Everything You Need To Know About Refinancing Your Home Mortgage - When/How/Should You Refinance?

Today I want to talk about everything you need to know when you are considering a refinance on your home mortgage.
It is March 2nd, 2020 and the interest rates are very low. If you're considering a refinance on your property, then this video is for you!
#1 Common sales strategies/traps lenders use to suck you in.
#1.1 The lower monthly payment
#1.2 The no closing cost loan
#1.3 The amortization schedule reset
#2 Pros & Cons of Refinancing
Pros:
#2.1 Lower monthly payment
#2.2 Less interest paid and more principal paid
#2.3 Less interest paid over life of loan
#2.4 More cash flow / buying power / flexibility
#2.5 Possible to remove PMI
#2.6 Can Pull Cash/Equity Out
Cons:
#2.1 Cost $ to refinance
#2.2 Takes effort / work to do a refinance
#2.3 30 year loan reset
#2.4 New bank / payment processor
#2.5 Possibly more property taxes
#2.6 More income taxes paid
#3 When does refinancing make sense?
#3.1 Currently have crappy loans
#3.2, Interest rate higher compared to today's rate.
#3.3 Paying junk fees like PMI
#3.4 Plan on staying put long term or renting property out
#4 How to compare loans and calculate your break even point.
#4.1 Compare apples to apples
#4.2 Compare interest rate & closing cost
#4.3 Ignore prepaid / escrow charges
#5 My final suggestions
Resources:
Get current rates and great prices on home loans (referral code included): www.boxhomeloa...
Refinance Break Even Analyzer (make a copy or download): docs.google.co...
Amortization calculator: www.amortizati...
#mortgagerefinance #refinance #savemoney
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DISCLAIMER: I am not a CFP, CPA, attorney, insurance agent, real estate agent, mortgage broker, or financial advisor. These videos are for educational purposes only and I am merely sharing my opinion and experiences. Please do your own research or consult a professional!
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[@malaeolemateo8846]

Just finished refinancing my house 🏠.

[@prasadvaram]

was really helpful info., thank you

[@MillennialFinance101]

Glad I could help!

[@cutepuppylover5554]

Great video 🙏🏼 thank you

[@lumpiaaaaa]

Thought you looked familiar on the thumbnail in my recommended videos, and I was right. Been a fan of your 4runner vids. Great content here too.

[@MillennialFinance101]

Well hi there lol. Welcome again

[@BrianzMusic]

love all of your videos. thanks

[@MillennialFinance101]

Thx

[@headachebaby]

Awesome video....thank you. I love the links and spreadsheet.

[@MillennialFinance101]

No prob!!

[@Donnette_BistroLounge_owner]

I'm 15 years into my mortgage, and I have a significantly low interest rate, one that's unmatched today. After watching this, there's no way in hell I'm refinancing. Thank you for clarifying all that I needed.

[@MillennialFinance101]

I wouldn’t touch it. Once it’s locked and good, it just makes sense to pay her down and not mess with it.

[@Donnette_BistroLounge_owner]

@@MillennialFinance101 thank you for your wise advice.

[@bobabooey8367]

Thanks Min,,clears up some of my concerns

[@MillennialFinance101]

Great! I was wrong about the property tax reassessment but that’s a good thing.

[@dougschemmel99]

Dude… you rock. Great advise

[@MillennialFinance101]

Anytime!! Glad it was useful

[@cutepuppylover5554]

Please keep posting! For all the real state wannabes 😁 just like me this was a great way to learn!!!

[@MillennialFinance101]

Will do!!

[@dianatorres1273]

Thank you for sharing this knowledge with us! I am not a home owner yet but I’m trying to help my parents refinance their home I was so lost and I didn’t want to make things worse for them. After watching this video I have a better understanding :)

[@MillennialFinance101]

No problem! Ask questions! I will help when I can! Only way to make it worse and helocs, cash out refinancing and 2nd mortgages. Keep it simple and lock in those low low rates!!

[@luispulido2786]

Literally same here

[@christopherbrooks5206]

Thanks for making this simple to understand.

[@sanbrunofriend5968]

Thank you!!

[@MillennialFinance101]

Np!!

[@PresleyChill]

Have you received feedback from viewers who tried to refi with Homebox? I googled "bad experiences with Homebox loans" out of curiosity and saw the bad experiences people are having with long waiting periods and lack of follow up communication from the company. Most of the experiences noting that they're having to pay fees for extending locked rates. I was really disappointed to find this after being so hopeful from watching this video. Besides that, I found your content extremely helpful, especially the spreadsheet and amortization website. Thanks.

