When is Refinancing a Mortgage a Good Idea? - YouTube

Today I'll be talking about when is refinance a mortgage a good idea when mortgage

interest rates are going up and especially when they're going down a lot

of people begin to wonder when is it going to be the right time for me to

refinance my mortgage is it a good idea? is a bad idea? what should I know what

should I consider before I decide, well we're about to get real clear on that

right now. Hi my name is Billy Bryson Bryson Team Real Estate and Home Loans if

you're new to my channel please make sure to subscribe like this video and

please leave a comment below also if you or anyone you know is considering making

a move or refinancing please give me a call pass on my number or you can visit

my website for free helpful real estate and loan information. So back to the

topic when is refinancing a mortgage a good

idea at some point as homeowners we're all going to wonder what does it make

sense to refinance and in short when you can save money on your existing mortgage

that's the time you might want to start being serious and finding out if it's

right for you to help you gain some perspective let's review four common

scenarios to see which one if any is relative to you the first scenario is

that the mortgage rates have come down but let's say when you bite your home

you got a four point five seven five or maybe even got a rate in the low fives

now you see mortgage interest rates are down to maybe under four or in the 3s

you might be scratching your head and just saying you know how could this work

or how much money could I save? the best way to know for sure will depend on a

few factors number one is how long have you lived in your home how much of your

principle balance have you already paid down and also the current value of your

home and then you might want to get with the loan officer you've worked with to

review this information and see if a refinance option is good for you both

now and over the life of the loan second is that your home is increased in value

as well as the real estate market appreciates over time your home is going

up and as you're paying down your mortgage you're getting more and more

equity in your house and your financial life, a lot

of people say why I know I know I bought this home for four hundred thousand for

example in today's market it's worth five hundred fifty and that could be a

staggering one hundred and fifty thousand dollars of equity and you know

what might be wondering well how can I touch this equity and that's a good

question but when you're talking about that what you're referring to as a cash

out refinance now with the cash out refinance all too often people don't do

it responsibly but if you're a person that wants to do it because you are

responsible maybe you have a lot of credit card debt you with high interest

rate that you'd like to pay off then it might make sense for you to get back

with your loan officer once again to help you understand if it's a you know

give him some well-informed information and see if it's the right decision for

you. and also your loan officer I can show you how you can apply the

savings towards your principal balance on the safety thousands and thousands of

dollars over the life of the loan another reason to consider maybe doing a

cash out refinance is if there's something that you could do to leverage

the equity that you have that will earn you more money I'm not talking about

throwing it back into the stock market what happens if you went out and bought

your first rental property or maybe this isn't your first rental real estate

holding property and you just want to purchase another one you cap into the

equity of your home to purchase your new first investment property or a second

investment property and that's something you should be able to do right now, you

can also consider using some of your equity to add value to your home to

remodeling that might be another responsible reason for doing a cash out

refinance again at the end of the day with the cash out refinance the one thing that I'm gonna ask you always

always is just make sure you're examining the reasons why you want to do

it what your plan is for the money and to always consider your options

carefully and make sure that you're being responsible with the decisions

that you're gonna make with the money that you'll be taking out of your home

scenario three four are possible refinance is let's say that your credit

score is improved maybe you've been paying your mortgage on time everything

else on time for a few years now maybe one

five years are longer and your credit score has taken a big boost as a result

of being a homeowner maybe when you bought your home you were struggling maybe you

had a 620 640 credit score so you got the best rate you could at the time in

when you bought the home but now you're looking back and you're saying well

where I'm at today right now you might have a credit score in the 700 700 740

and you know if you're well over the 700 marker you can have a conversation with

your loan officer especially if digit rates are good at this time just to see

how big of an impact your credit score alone can have on the rate that you that

you can get and how much money it's going to save you over the long haul

scenario for is assuming that you currently have maybe an adjustable rate

mortgage I mean you're noticing that the mortgage interest rates are going up one

example and it might be a good time to have a conversation with your loan

officer to review your financing options because if the interest rates keep going

up what else is going on your monthly mortgage payment right so it might be a

good idea just to get into a fixed-rate mortgage now let's say you have an

adjustable rate mortgage and rates are going down it still might make sense to

get with the loan officer to see if it would benefit you to lock in on a low

fixed rate so that the payments will never go up again so there you have it

the 4 most common scenarios that many of us need to consider before deciding

if a refinance of a mortgage is a good idea again if any of these scenarios

apply or make sense to you please sit down

have a conversation with your own officer to review all your refinance

options and see if refinancing is a good idea for you once again my name is Billy

Bryson, Bryson Team Real Estate and home loans and if you or anyone you know is

considering making a move or refinancing please give me a call pass on my number

or you can visit my website for free helpful real estate and loan information

thanks again for watching I hope you found this information helpful please

like it and share it have a great day thank you