the 6 months, do you have to pay closing costs again.
Yes, with most lenders, some lenders are waiving the refinance fees if you use them for the refinance.
Hello, I have 30 year fha loan that I owe $143,000 balance at 3.75%. I purchased th3 home in 2006 for $225,000. It is valued at $420,000 and i have started the process and suppose to close in two days on a cash out refi fha loan and the rate will now be 5.99%. I want to use the money to do home improvements.such as nee roof, newdeck, upgrade furnace, water heater and etc.. i think i want to not follow through with it because the nee payment is making me nervous. Going from $1270 to $2125. With the appraisal and other paperwork beeing done already will i still be responsible for fees if i do not close the loan. Confused in michigan with 🚀🏡.
I wouldn't do it. Your mortgage payment is going up $855, if you have that extra money each month put that money aside and start doing some of the upgrades to your home little by little, furnaces and water heater should be covered in year 1, see if your homeowners insurance will cover the roof - if it has storm damage they will typically give money for replacement, talk to a roofing company - that is how I got mine replaced and only paid the deductible., the new deck is likely a want and not a need so save up for that - if the deck is a safety issue then a contractor can come and bring it up to a safety standard without replacement. Good luck - If you back out you are typically only out of your appraisal fee, but ask the lender to be sure.
@@ShaheedahHill thank you VERY much. I was feeling that way and sent an email to the refi team canceling right after I made that comment. The previous three nights i felt like I wasnt making the right decesion. I slept like a baby last night, resting in the fact those were wants, not needs. Thank you so much for replying and giving sound. Solid advice. God bless🥰
Now you have to wait 12 months
Thanks for sharing and watching. It does typically depend on the lender. If you do with a new lender, there is no wait time.
Hello, I know this video is old, but i need your advice, please. I have an FHA loan at 7.25%. I brought the house in November 2023, and my monthly payment is 3237.00. I am drawing already. What advice do you have for me?
Here is a video that I did on how to save. A refinance would not make sense because rates are about the same. Watch this video and see if any of these would apply to you czcams.com/video/U9HckhFbbeI/video.html
If none of those apply, can you get a roommate or rent a room to get help with the payment? Rent is really high so people are looking for more affordable housing options.
@@ShaheedahHill thank you so much for your prompt response. I will watch the video. I live in an HOA community with limited options.
Do you make a down payment on a refinance?
Good question, no you do not.
Nope. It does not make sense
The video makes sense. But now is not to the time time to be refinancing because of high interest rates
Very helpful video
Thanks for watching!