1 00:00:00,080 --> 00:00:03,040 Speaker 1: Welcome to How to Money. I'm Joel and I am Matt, 2 00:00:03,200 --> 00:00:06,400 Speaker 1: and today we are asking the question to refi or 3 00:00:06,480 --> 00:00:28,319 Speaker 1: not to REFI, to refly or to not refive that 4 00:00:28,640 --> 00:00:32,000 Speaker 1: just the question. I also had a hamletesque skull in 5 00:00:32,000 --> 00:00:34,479 Speaker 1: my hand when I had that in a candle that 6 00:00:34,560 --> 00:00:37,640 Speaker 1: was no longer lit in your other hand, exactly exactly, Man. 7 00:00:37,680 --> 00:00:40,160 Speaker 1: I saw a recent report that on average, for folks 8 00:00:40,280 --> 00:00:43,360 Speaker 1: who can refinance their home, that each individual could say 9 00:00:43,400 --> 00:00:46,800 Speaker 1: about two and seventy dollars a month, totaling one point 10 00:00:46,880 --> 00:00:49,840 Speaker 1: six billion dollars, which is a huge amount of money. 11 00:00:50,000 --> 00:00:52,680 Speaker 1: So we're gonna talk about if you should be refinancing 12 00:00:52,720 --> 00:00:54,360 Speaker 1: your home, and we're gonna talk about how to do 13 00:00:54,440 --> 00:00:56,480 Speaker 1: that on this episode. Yeah, and there are some good 14 00:00:56,560 --> 00:00:57,920 Speaker 1: rules of thumb. I think they will be able to 15 00:00:57,960 --> 00:01:00,320 Speaker 1: offer folks. But but it's also very specific and gonna 16 00:01:00,320 --> 00:01:02,959 Speaker 1: get into some of those specifics. But like you said, Matt, 17 00:01:03,000 --> 00:01:04,480 Speaker 1: a lot of people could save a lot of money, 18 00:01:04,680 --> 00:01:07,120 Speaker 1: and a lot of people either have heard or seen 19 00:01:07,160 --> 00:01:10,520 Speaker 1: an article refinancing, like everyone's doing it right now. And yes, 20 00:01:10,560 --> 00:01:12,640 Speaker 1: you should feel the peer pressure to at least consider it, 21 00:01:12,840 --> 00:01:16,360 Speaker 1: even if you don't have a home. Consider refinancing. Yeah, 22 00:01:16,360 --> 00:01:18,800 Speaker 1: we're gonna sell you that hard, you know, but refinancing 23 00:01:18,880 --> 00:01:20,840 Speaker 1: is a good idea for a lot of folks. And 24 00:01:21,000 --> 00:01:22,560 Speaker 1: if you're one of those folks who can save a 25 00:01:22,560 --> 00:01:24,720 Speaker 1: ton of money every month by by doing a REFI 26 00:01:24,880 --> 00:01:27,959 Speaker 1: I mean that's big news, sure is, man. But before 27 00:01:28,000 --> 00:01:30,280 Speaker 1: we kick things off, I wanted to talk about going 28 00:01:30,360 --> 00:01:33,920 Speaker 1: green or that zero waste lifestyle that you might see 29 00:01:34,200 --> 00:01:36,000 Speaker 1: kind of cropping up here and there. I'll tell you 30 00:01:36,000 --> 00:01:38,600 Speaker 1: what you do. One search for anything now on the Internet, 31 00:01:38,640 --> 00:01:40,400 Speaker 1: and then before you know it, you're getting fed all 32 00:01:40,440 --> 00:01:44,600 Speaker 1: these different ads, specifically for me Instagram. Anytime I google anything, 33 00:01:44,920 --> 00:01:47,240 Speaker 1: three seconds later there's an ad for that very thing 34 00:01:47,440 --> 00:01:49,960 Speaker 1: or a competing company popping up in my Instagram feed. 35 00:01:50,000 --> 00:01:52,640 Speaker 1: And it is crazy. So evidently I searched something that 36 00:01:52,720 --> 00:01:54,840 Speaker 1: made the algorithms think that I want to spend a 37 00:01:54,880 --> 00:01:57,880 Speaker 1: bunch of money on these zero waste products because I'm 38 00:01:57,880 --> 00:02:01,760 Speaker 1: getting fed things like these bees wax wraps. Have you 39 00:02:01,800 --> 00:02:04,680 Speaker 1: seen these? I mean it's cloth and it's like confused 40 00:02:04,720 --> 00:02:07,800 Speaker 1: with wax. And instead of using typer wear like use 41 00:02:07,840 --> 00:02:09,760 Speaker 1: that you go to the butcher and you put your 42 00:02:09,840 --> 00:02:12,079 Speaker 1: raw meat in this fabric and you take it home 43 00:02:12,520 --> 00:02:14,200 Speaker 1: and then you wash it when you take the meat 44 00:02:14,200 --> 00:02:16,360 Speaker 1: out of it, like that kind of stuff. I I 45 00:02:16,400 --> 00:02:20,040 Speaker 1: actually just reuse plastic ziploc back. Yes, well, that's I 46 00:02:20,040 --> 00:02:21,760 Speaker 1: think that's the real answer. That's why I want to 47 00:02:21,760 --> 00:02:24,440 Speaker 1: talk about this is because so much of those products 48 00:02:24,800 --> 00:02:27,760 Speaker 1: it's just marketing and it's consumption driven. It's it's so 49 00:02:27,800 --> 00:02:31,839 Speaker 1: ironic that we're being fed these advertisements to buy these 50 00:02:31,880 --> 00:02:35,440 Speaker 1: things that will miraculously allow us to become less wasteful, 51 00:02:35,520 --> 00:02:37,960 Speaker 1: when in fact, that's sort of the epitome of waste, right, 52 00:02:38,040 --> 00:02:40,720 Speaker 1: purchasing something that you don't really need because you already 53 00:02:40,720 --> 00:02:43,240 Speaker 1: have some products that can actually provide that utility that 54 00:02:43,320 --> 00:02:45,800 Speaker 1: you are truly needing. And I'm not saying that I'm 55 00:02:45,800 --> 00:02:47,640 Speaker 1: immune to this either, right, Like I get sucked in 56 00:02:47,680 --> 00:02:50,519 Speaker 1: the advertisements, Like I see the cool stainless steel straw, 57 00:02:50,680 --> 00:02:52,560 Speaker 1: the drinking straw, and I kind of want that because 58 00:02:52,600 --> 00:02:54,120 Speaker 1: I see it looks awesome. It looks like something I 59 00:02:54,120 --> 00:02:56,160 Speaker 1: can keep in my pocket. And I like putting cool 60 00:02:56,200 --> 00:02:58,400 Speaker 1: metallic things in my pocket. You know, like one of 61 00:02:58,400 --> 00:02:59,959 Speaker 1: those I might be turning into one of those every 62 00:03:00,000 --> 00:03:01,040 Speaker 1: to care you guys. You know, I got like my 63 00:03:01,080 --> 00:03:02,720 Speaker 1: little pocket knife, Like what else can I fit my 64 00:03:02,720 --> 00:03:04,520 Speaker 1: pockets that that might come in handy. If you get 65 00:03:04,560 --> 00:03:06,280 Speaker 1: some cargo shorts, then you can do it even more, 66 00:03:06,880 --> 00:03:09,919 Speaker 1: or cargo kilts. But I think a good challenge is to, 67 00:03:10,040 --> 00:03:12,040 Speaker 1: instead of looking at the different products out there that 68 00:03:12,080 --> 00:03:14,600 Speaker 1: will allow us to become something that we aspire to 69 00:03:14,680 --> 00:03:17,400 Speaker 1: be in this case, like look at our actual waste, 70 00:03:17,440 --> 00:03:19,000 Speaker 1: Like look in the trash can, what's going in the 71 00:03:19,040 --> 00:03:21,640 Speaker 1: trash And by identifying those things, I think we can 72 00:03:21,680 --> 00:03:24,520 Speaker 1: find ways that allow us to become less wasteful. And 73 00:03:24,520 --> 00:03:26,120 Speaker 1: not to mention, on top of that, the things I 74 00:03:26,120 --> 00:03:28,880 Speaker 1: think that oftentimes have a lot of packaging tend to 75 00:03:28,880 --> 00:03:31,239 Speaker 1: cost more because they're the sort of like one time 76 00:03:31,320 --> 00:03:34,160 Speaker 1: use things, or they're the convenience foods or products, and 77 00:03:34,160 --> 00:03:36,160 Speaker 1: in reality, we could probably do with less of those 78 00:03:36,160 --> 00:03:39,320 Speaker 1: products altogether. Yeah, Matt, and we talked with someone who's 79 00:03:39,360 --> 00:03:41,800 Speaker 1: kind of an expert in this field. Back in episode 80 00:03:41,880 --> 00:03:45,520 Speaker 1: number seventy two, we brought Katie Wolk Stanley on and 81 00:03:45,600 --> 00:03:48,160 Speaker 1: she goes by the moniker on the internet, the non 82 00:03:48,200 --> 00:03:51,400 Speaker 1: consumer Advocate, and the title of that episode was stopped 83 00:03:51,400 --> 00:03:54,280 Speaker 1: buying new stuff, and Katie is is concerned with how 84 00:03:54,320 --> 00:03:56,480 Speaker 1: we treat the earth and the things we waste and 85 00:03:56,520 --> 00:03:58,760 Speaker 1: the money that we waste at the same time, and 86 00:03:58,800 --> 00:04:01,480 Speaker 1: I think she would completely agree that buying new things 87 00:04:01,520 --> 00:04:04,360 Speaker 1: in an attempt at becoming greener is just not the 88 00:04:04,400 --> 00:04:06,440 Speaker 1: way to go about it. Really, the clutch move. The 89 00:04:06,440 --> 00:04:09,000 Speaker 1: biggest thing that we could all do as human beings 90 00:04:09,120 --> 00:04:11,400 Speaker 1: is to stop buying new stuff and focus instead on 91 00:04:11,440 --> 00:04:15,400 Speaker 1: filling our homes or apartments wherever we live with used items, 92 00:04:15,440 --> 00:04:18,200 Speaker 1: whether that's clothing, furniture, the car we drive. If we 93 00:04:18,240 --> 00:04:21,440 Speaker 1: can prioritize buying used and holding onto those things longer, 94 00:04:21,839 --> 00:04:24,280 Speaker 1: that's the biggest dent we can make in a culture 95 00:04:24,279 --> 00:04:27,480 Speaker 1: that attempts to spur us on towards more and more consumption. 