Is Now A Good Time To Refinance?

[@Kseniaramesh]

Lower rates could lead to significant savings over the life of the loan. However, it's essential to weigh the potential benefits against the associated costs and consider your long-term financial goals.

[@Robby767]

Absolutely, it's tempting to jump on the lower rates bandwagon, but refinancing comes with its challenges. Closing costs, the length of time you plan to stay in your home, and your current loan terms all factor into the decision. Before making a move, consulting a finance advisor can provide a clearer picture of whether refinancing aligns with your overall financial strategy.

[@mariadrukker2557]

Could you share more about how he approaches the decision-making process for mortgage refinancing?

[@Linda.xing-tj2fh]

I completely agree. Investing in the IT sector, especially during a refinancing scenario, could present exciting opportunities. I recall a friend who strategically reallocated a portion of their mortgage savings into tech stocks, and the returns have been impressive. It's about making your money work for you in more ways than one.

[@Linda.xing-tj2fh]

Lack of professional guidance may result in missing out on valuable investment opportunities or making choices based on incomplete information, potentially hindering wealth accumulation.

[@roseyfischer]

Looks efficient from what i am seeing, maybe i will send a mail to get insights

[@chucknorris2353]

I'd rather see lower home prices than lower mortgage rates.

[@Everybodypoops2]

Shit in one hand wish in the other …

[@ven412]

I would expect to see slightly lower real prices but higher nominal prices.

[@dysoncrystal]

Tell me about it. I was looking to move to a peaceful rural area and it costs more even thoit hasn't been renovated. How are u going to ask for more for a place that needs a lot of work and plus it's in an area where there isn't anything to do. I currently live in a city in a different state and it's been renovated. My mortgage is $1200 a month for a 3 bedroom. If I move my mortgage will go up to $1500 to $1600 for a 2 bedroom that needs lots of updates. Basically it wouldn't make sense to move. I like my modernized house and lower mortgage.

[@dillondittemore1102]

Supply low. Prices won't drop.

[@braceyourselvesfortruth2492]

Lower rates means more competition with institutional investors. Of course this may keep prices elevated too.

[@RazrSharpProductions]

A 15 year fixed rate mortgage that costs no more than 25% of your take home income? I’d be shocked if 1% of people could afford an average home following those guidelines…

[@simpleThInkerr]

It's just BS. They live on the idea that you should pay off your house in cash or within 5 years lul

[@RazrSharpProductions]

@@simpleThInkerr the more common and sensible advice I’ve heard, from prominent finance KZbinrs who have done videos with George even, is 28% of your pre tax income. And that’s just on the mortgage alone. The Ramsey solutions calculator includes more than the mortgage in their calculation

[@Fred2-123]

I refinanced when the new rate would save me $100/mo of interest. Refi'd several times, starting at 7%, now I'm at 2.5%, which will probably be the lowest we will ever see.

[@trebmaster]

That is FANTASTIC! You must have refinanced somewhere in 21-22? Those were the best rates ever and 2016 was the 2nd best.

[@Fred2-123]

@@trebmaster Original mortgage at 7.25%, refi'd at 6.25%, 5.875%, 4.875%, 4.0%, 3.375%, 2.5% (Nov 2020). See, I don't just do the Ramsey thing of handwaving and saying "15 yr saves you money over 30 year". I do the math -- that's what they say, right? "do the math" -- and keep records. When I got the 5.875, I joked with the lender, "If your rate gets to 5% call me. We both laughed and said "That won't happen in our lifetimes!" Two years later I got the 4.875%.

[@MrDance4meh]

@@Fred2-123Did you use the same bank? My buddy has a bank that will let him refinance through them for $250

[@Fred2-123]

@@MrDance4meh If you look at what is actually going on behind the covers, almost all conventional mortgages are owned by FNMA or Freddie Mac. The banks originate the mortgages and then quickly sell them to one of the above. The bank that you send your payment to is the servicer not the owner. My refis bounced back & forth between AIMLOAN, Amerisave, and a credit union. AIM & Amerisave almost always have the cheapest rates & fees. Just now, on $350,000 loan with $0 lender fee, AIM is quoting 6.625% for 30 Yr and 6.25% for 15 yr. P&I payments are $2,241 & $3,001. $760/mo difference. The 15 year is $266,916 savings. Or you could take the 30, invest the $760/mo at 10% and in 15 years you have $305,992. The mortgage balance at year 15 is $246,669. Leaving you with $59,000. If you can get Dave's 12%, it grows to $362,467. And you'd have $116,000 left. The math proves that the Ramsey guys are wrong wrong wrong here.