[@MillennialFinance101]

I have heard back from many of my viewers! Yes the long wait times are due to the current times were in. It’s the 3rd party services, they are all backed up due to demand and covid. The lock rate extensions are usually free and boxhomeloan came out and said this also (their ceo). I’ve had many people buy me coffees for helping them so I would pursue as the money savings are huge. You can try other places to see if the quotes are comparable. Good luck! Oh yes, they are strictly Email system and it’ll be rare you’ll get a phone call unless they need to clear something up from underwriting.

[@LMarch-lk4fq]

Now we have streamline refinance can you please explain that too

[@MillennialFinance101]

I wouldn’t if it’s an fha streamline. Check out my latest video I posted about removing pmi (MIP for fha). You can get a conventional loan and rid yourself of all that!

[@ericdahl2915]

Wow, it never occurred to me that my taxes would go up after the new appraisal. Thanks

[@MillennialFinance101]

It won’t. I was wrong about that :). The reassessment only happens on purchase of new property

[@Abby-fw3hd]

Thank you! I’m starting to work as a loan consultant and this info def helped make everything concrete

[@MillennialFinance101]

Nice

[@yogeshbhavsar706]

I appretiate you. You have clearly explained prospectus and consequences. Thanks.

[@MillennialFinance101]

Thanks and np

[@loltoday4668]

♥️ Your Channel. I refinanced using info from your videos. It was so empowering. Thank you

[@MillennialFinance101]

Awesome!! Hope you got in last year !!

[@nocturneowl2660]

I raised a question in your previous video. After watching this, my question comes to light. Thanks!

[@MillennialFinance101]

Sent you a response!

[@djmjuarez]

Awesome videos! Just subscribed! Thanks for sharing your wisdom with everyone!

[@MillennialFinance101]

Welcome

[@simplyshantal]

Amazing!

[@MillennialFinance101]

Thanks!!

[@valariebrown2089]

Thanks!! Calling for my main and rentals now

[@MillennialFinance101]

check out my other refinance videos!

[@choochoose]

Amazing video, great resource for me. I am researching this subject to help my parents refinance, thank you!

[@choochoose]

Do you have any other resources to search for Refinancing options? The boxhomeloans site doesn't have options for New York state.

[@MillennialFinance101]

Try credible to see if you can get some rates!

[@jaguaresed]

Wow man thanks, I was thinking of doing this and when I read that I had to redo the paperwork that got me out of it haha

[@MillennialFinance101]

Hehe it’s a bit of work but locking in that law rate for a rental or primary is sweet!

[@empiretradingacademy3866]

Awesome stuff! Very Helpful!

[@liliani2004]

Wow! Thank you so much for your videos. Very helpful. Found you last night and have not been able to stop watching. I need to refinance but have a situation so I’m not sure if I should....😬😬 completely nerve racking...

[@MillennialFinance101]

Let me know if I can help. It’s not that complicated!

[@liliani2004]

@@MillennialFinance101 you're right, I just need to do it LOL just watched this video again. Would like your advise on my situation but i don't want to put my info out here in public lol

[@MillennialFinance101]

Liliani Hettig my email is in my channel details. Send me an email!

[@liliani2004]

@@MillennialFinance101 ok great! Definitely going to email you. THANK YOU, greatly appreciate it.

[@qaibvwj900]

Thanks for the awesome advice. I will be calling my lender tomorrow to get a refi

[@MillennialFinance101]

No problem man. Good luck! Pretty sure you'll be fine. The home prices are all up!

[@empiretradingacademy3866]

Any reason why you wouldnt take a partial cash out refinance to pay off debt? Does the cash out portion have a different interest rate?

[@MillennialFinance101]

No interest on the cash. You could do this or invest in another piece of Real estate. Just make sure the new loan is still below 80% LTV.

[@hoseatran2165]

This was a super helpful video! Thank you.

[@MillennialFinance101]

No problem!!

[@josephsecor274]

Hi, I just wanted to say thanks. The video was super helpful. I used boxhomeloans got a great interest rate. It was far better than the other 10+ lenders I tried. All your videos are great.

[@MillennialFinance101]

Nice!! No problem and thanks for watching! Share my vid with your family and friends! Just helping people secure that big purchase they made with a great loan rate!

[@rajkamalkaur5455]

really well explained

[@MillennialFinance101]

thanks! Make sure to check out my other videos on refinance to save a bunch of money and not get scammed!

[@EAdams-ep8il]

Hello I am seeking your advice. We have our current loan on a 30 year fixed at 5% the original amount was 157,100 and we are 10 years in with a remaining principal balance of 126,000, home appraised at 165000. We have excellent credit. We are not sure which road to take with our current 2 offers. One offer is a 15 year fixed at 2.5% with an APR of 3.042 and points of 1.173. A cost of 10,062 is rolled in to bring the new loan amount to 134,818. The second offer is loan amount for a cost of 5145.72 rolled in for a loan amount of 130,100 at 2.75% for 15 years no points added. Just having difficulty calculating which is better for our family coming from a 30 year to 15 year loan. We would greatly appreciate your input.

