How To Know When To Refinance Your Mortgage

[@drunclecookie216]

I was a first time home buyer in 2005 and got a 30 year loan... I was stupid for the first 7 years only paying the minimum balance on the loan. In 2012 I refinanced to a fixed rate 3% 15 year loan and my monthly payments did not increase at all. I also started paying $100 extra on the principal every month. Right now I'm on track to pay off the house end of next year, 15 years from the original loan.

[@3E8mps]

@@stayathomemarine Assuming you're not including your taxes and insurance, your mortgage payment of $941/mo is likely stemming from a $191,000 loan. A payment of $1,442 would pay off the loan in 15 years, and doubling your payment would make you pay off the loan in a short 10.5 years. The reason for this is because any extra money you put towards your principle causes the amount of interest due to decrease, which means you'll be paying less interest in total. The downside is that you're paying more money sooner, money that might be put to good use elsewhere depending on your circumstances. Continuing your example, if you refinanced to a 15 year loan at 3.25%, your payment would be $1,348 (which is less than before), which is still more than $941. Buuuuut, two years have gone by, which means your loan balance is smaller - roughly $184,000. This combined with an interest rate of 3.25% for 15 years is about $1,300, which is smaller still.

[@Colyers]

@@3E8mps wow, you're an amazing person for your level of effort.

[@topcomment3816]

Ryan Cook Dumb. Imagine how much wealthier you would have been if you had invested that money.

[@stayathomemarine]

@@3E8mps Our loan is for $145,200. But thank you for explaining it. So much goes into buying a house! And unfortunately real estate agents don't paint you the entire picture and give you advice on what's best for you financially. After my husband graduates next year, our income will increase by about $10k so we will be throwing all of that extra money towards the mortgage

[@CHRISTINE162004]

theMattVB Hi, since you sound like your the authority on this would you mind giving me advice and crunch the numbers? I am also 15 years into a 5/1 ARM, which has only readjusted downward since 2009, until 2017 when rates started to adjust back upwards again. My loan has a max rate of 9% which can adjust once a year according to the rates, but not to exceed more than 1.50% either upwards or downwards a year.. It is currently at 5.25% and I owe 77,000 with 14.5 years left to pay and what I fear is hyperinflation and my rate going up and up which would be unaffordable.. If I could refinance at a 15 year rate at about 3.64%, and let's say 2,700 in closing cost, would that be advisable, although I know it would change the amortization schedule?

[@Devinfrbs]

My mortgage is 2.1%. Definitely not refinancing anytime soon.

[@TANQ31]

When did you sign that??? I'm at 4.15 from 2017.

[@Devinfrbs]

@@TANQ31 Canada during 2014. It was right after the oil crash when interest rates went down.

[@baseline6786]

I'm currently at 3.55% variable from 2.30% as the bank of canada went on its path raising rates. But I don't have much left owing now.

[@666dynomax]

@@Devinfrbs how long is that locked in for... must have just came due. its neat in the USA you sign a 30 year, its locked for 30 years

[@Devinfrbs]

666dynomax Canadians most popular is 5 year fixed. That’s what mine is, because that’s what the banks always post as their best deals

[@DanielIles]

Refi when interest is this low into a fixed rate. It’s free money 💵

[@MsOnitemi]

Dave you are amazing! No one has ever explained this analysis. You just saved me a bunch of cash

[@armandojimenez7803]

Hi baby I’m sorry I’m

[@LuckyHumanFoot]

Nooo bro Don't listen to this guy

[@MrFuchew]

the 15 year fixed, never seen one only head whispers of them here in Seattle

[@666dynomax]

not much of that fixed in canada for that long of a term either... 7 yrs maybe max... most ppl are 4 or 5.

[@TGSHomeandGarden]

I have a %3.375 mortgage I will probably never refinance.. I missed the 2% wave by 6 mts, Boy would that have been nice.

[@hobbylobby1348]

When was interest 2% girl??

[@hobbylobby1348]

U got a 30 or 15?

[@DanielIles]

The Coffee Chat wow that would have been good

[@weight333]

Sweet! I just refinanced to 4% from 4.5%. Wish I was in the 3s!