[@MBergyman]

I’m at 2.75% - I’m never refinancing!

[@PepeToTheMooon]

The rates are climbing back up as you filmed this.

[@mustangkurt]

Rates literally just went up today. lol. Back above 7.3% on a 30 and 6.9% on a 15.

[@bb-1359]

I got preapproved at 5.8% on a 15 twelve days ago. 6.9% is high, not sure where you’re getting that..

[@mariannuckle4737]

And it’s gonna go higher!!

[@tkordik]

​@@bb-1359 good on the rate lock. CNBC, Fox Business and others are reporting as of 2/21 7am EST "Mortgage demand takes a massive hit as interest rates cross back over 7%" … "Mortgage demand nosedives as interest rates cross back over 7%"

[@mustangkurt]

2.62% on ours in 2021. Not even contemplating a refinance or new home purchase.

[@andrew_denver_realtor]

@@bb-1359 Sounds like they're charging you a ton in points

[@NelsonFryar]

FR. Daisy is the clear choice, Joey…

[@MyNameIsJeff872]

Where are my sub 3% club members? 13 years left at 2.25% for me!

[@josephmcortez]

Well an hr later and this didn't age well. And next week this video will be right on topic again. freaking roller coaster

[@M22Research]

Another refi gotcha - your remaining mortgage balance is too low. Mortgage companies don’t consider small balances to be worth the effort. (Do not fall into the trap of refi-ing to a larger balance - tapping equity - they will accept, simply to refi!)

[@BrianBall-h9x]

I wouldn't refinance to shorten the term. Just pay more principal each month. It has the same effect and avoids the entire refinance process (including the closing costs). Everything else he says is solid.

[@donnahampton3632]

George and Dave Ramsey have always said do not refinance just to shorten the term. Just pay it off like it's a shorter term. Only refinance if you're going to save on your interest rate significantly.

[@lightningwight4154]

Thats what I am doing. 30 year term means I can choose to pay $2,000 a month or $1,200 a month depending on my options. If I have no early pay penalty, adding $800 a month means I can pay off the principal well ahead of 15 years even.

[@OhYeaMista]

@@donnahampton3632always except this exact video you’re watching where he says the opposite…?

[@littlebob1261]

@@lightningwight4154 Nice, in 15 years when your house is paid off you should calculate how many hundreds of thousands you lost by not investing. Cheers

[@riceball777]

What is the maxium break even point in terms of time where it will be worth it refi? For example refi cost $5,000 and safes me $1,000 of interest per year so it will take 5 year to break even. Worth it?

[@Fred2-123]

@riceball777 $100/mo in interest savings. Get a "zero/zero" loan, no points, no closing costs, they are just rolled into the loan as a slightly higher rate. Shoot for no more than 3-4 years to break even.

[@michaelmurphy2112]

The maximum break even point is based on how long you plan on living there. If you know you're moving (and likely selling) in 3-4 years, then a break even point of 5 years is not a great idea. If you expect to live in the home for 8-10 years, then a break even point of 5 years is completely acceptable. There's probably other factors to consider as well, but that's the short, quick answer.

[@fef619]

I saw an article today that rates actually increased over 7%?

[@aolvaar8792]

Getting rid of MIP (FHA) or PMI (conventional)

[@djchancla2451]

So what is the interest rate

[@canton444]

Late on the video drop, rates increased last week.

[@tkordik]

Bruh… you're timing couldn't be worse. As of the time of this video release today 2/21 30 year mortgage rates are back up above 7%.

[@andrewscott8381]

Clearly, its all about the views not about the facts...