96 00:04:27,720 --> 00:04:30,599 Speaker 1: And so yeah, I agree, don't buy into the advertisers. 97 00:04:30,600 --> 00:04:33,640 Speaker 1: Don't think that you're becoming more green by buying more things. 98 00:04:33,640 --> 00:04:36,320 Speaker 1: Shifting our mindset of what it takes to be a 99 00:04:36,360 --> 00:04:40,520 Speaker 1: greener individual in the society, I mean, that's that's the key. Yeah, Yeah, 100 00:04:40,560 --> 00:04:42,800 Speaker 1: that's so true. Man, That's that's a great challenge for us, 101 00:04:42,839 --> 00:04:44,919 Speaker 1: something that we can implement in our lives. I guess, 102 00:04:45,080 --> 00:04:47,159 Speaker 1: you know, you just see so many things in our 103 00:04:47,200 --> 00:04:50,279 Speaker 1: world that oftentimes seems silly, and sometimes when you actually 104 00:04:50,279 --> 00:04:52,240 Speaker 1: see it for what it is, it can kind of 105 00:04:52,279 --> 00:04:54,839 Speaker 1: be darwing almost right, Like I'm thinking specifically too, of 106 00:04:54,880 --> 00:04:56,920 Speaker 1: like the fancy water bottles. I'm not going to name 107 00:04:56,960 --> 00:04:58,720 Speaker 1: any of the name brand ones out there, but they're 108 00:04:58,720 --> 00:05:01,760 Speaker 1: really expensive, like the stellated you know, bigger water bottles. 109 00:05:02,200 --> 00:05:04,240 Speaker 1: And again, there's nothing wrong with getting one of those 110 00:05:04,240 --> 00:05:05,680 Speaker 1: water bottles if you're going to use it, and so 111 00:05:05,760 --> 00:05:07,400 Speaker 1: literally there's a hole in it, right, but if you're 112 00:05:07,400 --> 00:05:09,119 Speaker 1: getting one of those because you don't want your plastic 113 00:05:09,160 --> 00:05:11,839 Speaker 1: bottles to end up in a landfill, but in reality, 114 00:05:11,920 --> 00:05:14,719 Speaker 1: you're buying a new one of those water bottles maybe 115 00:05:14,720 --> 00:05:16,600 Speaker 1: every six months, right, You're like you're getting the new, 116 00:05:16,680 --> 00:05:18,800 Speaker 1: latest and greatest color, or there's a new model that 117 00:05:18,839 --> 00:05:20,960 Speaker 1: actually does this. I think it's just important for us 118 00:05:20,960 --> 00:05:22,840 Speaker 1: to realize that we're being marketed to and that we're 119 00:05:22,880 --> 00:05:25,599 Speaker 1: being sold these products that are a not making us 120 00:05:25,640 --> 00:05:28,200 Speaker 1: any happier, be that they're costing us a lot of money, 121 00:05:28,240 --> 00:05:30,560 Speaker 1: and and see in reality they may not be helping 122 00:05:30,600 --> 00:05:33,200 Speaker 1: with waste and pollution. Yeah, as you brought this up, 123 00:05:33,200 --> 00:05:35,960 Speaker 1: it kind of made me think about energy efficiency too, 124 00:05:36,400 --> 00:05:39,000 Speaker 1: and So let's say new TVs or new refrigerators use 125 00:05:39,040 --> 00:05:41,960 Speaker 1: a whole lot less energy than their predecessors of ten 126 00:05:42,040 --> 00:05:44,200 Speaker 1: years ago. That's great, And if you're one of those 127 00:05:44,200 --> 00:05:46,680 Speaker 1: folks that needs a new refrigerator soon or a new TV, 128 00:05:47,040 --> 00:05:49,119 Speaker 1: that's gonna save you every month on your energy bills. 129 00:05:49,279 --> 00:05:52,800 Speaker 1: But just because that new TV uses fifty less energy 130 00:05:52,839 --> 00:05:55,599 Speaker 1: than the one you currently have, that certainly doesn't mean 131 00:05:55,640 --> 00:05:58,560 Speaker 1: you should go to your local best Buy or go 132 00:05:58,640 --> 00:06:01,680 Speaker 1: to Amazon whatever buy a new TV right now. That's 133 00:06:01,680 --> 00:06:03,840 Speaker 1: just faulty logic. And I think the same thing is 134 00:06:03,880 --> 00:06:06,560 Speaker 1: true for the kind of the green product movement. Some 135 00:06:06,640 --> 00:06:09,120 Speaker 1: of those things can potentially be helpful. So yeah, just 136 00:06:09,160 --> 00:06:12,560 Speaker 1: like you wouldn't buy new TV to save eight dollars 137 00:06:12,560 --> 00:06:15,440 Speaker 1: a year in electricity, you also shouldn't assume that buying 138 00:06:15,520 --> 00:06:18,440 Speaker 1: products that are marketed as green and great for the 139 00:06:18,480 --> 00:06:21,800 Speaker 1: earth are instantly helping you to waste less. Yeah, and 140 00:06:21,839 --> 00:06:23,919 Speaker 1: Joel all that to say, I mean, we're not against 141 00:06:24,000 --> 00:06:25,960 Speaker 1: products that are better for the earth, right Like, we 142 00:06:26,040 --> 00:06:28,159 Speaker 1: love the earth, we like there to be less waste 143 00:06:28,200 --> 00:06:29,640 Speaker 1: in the world. But we just want you to be 144 00:06:29,720 --> 00:06:31,240 Speaker 1: to be smart about it and to take it back 145 00:06:31,240 --> 00:06:34,000 Speaker 1: to our friend Katie. She has her motto or her slogan, 146 00:06:34,040 --> 00:06:36,680 Speaker 1: which is use it up, wear it out, make it 147 00:06:36,720 --> 00:06:39,920 Speaker 1: do or do without. Make sure to keep that in mind. Cool, Matt, 148 00:06:39,920 --> 00:06:41,640 Speaker 1: All right, let's mention the beer that we're having on 149 00:06:41,680 --> 00:06:45,159 Speaker 1: the show today. We're drinking Old Toffy and it's brewed 150 00:06:45,160 --> 00:06:47,480 Speaker 1: by New Belgium Brewing at a Colorado. This is a 151 00:06:47,560 --> 00:06:50,520 Speaker 1: Logger beer sent to us by listener Maggie. So, Maggie, 152 00:06:50,560 --> 00:06:52,120 Speaker 1: thanks for sending this one our way. Yeah, and it's 153 00:06:52,120 --> 00:06:54,359 Speaker 1: worth mentioning. Joel, you said Old Toffie, this is the 154 00:06:54,400 --> 00:06:56,800 Speaker 1: mascot for NC State, and she certainly picked a beer 155 00:06:56,800 --> 00:06:58,960 Speaker 1: that she has a vested interest with because she is 156 00:06:59,000 --> 00:07:01,240 Speaker 1: actually a professor there at NC State. So I just 157 00:07:01,240 --> 00:07:03,240 Speaker 1: wanted to mention that you and I have no collegiate 158 00:07:03,240 --> 00:07:05,560 Speaker 1: ties necessarily it to NC State. I'm sure a second, 159 00:07:05,560 --> 00:07:07,000 Speaker 1: not gonna let this beer go to waste, and we're 160 00:07:07,000 --> 00:07:08,600 Speaker 1: gonna enjoy this one and share our thoughts at the 161 00:07:08,680 --> 00:07:10,640 Speaker 1: end of the episode. Yeah. I have a feeling though, 162 00:07:10,640 --> 00:07:12,760 Speaker 1: that they're going to contact us pretty shortly for honorary 163 00:07:12,840 --> 00:07:15,160 Speaker 1: doctorates or something like that, so then we will have 164 00:07:15,200 --> 00:07:16,800 Speaker 1: ties to the institution. How do you even get one 165 00:07:16,800 --> 00:07:18,520 Speaker 1: of those an honorary degree. Do you have to be 166 00:07:18,520 --> 00:07:20,600 Speaker 1: invited to give the speech at the at the end 167 00:07:20,600 --> 00:07:22,520 Speaker 1: of the year, the commencement end of the year's sort 168 00:07:22,520 --> 00:07:24,520 Speaker 1: of speech there at graduation? You know, I don't know 169 00:07:24,560 --> 00:07:25,960 Speaker 1: how you do it. I assume it's similar to the 170 00:07:25,960 --> 00:07:28,680 Speaker 1: way you get united in in England and it's just 171 00:07:28,760 --> 00:07:30,840 Speaker 1: kind of one of those rare things that happened. But 172 00:07:30,880 --> 00:07:32,960 Speaker 1: the fact that we featured their beer on our show, 173 00:07:32,960 --> 00:07:34,360 Speaker 1: I mean, they're totally going to do it for us. 174 00:07:34,400 --> 00:07:36,280 Speaker 1: I think Dr Matt has a nice ring to it. 175 00:07:36,840 --> 00:07:39,960 Speaker 1: Dr