Gymsplaining Mortgages & Refinancing with Garrett, Jazmin, & Danielle

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 a contingency fund.
     

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