[@braceyourselvesfortruth2492]

He was literally in another video with Rachel yesterday where she was talking about rates hypothetically going down at some point as if they hadn't already. These people couldn't report current events to dinosaurs.

[@MetalMike56]

Yeah, interest rates were lower in late December/early January than now.

[@MagnoosChess]

Loool

[@tressalewis7004]

Great info in such an entertaining way!❤

[@cryptonow1747]

Should I do a cash out refinance to pay off student loans with the equity I built up?

[@ryancraig4811]

You’d be transferring debt from student loans to a longer term mortgage at a comparable rate. Wouldn’t decrease your total amount of debt, adds more risk to your home, and will cost you more over time (assuming a 30yr). Pass. If you run into financial trouble there are IDR plans and forbearance options for the student loans.

[@cryptonow1747]

what if the equity is coming from a rental property I own? Currently getting roughly a monthly $500 profit on that. I know I would be decreasing my profit if I do a cash out refinance on it. But may be worth it if it means wiping out my student loan debt. What do you think? Or still pass? Thanks for responding btw.@@ryancraig4811

[@natefreeman1466]

This video already aged like milk. Rates still going up over 7% lol

[@BCRichDraco1990]

That follow the finger thing was super creepy.

[@davidcox6280]

George. You know better than to recommend refinancing just to shorten the term. Just increase principal payments.

[@giantpune]

When I did the math and refinanced mine, the break even point was 10 months. I made sure to keep my same payoff date. Original loan was 15yr. After a few years, I refinanced to a lower rate, and made the new loan a 12yr one. The lower monthly payment took 10 months to make up for the closing cost of the loan.

[@littlebob1261]

You do a video explaining how important time in the market is for the power of compound interest. Then you do videos explaining you should focus on paying off low interest debt and make sure a large % goes to your mortgage rather than investing. So what is it? Why do you steer people towards not investing?

[@MetalMike56]

No.

[@ktjomeyers]

I love that you have the little tracker on the bottom during the ad. 😊

[@xman7688]

The neighbors I grew up with lost their home because the pulled out equity to build a new kitchen 😮

[@derekw9405]

Why would he recommend refinancing to a 15 year? Even Dave has always said to simply pay your 30 year as a 15 by making extra principal payments. There is no reason to pay all those closing costs again.

[@Noah_527]

It depends on a lot of factors but usually the interest rate is lower which in the end can be a larger savings that worrying about the closing costs. I went from 3.75 to 2.0 by going to a 15 year loan back in 2021.

[@brianmcg321]

If the rate is much lower, then you would.

[@littlebob1261]

@@Noah_527 Nice, I wonder how much you've lost since doing that by prioritizing your majority of dollar bills to low interest debt rather than making the 12% average in the market since then?

[@AndasKnits]

Not yet, but I'm watching it! I got a 5.5% in 2022

[@bigcahuna42366]

Not yet for me, I have a 4.125% on a 30 year fixed

[@elchapojr6219]

2.98% for me

[@bb-1359]

30 year is for losers! 😜

[@ninerknight5351]

2.15% on 15 year for me. Extra payments have already made it 8 years. 30 years is undoubtedly for suckers.

[@Liaxtube]

@@ninerknight5351 If you did a 30 year at the same rate, or even higher (say 3%) and then invested the difference you'd undoubtedly make more than you'd save by going 15. Moreover, additional payments on that low of an interest rate instead of investing it is also mathematically incorrect. 30 year low rate mortages are not for suckers; they're for people who are very financially literate making an informed decision...and to be fair most people don't fit that criteria. Most people will take the 30 and frivolously spend the "savings" I do like 15 year mortgages though, and the idea of being debt free is a good goal. It works for a lot of people because it's simple to understand which is what most people need in life. They get to stick to a very simple plan that has a very low failure rate at the cost of gains, which is what what the Ramsey plan is in a nutshell.