Joel, great to see you today. All right, Matt, 176 00:07:40,000 --> 00:07:42,200 Speaker 1: let's get onto the topic at a hand. Today we're 177 00:07:42,240 --> 00:07:45,080 Speaker 1: asking the question to refin or not to refy, And 178 00:07:45,160 --> 00:07:47,920 Speaker 1: basically we're in a refinance boom right now. Taking the 179 00:07:47,960 --> 00:07:51,080 Speaker 1: advantage of a refi on your house can lower your 180 00:07:51,160 --> 00:07:54,280 Speaker 1: interest rate and lower your monthly payments. But there are 181 00:07:54,280 --> 00:07:57,520 Speaker 1: also costs involved in refinancing that can make it prohibitive, 182 00:07:57,880 --> 00:08:01,160 Speaker 1: and not everyone is a good candidate to refinance. So 183 00:08:01,320 --> 00:08:03,160 Speaker 1: is it the right move for you? Well, Matt and 184 00:08:03,200 --> 00:08:05,400 Speaker 1: I were going to discuss what you need to consider 185 00:08:05,440 --> 00:08:08,720 Speaker 1: and how to make sure you're refinancing effectively if you 186 00:08:08,760 --> 00:08:10,680 Speaker 1: decide to go through with it. Yeah, joint to quickly 187 00:08:10,720 --> 00:08:12,600 Speaker 1: sort of lay the groundwork right as to what a 188 00:08:12,640 --> 00:08:15,640 Speaker 1: refinance is. Essentially, you're finding a new lender, and that 189 00:08:15,680 --> 00:08:17,640 Speaker 1: new lender, once you move forward with them, they are 190 00:08:17,640 --> 00:08:20,560 Speaker 1: going to pay off your current loan, and then you 191 00:08:20,560 --> 00:08:22,080 Speaker 1: have a new loan with that new lender, and your 192 00:08:22,080 --> 00:08:25,200 Speaker 1: payments go to them. Hopefully you have a lower interest rate. 193 00:08:25,280 --> 00:08:27,960 Speaker 1: Oftentimes you're gonna have a different length of time, right, 194 00:08:28,040 --> 00:08:30,880 Speaker 1: a different term once that refinance is complete. And so 195 00:08:30,920 --> 00:08:33,200 Speaker 1: first let's talk about the why. Let's go over some 196 00:08:33,240 --> 00:08:36,560 Speaker 1: of the sort of overarching guiding principles of why you 197 00:08:36,640 --> 00:08:38,600 Speaker 1: might want to refinance. And you all, we kind of 198 00:08:38,600 --> 00:08:41,480 Speaker 1: touched on this a second ago, but oftentimes folks refinance 199 00:08:41,679 --> 00:08:44,360 Speaker 1: in order to lower their monthly mortgage payment. So by 200 00:08:44,360 --> 00:08:47,000 Speaker 1: lowering your rate, you can potentially lower your monthly payments 201 00:08:47,200 --> 00:08:49,960 Speaker 1: and give yourself a little more financial breathing room, just 202 00:08:50,000 --> 00:08:52,240 Speaker 1: a little bit more margin in your life. But that 203 00:08:52,320 --> 00:08:56,920 Speaker 1: being said, that is not our favorite reason to actually refinance. Yeah, 204 00:08:56,920 --> 00:08:59,760 Speaker 1: the best reason to consider doing a refinance on your 205 00:08:59,760 --> 00:09:03,000 Speaker 1: house is to save money on overall interest paid over 206 00:09:03,080 --> 00:09:05,800 Speaker 1: the life of your loan. This is the even more 207 00:09:05,920 --> 00:09:08,240 Speaker 1: important reason to consider a refight. It's going to have 208 00:09:08,360 --> 00:09:11,880 Speaker 1: a bigger overall impact on your finances. Yeah, Jill, both 209 00:09:11,880 --> 00:09:14,080 Speaker 1: of those are good reasons right to refinance. But the 210 00:09:14,160 --> 00:09:16,320 Speaker 1: idea of sort of stepping back and looking at the 211 00:09:16,360 --> 00:09:18,800 Speaker 1: total cost, the total amount that you're gonna pay for 212 00:09:19,080 --> 00:09:21,040 Speaker 1: financing your home. The idea there is to be able 213 00:09:21,040 --> 00:09:22,719 Speaker 1: to step back a little bit and to not just 214 00:09:22,840 --> 00:09:25,760 Speaker 1: focus on making payments, not just seeing how much house 215 00:09:25,800 --> 00:09:28,280 Speaker 1: you can afford month to month. It's essentially more of 216 00:09:28,280 --> 00:09:32,000 Speaker 1: a holistic, sort of bird's eye view of your overall finances. Yeah. 217 00:09:32,000 --> 00:09:34,080 Speaker 1: I mean, just like we would recommend when someone's buying 218 00:09:34,080 --> 00:09:35,960 Speaker 1: a car, well, you don't want to finance it over 219 00:09:36,000 --> 00:09:37,760 Speaker 1: seven years. Sure it's going to give you a lower 220 00:09:37,800 --> 00:09:39,840 Speaker 1: monthly payment, but that's not the biggest thing you want 221 00:09:39,880 --> 00:09:42,320 Speaker 1: to take into consideration. In the United States of America, 222 00:09:42,440 --> 00:09:46,280 Speaker 1: we've kind of become payment buyers, and for only considering 223 00:09:46,320 --> 00:09:49,320 Speaker 1: the actual outgoing number every month and not that holistic 224 00:09:49,360 --> 00:09:51,400 Speaker 1: overall picture, it's going to lead us to make some 225 00:09:51,480 --> 00:09:54,160 Speaker 1: poor decisions. So, just like with buying that car, you 226 00:09:54,200 --> 00:09:57,160 Speaker 1: don't want to refinance your house just to get a 227 00:09:57,160 --> 00:09:59,800 Speaker 1: lower monthly payment, although that could be a nice side 228 00:09:59,800 --> 00:10:02,040 Speaker 1: ben Fit and Joe, you know what, to refinance? It 229 00:10:02,040 --> 00:10:04,319 Speaker 1: costs money, right, it costs a lot of money. Because 230 00:10:04,360 --> 00:10:06,200 Speaker 1: it does cost so much, there are a number of 231 00:10:06,200 --> 00:10:08,520 Speaker 1: things that you want to consider. One of the things 232 00:10:08,520 --> 00:10:10,920 Speaker 1: you want to consider is how long you'll actually own 233 00:10:11,000 --> 00:10:12,959 Speaker 1: that home. If you think you might only be there 234 00:10:12,960 --> 00:10:15,800 Speaker 1: for another a year or two, it's probably a bad 235 00:10:15,840 --> 00:10:17,160 Speaker 1: idea for you. It's not gonna make a whole lot 236 00:10:17,160 --> 00:10:19,800 Speaker 1: of sense because you'll never make up that money that 237 00:10:19,840 --> 00:10:22,320 Speaker 1: you spent on those closing costs in the amount of 238 00:10:22,320 --> 00:10:24,400 Speaker 1: money that you're gonna be able to save every single month. 239 00:10:24,720 --> 00:10:26,200 Speaker 1: But then maybe on the other end of the spectrum, 240 00:10:26,240 --> 00:10:27,840 Speaker 1: let's say you're gonna be there for like, say, at 241 00:10:27,960 --> 00:10:30,839 Speaker 1: least ten years, Well, for you, it's likely going to 242 00:10:30,880 --> 00:10:32,800 Speaker 1: be a pretty good move, right. It's it's not a 243 00:10:32,800 --> 00:10:35,199 Speaker 1: matter of if you'll be able to earn that money back, 244 00:10:35,240 --> 00:10:37,640 Speaker 1: but just when. Yeah. Good rule of thumb is a 245 00:10:37,720 --> 00:10:40,080 Speaker 1: thirty month rule. So if you run the numbers and 246 00:10:40,120 --> 00:10:43,319 Speaker 1: you will break even, And because the savings of your 247 00:10:43,320 --> 00:10:46,600 Speaker 1: new loan and lower interest rate, you'll break even versus 248 00:10:46,640 --> 00:10:49,720 Speaker 1: the cost you incurred in order to make this REFI happen, well, 249 00:10:49,760 --> 00:10:51,600 Speaker 1: then likely it's a good idea for you to do 250 00:10:51,640 --> 00:10:54,360 Speaker 1: the refi. It's so incredibly rare for someone to stay 251 00:10:54,400 --> 00:10:57,040 Speaker 1: in their house for an entire thirty year mortgage term, 252 00:10:57,120 --> 00:10:59,560 Speaker 1: right that that almost never happens. And so really it 253 00:10:59,600 --> 00:11:01,760 Speaker 1: comes down so how long you're planning on being in 254 00:11:01,760 --> 00:11:04,880 Speaker 1: the house. Obviously, things can happen and life doesn't always 255 00:11:04,880 --> 00:11:06,640 Speaker 1: work out the way we think it's going to, but 256 00:11:06,679 --> 00:11:08,880 Speaker 1: it's important for you to assess how long do I 257 00:11:08,960 --> 00:11:10,680 Speaker 1: think I will be in this home? And if you 258 00:11:10,679 --> 00:11:12,160 Speaker 1: think you will be in the home for quite a 259 00:11:12,160 --> 00:11:14,120 Speaker 1: while and the math works out in regard to that 260 00:11:14,120 --> 00:11:16,920 Speaker 1: thirty month break even point, well, then refinancing can make 261 00:11:16,960 --> 00:11:18,839 Speaker 1: a whole lot of sense. So