[@ryanmcginnis2553]

It was never in the 2% someone lied to you lol

[@AOLnotas]

So if I own a home with a 4 percent interest rate, right now is not a good idea to refianance because the interest rate is to high righ now?

[@702xRyder]

I used to listen to Dave Ramsey show after coast to coast am when I was 14 im 25 now and I have the best credit a home and cars with low APR thank you Dave

[@jokawildn]

Soo proud of you! I’m 32, but hoping that my kids take to understanding and practicing Dave’s principles early like you! In not that late, but would have had a much better start if I had started searching earlier!

[@blackworldtraveler3711]

I just bought my place and paid off 30yr. in 9.years and done.

[@LADYVIKING05]

BlackWorldTraveler HOW DID YOU DO IT?

[@xxP1ST0LER0xx]

ßiTE SiZE ßAяßiE budgeting

[@hirambright9357]

I disagree with Dave. I think your plan is better. Commit to payments with the 30 year fix, but pay as if you were paying a 15 year loan or more. That way if any given month you are stuck you don't fall behind.

[@derikamiller4911]

BlackWorldTraveler was it a FHA loan?

[@Mansini77]

So I have a balance of $170k on my 30 year mortgage at 4.375%. My monthly payment is a little under $1500 a month, that’s with property tax and homeowners insurance starting back in mid 2014. Over the past two years, I’ve been adding an extra $1000 every month in principle to get it paid off quicker. I’m looking at my payoff goal between 6-7 years at the current pace and at least gonna stay in the home for 10 years. I know I could refinance to a 10 or a 15 with a lower rate, but not sure if it will be worth it considering I’m already paying the extra principal. Any thoughts guys?

[@scotchbudmeister9018]

I'm at 4.125% on a 30 year with 160k balance - but paying $200/month extra on principal so I'm about 2.5 years ahead of the amortization schedule. I think a 15 year fixed may be worth looking into...

[@missouriairsoft4842]

Is it weird that I like watching this and I’m only 15

[@EastCoastReefer]

Missouri Airsoft - you’re going to be very wealthy when you are older!

[@TANQ31]

No way bro. I wanted to buy a house since 15 years old. Remember it like it was yesterday. Sold a pig at the county fair and got a 1300 dollar check. Now I'm 30. Own 2 pieces of real estate. One paid off. Dont stop learning about this stuff. Itll be worth it. Trust me.

[@urielgalvan1095]

No way your getting a head start than most young adults & some grown people still don't understand this.

[@davidalbornoz1727]

yes, and it pays to be weird that way..

[@zacharytbaird]

Missouri Airsoft don’t ask stupid questions, no it’s not

[@cju4300]

When you buy a house or refinance, void PMI. PMI is a scam designed to protect banks at homeowner's expense. The excuse banks use is that less than 20% down payment is more risky for them. So the homeowner is at fault for them incurring higher risk. Would you pay bank CEO's car insurance because his changes of colliding with you on the road increases when you drive?

[@jakeol3937]

Dropping 1%!? Of course that’s worth it in all scenarios.

[@hvactec54]

About to close on a refi next week from 3.65 to 2.25

[@brightcreep1]

Hello, which bank? And Weill it be 30 year or 15 Year

[@celiactrunc]

Can you renegotiate intrest rate with Bank, telling them if the don't drop I will refinance with another bank?

[@TGSHomeandGarden]

you can try

[@tatakainokaizen7140]

thank you so much for uploading this! i was on the fence about my refinance, but this is so much simpler it really took all of the guess work out of it for me. Thank you so much!

[@Mostoyaceitemusic]

Dave . What do you think about steam line financing ? I am on my third year with a 30 yrs loan. Iam planning to stay in my house for a while

[@lorijacobs8178]

I have property that I owner financed 4 years ago. The deed is in my name and my husband's name. The lady we payed the mortgage payments to passed away in January 2020. I sent a sympathy card to her adult daughter and asked her to let me know who I pay the payments to, she never replied to me. I have just been contacted now after 7 months about signing the property back over to her adult children as a gift. I was going to just sign it and give it to them, but a lady preacher I watch posted a new message a few days later and said God was speaking to someone not to sign the contract and to read the fine print. I went back to read the fine print and it said I was giving them the property as a gift. Praying 🙏 sincerely at what I should do. The deed is in our name, I want to do what's right, but I want God's Will in this situation. Thank you and God bless!