[@MillennialFinance101]

I would find other quotes. That 2.5 rate seems fine but large 3.042 apr suggest lots of junk fees. Try loan Depot for a quote and use my other videos to compare loans and make sure you don’t let them trick you. I got a few videos on these topics on my channel. If you like, email me and I can help you analyze as well. My email is in my channel main page in the about

[@EAdams-ep8il]

@@MillennialFinance101 Thank you kindly and I will continue my search. It gets tough trying to catch the little tricks that can cost you big. I've seen some of your videos in trying to calculate the cost and break even but I'm not sure how to adjust to see if I'm saving coming from a 30 year to a 15 year mortgage. I greatly appreciate your advice on this topic.

[@sallytran6854]

Great video! Super informational! This helped me greatly!

[@MillennialFinance101]

glad it helped! Thanks for watching!

[@Chielustration]

thank you for sharing I had no idea it could effect your property taxes as well. New subbie, had to support a fellow small KZbinr

[@MillennialFinance101]

Yes, a refinance will trigger a property reassessment since it's being recorded with the city again!

[@MillennialFinance101]

Sometimes it doesn't though so ask your lender to be sure!

[@paxiong4502]

Very helpful. Just what I need to know..Thank!

[@MillennialFinance101]

Good luck!

[@RRda44th]

If my house is worth 170k and only owe 70k should I refi? 3.8 % IR By the way, really great info, you break it down so simple!!!!👏

[@MillennialFinance101]

I think you’d be wasting your time lol. Low balance and you already got a decent rate. Thanks for watching

[@RRda44th]

@@MillennialFinance101 exactly... thx..

[@jasminelu7081]

I appreciate the knowledge and info!

[@MillennialFinance101]

Any time!

[@eduardoleonn]

Hi! I live in Massachusetts, another web site besides boxhomeloans that you would suggest? Boxhome doesn’t have the option for MA. Thank you!

[@MillennialFinance101]

Try loan depot. Quicken loans always gave me decent rates

[@eduardoleonn]

Thank you!!

[@selmomr]

Thanks for the informative info and for sharing your refi analyzer. In terms of the analyzer, what would you differently if you wanted to include the closing cost in the loan and also cash out (for good reason :)

[@MillennialFinance101]

Get a low fee or no fee loan (one that pays you even) and do the cash out that way. You don’t want to pay the banks if you can help it. So find a negative points loan that makes sense and pull equity using a cash out. I wouldn’t do this unless I had some emergency or some investment of a lifetime I wanted to use the money on. Another option could be paying down all high interest debt

[@qaisurrehman]

thank you for taking the time to do this!

[@peacel5629]

Best video on youtube. Thank you for responding to our questions! I was going to refinanced with wells fargo and their communication skills is terrible.I will not be refinance with them anymore. Can you please help me?

[@MillennialFinance101]

Sure email me. And Wells Fargo is terrible.

[@Sleepy3DITS]

Hi... Thanks for a detailed info on refi! I've a unique situation: I've FHA loan @ 2.75% for 30 yrs with a PMI of $345 on a $450K loan. I want to refinance to get rid of the PMI. I only had the loan for 2 yrs and property vale has gone up over $100K. So won't mind the 30yr reset. My monthly is $2650 that includes Pro tax and Pmi. I talked to my bank and they said it will cost me $3000 lender fee (closing cost) and will be stacked to my loan while keeping the 2.75% interest. Not sure if it's worth it. Please ADVICE! Thank YOu.

[@MillennialFinance101]

Break even would be 8 months so it seems like a great deal! Make sure that closing cost is truely $3000. I would see if you can fork it over though and not roll it in. Keep the balance the same if you can.

[@Sleepy3DITS]

@@MillennialFinance101 Thank You. I was looking into boxloanhomes for banks and lenders. Is there anyone in particular that I can trust and go with.

[@MillennialFinance101]

@@Sleepy3DITS you can try box, watermark mortgage, loandepot. get some quotes and see which one is best

[@Sleepy3DITS]

@@MillennialFinance101 Thank You! I do appreciate your time and effort. "Spreading knowledge is wealth" Cheers!

[@ninjaawesomebattlepower]

Great video! I really wish I could score these interest rates now lol.