next we're gonna cover 262 00:11:18,960 --> 00:11:21,520 Speaker 1: some of the specific considerations that you want to keep 263 00:11:21,520 --> 00:11:24,160 Speaker 1: in mind as you are deciding whether or not you 264 00:11:24,200 --> 00:11:26,599 Speaker 1: should refinance. We're gonna get to those right after the 265 00:11:26,640 --> 00:11:37,240 Speaker 1: break all right, man, We're gonna get to some of 266 00:11:37,240 --> 00:11:40,199 Speaker 1: those specific factors that are really helpful as you are 267 00:11:40,280 --> 00:11:43,320 Speaker 1: working through whether or not you should be refinancing. And honestly, 268 00:11:43,360 --> 00:11:46,000 Speaker 1: it's a question on so many people's minds because mortgage 269 00:11:46,040 --> 00:11:48,640 Speaker 1: rates are near all time loads again, and they've really 270 00:11:48,679 --> 00:11:51,360 Speaker 1: plummeted over the last year. And I feel like, as 271 00:11:51,360 --> 00:11:54,640 Speaker 1: we're asking ourselves this question, should we be refinancing? This 272 00:11:54,720 --> 00:11:57,600 Speaker 1: is an instance where analysis paralysis can keep you from 273 00:11:57,640 --> 00:12:00,559 Speaker 1: taking advantage of uber low rates. The bottom line is 274 00:12:00,600 --> 00:12:03,640 Speaker 1: that nobody knows where rates are going, but they're currently 275 00:12:03,679 --> 00:12:07,280 Speaker 1: incredibly low. So right now is a specific time where 276 00:12:07,400 --> 00:12:10,360 Speaker 1: a lot of people should be considering refinancing. So is 277 00:12:10,360 --> 00:12:12,800 Speaker 1: now the right time? Well, it could be, and Matt, 278 00:12:12,880 --> 00:12:15,320 Speaker 1: let's talk about the specific factors that will help you 279 00:12:15,400 --> 00:12:18,200 Speaker 1: determine whether or not it's the right time for you. Yeah. Well, 280 00:12:18,200 --> 00:12:20,200 Speaker 1: first I wanted to address if someone is listening to 281 00:12:20,200 --> 00:12:22,320 Speaker 1: this episode and they happen to be listening, say six 282 00:12:22,360 --> 00:12:24,520 Speaker 1: months later, and you're thinking, dang it, like I totally 283 00:12:24,520 --> 00:12:27,280 Speaker 1: missed the train on refinancing. Well, there's two things that 284 00:12:27,320 --> 00:12:29,480 Speaker 1: you can do. First, you can look at a graph 285 00:12:29,559 --> 00:12:31,800 Speaker 1: and you can see where rates currently are as you 286 00:12:31,800 --> 00:12:34,280 Speaker 1: are listening to this episode. And you can probably zoom 287 00:12:34,320 --> 00:12:35,520 Speaker 1: out a little bit and look at the past couple 288 00:12:35,559 --> 00:12:38,080 Speaker 1: of years and see rates are still historically low. You know, 289 00:12:38,120 --> 00:12:40,080 Speaker 1: we are still in a great spot even if they're 290 00:12:40,120 --> 00:12:42,120 Speaker 1: not the lows they've ever been exactly could still be 291 00:12:42,160 --> 00:12:44,960 Speaker 1: really good. And secondly, we would recommend that you look 292 00:12:45,080 --> 00:12:47,720 Speaker 1: at the mortgage rate that you currently have right now, 293 00:12:47,880 --> 00:12:50,520 Speaker 1: because it doesn't really matter if rates were historically low 294 00:12:50,559 --> 00:12:52,240 Speaker 1: and you kind of missed that boat. If the current 295 00:12:52,240 --> 00:12:55,360 Speaker 1: market rates are significantly lower than the rate that you 296 00:12:55,480 --> 00:12:58,720 Speaker 1: currently have, then you should still really consider a refinance. 297 00:12:58,760 --> 00:13:00,280 Speaker 1: You're gonna want to dig a little bit de peper, 298 00:13:00,360 --> 00:13:03,760 Speaker 1: specifically into your own finances, all right, So let's talk 299 00:13:03,760 --> 00:13:07,160 Speaker 1: about those specific things that people should be considering before 300 00:13:07,200 --> 00:13:09,920 Speaker 1: they decided to actually get going and make a refi happen. 301 00:13:10,240 --> 00:13:12,839 Speaker 1: Even though mortgage rates are insanely low, that doesn't mean 302 00:13:12,840 --> 00:13:15,360 Speaker 1: that it's a no brainer for you to refinance before 303 00:13:15,400 --> 00:13:17,480 Speaker 1: you actually do it. Here are the main factors you 304 00:13:17,520 --> 00:13:20,040 Speaker 1: need to consider to know whether you're a good candidate 305 00:13:20,120 --> 00:13:22,720 Speaker 1: or not. The first thing is to know your credit score. 306 00:13:23,000 --> 00:13:26,760 Speaker 1: To qualify for the lowest of mortgage rates, you're gonna 307 00:13:26,760 --> 00:13:29,559 Speaker 1: need a really solid credit score, and that means typically 308 00:13:29,600 --> 00:13:32,480 Speaker 1: in the range of seven seven forty. If you're above 309 00:13:32,800 --> 00:13:35,840 Speaker 1: seven twenty, in all likelihood with most lenders, you're going 310 00:13:35,880 --> 00:13:38,160 Speaker 1: to get the best rate that they offer. Some lenders 311 00:13:38,200 --> 00:13:40,160 Speaker 1: might have a threshold of seven forty, but if you're 312 00:13:40,160 --> 00:13:41,880 Speaker 1: in that range, you know that you'll be able to 313 00:13:41,920 --> 00:13:44,199 Speaker 1: get a really good rate. And if you don't know 314 00:13:44,320 --> 00:13:47,160 Speaker 1: what your credit score is, well, we've talked about multiple 315 00:13:47,160 --> 00:13:49,400 Speaker 1: resources for you. Go check that out. Your current credit 316 00:13:49,400 --> 00:13:52,440 Speaker 1: card company might offer that every month. If not, credit 317 00:13:52,440 --> 00:13:54,480 Speaker 1: scorecard dot Com is a great tool, and so is 318 00:13:54,520 --> 00:13:57,440 Speaker 1: credit Karma. Basically, if refinancing is on your radar, you 319 00:13:57,440 --> 00:13:59,439 Speaker 1: need to know your credit score because that is going 320 00:13:59,480 --> 00:14:02,199 Speaker 1: to have a huge impact on whether or not it's 321 00:14:02,200 --> 00:14:04,680 Speaker 1: gonna make sense for you. Ye dull, you know. The 322 00:14:04,720 --> 00:14:07,000 Speaker 1: size of that impact is going to depend on a 323 00:14:07,000 --> 00:14:09,360 Speaker 1: lot of different things. But for instance, let's just say 324 00:14:09,400 --> 00:14:11,320 Speaker 1: you had a hundred point drop in your credit score 325 00:14:11,360 --> 00:14:13,920 Speaker 1: from seven forty maybe down to six forty. That score 326 00:14:14,080 --> 00:14:16,520 Speaker 1: is gonna cost you anywhere between like sixty and eighty 327 00:14:16,520 --> 00:14:18,880 Speaker 1: bucks a month on a median home in the US. 328 00:14:19,160 --> 00:14:21,040 Speaker 1: And that doesn't sound like much, right, You think sixty bucks, 329 00:14:21,080 --> 00:14:22,520 Speaker 1: that's not that big of a deal, But over the 330 00:14:22,560 --> 00:14:25,240 Speaker 1: course of the loan, that's over twenty five dollars that 331 00:14:25,280 --> 00:14:27,160 Speaker 1: you're gonna be paying just for having a credit score 332 00:14:27,200 --> 00:14:29,600 Speaker 1: that got busted up a little bit. Before you're refinanced. 333 00:14:29,720 --> 00:14:31,440 Speaker 1: All Right, Another factor that you want to keep in 334 00:14:31,480 --> 00:14:33,880 Speaker 1: mind when you are considering if you're a good candidate 335 00:14:33,920 --> 00:14:36,400 Speaker 1: for a refinance or if your house actually is a 336 00:14:36,400 --> 00:14:39,360 Speaker 1: good candidate to be refinanced, right, is equity and real 337 00:14:39,480 --> 00:14:41,960 Speaker 1: quick equity is just the market value of your home 338 00:14:42,160 --> 00:14:44,040 Speaker 1: less the amount that you owe on it. And if 339 00:14:44,040 --> 00:14:46,920 Speaker 1: you have less than equity in your home, a conventional 340 00:14:47,000 --> 00:14:50,400 Speaker 1: loan refinance is likely not going to be possible for you. 341 00:14:50,600 --> 00:14:52,760 Speaker 1: And so if you don't have enough equity, bringing cash 342 00:14:52,800 --> 00:14:54,840 Speaker 1: to the closing table can actually help you to get 343 00:14:54,880 --> 00:14:57,480 Speaker 1: a conventional loan. Well, it's not impossible, but you're gonna 344 00:14:57,480 --> 00:15:00,440 Speaker 1: be paying private mortgage insurance right p m I, which 345 00:15:00,480 --> 00:15:04,000 Speaker 1: is a p I T A so many abbreviations on 346 00:15:04,040 --> 00:15:06,240 Speaker 1: this episode, right, So keep in mind though that if 347 00:15:06,240 --> 00:15:09,000 Speaker 1: you don't have enough equity, you can bring cash to 348 00:15:09,000 --> 00:15:10,880 Speaker 1: the closing table and that can help you to get 349 00:15:10,880 --> 00:15:14,160 Speaker 1: a conventional loan at a great rate without p m I. 350 00:15:14,520 --> 00:15:17,480 Speaker 1: Another but maybe similar scenario is if the value of 351 00:15:17,520 --> 00:15:19,480 Speaker 1: your home has gone up since you purchased it. Well, 352 00:15:19,560 --> 00:15:21,720 Speaker 1: guess what if you didn't have enough equity initially when 353 00:15:21,720 --> 00:15:23,720 Speaker 1: you purchased it, but the value of your home has 354 00:15:23,760 --> 00:15:25,400 Speaker 1: gone up. Well, in that case, you don't have to 355 00:15:25,400 --> 00:15:28,400 Speaker 1: come to the table with additional funds. Are Another thing 356 00:15:28,480 --> 00:15:31,520 Speaker 1: you're going to need to know in advance of pulling 357 00:15:31,520 --> 00:15:34,400 Speaker 1: the trigger on a refinance is your d T I ratio. 