[@weightlosswithjohanna]

What did you end up doing?

[@NickPeitsch]

Without refinancing, it would be hard to succeed in real estate investing. Gotta love it 👌

[@Xspeedspec]

Refinancing now 3.375% 30 yr...saving a percent...missed the 3% a few days ago then rent out the house and buy another one with these interest rates

[@realist915able]

I'm going to refinance a 3.75% to 2.25%.

[@jonathanyugi455]

I just refinanced 4 months ago frm a 3.675 to a 3.365% with the intention to drop the PMI! Now my question is should I refinance to a 2.5%. Or just stay where I’m at? Thank you in advance!

[@williamcrazylacyfurmage9953]

I need some advice. My interest rate is 5.75 on a 30 yr loan I got in 2005 for a $86,000. Is it good to refinance the 14 yrs I have left to a 15 yr at 2.5% to 2.99% interest? As of now my P & I is $501, $275 goes to interest and $226 goes to principal. I just started 5 months ago tossing another $200 a month into the loan. I think I should stay the course and keep tossing $200 to $300 into the loan to pay it down faster. Lenders I've talked to said if I refinance, my new P & I would be $380. BUT, you know when you start over with a new loan, the new payment is MOSTLY interest being paid. Because of that, I think I should just not refinance. I owe $56,000. House Value on Zillow is $269,000. Any advice would be great. I want a 10 yr loan, but I'm told I don't qualify.

[@eyaalem7990]

Question. I have 350k house by 4% and my loan officer asked me to refinance by 3.5% but when I do the math I don't get that much money. becouse of refinacing fees and closing costs. and I decided to wait if the housing market will drop more. Another thing how it works after you refinansing house to get cash back?

[@anarose623]

Eya Alem how does it help to refinance when housing market drops more? You mean if interest rate drops more?

[@byronlazo]

What was your closing cost? I’m on the same boat sort of. My loans would be 360k and my current rate is 3.5 looking to drop to 2.75

[@stayathomemarine]

I had a 30 year 3.8% interest rate. Yesterday I called the mortgage company and now we have a 25 year 3.3% interest rate! Woot woot. I asked about doing a 15 year however our interest rate was lower doing the 25 year. So we are just going to pay extra on our mortgage to pay it off in 15.

[@fernandofernandez511]

Was it a long process

[@arynnakaoka2885]

When you refinance, you reset the amortization schedule. Should you account for that because the payments are mostly interest early on in the loan?

[@noobmaster31]

Yes, you should. If you're already on year 13 of a 30 year loan, don't go accepting another 30 year loan simply because the monthly costs are lower. I'd go for a 15 or fewer year loan to stay within the original schedule while saving money on interest. Talk to your broker about the options you have and do the math. If it makes sense to you to pay a little extra to turn your 17 year loan to a 10 year loan, why not do that. If you can't afford to do that at the moment do the best you can afford to do, since it would likely mean a lower interest rate and overall lower interest. Then when you are able to pay extra, put that little extra per month towards the principal amount so that you cut off years of interest. And of course, make sure you're breaking even before you're ready to move.

[@RDZZX14]

He mentioned that he would not advise to refi an FHA loan. Why not? What are the downsides?

[@GarrettJohnson1986]

You can never get rid of the Private Mortgage Insurance (PMI) premium that you must pay monthly for the life of the loan with an FHA. It is usually a hundred or more dollars a month to guarantee the loan for the bank. If you go to a traditional with at least 20% down you can avoid PMI completely.

[@jborrego2406]

Garrett Johnson what omg I thought once u get to 20 percent the pmi goes away

[@GarrettJohnson1986]

@@jborrego2406 with a conventional loan yes it does. Go read the terms of FHA, the PMI is for the entire life of the loan.

[@omotanwa2986]

@@jborrego2406 if you don’t refinance to a traditional loan it won’t go way. So you have to refinance to get rid of it

[@kivigray0423]

Sooooooo helpful! Thank you!

[@jokawildn]

Is it good idea to pay the closing costs out of pocket right away instead of adding it to the payments?