[@quinnbi8716]

Great Pros and Cons examples 👍 *Off topic - love the change of scenery. Your kitchen is absolutely beautiful and turn key. Maybe a house tour one day? 🤗

[@MillennialFinance101]

You now know all the secrets! Don't get tricked ever again and get low fee loans to get the BEST monthly payment for your home!

[@shellsterrr]

This was super helpful! Can we schedule a meeting with you for more questions?

[@Raymondjohn2]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@martingiavarini]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@bob.weaver72]

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@TheJackCain-84]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@bob.weaver72]

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..

[@TheJackCain-84]

I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing

[@DayOfVictory007]

New sub here. Very informative. Do you have the top 5 recommendations of which banks/lenders are best for refinance or should I proceed in filing an application with Box Home Loans? Thanks in advance!

[@MillennialFinance101]

try loan depot also. A lot of viewers have had some success there. Sorry for late response! Got lost in the pile!

[@joyrajagukguk7462]

Hello , thanks for the video

[@MillennialFinance101]

you're welcome

[@karrentubal4306]

Hi. We got a $304,000 mortgage balance on a house we are paying a principal and interest of $1,739.84 monthly for 7years with an interest rate of 3.625%. Is refinancing for a 30 year fixed conventional at 2.5% with a 0.476% points reasonable? Total closing cost /fee (excluding taxes and insuranc, e) is $3,000. We will be saving $520 per month as the new monthly principal and interest will be $1,220. Is it worth it?

[@MillennialFinance101]

The break even seems long. Could you find a 2.75% loan with less closing cost. .476% is quite high. It’ll make break even faster. Also make sure you continue paying $1739!! You’ll regain all those years and then some from the reset! Good luck!

[@deeflofont7689]

Wow am so glad I just discovered this video...planning to refinance n earned a lot from this video. Thanks so much. Knowledge is power. New sub here. Pls cont. sharing..am sure a lot will learn from you.👍

[@MillennialFinance101]

I got other refinance videos so check them out!

[@car4dan]

Hi do you still recommend box home loans to refinance? Reason I ask is I noticed this videos is 11 months ago. It’s a great video with detailed information so well explained thank you.

[@MillennialFinance101]

Yes I do!! Just know that all lenders are delayed due to covid (3rd party all delayed). Also many are using box these days so just be prepared to use all the upload forms and may not be in contact with loan officer. Good luck!

[@car4dan]

@@MillennialFinance101 Thank you so much.

[@MillennialFinance101]

No problem. Check out my other videos on how to compare loan cost and mistakes to avoid!

[@wasangelicoful]

Can you give me suggestions on doing a refi after a forbearance doe to covid? ty

[@MillennialFinance101]

Just get some quotes and work with your existing lender to see what the payoff is. It might have gone up the whole time as the interest probably still accumulated the entire time. That’s usually how it works even if you can pause payments. Once you figure out that amount, get a new loan for that amount so you can refinance into the new loan and close out the old one. Start fresh essentially.

[@Artvideojunkie]

Hi. I hope you can answer this. Everyone talks about the break even point of the refi closing cost of say $3grand on 220,000. I understand this. But the refi lender has told us that a new loan means new impounds & wants to add 10,000 to the loan to cover a yrs worth of impounds plus the $3grand (+) in closing costs. No one is talking about this huge cost being added into the loan over 30 yrs. Even if you get a refund from other mortgage company mailed to you with in thirty days. The damage has been done by the lender rolling in $10 grand into our mortgage for the next 30 years?? Does my question make sense?

[@MillennialFinance101]

Get another lender and another quote. 1 years worth of impounds is ridiculous. And you can’t roll impounds into your new loan. It’ll be in the escrow account. No damage is done. You just now have a huge escrow account with the new loan. Consider it a really bad savings account.

[@Hailey_Go]

I'm going from having a 30 yr. FHA loan (have to pay the monthly PMI $131 a month) at a 4.25% interest rate to a 15 year conventional loan with a 2.375% interest rate with a 2.703% APR. My monthly payment is decreasing by $10. Please tell me this is a no brainer or should I keep shopping?

[@MillennialFinance101]

Can you remove pmi today due to value increase? Do you need to get a 15yr? I say go conventional 30 year and pay extra. I like flexibility in life. The rates are quite similar. 2.7 seems high for a 15 yr though.

[@josephfernando8842]

My interest rate is 3.875 lived for 8 years on a 30 yr loan. Should i refinance?

[@MillennialFinance101]

I would see if you can find a cheap free loan. Your rate isn’t too bad but consider your principal balance also to see what you’ll save long term if you plan to stay there long term.

[@josephfernando8842]

@@MillennialFinance101 my principal balance is 275, kids are still young, planning to stay there for atleast for another 5-10 years.