[@Fred2-123]

30 year is for people who know all sorts of things can happen in decades and want to be prepared if bad stuff happens. A lower payment gives you a lot of flexibility. You can always pay more, you can never pay less. They also know that inflation makes each payment less costly as time goes by. Your income goes up, but your payment stays the same. In the last 30 years a $1000 payment then would only cost $785 of buying power today.

[@ImVeryBrad]

Geroge could rock tattoo sleeves

[@Ronin-42]

Can someone please explain to me why I should strike for a 15 year over a 30 year? I know on paper it'd be financially the most efficient, but couldn't I get a 30 year and pay towards it like a 15? Surely if life went sideways having that flexibility to scale your payment back a bit would be less risky.

[@justagirl743]

The interest rates are lower on a 15 year and the Ramsey folks usually argue that having the flexibility to pay a lower 30 year mortgage payment gives people too much slack and people won't end up paying on it like a 15 year as they may have intended.

[@brianmcg321]

Pay less interest

[@littlebob1261]

@@brianmcg321 Imagine paying money to make your monthly payment higher to ensure you can't fund an investment account to save a little in APR, holy crap people

[@Overlord277]

dang, click bait. Here I thought he'd go over the numbers if you should pay off early even with a sub 3% interest rate...

[@littlebob1261]

No, you should not prioritize paying off a 3% or sub 3% loan. You should focus on putting as much into the market as possible, and staying there as long as possible

[@Overlord277]

@@littlebob1261 That's what the roth IRA calculator says. $300k in interest vs me saving $160k in interest.

[@cheifhughw9349]

Might as well take this video down.

[@a.a.5690]

We purchases a 4bd/3bh home in a city of 70k last March for 143k. It was old and ugly but sturdy and safe. We looked at 10+ homes in same price range. They are there but people aren't willing to tolerate ugly and old. They all went for the new builds across town at 350k and post horror stories about the quality online while we just truck along fixing ugly with cash.

[@synaesthesia888]

What was the condition of the roof, plumbing or electrical?

[@tkordik]

I have a 20-year at 2.125% so there is not going to be any re-fis any time soon LOL

[@shinineagle23]

Nice! We bought back in 2021 and got 3.25%

[@quintinnunn1392]

Rates and prices have been dropping for months

[@andrewscott8381]

Fake news George, 30yr is 7.11% 15 yr 6.52%... I hope Dave sees this video!!

[@braceyourselvesfortruth2492]

George is so late on this that rates are back in an obvious uptrend.

[@douglassmith9445]

I just checked google for the average home interest rates and it’s still exactly where it was before at around the mid to high 6% range. Click bait title. I actually thought rates might’ve finally dropped to 4%, allowing me to consider buying a house.

[@mariannuckle4737]

lol!!! You’re funny!! Just wait and see what is coming in 6 months from now!!!

[@lightningwight4154]

I refi'd for a 1% drop. The mortgage is less than a year old, so it didn't set me back too much. Was much more expensive than I expected and I wouldn't do it again without a drop to at least 3% and a 15 year term.

[@DNaupari]

What did the refi cost? (If you don’t mind)

[@lightningwight4154]

@@DNaupariAfter all of the fees, it added about $8k to the principal. I'd paid off about 4k at this point, so it brought the principal amount from about 214k to 225k in total. It will however save me about 80k in interest for that 1% drop, so it is worth it in the long term. I need to bring it down below 200k before I even think of another refi, and it better be for 3% or less next time, otherwise it is just not worth it.

[@DNaupari]

Same as mine: $8,000 That’s a pretty penny and so painful to see that principle balance increase 💔💔💔

[@DNaupari]

The good news is by the fourth year, you’ll break even

[@lightningwight4154]

@@DNaupari Yup, eventually it might pan out, but right now I just feel like I am drowning in debt. I'm gonna be attacking that principal pretty aggressively until it drops below 200k.

[@campbellhouse6569]

Right before an election too.. what a coincidence

[@Wrought_Iron_Wolf]

Who chose to release this video after interest rates are climbing again

[@nonactive3654]

Sell before its too late!

[@FlyingDUTCHbag]

George. You’re just like me. Used to work at an Apple Store and has no shame watching Bachelor.