[@mrgomez7613]

Absolutely, so you do not pay interest on the closing costs.

[@Colyers]

I'm having a hard time wrapping my head around a 15 year vs a 30 year which you can make extra towards (to pay off faster). I understand the % will be better but you have so much more flexibility on a 30 year. Also a 15 year in an area like Seattle is VERY steep. 20% down is $100k+ everywhere you look.

[@topcomment3816]

Colyers Don’t listen to Dave. Lesson learned.

[@brianmay660]

I bought a condo right outside the city (~20m bus ride) for $225k in 2016 and put down 20% on a 30 year. I don't think it would've been "steep" to do a 15 year, but I don't understand the urgency in using a 15 vs a 30. The arguments on his actual website are saving money on interest, building equity faster, and paying it off sooner. That's fine, but why not just use those 15 years and invest the difference into an S&P 500 index or something? I love the channel and get a ton of great information out of it. However, I think most his real estate advice means you miss out on the power of leverage.

[@Colyers]

@@brianmay660 Thanks for the great insight. I'm at around a 12% down of my target purchase price and plan on doing a 30 year. I'll budget hard to get to that 20% to remove PMI and continue to make payments above minimum mortgage (if it makes the most financial sense).

[@chrisstaub5880]

Alternative viewpoint: a 30-year mortgage doesn't give you more "flexibility" than a 15-year, it allows you to buy a more expensive house. This is one of the reasons Dave recommends a 15-year. Basically, if you "need" a 30-year to comfortably afford the payments, the house is too expensive.

[@shawmeck9323]

Wait why is it a bad idead to buy points to lower your interest rate?

[@mortgagesmademanageable9107]

Kind of similar to the video, you need to offset the cost of the points and see how long it takes you to break even. A lot of times the break even might be 5 years or more, and if you sell or refi within that time frame you would actually lose money.

[@sunofsotep8265]

Very helpful, very simple. Thank you.

[@sirhanreid5896]

Hey Dave, how you doing.. 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?

[@eheheh3263]

Can I pay extra each month to lower my monthly payment or does your monthly payment always remains the same? I’m talking about without refinancing just lowering your balance by paying extra cash each month

[@carlitoxwey69]

Excuse my ignorance but what does it mean to "not pay any points"?

[@kailaleegibbons6143]

Mortgage points are when you pay the bank upfront to lower your interest rate. It doesn't seem to make sense financially though, you end up paying the same either way from what I can tell.

[@hellokitty8552]

Kaila Lee Gibbons also have to consider the tax write off on the points paid. You have to see if that makes sense when you file your taxes. If it makes no difference, then I rather not pay any points to get a discount. Why bother.

[@pirate1975]

I’m Still lost....

[@jordansmith6032]

I have a 15 year at 3%, with 13 years left. Agent suggested me to refinance at 2.65% for 15 years. Closing costs are $6500. The monthly would be a little lower but interest over the course of the loan will be thousands higher. Should I refinance?

[@rebeccajohnson1368]

This is a definite rip off!

[@KDrop84]

Is there a penalty for paying off a loan

[@jsaaal123]

I just wanna know where you can buy a home for that cheap

[@apkalay1s]

Missouri

[@Edgar-and-Wrench]

Texas

[@itsdasoundofthepolice6307]

Arizona

[@LeGeND-12]

Sal Vulcano Is this THE sal Vulcano???

[@kailaleegibbons6143]

Anywhere if you're not greedy. Except maybe California.

[@resinsmp]

Don't forget to include the appraisal fee or any others with the origination fee when calculating the break even point.

[@Marts1990]

How about the amortization schedule!!!?

[@clayp200]

Is it worth it to refinance a house to save 1/2 percent in interest? $346,681 remaining $6,000 closing (only fee to be paid) 3.625% to 3.125% monthly payment would save $165

[@walterjohnson9819]

Clay well, 165x12(mos) = $1980 a yr you would save. Now take that number and multiply it by the remaining years you believe it’ll take you to payoff your mortgage and you’ll have your answer. Short Term - 6k sucks Long Term - not bad - Just a thought

[@mrgomez7613]

it will depend on how long you had your loan for and the initial loan amount (not the current amount).