358 00:15:34,520 --> 00:15:37,520 Speaker 1: That's debt to income. Knowing your debt to income ratio 359 00:15:37,840 --> 00:15:40,840 Speaker 1: is a crucial factor in qualifying for a loan. Lenders 360 00:15:40,840 --> 00:15:42,440 Speaker 1: are going to look at you if you have a 361 00:15:42,520 --> 00:15:46,600 Speaker 1: debt to income ratio of more than forty and your 362 00:15:46,800 --> 00:15:49,040 Speaker 1: debt to income ratio you can find that out by 363 00:15:49,120 --> 00:15:52,280 Speaker 1: dividing your monthly debt payments by your gross monthly income. 364 00:15:52,560 --> 00:15:55,440 Speaker 1: That number is the way that lenders measure your ability 365 00:15:55,480 --> 00:15:57,560 Speaker 1: to be able to repay your loan. So the lower 366 00:15:57,600 --> 00:16:00,480 Speaker 1: your debt to income ratio is, the more favorable you look, 367 00:16:00,680 --> 00:16:03,240 Speaker 1: which means they're happy to lend you money. Yeah, you know, 368 00:16:03,280 --> 00:16:05,720 Speaker 1: calculating your debt to income ratio. That's not tricky math, right, 369 00:16:05,720 --> 00:16:08,080 Speaker 1: You're just kind of making a calculation. But you do 370 00:16:08,080 --> 00:16:09,880 Speaker 1: want to make sure that you are getting accurate numbers 371 00:16:09,880 --> 00:16:12,440 Speaker 1: in there. And so when you are calculating your debt payments, 372 00:16:12,640 --> 00:16:15,560 Speaker 1: you want to calculate everything. We're talking student loans, credit card, debt, 373 00:16:16,000 --> 00:16:18,200 Speaker 1: car payment, any debt that you owe, any payment that 374 00:16:18,240 --> 00:16:20,080 Speaker 1: you have that needs to go into your total debt 375 00:16:20,160 --> 00:16:22,320 Speaker 1: number in order for you to get an accurate debt 376 00:16:22,360 --> 00:16:25,120 Speaker 1: to income ratio. All right, Matt, Now let's get into 377 00:16:25,360 --> 00:16:29,000 Speaker 1: some of the specific good reasons to refinance. We talked 378 00:16:29,000 --> 00:16:30,960 Speaker 1: about the big picture that it's helpful to lower your 379 00:16:30,960 --> 00:16:33,960 Speaker 1: monthly payments. It's even more helpful to save in overall 380 00:16:34,000 --> 00:16:37,040 Speaker 1: interest paid over the years. But additionally, let's say you're 381 00:16:37,120 --> 00:16:40,160 Speaker 1: in an ARM an adjustable rate mortgage. Well, considering we 382 00:16:40,240 --> 00:16:42,840 Speaker 1: just talked about the fact that we're at historic low rates, 383 00:16:43,160 --> 00:16:46,720 Speaker 1: the likelihood of your interest rate going up on your 384 00:16:46,720 --> 00:16:51,000 Speaker 1: adjustable rate mortgage is decently high because as rates fluctuate 385 00:16:51,280 --> 00:16:55,440 Speaker 1: ultimately over the years, they are barring something catastrophic going 386 00:16:55,480 --> 00:16:58,120 Speaker 1: to rise. So getting out of an arm getting out 387 00:16:58,160 --> 00:17:00,760 Speaker 1: of an adjustable or mortgage and into a fixed term 388 00:17:00,880 --> 00:17:02,400 Speaker 1: makes a whole lot of sense for a lot of folks, 389 00:17:02,520 --> 00:17:04,159 Speaker 1: especially if you're going to be in the house for 390 00:17:04,240 --> 00:17:06,919 Speaker 1: quite a while. All Right. Another good potential reason to 391 00:17:07,000 --> 00:17:08,960 Speaker 1: get a refi is if you can knock out some 392 00:17:09,040 --> 00:17:11,040 Speaker 1: p m I. If you're able to get rid of 393 00:17:11,119 --> 00:17:13,879 Speaker 1: private Morgan insurance while at the same time securing a 394 00:17:13,880 --> 00:17:16,399 Speaker 1: lower rate, so that would end up saving you, you know, 395 00:17:16,480 --> 00:17:19,159 Speaker 1: twofold in the long run, then you definitely want to 396 00:17:19,160 --> 00:17:22,119 Speaker 1: consider p m I. On a typical two home, you 397 00:17:22,119 --> 00:17:24,600 Speaker 1: could be paying anywhere between one d two hundred bucks 398 00:17:24,640 --> 00:17:26,680 Speaker 1: a month and p m I, and so you get 399 00:17:26,760 --> 00:17:28,480 Speaker 1: enough equity in the home to where you no longer 400 00:17:28,560 --> 00:17:30,680 Speaker 1: have to pay that. Yet your lender has to stop 401 00:17:30,760 --> 00:17:32,439 Speaker 1: charging you for p m I once you hit a 402 00:17:32,480 --> 00:17:35,399 Speaker 1: seventy eight percent loan to value ratio. But that is 403 00:17:35,440 --> 00:17:38,679 Speaker 1: based on the initial appraisal price of the home, and 404 00:17:38,720 --> 00:17:40,960 Speaker 1: if your home has gone up in value a good bit, 405 00:17:41,240 --> 00:17:43,280 Speaker 1: you could still be waiting a long time for p 406 00:17:43,480 --> 00:17:45,720 Speaker 1: m I to naturally drop off so that you're not 407 00:17:45,840 --> 00:17:47,399 Speaker 1: charged for it anymore. And and that can be a 408 00:17:47,440 --> 00:17:50,560 Speaker 1: hundred and fifty two hundred dollars a month. And by refinancing, 409 00:17:50,640 --> 00:17:52,920 Speaker 1: getting a lower rate and knocking out p m I 410 00:17:52,960 --> 00:17:55,119 Speaker 1: at the same time, that can save you hundreds of 411 00:17:55,160 --> 00:17:58,080 Speaker 1: dollars every month while paying less interest over the life 412 00:17:58,080 --> 00:17:59,920 Speaker 1: and a loan. That can be just a win win 413 00:18:00,160 --> 00:18:02,280 Speaker 1: for folks in a pm I situation where they have 414 00:18:02,359 --> 00:18:04,800 Speaker 1: seen a good bit of equity growth. You know, refinancing 415 00:18:04,840 --> 00:18:07,440 Speaker 1: your home to knock out p M I, REFINANCI your 416 00:18:07,440 --> 00:18:09,520 Speaker 1: home to get out of an arm. Those are both 417 00:18:09,560 --> 00:18:12,840 Speaker 1: great reasons to refinance. Now let's talk about a reason 418 00:18:12,960 --> 00:18:15,840 Speaker 1: that might be a good reason to refinance, and that 419 00:18:16,000 --> 00:18:18,240 Speaker 1: is if you're gonna do a cash out REFI. That 420 00:18:18,359 --> 00:18:21,399 Speaker 1: is when you basically refinance, but you remove equity from 421 00:18:21,440 --> 00:18:23,520 Speaker 1: the home. Yeah, it's basically like saying, give me some 422 00:18:23,560 --> 00:18:25,360 Speaker 1: cash in my palm while I'm doing the three five. 423 00:18:25,520 --> 00:18:27,560 Speaker 1: I'll take that lower interest rate and some cash in 424 00:18:27,560 --> 00:18:29,840 Speaker 1: my pocket at the same time. Like we said, that 425 00:18:29,920 --> 00:18:32,200 Speaker 1: might be a good idea, but you will pay a 426 00:18:32,320 --> 00:18:34,399 Speaker 1: higher rate of Sometimes you're gonna pay an eighth or 427 00:18:34,440 --> 00:18:36,720 Speaker 1: a quarter of a point higher if you go with 428 00:18:36,760 --> 00:18:39,200 Speaker 1: that cash out. And this is only ever going to 429 00:18:39,280 --> 00:18:40,800 Speaker 1: be a good idea if you're going to use that 430 00:18:40,880 --> 00:18:44,040 Speaker 1: money in a positive way. So basically, if you're investing it. 431 00:18:44,320 --> 00:18:46,359 Speaker 1: That could be if you're investing in yourself, right, so 432 00:18:46,480 --> 00:18:49,600 Speaker 1: like higher education or more traditionally you know, an a 433 00:18:49,640 --> 00:18:52,520 Speaker 1: rental property or in another business. In any case, you're 434 