On this episode of Financially Naked: Stories from The Financial Gym, three of our Certified Financial Trainers, Garrett, Jazmin, and Danielle sit down to talk about mortgages and refinancing.
Podcast Notes
- When it comes to applying for a mortgage or refinancing the one you already have, there are many factors to consider.
- Your first home does not have to be your forever home.
- When saving for a home, keep in mind that things will go wrong. It is inevitable.
- Go in with a plan. You’ll want to save for the down payment, closing costs, and extra contingency.
Getting Pre-Approval
- Having the pre-approval before you start the process of looking for a home will give you more power. It makes your offer stronger.
- You’ll likely need W2’s, (or a letter from your tax preparer if you’re a freelancer), 2 years of tax returns, and certain bank statements. Get these things in order ahead of time.
The Down Payment
- You don’t have to put 20% down in order to apply for a loan. There are First TIme Home Buyers programs that allow you to put down as little as 3.5%.
- If you do have a down payment of less than 20%, private mortgage insurance (PMI) will be required.
What to look for in a lender:
- Always do your research and talk to a few different lenders.
- These are big numbers, working with someone who makes you comfortable and takes the time to answer questions is important.
- You can shop around for different interest rates, and negotiate with the lenders.
Refinancing Your Mortgage
- You could
- knock out the PMI, if you have more equity now
- lower the monthly payment and/or interest
- change the length of time on the loan
- free up money with a cash out refinancing
- You will pay closing costs again when refinancing
- When considering if it’s worth it, do the math, reflect on what your goals are for the property, and the best way to achieve them.
- A Mortgage & Refinancing Calculator can help you figure out if refinancing is a good option for you!
Meet The Trainers
Meet Garrett, Level 3 Certified Financial Trainer
Meet Jazmin, Level 2 Certified Financial Trainer
Meet Danielle, Level 2 Certified Financial Trainer