[@Hardcore-Homestead]

I remember hearing Dave Ramsey laugh about the idea of rates going down just a year ago. I can't wait to see the look on his face when we go negative interest rates in the United States from terrible monetary policy of the baby boomer generation.

[@Dhleeiv]

Baby boomers are the worst but I seriously doubt we go into negative rates, even with a recession.

[@GabrielGonzalez-kb5by]

Vajra the fed rate and mortgage rates are two distinct rates... mortgage rates will never be negative. Fed rates were at 0 for for 7 years, from 2008 til 2015. Mortgage rates at its lowest during that time was in 2012 at 3.31 for a 30 year loan and 2.66 for a 15 year

[@ScottJ_Moses]

This comment didn’t age well…

[@Christfollower89]

Hey Dave, I'm from the future and I just refinanced to fixed 2.25% for $1684 using a VA Mortgage Refinance (Funding Fee Exempt).

[@braceyourselvesfortruth2492]

VA isn't more expensive if you have a 10% or higher disability rating. No origination fees.

[@Christfollower89]

I just refinanced to fixed 2.25% for $1684 using a VA Mortgage Refinance (Funding Fee Exempt). It's great being exempt from PMI as well.

[@samreagan6292]

Why can't I refinance these student loans?

[@Dpaq13]

Sam Reagan gotta go private

[@ItsGrawVez]

You can, I’m working on mine with Laurel Road

[@christina6770]

Can anyone give me advice? We bought our home in August 2017 with a 4.75% interest rate, loan amount $198,500 (home price 205k w/ 6500 down) We also got a mortgage certificate credit that gives us a 20% tax credit for(yes credit not deduction)for the life of the loan, which we would lose if we refinance. We have great credit (790) and no credit card debt, no car payment, and $130/month student loan payment. We have paid an extra amount each month so our loan balance is sitting at $189k. We also dont currently pay PMI and our payment including $224/month for escrow is $1261/month. I think we would get the lowest rates, but I'm not sure what the lowest rates are (seems like around 3.4%?), and if the savings would be worth it. Also, our home value has increased $35,000-40,000 based on our market, if that matters. Any help is appreciated 😊

[@stayathomemarine]

We have a 3.3% rate but we have a VA loan. VA loans typically get the best interest rates because it's like a 'thank you' to veterans. That's what the loan officer told me.

[@cfleming4484]

B C you should be able to keep the mortgage credit certificate. Call them and ask the steps to reissue the certificate. Only when you get a new house you can’t take it with you

[@iprshow8465]

$164000? Where are this people calling from? I’ll be in heaven with a mortgage like that

[@freddysmash]

I’ll tell you where they aren’t. New York or California 😂

[@africanpapi7128]

Or Wa State....smh

[@LuckyHumanFoot]

Texas probably

[@RedSrhRed]

New mexico

[@TopVillain]

There calling from the year 2008

[@nidiacheeld2]

I have a loan mortgage for 173.00 interest rate is 3.62, is a FHA Mip, house value at 285,000 I would like to removed the FHA loan to a 15 yr home loan, How I do that. Thank you

[@theshark84724]

What if there are no closing costs?

[@robshighlights6431]

Oh they are waaaaaaay down now believe me. 2.75

[@Thatsitable11]

had no clue thank you

[@ruthgraff2064]

Im hoping to buy a home through USDA an I think they go through fanny may ..do you have any info about fannie may

[@saw837]

I need advice please . I have a 4.15 rate . I have been offer 2.25 fha loan .loan amount 253 including the closing cost Closing cost 18 grand . I have another bank is giving me 2.75 rate at 234 thousand plus 11 thousand fees .i planning to stay 20 years . Please help me out which choice will be right for me Any re

[@vitasdream1649]

Go on Facebook and add the Dave Ramsey group they answer questions like this.

[@jessicacasillas8368]

How to I begin to refinance and how do i know who to go with ??

[@Xspeedspec]

Refinancing now 3.375% 30 yr...saving a percent...missed the 3% a few days ago

[@NoDebtButLove]

This is great to know.