[@MillennialFinance101]

I would get quotes but no need to hurry on anything. The rates are almost 1% lower so it’s worth it. I suggest the refi and keep paying your old mortgage payment (if you get another 30 year). Or you could try for a 15 year and get around nearly the same payment and shave off 5-7 years.

[@josephfernando8842]

@@MillennialFinance101 Thank you very much for your quick reply. Thanks for giving so much info for free. God bless you.

[@samb3639]

Awesome content. Straight to the point. How can I message my long question to you?

[@MillennialFinance101]

Find my email in my Channel page in about

[@victorarevalo108]

Thank You!

[@MillennialFinance101]

Np

[@wonjonglee7854]

Thanks so much for your advice, Minh! I'm still a bit confused as to why you would choose the 30 year over the 25 year loan though. If the rates and closing costs are the same, wouldn't it make sense to make fewer payments on the 25 year loan compared to the 30? Am I missing something here?

[@MillennialFinance101]

It all has to do with feeling secure and how much time you got left in this earth. If you’re young in your 30s, there’s no need to pressure yourself into a lower loan term like 15 years. 25 will be similar enough and if rate and closing is same, just take the 30 year and pay extra (like a 25 year), then if covid hits, you can pay the 30 year rate and be less stressed. That’s all.

[@tymom9313]

15 year is the only way to go!

[@MillennialFinance101]

30 year plus early payoff is preferred for me!!

[@miguellara7147]

boxhomeloan site look amazing, going reach out to them tomorrow. thanks for information.

[@miguellara7147]

you have a referral code

[@MillennialFinance101]

Just use the link in the description for some discount. Not mine but happy to get people discounts and save money!

[@cof6289]

Miguel, did u proceed with BoxHomeLoan? How was your experience? Are they legit? Im thinking of using them.

[@miguellara7147]

@@cof6289 no I did not I submit to rocket mortgage the offer got from box home loan 2500 less they match the offer. I paying $5800 for 2.50 rate 30 years closing Wednesday.

[@miguellara7147]

@@cof6289 if I don’t close with rocket mortgage quicken loans I was going to proceed with box loan but I started this refi process 2 month ago with RKT so gave them last chance to match price or I was going break the deal, gave me 2500 discount. On refi should close in two days

[@cof6289]

Have you used BoxHomeLoans before? Im seeing mixed reviews about them. Alot are saying 4 months into refi and they still havent closed.

[@MillennialFinance101]

I have many times but you have to consider right now is crazy busy with loans and all 3rd parties are backed up. I imagine it will be similar wherever you go but I can see it depending on the area too

[@cof6289]

@@MillennialFinance101 ok good to hear. So far they offer the best deal on my refi. I just want to make sure they are worth the wait. Thank you

[@MillennialFinance101]

Worth it to lock in best rate for a 30 year mortgage! They will extend locks if they have to.

[@cof6289]

@@MillennialFinance101 Bought my house 12 months ago for 235K, 30 year conventional, 3% down with a 3.79% interest rate & $60 pmi. Now, the house was appraised for 260K and i owe 225K on it. I refinanced the 225K balance for 30 years 2.99% interest rate, pmi down to $41, $750 closing cost. My monthly payment went down by $110. Did i make the right decision? This house will be a rental property in 4-5 years.

[@esmeraldaacosta8418]

We are planning refinance. Our loan balance is $297,000 the rate to our existing loan is 3.375% and we got an offer for 2.125% for 30 yrs fixed. My husband is 68 yrs old and I am 62 (unemployed). Is it wise to go for a refinance? They said the estimated payment is $1,256, or current payment is $1,476 (P+I only).Should we refinance?

[@MillennialFinance101]

Hmm i think I’m fine with you locking in lower rates but extending the loan at that age isn’t wise. Make sure the loan balance does not increase with that refinance

[@esmeraldaacosta8418]

@@MillennialFinance101 Thanks for your reply. We will make sure it won't go up. Our goal is pay off the loan as early as we can. Ou age is a our big concern.

[@esmeraldaacosta8418]

I have one more question. We have a line of credit (20K - rate 11.5% ), how can this line help us pay early?

[@MillennialFinance101]

Do you mean like a heloc? You owe 20k on it?

[@MillennialFinance101]

As for your other question, I would be less concerned with paying off that mortgage at this point because of your age. Try to get it low and enjoy the rest of your life stress free. The more you pay off the better for whoever will take over the asset when you pass but it’s more important you have positive cash flow into retirement. Keeping expenses low will be more enjoyable. Good luck!

[@deeflofont7689]

I meant learned a lot.

[@anngelagreen6246]

I have a 30 year fixed for 6.625 and I have been in my home for 16 years. I have been approved for a 10 year refi with an interest rate of 3.625 and 4.272 apr. The closing cost is 3,400. Is this a good scenario for a refi to shave 4 years off the life of my loan?