[@trebmaster]

Since I had 3.12% rate 8 years ago, does that mean my best bet is to just amortize and not bother refinancing? Then how would I calculate how much more I need to pay on top to make it as if I was paying this off in 15 years from now?

[@justagirl743]

Definitely don't refinance. Look up a "mortgage calculator with extra payments" and enter all your info and play with the extra payment options to see how fast you can pay it off and how much interest you will save.

[@brethitmanhart275]

I think you need to stand firm on the 4% withdrawal rule George. Stand up to Dave the Bully

[@greenlantern1986]

Oof, who suggested filming this video now?

[@christinab9133]

❤❤❤

[@lukeharris2622]

✝️

[@adamjoehlin1822]

George, you’re a national treasure. Keep up the good work!

[@jackjames9430]

How much of a difference is the monthly cost from a 15 year to 30 year loan?

[@ChrisFromLongIsland]

The answer also depends on two things you haven’t disclosed yet: 1) The loan amount 2) The interest rate You can go onto any simple interest loan/mortgage calculator and punch those things in. Change the “term” between 15 and 30 years and you’ll see the payment under each loan. Here’s an example for illustration only: APY: 6%, Loan Amount = $600,000 15 year mortgage payment: $5,063 (not incl taxes & insurance) 30 year mortgage payment: $3,597 (not incl taxes & insurance) As you can see the difference in payment is almost $1,500/mo however over the life of each loan you’ll pay more in interest to the bank under the 30 year loan than with the 15 year loan.

[@bb-1359]

@@ChrisFromLongIslandWasn’t asking you

[@ChrisFromLongIsland]

@@bb-1359 Okay? Someone else (who's not you, by the way) asked a question publicly, and I offered a solution. No one needs you to clarify who's asking what. Keep on reading comments and speaking for people buddy, I'm sure it's a good use of your time.

[@Fred2-123]

I did this yesterday on another of George's mortgage videos. $2262/mo for the 30 year, $3056 for the 15 year. That's $794 a month more. That's a LOT. That's a car payment or more. That's 35% higher payment.

[@bb-1359]

@@ChrisFromLongIsland They want to know from a professional, not some chooch from Long Island 😜

[@RCGuitar982]

If this comment gets 1000 likes I'll refinance my December 2020 mortgage (2.7%)

[@tkordik]

Never underestimate the power of stupid people in large numbers.

[@dylankramer9249]

Comment

[@josephharty5048]

I’m early this time

[@SMetz-cw6qj]

It might be worth refinancing if you can eliminate the PMI, too.

[@michaeldew7904]

You don't usually need to refinance just to get rid of PMI.

[@alqoshgirl]

Yes that’s what we did a few years ago. Went from an 1800 payment to 1500

[@tkordik]

​@@michaeldew7904 I tried to do this when my previous mortgage was purchased by Wells Fargo. I had gone well below LTV thresholds and they REFUSED to drop PMI even with an appraisal. I had to re-fi in order to drop PMI off (and I did).

[@jordanmadden7388]

I got rid of PMI but I didn’t have to refinance.

[@Lloyd793]

I'm favored financially, thank you Jesus $40,000 weekly profits regardless of how bad It gets in this economy.

[@Richardschell339]

Please how do I go about it. Am still a newbie on investment trading and how can I make profits.

[@Lloyd793]

Thanks to MRS. FLORA WOOD

[@Lloyd793]

*She's is a licensed broker and a FINRA AGENT here in the States and also a verified member on Te Le Gram.*

[@Richardschell339]

Alright thanks for the recommendation, but how do I reach her?

[@Richardschell339]

Does she also offer mentorship, lecturing and tutorials? How do I connect with her Please 😢

[@simplysunmoon]

❤️☀️🌙

[@simpleThInkerr]

Video is out of touch with reality. Meh.

[@SovereignMoney]

Hhmmm, should've pushed off posting this video for a bit.

[@danieljohnson4418]

When rates drop further, I think I'll do a cash out refinance to purchase a new C8 Corvette. Thanks, George. 👍

[@perfectlymprfct]

Please come back and tell us how that worked out for you? 😂