[@ericksonsails]

I didn't hear him talk about lower payments or a quicker payoff because of the refinance with a lower interest rate. He only calculated based on the points cost. ???????????????????????????????????????????

[@williamwaters8344]

This guy is a joke, never refinance your mortgage. Get a 30 year fixed and make a payment as a 15 year. If things get tight you can always just pay the 30 year amount.

[@SanAntonioNewHomesForSale]

I had a 30 year loan at 4.250% and refinance at 2% at 15 years fix rate closing cost were 5k in 2 years I broke even and I started to save 2,400$ every years ... I'm 1 year away to paying it off

[@chrisstaub5880]

You can do exactly the same thing with a 15-year. Just ensure the payment is low enough that you have margin in your budget, and make extra payments to pay it off in around 7 years. One of the points of recommending a 15-year mortgage is that you buy less house in the first place.

[@williamwaters8344]

@@chrisstaub5880 Thanks. That is what i was saying. I was assuming that some ones money was tight, where the larger 15 year payment might be too hard for them.

[@burdenoflove8776]

We got a 5% loan on a 30 year. Is that bad? Sounds bad.... about $93,000. I want to pay it off ASAP. 100% debt free and been working tons of overtime lately as a letter carrier. I wonder if I should refinance.

[@SillyMommy4Life]

Great advice once again.

[@gearjammer5499]

Wow that's funny I just got a 30 year FHA loan at 3.625% with 3.5% down in the seller paid most of the closing cost so I'm not sure where you find it's more expensive

[@fondofthebonds4914]

There isnt a seller to pay your closing costs if you're refinancing you knucklehead

[@mariasoto3574]

I have FHA Loan 30 years I purchase the house on July 4 2019. my interest rate is 3.5% my mortgage that I have right now called me, to ask if I want to refinance for a 2.87% rate (is something new they offering) they will pay the closing cost. I ask if I could do 15 years they said no. but I realized my the loan is $223,930.96 and they have $226,10

[@gitarplayer229]

I’m sorry but Dave’s wrong about points. If you plan on being in a house for the long haul points can absolutely save you money.

[@joeb1522]

Yes, but that is assuming you don't pay off the loan for a long time. I recall it takes about 7 years to break even on points.

[@Anonyme67]

My second best virtual mentor!!!!❤️❤️❤️❤️

[@ericgauthier8695]

If they sold my mortgage to another company WITHOUT my consent , then THAT COMPANY paid for my home already , so THEY should pay the mortgage from now on

[@braceyourselvesfortruth2492]

Good luck with that one, buddy. You don't own the loan. You probably think you own the house too.

[@angelcabrera-sm1ge]

The Dave Ramsey Show - What's included in closing costs? Total Closing Costs? Or exclude things like homeowners insurance premium (prepaid) and Property taxes (predpaid)? Or just using TOTAL closing costs no matter what it includes?

[@teeduck]

Why refinance if you only have ten years left on your loan

[@murc111]

To save thousands of dollars in interest.

[@hellokitty8552]

Derek Ash there won’t be thousands to be saved... it might just break even if there’s only 10 years left on the mortgage.

[@eyaalem7990]

kitty cat u better do the math in paper. Even if u have 10 years left u will get some money when you refinance .

[@e.rivera4251]

Be very carefull with this...i have 4% and the bank is offered me 3.5% ....that is crab...considering my high credit score and equity...so be carefull with lenders , brokers, etc..they will rip you off with the closing costs. At this moment i'm looking for a better deal.

[@ponchimunchy7444]

This is going over my head as much as I try to understand. Is there another resource I could look at? Let me see if I get this correctly: If the closing cost is more than the interest savings, then divide the cost with the savings to get an idea of how soon you can break even. What does break even mean? When I divide it, my number is 0.7ish. Does that mean that it’s a great deal? Just bought the house 6 months ago.

[@alexanderlavoie5461]

Break even=what you spent on closing costs and what you save per year by refi meet. For example, if you spent 6,000 to close, and the refi saves you 1,000 a year it will take 6 years to break even. If you plan on staying on your home longer then the break even date, it's probably worth the refi. If you move out before the break even, then it's not worth it. 6000÷1000=6. Hope that helps.