00:18:52,520 --> 00:18:54,720 Speaker 1: taking this money and you're looking to grow it more 435 00:18:54,760 --> 00:18:56,800 Speaker 1: than it would grow if it was just sitting there 436 00:18:56,800 --> 00:18:58,760 Speaker 1: tied up in your house. Actually did a cash out 437 00:18:58,760 --> 00:19:01,320 Speaker 1: REFI on a propty that we owned in order to 438 00:19:01,320 --> 00:19:02,840 Speaker 1: take that money, and we use that as a down 439 00:19:02,840 --> 00:19:04,840 Speaker 1: payment on another house that we're buying. So we ended 440 00:19:04,920 --> 00:19:07,520 Speaker 1: up renovating the house. We essentially flipped it, sold it, 441 00:19:07,720 --> 00:19:09,280 Speaker 1: and man, we made a good bit of money that 442 00:19:09,359 --> 00:19:11,679 Speaker 1: year in that specific instance. You know, it was a 443 00:19:11,720 --> 00:19:13,960 Speaker 1: smart move for us, but you've got to be really, 444 00:19:13,960 --> 00:19:16,760 Speaker 1: really careful, honestly, Like, even looking back, I'm not sure 445 00:19:16,760 --> 00:19:20,359 Speaker 1: if I would do that again. Yeah, And I'm considering 446 00:19:20,560 --> 00:19:23,280 Speaker 1: doing a cash out refinance right now in order to 447 00:19:23,320 --> 00:19:25,920 Speaker 1: build the accessory dwelling unit in my backyard. Mat We've 448 00:19:25,920 --> 00:19:27,399 Speaker 1: talked about that, so I'm just kind of in the 449 00:19:27,400 --> 00:19:29,640 Speaker 1: middle of thinking through is it a good idea or not, 450 00:19:29,960 --> 00:19:32,040 Speaker 1: And based on the hard numbers, I think it is. 451 00:19:32,200 --> 00:19:34,600 Speaker 1: For me. I still hesitate at going to cash out 452 00:19:34,600 --> 00:19:38,160 Speaker 1: refi route. So cash out refis can be a good 453 00:19:38,160 --> 00:19:41,520 Speaker 1: idea for seasoned investors who know what they're doing, but 454 00:19:41,560 --> 00:19:44,000 Speaker 1: I would be very very careful before taking that route, 455 00:19:44,160 --> 00:19:46,439 Speaker 1: and it's definitely not a good idea to go the 456 00:19:46,440 --> 00:19:49,240 Speaker 1: cash out refined direction if you're pulling that money out 457 00:19:49,280 --> 00:19:51,720 Speaker 1: to consume it. If you're planning on taking a vacation 458 00:19:51,800 --> 00:19:54,960 Speaker 1: or something like that, or buying a boat. Let's say 459 00:19:54,960 --> 00:19:57,000 Speaker 1: you're doing that like that, there's definitely not a boat, 460 00:19:57,119 --> 00:19:59,080 Speaker 1: right like maybe a tesla right like that sounds like 461 00:19:59,080 --> 00:20:00,479 Speaker 1: a lot more fun to me. The boat. Well, at 462 00:20:00,520 --> 00:20:02,959 Speaker 1: least it's gonna save you a little on electricity every month, right, 463 00:20:03,280 --> 00:20:06,760 Speaker 1: but always cash. Our refis are a total no if 464 00:20:06,800 --> 00:20:08,959 Speaker 1: you're looking to add to your consumption or inflate your 465 00:20:09,000 --> 00:20:12,080 Speaker 1: lifestyle by doing so. Okay, So those are some different 466 00:20:12,080 --> 00:20:14,600 Speaker 1: reasons why folks refin You know, this is called how 467 00:20:14,600 --> 00:20:17,800 Speaker 1: the money. So we're gonna talk about now how to refinance, 468 00:20:17,800 --> 00:20:19,440 Speaker 1: and we're gonna get to that right after the break. 469 00:20:29,160 --> 00:20:31,600 Speaker 1: All right, Matt, we've talked a lot about refinancing, but 470 00:20:31,920 --> 00:20:34,639 Speaker 1: we haven't really covered how to do it yet. So 471 00:20:34,680 --> 00:20:36,600 Speaker 1: let's get into that. If you feel like you're a 472 00:20:36,600 --> 00:20:38,639 Speaker 1: good candidate based on the things that we've covered, The 473 00:20:38,640 --> 00:20:42,119 Speaker 1: biggest key to saving money when you are refinancing is 474 00:20:42,160 --> 00:20:45,760 Speaker 1: to shop with multiple lenders. Oftentimes we shop a lot 475 00:20:46,160 --> 00:20:48,760 Speaker 1: for the home. We go into fifteen or twenty homes 476 00:20:48,800 --> 00:20:51,200 Speaker 1: before we make an offer, but we shot very little 477 00:20:51,200 --> 00:20:53,600 Speaker 1: for financing. Lots of times people go with the lender 478 00:20:53,640 --> 00:20:56,320 Speaker 1: that their real estate agent recommends without shopping the market. 479 00:20:56,680 --> 00:20:59,240 Speaker 1: Online lenders can be a great option. Quiking Loans is 480 00:20:59,240 --> 00:21:01,920 Speaker 1: a great place to check. Their Rocket mortgage product has 481 00:21:01,960 --> 00:21:05,520 Speaker 1: done well in customer satisfaction surveys. Credible has a new 482 00:21:05,640 --> 00:21:09,119 Speaker 1: online mortgage shopping tool that's really really good. Costco has 483 00:21:09,160 --> 00:21:11,720 Speaker 1: a mortgage program that shops rates with multiple lenders. I 484 00:21:11,760 --> 00:21:13,200 Speaker 1: know you're gonna try to find a way to slide 485 00:21:13,200 --> 00:21:15,720 Speaker 1: Costco in there. I always do, man, I go there 486 00:21:15,840 --> 00:21:19,000 Speaker 1: by my favorite Kirkland signature branded products and then you 487 00:21:19,000 --> 00:21:20,920 Speaker 1: know what, I also shop for mortgages with them. Yeah, 488 00:21:20,920 --> 00:21:24,160 Speaker 1: I'd like to sign up for that Kurrikland Signature Premium refinance. Please. 489 00:21:24,720 --> 00:21:26,879 Speaker 1: And if only the company that did your refive was 490 00:21:26,920 --> 00:21:30,040 Speaker 1: Costco under the Kirkland signature label, that'd be amazing. Another 491 00:21:30,200 --> 00:21:32,679 Speaker 1: great place to go when you're looking to refinance is 492 00:21:32,680 --> 00:21:35,679 Speaker 1: to check local credit unions. Credit unions oftentimes have the 493 00:21:35,760 --> 00:21:38,480 Speaker 1: lowest overall rates in the market. Another place to go 494 00:21:38,520 --> 00:21:41,680 Speaker 1: is to contact a mortgage broker who shops rates with 495 00:21:41,840 --> 00:21:44,320 Speaker 1: a lot of different lenders. Basically, there are a lot 496 00:21:44,400 --> 00:21:47,399 Speaker 1: of potential good places to go to look for rates. 497 00:21:47,440 --> 00:21:49,760 Speaker 1: Just don't be one of those people that designs to 498 00:21:49,800 --> 00:21:52,320 Speaker 1: do a refinance and doesn't shop for the best one 499 00:21:52,400 --> 00:21:54,959 Speaker 1: for them. Yeah. Man, it's all about that due diligence, right. 500 00:21:55,480 --> 00:21:57,879 Speaker 1: And also, don't just look at the headline rates like 501 00:21:57,920 --> 00:21:59,600 Speaker 1: you don't just go to the website and see whatever 502 00:21:59,720 --> 00:22:02,280 Speaker 1: rate that they're advertising on the home page. You want 503 00:22:02,280 --> 00:22:04,479 Speaker 1: to factor in all the different costs and you can 504 00:22:04,480 --> 00:22:07,040 Speaker 1: see those on your loan estimate to give you sort 505 00:22:07,040 --> 00:22:10,280 Speaker 1: of that apples to apples comparison. Lenders are actually required 506 00:22:10,320 --> 00:22:13,520 Speaker 1: to give you those estimates within three business days after 507 00:22:13,680 --> 00:22:15,840 Speaker 1: you apply with them, and those costs are gonna be 508 00:22:15,880 --> 00:22:17,840 Speaker 1: on that loan estimate. They're gonna be itemized. It's gonna 509 00:22:17,840 --> 00:22:20,359 Speaker 1: be nice. And because you've shopped around, it's gonna be 510 00:22:20,400 --> 00:22:22,520 Speaker 1: really easy for you to compare one of those loan 511 00:22:22,600 --> 00:22:24,720 Speaker 1: estimates to the two other ones, because you're gonna have 512 00:22:24,880 --> 00:22:27,760 Speaker 1: at least three loan estimates there, right, yeah, or right, 513 00:22:28,000 --> 00:22:30,360 Speaker 1: or maybe five loann estimates. Okay, I'll do it, I'll 514 00:22:30,359 --> 00:22:31,760 Speaker 1: do it. Yeah. You definitely want to make sure you're 515 00:22:31,760 --> 00:22:34,640 Speaker 1: getting quotes, you're getting those loan estimates in hand from 516 00:22:34,680 --> 00:22:36,760 Speaker 1: a lot of different lenders. That's gonna be the biggest 517 00:22:36,760 --> 00:22:39,640 Speaker 1: way you end up saving money in the refi process. 