[@MillennialFinance101]

It is a good scenario but that apr is very high meaning the fees are very high. Check out my other refinance videos on how to compare loans and cost and mistakes to avoid! You should definitely a 15 or 10 year loan at 2.75 %

[@anngelagreen6246]

Thank you. I will review your other videos before committing.

[@MillennialFinance101]

Anngela Green yes please. They will save you money for sure! Also explain closing cost

[@tymom9313]

Hope you didn't do it!

[@sirhanreid5896]

Hello Got a question, I was shopping around for a lender to refinance. My credit score is 798..equity in the home is around 300k. After talking with several lenders. Started the process with one, let's say lender a. Lender b called to see what was happening. I told them I had a better offer than with a. At their request I sent lender a's proposal. Lender b came back with slightly lower interest, lower monthly payment and lower closing. I went with b. Thing is, after finishing the documents needed to start the process. They sent me a new proposal, with an increase of closing of 734 dollars. I asked why, I haven't gotten a response yet. Do i have any recourse at all?

[@MillennialFinance101]

The fees should all remain the same. Hopefully it's just the escrow charges that changed (property tax and home insurance). They usually estimate that for the quote but will get actual numbers when they get that infromation from your old loan. So just do the comparison of your quote vs the final paperwork to make sure the the fees are all the same. The escrow charges can vary a little but shouldn't really be considered when thinking about true closing cost. Hope that helps. Check out my other video on comparing loan quotes to understand why. Again, make sure the fees/ and other junk fees aren't changing!

[@sirhanreid5896]

@@MillennialFinance101 thank you so much

[@XxAlexanderProxx]

My Lender waved the Appraisal, does that mean I don't have to worry about my taxes going higher due to the refinance? I am in NJ, so you could understand my concerned lol. Going from 5.25% to 2.99 % with $2000 total closing cost.

[@MillennialFinance101]

Apparently it doesn’t trigger a tax reassessment. So you should be good. Congrats on saving a TON of money!

[@XxAlexanderProxx]

@@MillennialFinance101 Thanks.

[@kas447]

My monthly mortgage payment is $2990 and I’m planning to refinance it ,and lower the interest rate and monthly payment and sell it after 2 years. Is that the good idea? Please let me know Thanks

[@MillennialFinance101]

Probably not worth it unless you can find a free loan. The break even might be long. Check out some of my other videos for comparing loans.

[@srikanthmadugundi7114]

Thanks for the information. Are you sure the property taxes increase due to refinancing? I checked few websites online and all of them mention that the property taxes will not change due to refinance.

[@MillennialFinance101]

It does not. That is my mistake :). In cali, the property tax goes up so much each year, so I got confused lol. It only gets re-assessed at purchase time.

[@osmanxxrngxx1369]

Thx for the video worth my sub. I got question Aboo it refinance l have house that’s worth 100k a put down 20k to buy l wanna refinance but l don’t know how much my refinance will be from bank . I hope you can help me

[@MillennialFinance101]

The loan balance is quite low. So the closing cost might not be worth the savings in interest. The break even could take a while. If you can remove pmi in the process (due to home prices rising), that might make this more enticing though.

[@joyrajagukguk7462]

Just wondering $310,000 my orginal price for my home put 5% down payments 4.75% is my interest trying to refinance my home the estimate my home is $356,000 to avoid PMI my broker put the price up to $380,000 he first asked for 3.675% and i countered with 3.375% i am asking for 3.25%, what do you think? (My loan is $294,000)i have lived in my house for 3 years

[@MillennialFinance101]

If your loan balance is $294k and your house is worth $356k, that means you're only at 82.5% LTV, which means you will pay PMI. The broker estimating 380k is better since that will be 77.3% LTV which will drop the PMI. How did you estimate your home value? Zillow? Usually Zillow is a little lower than actuals. For the rate, did you check boxhomeloan rates in the link I provided? You can see if the rate is comparable. 3.25% is a GREAT rate. Even 3.675% is great if the closing cost is low! Good luck!

[@joyrajagukguk7462]

@@MillennialFinance101 Thanks. Your video really help.

[@joyrajagukguk7462]

@@MillennialFinance101 My closing cost is $7,317.00 , That's too high, right? APR, 3.371% TIP 59.202 %. Loan $290,000 sorry typo

[@MillennialFinance101]

@@joyrajagukguk7462 the rates change daily and I think today, a rate that low is going to have a high closing cost. A lot of the rates are increasing because mortgage companies can't keep up with refinancing loans. You can see this article posted today about this. www.housingwire.com/articles/super-low-interest-rates-disappear-from-mortgage-comparison-sites/

[@joyrajagukguk7462]

@@MillennialFinance101 thanks

[@laleevang1602]

How does this work with a second loan (the down payment Calhfa loan) if we refinance do we have to pay back that loan ($15K) or can we refi without adding on that second loan?