[@desertguy1362]

Should I do refi cash out to pay off all debt 40k cash out 40k debt including : cc, 1 personal loan, 2 cars? Thoughts

[@hobbylobby1348]

Definitely no

[@anonymousfinance-subcribe5268]

sell old stuff first

[@Mansini77]

I’d consider it depending on what your current interest rate is now and if you are paying PMI.

[@granitemoss1451]

NO. Right now, if you suddenly can't pay those loans, there's not much they can take from you, is there (aside from the cars)? If you cash out and move that debt to your mortgage, if something happens and you suddenly can't pay, you're losing your home.

[@desertguy1362]

Pmi yes, interest 3.75% fixed thirty years I pay 200 over my monthly

[@kimberlysmith3790]

So true, crazy world

[@HendersonHinchfinch]

This lady doesn’t know what’s going on.

[@lonestarr1707]

Ikr 😆 she's lost but embarrassed to say it

[@LouBloom21655]

Hahaha

[@dwilliams8002]

You know it's time to refinance when your current lender loses your payments and pretend they can't find multiple payments.

[@brenramir]

Should I refi to pull money out to pay school loan? I have a 15 yr loan but refinancing would be at a lower interest then I currently have. 45k in school loans.

[@granitemoss1451]

NO. You would be moving an unsecured loan into a secured one.

[@Soljarag5]

I don't think she understood what he was talking about

[@bosepepe2329]

Do I need a lawyer to refinance!?

[@natilovesnails881]

No

[@FreshKicks4545]

When you have to refinance, what does it mean when they ask, acquisition date mortgage???

[@nirmitkadakia6812]

I would think that refers to the amount of the mortgage at the time of buying the asset. Most people put between 10% and 20% down when buying a house or a car but knowing the true down payment is key. More so because if you put less than 20% down, there is a high likelihood your monty payments also include PMI ( property mortgage insurance) and tax escrow

[@tygur23]

Bigger question is how long have they been in the home

[@inamulshir6359]

So when did she hung up the line

[@RobertG1690]

Question. I have a 230k original loan. My principle owed is 210k. If I refinance, am I refinancing 230k again at a lower interest rate? Or is it 210k being refinanced? It would make sense its 210k right?

[@diytacoma5758]

We refinancing they told me that could be as lowest as 2.5

[@RJM1982]

My job is to put people in debt and I feel really bad about it. However, this the only way I can make a decent to good income. What would you guys do in this predicament?

[@jgood005]

Not all debt is necessarily bad debt. A 15 year fixed rate mortgage is acceptable, even Dave thinks so. You could argue business loans are sometimes prudent as well. If you need a quick $5,000 to fulfill a $20,000 order but don't have the cash, it would make sense to borrow there. It's consumer debt that's stupid.

[@topcomment3816]

Explore with Rick Gaming Stop listening to Dave Ramsey? Debt is not bad. Dave is just an idiot that doesn’t know how to take responsibility for his bad financial decisions 30 years ago.

[@anthonyperez4223]

It’s going to take me 6.6 months to break even.

[@pyack5]

Loan 180k @ 4.85 % since 2017 is it good idea to refinance this early cov19 mess me up need Xtra $ want to know if this could be foolish

[@pinkchocolate305]

Do it. Interest rates are down.

[@remy9232]

I bought a home in San Diego in Dec 2018 - 30 year mortgage, 5.35% rate, 20% down; we bought the house for $510k. The refi rates today are around 3.5 - 4%, but there's chatter that the Fed will lower the fed funds rate at their Sept/Dec meetings, with more cutting to be done in the new year. I'm not even considering a refi until early 2020. My advice is to hang back until then, pay off credit card debt, improve your credit so you can bolster your application.

[@magomago7819]

@Fila Kri May I ask what state is this in?

[@magomago7819]

@Fila Kri ohhh ok Thank you👍.

[@LeonTiry]

Never pay off a mortgage triple your money not doing so creating cash flow

[@LeonTiry]

@Zach Hawkins when you create cash flow if you get sick or disabled you're still gaining that money... How long before you pay your mortgage off 30 plus yearsby then you could be disabled or injured and not have any cash flow coming in potentially no home either.... Never pay off a mortgage that's the number one rule if you want to make it big

[@mrgomez7613]

Or you can make bad investments like the majority, then end up with no money and no home. People throw investments like it's easy to be successful in it. The reality is a few ever do well investing to justify not paying off their mortgage soon.

