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Refinancing Explained
Hey Credit Warriors, in this video I am going to show you how I was able to save $38,000 over the life of my mortgage, which works out at over 1100 a year, that could equal an extra vacation each year, almost $100 in extra spending money per month, 12.5 more of my signature $8 coffees per month and this is through process called refinancing and in this video I am going to explain everything you need to know about it so maybe you can do it too! If you like the sound of that, smash the like button for the youtube algorithm and why not subscribe so you never miss a video!
So this is my house, I bought it almost 2 years ago for $245 thousand dollars at a 4.5% interest rate. Now I want to refinance it. So what is refinancing, here is the definition from Investopedia: A refinance, or “refi” for short, refers to the process of revising and replacing the terms of an existing credit agreement, usually as it relates to a loan or mortgage.
And this could be with the same company, or could involve opening a new loan with an new bank and having them pay off the previous loan completely and now you pay the new bank each month. So with my house for example, after I agree the terms of the loan with the new bank, they will write a check to the original bank and pay off that loan and then I will be paying their new loan each month instead.
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28 comments
First
Just refinanced my investment property!!!
Also buying another one. One step at a time!!
Mortgages are damn near free these days.
Mrs Shifu needs to hook you up with another haircut my man! hahaha Great vid as always
You don't need to refinance to get rid of PMI if you have a conventional loan. Just Call your lender and find out
$8 coffee 😂😂😂
Thx for sharing! Sorry to see you still working for New Tang Dynasty, a Falun Gong cult media, to put food on the table for the family. Hatred and fake news is not the way to go. Wish you peace and love.
SAFEMOON 🚀
I just refinance myself and got 2.375% for a 500k house in San Diego… life is good
Saved 78k with 2.25%
very knowledgeable and easy to understand as always!
I went from 4.25% to 2.875% back in November. Wish I would have waited to refinance to get a lower rate but that was the best at the time. I just take my $150/mo savings and put it towards the principal of the mortgage each month.
What’s the best way to check interest rates ? Rates vary from city to city
Does Webull do a credit pull On you for opening up an account because I know Charles Schwab does
I have a M1Finance account with M1Plus subscription. This gives me a 2% borrow rate against my portfolio. I borrowed $82k against my own collateral (my Tesla stock – $250k – portfolio) and purchased a condo for $80K cash. I'll rehab it myself. Bring the value up to $100k. I already have a tenant ready to move in when I've got it finished. On the M1 borrow all I need to pay is the interest payment, no principal and no mortgage insurance. I can keep floating the loan and have my tenant pay for the interest, tax, insurance, HOA fees and utilities as well as putting money toward the principal. My loan is secured as opposed to an unsecured mortgage. I am serving as my own banker using real assets as collateral instead of using the property itself as the collateral. I can also take the tax write offs for rental property. As time goes by I can either continue to rent it or flip it but my plan is to hold it for 5 years in which I rent it for 3 of those years and then live there for the last 2 years before I sell it because taxes are less to sell a personal residence than to sell a rental property for a profit (capital gains). I made a promise to myself that any future large purchases MUST qualify as BOTH an Appreciating Investment AND an Income Generating Asset.
We refi from 4.25 with PMI to 2.99 without PMI. Also little cash needed since our home went up by 10% value
Is it a good idea to refi your car before you apply for a home loan ?
I don't have a home. I just came to see Yoda in the background. Lol! Love your vids!!!! 👍
I have a question about credit reporting/credit cards if someone could please answer me. Why do we pay off the credit cards in full every month and have them report as a 0 balance to the credit bureaus as if im not spending/using my credit cards? Why not have them report as 1% utilization? Why not just open them and never use them if it’s always reported as a zero balance? Speaking in terms of building credit and not looking for reward points
Which credit cards pulled Equifax credit report?
But I thought you should only buy a house if you could pay it off in full with cash?
I have to disagree with your math shifu, 933 – 829 is 104 per month, not 164
Wait shifu, you just started to refinance now? Rates are so much higher than it was when covid infections were at its peak. My rate is 2.75% 30 yr fixed. I heard from my agent that you cannot refinance to a conventional from an FHA, unless rules have changed..?
Can/is it smart now to refi a reverse mortgage ?
14x hard pulls?? wow, you really are the undisputed credit card master, that is hardcore churning. by the way, you made a very common mistake on how much interest you are saving. you cannot calculate it only based on term length and monthly payments, because interests are all heavily "front-loaded". if you are far along enough into your mortgage repayment, refinancing even with a lower interest rate and lower monthly payment, will still in many cases, result in much higher total interest paid over the life time of the loan. it's a common mistake i see people make when refinancing loans and mortgages, just an FYI, best to crunch the numbers again to verify.
S&p500 around 8% doge 500% everyday
Nice!!!! I just refied too on a duplex in the SF bay area!!!!! 2.75% . How long did you take to complete ur refi? I heard some peeps are taking a long time to complete it.
Do you have a video on refinancing a car?