[@MillennialFinance101]

Your best bet is to just consolidate all the loans and just get a brand new loan to cover both. FHA loans are pretty terrible so hopefully you're in a position to get out of it and go to conventional. There are tons of junk fees like PMI your paying and also a huge upfront mortgage insurance premium. If you can get a conventional loan to cover both, that's the way to go. Otherwise, you may have to pay back your 2nd loan since the rules of those assistance programs is that you must pay them back if you sell your house or refinance out of the loan. Best to call the lender and find out but i don't see why they wouldn't let you just lump it all together in your new loan. Another option is a cash out refinance and take the funds to pay off that CALHFA loan, but that assumes you have some equity.

[@MillennialFinance101]

I did a little more research for you and found this on the CalHFA site. Do I have to pay back my Subordinate Liens? Yes; you signed both a Note and Deed of Trust. CalHFA subordinate financing is secured by a recorded lien on the property. If you pay off the first by selling the property, refinancing the first mortgage, or at maturity of the first mortgage, transfer title to the property, or allow others to assume the first mortgage, the subordinate financing becomes due and payable. These loans are not forgivable, nor do they go away after a period of time. Basically, your 2nd mortgage becomes due if you refinance. It might be better to keep your current mortgage if you suddenly can't afford the monthly payment due to this balance being added to your new loan! But if your home has appreciated, a cash out refinance may workout for you! It's hard to know until you do the numbers but I suspect this might not be in your favor unless you have a significant amount paid down or your home has appreciated a lot.

[@laleevang1602]

Thanks! I did want to refi out of fha to conventional. But that 2nd loan have me at a standstill but the 1% refi rate is pulling me in.

[@MillennialFinance101]

@@laleevang1602 Yeah, that 2nd loan becomes due instantly so make sure you can cover it in the refinance. You just need to roll it into the loan. If you aren't at 80% LTV, you might not save a whole lot of money since PMI on conventional loans is quite high also. It's just nice that it can be removed when you get to 80% LTV. You'll see that your mortgage is super affordable when you get to this magic number with the right loan.

[@ambition2367]

Man I need your help now, lol. I’m researching to refinance my home now to get a lower interest rate & smaller monthly payment. But there’s so many banks/loans & I find it extremely hard to compare. Is there anyway to contact you directly?

[@MillennialFinance101]

My channel has my email and find out other videos on how to compare loan costs!!

[@ambition2367]

@@MillennialFinance101 where’s your email I can’t find it

[@ambition2367]

I would like your advice in regards to refinancing. I currently owe 120,000$ on my mortgage. I have 27 years left on my loan & my rate is 4.125% The refinance would be at 3.375% rate, 30 year term, with all fees (closing cost, origination, etc...) totaling 2800$. The 2,800$ will be added to the new loan. The refinance new Loan would be 123,000$ (this includes the 2,800$ closing costs$. My monthly savings would only be about 76$. But I’m adding 3 years to my loan term. I’m not sure if it’s worth it. When I use a principal payment calculator paying 100$ extra per month on my current loan (27 years left) at 4.125% Vs refinancing (30 year term) 3.375% paying 100$ extra per month. I only save less than 1,000$ once the mortgage is paid off with that extra 100$ monthly payment. Am I missing something here?

[@MillennialFinance101]

I will have a look and let you know what I think.

[@ambition2367]

@@MillennialFinance101 Wow, I didn’t think you would even respond. You have a good heart, taking your personal time to give everyone free advice to help build financial freedom. I appreciate you & I’m sure many other people do too! Tomorrow, Friday 4/2/21 is when I hit 14 days from 1st credit pull (hard inquiry) . I know your busy, but I’d really appreciate a answer before then. If you don’t have the time, I totally understand. Either way I will wait for your opinion because I’m stuck. Thanks!

[@SkiPeres]

I don't see the referral code and when i filled out the application it still didn't apply it can you please send it to me

[@MillennialFinance101]

It should be automatic but ask the loan office about the slickdeals discount. It should be .125 point discount

[@alvarovargas4067]

Thx for sharing!!! I just got a quote from my local credit union To REFI an investment property from 4.875 to 4.0% with 4k in closing costs... I've owned the property for about 6 years now do you think this would be worth it?

[@MillennialFinance101]

have you checked the rates using boxhomeloans? I don't know where you're located but I can see you can get 4% 30 year fixed investment loan for close to no closing cost ($900, but not including escrow prepaids).