[@selenacruz161]

Dave should've asked her how many years she has on her mortgage left. What if she just got the mortgage? To refinance her loan to a 15 year term is going to cause her to pay more monthly. He should've asked her more questions lol

[@tihocleo]

Dave's math albeit sound doesn't account for the fact that most (if not all) mortgages are amortized with front-loading of the interest rates. Thus, when refinancing (even to a lower, better rate), your interest to loan ratio will start over, which means less towards the principal and more to the bank. For that reason, I challenge the simplicity of Dave's approach.

[@Fedproman]

Lots of "advice" from old Dave is like that. Too many personal variables to have a hard and fast rule like he pontificates. But nothing new from Dave.

[@mtbpolyman]

I was thinking the same about amortization. This is a huge factor and he has now lost credibility in my mind.

[@sihemb-bey3098]

Please help with any advice My loan now is 193k with 4,85% interests purchased the house the end of 2017, now the bank offering3,85% interest with closing cost $4600. Is it worth it to refinance knowing that we see ourselves moving within 5 to 8 years from now. Tx

[@AllOutKreations36]

I'm literally in the same spot hoping for an answer as well but my closing cost is 6100 out of WA

[@mortgagesmademanageable9107]

These costs seem very expensive. I would shop around to find cheaper closing costs. If the costs are including an escrow set up, keep in mind you will skip a payment and get your escrow funds back.

[@jamiepayne5133]

My interest is 5.375

[@Xspeedspec]

Refinancing now 3.375% 30 yr...saving a percent...missed the 3% a few days ago

[@luisrivera6794]

Hi sir I have question about my Mortgage

[@kristinsmith7593]

Shameless plug for a mortgage company Dave. Why is VA bad?? Well, if there is a funding fee, yes that needs factored in but cost are less and if the Veteran gets disability then there is NO funding fee. In that scenario, VA is the best loan. You have loyal followers. Please don't make blanket statements about avoiding certain types of loans, especially VA. Also, telling people rates are at 3.25% is misleading. That rate is likely available at only loan amounts at or above $200,000 with 780 scores. Rates change by loan amount, equity and credit score. Misleading information like this will make people believe there is only one rate . Just not true. Why didn't you ask if she would get rid of PMI? Or get significant reduction in PMI. That should be a consideration. Also I take issue on the worthiness of refinancing calculation you did. He should be taking the difference in payment from what you have now to what you will have and divided into the cost. The number of months that you get will tell you how long it will take for you to eventually start benefiting from the loan. Using a blanket 1% of the loan amount really doesn't have meaning. What the difference in payment is what really has the meaning of how much you're saving and when you actually start saving it. I like you Dave and you have a lot of good info but this one was just off the mark.

[@jimmyspiteria9371]

15 year fixed lol have a day off lad , no banks doing that, stay on a variable.

[@emmaleebuzzard1023]

Does anyone on here know if you need good credit to refinance your mortgage?

[@CallHerCassie]

Emmalee Buzzard yes

[@DanielIles]

Emmalee Buzzard you will need just as much credit as your would to quality for a new mortgage of the same amount

[@MrVieyra14]

Good credit plus you want to get your debt to income ratio down as low as possible.

[@rons.6683]

If your credit was good enough to obtain your current mortgage, and there are no NEW BLACK MARKS, you are good to go. Been there, done that.

[@daisykaran5607]

Ok

[@Siscast]

What does he mean by closing cost? If they're talking about refinancing, what does this mean? Didn't they already buy the house if they are talking about refinancing? You can tell she's confused about this also.

[@MrFree006]

Did he say church mortgage

[@gtghighlights2881]

Now a 1.9 jesus chris

[@Xspeedspec]

Refinancing now 3.375% 30 yr...saving a percent...missed the 3% a few days ago

[@chloev8907]

that 3% was a lie ~

[@Xspeedspec]

Chloe v no it was not lol

[@dylankramer9249]

Comment

[@junteavious]

Now a 2.5% Jesus