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