[@wilberrosales8108]

@@MillennialFinance101 what's the most important thing to look for in refinance I watch some of your videos credit do they have run it how it affects d credit score

[@MillennialFinance101]

@@wilberrosales8108 You want to look at: Interest Rate Closing Cost New loan balance (make sure it's the same as payoff or same across all quotes) Shouldn't need a credit check for a quick quote. I got videos outlining all of these things (comparing loans, how to get instant quotes, mistakes to avoid when refinancing). As for credit checks, it shouldn't hurt you anymore than a credit card application.

[@wilberrosales8108]

@@MillennialFinance101 i ask for email from rocket mortgage for a quot8 illustration analysis they run the report but I haven't got the email your thoughts Thursday was 2.8 I checked with Fargo now is 3 your thoughts

[@MillennialFinance101]

The rates are quickly rising. If they aren’t getting back fast enough, find someone else. Try loan depot

[@xtimbea]

We just had a shortage on escrow so our monthly payment increased by almost 500. Does refinancing will get rid of this?

[@MillennialFinance101]

Your loan admin is supposed to be on top of that and do reanalysis every so often. When you refinance, they will calculate all this again and fix it initially so yes. But the things they can’t control are your county taxes going up and your insurances premiums going up. You’ll have to be mindful that shortages can occur due to that

[@xtimbea]

@@MillennialFinance101 thank you for reply. I tried box home loans and choose the rate. I've chose the one with ($$) on total cost since it's free?. Tho when I do the calculate "estimate cash to/from closing". We're asked with $50000+ "cash from borrower". Does that mean we have to pay it to lock that rate? I'm confused.

[@MillennialFinance101]

@@xtimbea sounds like you may have entered some information wrong in the payoff balance / loan amount. The estimated closing cost is just what you will bring to the table to close the loan. You don't need to pay that until closing time. The rate locking can happen after your credit check and you fill out an application.

[@mrdreshell2000]

11:00

[@AlliNW0nderland.]

Okay! So the refinance is for the remaining balance you have left to pay. So if you paid down your $325k loan to $300k - the refinance will be for the remaining $300k?

[@MillennialFinance101]

Yes but it can any more too if you want cash back. I don’t suggest refinancing right now as the rates are insane

[@AlliNW0nderland.]

@@MillennialFinance101 oh yea definitely not right now. Just have been wanting to understand the process

[@MillennialFinance101]

@ajange225 np. The banks will let you get loans up to 95% of property value for conventional. Some products will differ. So if your house is worth $500000 and say you owe $300000, you can get a loan up to $475000. You would get $175000 cash in this scenario and pay a mortgage on the $475000 loan. I would never suggest this. I like to be at 80% loan to value or lower to avoid PMI.

[@JosePena-ku1db]

PLEASE LET ME KNKW KNOW WHICH BANK OR FONANCIAL I CAN USE TO REFINANCE MY MORTGAGE OF 310,000 GOOD CREDIT 25 YEAR SAME JOB MAKING OVER 120,000

[@MillennialFinance101]

Shop around. Or try box home loan or rocket mortgage or United wholesale or loan depot

[@gabrielagosto3550]

I have a FHA and my interest rate is at 3%... I found a conv. loan 30 yrs at 3.375% and the payment is lower. However the total interest over the loan goes up. Is this correct? or do you think I made a mistake? what do you recommend?

[@MillennialFinance101]

Did you factor in the lifetime pmi you’ll be paying on that fha? The calculators won’t show this.

[@gabrielagosto3550]

@@MillennialFinance101 great point!

[@xpok99]

Man how can I get your referral code?? 😅😊😆😎😎

[@MillennialFinance101]

Just use the link in the video description

[@MillennialFinance101]

Let me know how much money you saved by refinancing!

[@johnyyunus7966]

I have 3.75, if I get 3.3, is it worth with 4-5k closing fees?

[@MillennialFinance101]

it definitely is not worth it. I am in the same boat as you with 3.75 and it does not make sense to refinance. We already got good loans :)

[@CindyCyndiCinde]

Is this California?

[@MillennialFinance101]

Yup

[@CindyCyndiCinde]

@@MillennialFinance101 Thanks

[@anitadominguez7553]

I have a loan balance of $43,171.25 left on my 30 year loan at 6.25 % is it wise to refinance but I need so cash out to fix my leaky roof should I get a 10 year loan or 15 or 30 year. Please help I am confused on what to do thanks

[@togbakollie474]

I am thinking of refinancing my house. Can you please drop for me some of the good guy out there that can help me out.

[@dochvtech22]

Look up on KZbin Gene kim Robert breaker Chuck missler

[@MillennialFinance101]

Hmm