518 00:22:40,000 --> 00:22:41,280 Speaker 1: And Joel, you know, I think a lot of folks 519 00:22:41,320 --> 00:22:42,920 Speaker 1: would hear us say that, and they're gonna freak out 520 00:22:42,920 --> 00:22:44,760 Speaker 1: because they're gonna think, what's gonna happen to my credit score? 521 00:22:44,760 --> 00:22:46,199 Speaker 1: It's gonna plumb it when I fill out all of 522 00:22:46,240 --> 00:22:49,280 Speaker 1: those applications, all those inquiries, They're gonna lower my score 523 00:22:49,320 --> 00:22:51,200 Speaker 1: in a big way. Right, Well, they do a little bit, 524 00:22:51,240 --> 00:22:53,560 Speaker 1: but not nearly as much. If you make those inquiries, 525 00:22:53,680 --> 00:22:55,680 Speaker 1: if you apply for that refinance within a short period 526 00:22:55,720 --> 00:22:58,240 Speaker 1: of time, within a week or two, all those separate 527 00:22:58,280 --> 00:23:01,040 Speaker 1: hard polls against your credit essentially kind of get lumped 528 00:23:01,040 --> 00:23:03,199 Speaker 1: together as one. So when the time comes and you're 529 00:23:03,200 --> 00:23:05,760 Speaker 1: shopping for that refi, man, just go about the business 530 00:23:05,840 --> 00:23:08,480 Speaker 1: of knocking all those out because a you do want 531 00:23:08,480 --> 00:23:10,199 Speaker 1: a bunch of them to be able to compare, but 532 00:23:10,440 --> 00:23:12,719 Speaker 1: b you also want to make sure that you're not 533 00:23:12,800 --> 00:23:15,159 Speaker 1: damaging your credit. Yeah, Matt, And folks to just know 534 00:23:15,359 --> 00:23:18,760 Speaker 1: that typical closing costs for a refinance are two to 535 00:23:18,840 --> 00:23:21,879 Speaker 1: four pc of the overall loan value, So it costs 536 00:23:21,880 --> 00:23:24,040 Speaker 1: a good bit of money to do a refi, which 537 00:23:24,080 --> 00:23:26,159 Speaker 1: is why we mentioned earlier on in the episode that 538 00:23:26,280 --> 00:23:29,080 Speaker 1: thirty month break even point. If you're refinancing your home 539 00:23:29,200 --> 00:23:31,800 Speaker 1: and your total loan amount is a hundred fifty thousand dollars, 540 00:23:31,840 --> 00:23:35,600 Speaker 1: well you can expect like four thousand dollars in closing costs, 541 00:23:35,640 --> 00:23:37,960 Speaker 1: so you want to make sure that it's worth it. Yeah, 542 00:23:38,040 --> 00:23:40,080 Speaker 1: you know, the loan amount that you're refinancing like that 543 00:23:40,119 --> 00:23:42,159 Speaker 1: has a pretty large impact on those closing costs. But 544 00:23:42,240 --> 00:23:44,480 Speaker 1: there are a lot of different variables to to keep 545 00:23:44,480 --> 00:23:46,600 Speaker 1: in mind, and because of that, it makes it difficult 546 00:23:46,640 --> 00:23:48,560 Speaker 1: to sort of have a rule of thumb. You know, 547 00:23:48,640 --> 00:23:51,080 Speaker 1: lowering your rate by one percent like that sounds pretty great, 548 00:23:51,359 --> 00:23:54,120 Speaker 1: but refinancing still might not be worth it for you. 549 00:23:54,400 --> 00:23:57,040 Speaker 1: There just are so many different individual factors at play 550 00:23:57,320 --> 00:23:59,760 Speaker 1: when determining if a REFI is the right move for you. 551 00:24:00,040 --> 00:24:02,200 Speaker 1: Like you've got to look at the bank cost, title cost, 552 00:24:02,280 --> 00:24:04,520 Speaker 1: there's different third party costs. Some of those things you 553 00:24:04,560 --> 00:24:07,040 Speaker 1: can shop for, but others you can't. Just don't be 554 00:24:07,119 --> 00:24:09,760 Speaker 1: afraid to actually negotiate on some of the different items 555 00:24:09,840 --> 00:24:12,000 Speaker 1: that you do have control over. Yeah, once you have 556 00:24:12,040 --> 00:24:14,880 Speaker 1: those loan estimates in hand, you can always go back 557 00:24:15,000 --> 00:24:17,399 Speaker 1: to a potential lender and ask if there's any wiggle 558 00:24:17,480 --> 00:24:19,960 Speaker 1: room to pay less, Matt. The last mortgage I got, 559 00:24:20,160 --> 00:24:22,440 Speaker 1: there was one lender I felt a little more comfortable with, 560 00:24:22,480 --> 00:24:24,280 Speaker 1: but the overall cost I was going to incur by 561 00:24:24,320 --> 00:24:27,560 Speaker 1: going with them were more than another lender. So I 562 00:24:27,600 --> 00:24:29,719 Speaker 1: just showed them my other loan estimate. I asked if 563 00:24:29,720 --> 00:24:31,520 Speaker 1: they can match it. They did some work and they 564 00:24:31,560 --> 00:24:34,000 Speaker 1: actually ended up beating it. Nice man. Yeah, so don't 565 00:24:34,040 --> 00:24:35,920 Speaker 1: be afraid to negotiate. Don't be afraid to ask the 566 00:24:36,000 --> 00:24:38,120 Speaker 1: question to see if that lender can do better than 567 00:24:38,160 --> 00:24:41,280 Speaker 1: their initial offering. Yeah, negotiating closing costs on a refine 568 00:24:41,359 --> 00:24:44,040 Speaker 1: like that is an instance where it is perfectly acceptable 569 00:24:44,119 --> 00:24:46,040 Speaker 1: to show up at the table. You've got other numbers 570 00:24:46,040 --> 00:24:48,160 Speaker 1: to compare to you, and you ask basically like can 571 00:24:48,160 --> 00:24:51,480 Speaker 1: you beat this? Right? There's other instances where you shouldn't negotiate, 572 00:24:51,640 --> 00:24:54,320 Speaker 1: like the price of your dinner. Yeah, but this is 573 00:24:54,359 --> 00:24:56,960 Speaker 1: not one of those. And another tool that can be 574 00:24:57,000 --> 00:25:00,040 Speaker 1: helpful in this whole process is an online mortgage to 575 00:25:00,119 --> 00:25:02,800 Speaker 1: re high calculator. It can help you analyze the numbers 576 00:25:02,800 --> 00:25:04,600 Speaker 1: and the cost you might be going back to that 577 00:25:04,680 --> 00:25:07,679 Speaker 1: over and over as you consider different loan terms and 578 00:25:07,760 --> 00:25:11,800 Speaker 1: interest rates. The ultimate sweet spot for refinancing is lowering 579 00:25:11,840 --> 00:25:14,639 Speaker 1: your rate and lessening your term at the same time. 580 00:25:14,840 --> 00:25:16,800 Speaker 1: So let's say you originally got a thirty year mortgage, 581 00:25:16,800 --> 00:25:18,400 Speaker 1: You've been in that home for eight years, you've got 582 00:25:18,400 --> 00:25:20,600 Speaker 1: twenty two years left on it, and your interest rate 583 00:25:20,720 --> 00:25:22,440 Speaker 1: is four and a half. Well, the sweet spot for 584 00:25:22,480 --> 00:25:25,080 Speaker 1: you is to go into a fifteen or twenty year mortgage, 585 00:25:25,160 --> 00:25:28,280 Speaker 1: lower your interest rate by hopefully over a point, and 586 00:25:28,280 --> 00:25:31,200 Speaker 1: at the same time lower your overall remaining years left 587 00:25:31,280 --> 00:25:34,000 Speaker 1: on that mortgage. Not everybody can hit that sweet spot, 588 00:25:34,200 --> 00:25:36,240 Speaker 1: but that is an ideal circumstance to make sure you 589 00:25:36,280 --> 00:25:40,480 Speaker 1: at least consider lessening your term as part of refinancing. 590 00:25:41,080 --> 00:25:44,240 Speaker 1: And you know, the whole idea behind lessening that term 591 00:25:44,320 --> 00:25:46,840 Speaker 1: shortening the number of years you have left paying that mortgage. 592 00:25:47,160 --> 00:25:49,399 Speaker 1: It's not just a numbers game, but there's also that 593 00:25:49,480 --> 00:25:52,040 Speaker 1: mental and psychological element to it. If you're a total 594 00:25:52,080 --> 00:25:54,720 Speaker 1: nerd and you're all about the numbers, you might argue that, like, no, 595 00:25:54,800 --> 00:25:56,520 Speaker 1: I want to have a thirty year term, and I 596 00:25:56,520 --> 00:25:58,000 Speaker 1: want to get that rate as low as possible. I'm 597 00:25:58,000 --> 00:26:00,159 Speaker 1: gonna invest that money and While that might work or 598 00:26:00,200 --> 00:26:02,720 Speaker 1: some I think for a lot of other folks, there 599 00:26:02,800 --> 00:26:05,000 Speaker 1: is gonna be a greater benefit from not having a 600 00:26:05,000 --> 00:26:09,040 Speaker 1: mortgage altogether because of refinanced that shorter term, and that's 601 00:26:09,040 --> 00:26:10,960 Speaker 1: no longer a debt, that's no longer a payment that 602 00:26:11,000 --> 00:26:14,000 Speaker 1: they have every month that is hanging over their heads. Man, Personally, 603 00:26:14,040 --> 00:26:16,520 Speaker 1: I'm not anywhere close to having a mortgage paid off 604 00:26:16,520 --> 00:26:18,280 Speaker 1: on any of my properties, but I look forward to 605 00:26:18,280 --> 00:26:20,320 Speaker 1: it knowing that one day that's just one of those 606 00:26:20,520 --> 00:26:22,879 Speaker 1: huge outgoing payments that I'm no longer going to have 607 00:26:22,920 --> 00:26:25,040 Speaker 1: to pay, just to have that burden lifted off of me, 608 00:26:25,080 --> 00:26:26,920 Speaker 1: you know what I'm saying. What a sweet feeling that 609 00:26:26,960 --> 00:26:29,000 Speaker 1: would be, right, Yeah. Yeah. But by the way, on 610 00:26:29,000 --> 00:26:31,240 Speaker 1: that mortgage three five calculator, we will link to one 611 00:26:31,240 --> 00:26:33,600 Speaker 1: of our favorites in the show notes on our website, 612 00:26:33,760 --> 00:26:35,439 Speaker 1: and also on our website, we're gonna have a picture 613 00:26:35,480 --> 00:26:37,479 Speaker 1: of the beer that we're enjoying right now, Joel, you're 614 00:26:37,480 --> 00:26:40,760 Speaker 1: gonna take us back to the beer. Oh yeah, nice transition, Matthew. Okay, Yes, 615 00:26:40,800 --> 00:26:42,720 Speaker 1: So today on the show, we drank a beer called 616 00:26:42,760 --> 00:26:46,119 Speaker 1: Old Tuffie by New Belgium Brewing and It's a beer 617 00:26:46,160 --> 00:26:49,600 Speaker 1: that New Belgium specifically brewed for NC State, and listener 618 00:26:49,640 --> 00:26:52,200 Speaker 1: Maggie is a professor there and so she sent this 619 00:26:52,280 --> 00:26:54,400 Speaker 1: on our way. Big thanks to Maggie. Dude. I don't 620 00:26:54,440 --> 00:26:56,880 Speaker 1: always drink loggers, Matt, but when I do, I'm gonna 621 00:26:56,920 --> 00:26:59,119 Speaker 1: drink Toffy Lagger. Name that beer commercial that I just 622 00:26:59,160 --> 00:27:02,080 Speaker 1: stole a line from. Oh, I know the commercial. I 623 00:27:02,119 --> 00:27:05,080 Speaker 1: just wasn't gonna talk about a Mexican style beer because 624 00:27:05,400 --> 00:27:07,879 Speaker 1: I personally feel that those are pretty terrible. There's a 625 00:27:07,880 --> 00:27:10,320 Speaker 1: couple of good ones, Yeah, I like Negro Modelo a lot, 626 00:27:10,520 --> 00:27:12,760 Speaker 1: so Yeah, a little more flavor going on there, Yeah, 627 00:27:12,800 --> 00:27:14,119 Speaker 1: But I feel like when it comes to a logger, 628 00:27:14,160 --> 00:27:16,240 Speaker 1: for me, I what I really enjoy about a logger 629 00:27:16,280 --> 00:27:18,800 Speaker 1: is that they're so clean and refreshing, right and specific 630 00:27:18,800 --> 00:27:20,240 Speaker 1: to this beer, That's what I like so much about 631 00:27:20,280 --> 00:27:22,760 Speaker 1: it is that it's just really clean. Sometimes with loggers 632 00:27:22,760 --> 00:27:24,719 Speaker 1: you can kind of get this off putting, maybe like 633 00:27:24,720 --> 00:27:27,480 Speaker 1: some metallic flavors or there's like a skunkiness to it. Man, 634 00:27:27,520 --> 00:27:29,000 Speaker 1: that was not the case with this one. It was 635 00:27:29,080 --> 00:27:31,119 Speaker 1: so good. I feel like, in my mind, like the 636 00:27:31,240 --> 00:27:34,080 Speaker 1: essence of beer is a logger. You know, like if 637 00:27:34,119 --> 00:27:36,560 Speaker 1: there's one beer that had to be qualified, like which 638 00:27:36,640 --> 00:27:39,800 Speaker 1: one beer exists that you would call pure beer? Like 639 00:27:39,840 --> 00:27:41,680 Speaker 1: it's got to be a logger, you know. Yeah, I 640 00:27:41,680 --> 00:27:43,840 Speaker 1: guess when you boil it down, the essence of a beer, yeah, 641 00:27:43,920 --> 00:27:47,640 Speaker 1: probably is just a super clean, crisp, refreshing logger. Yeah yeah, 642 00:27:47,680 --> 00:27:49,880 Speaker 1: And this was that it really was so much better 643 00:27:49,920 --> 00:27:52,640 Speaker 1: than a macro beer logger. I would say it's perfect 644 00:27:52,680 --> 00:27:56,000 Speaker 1: for an anti state basketball or football game, perfect for 645 00:27:56,080 --> 00:27:58,639 Speaker 1: game day, right exactly. Yeah, it was like Hams. Have 646 00:27:58,720 --> 00:28:00,520 Speaker 1: you ever had a Hams before? Yeah? I have. That's 647 00:28:00,520 --> 00:28:01,919 Speaker 1: like the old school vine. Is kind of like an 648 00:28:01,920 --> 00:28:03,520 Speaker 1: old school one, but it's really good. It's like a 649 00:28:03,520 --> 00:28:06,480 Speaker 1: hands but way better. Yes, most definitely, most definitely yes. 650 00:28:06,520 --> 00:28:08,200 Speaker 1: So thanks to Maggie for sending this one our way. 651 00:28:08,240 --> 00:28:10,680 Speaker 1: It was really enjoyable to drink on the show. And honestly, 652 00:28:10,680 --> 00:28:14,360 Speaker 1: it's not the style that I gravitate to most often, 653 00:28:14,480 --> 00:28:16,720 Speaker 1: but it's so nice to have a really good one. 654 00:28:16,880 --> 00:28:19,280 Speaker 1: And most folks out there that are only drinking Butter Miller, 655 00:28:19,400 --> 00:28:21,640 Speaker 1: like they just haven't had a good logger in their 656 00:28:21,720 --> 00:28:23,600 Speaker 1: life yet, so yeah, they need to check out something 657 00:28:23,640 --> 00:28:26,560 Speaker 1: like this. Brewed by a quality craft brewer. Man. We 658 00:28:26,600 --> 00:28:29,119 Speaker 1: don't drink a lot of laggers, but personally, the more 659 00:28:29,320 --> 00:28:31,919 Speaker 1: good loggers I drink, I I also realized that that 660 00:28:31,960 --> 00:28:34,560 Speaker 1: I've never really had a great logger in the course 661 00:28:34,600 --> 00:28:36,719 Speaker 1: of my beer drinking years, and so it's a lot 662 00:28:36,720 --> 00:28:38,640 Speaker 1: of fun to switch it up. So again, thanks Maggie 663 00:28:38,640 --> 00:28:41,760 Speaker 1: so much for donating this beer to the show. All right, 664 00:28:41,760 --> 00:28:44,240 Speaker 1: maw let's get to our final thoughts for this episode. 665 00:28:44,520 --> 00:28:47,880 Speaker 1: When we're talking about why you should consider refinancing, Well, 666 00:28:47,960 --> 00:28:50,720 Speaker 1: the best reason to consider it is to save money 667 00:28:50,760 --> 00:28:53,160 Speaker 1: in the overall interest that you're going to pay over 668 00:28:53,240 --> 00:28:55,480 Speaker 1: the life of the loan. If you're going to be 669 00:28:55,520 --> 00:28:58,240 Speaker 1: able to do that, then there's a good chance refinancing 670 00:28:58,240 --> 00:29:00,360 Speaker 1: makes a lot of sense for you. But for you, 671 00:29:00,440 --> 00:29:02,800 Speaker 1: really know, if you're in a financial position to refinance, 672 00:29:02,880 --> 00:29:05,080 Speaker 1: there are some individual considerations that you need to take 673 00:29:05,120 --> 00:29:06,920 Speaker 1: into account. Your credit score. You want to make sure 674 00:29:06,960 --> 00:29:09,080 Speaker 1: that you've got seven twenty or higher to get the 675 00:29:09,080 --> 00:29:11,720 Speaker 1: best rate, and also the amount of equity that you 676 00:29:11,760 --> 00:29:13,320 Speaker 1: have in your house. You want to make sure that 677 00:29:13,360 --> 00:29:16,480 Speaker 1: you have at least or more in order to qualify 678 00:29:16,520 --> 00:29:19,160 Speaker 1: for a solid conventional loan without p M I Yeah, 679 00:29:19,200 --> 00:29:21,280 Speaker 1: and don't forget to shop with multiple lenders. You can 680 00:29:21,280 --> 00:29:24,920 Speaker 1: shop with online lenders, local lenders, even costco right, but 681 00:29:24,960 --> 00:29:27,360 Speaker 1: the key is to apply and get loan estimates from 682 00:29:27,400 --> 00:29:29,320 Speaker 1: a handful so that you can make the apples to 683 00:29:29,360 --> 00:29:31,960 Speaker 1: apples comparison and choose the best lender that's going to 684 00:29:32,040 --> 00:29:34,000 Speaker 1: save you the most money. I guess it doesn't have 685 00:29:34,040 --> 00:29:35,960 Speaker 1: to be an apples to apples comparison. It can be 686 00:29:36,000 --> 00:29:39,280 Speaker 1: like a logger to logger comparison. There we go, Well, man, 687 00:29:39,280 --> 00:29:41,520 Speaker 1: I think that's gonna be that for this episode. As always, 688 00:29:41,520 --> 00:29:43,040 Speaker 1: you can find our show notes up on our website 689 00:29:43,040 --> 00:29:45,239 Speaker 1: at how the Money dot com. Yeah, and if this 690 00:29:45,320 --> 00:29:47,760 Speaker 1: is your first episode or you're new to the show, well, 691 00:29:47,760 --> 00:29:50,200 Speaker 1: don't forget to hit that subscribe button so that you're 692 00:29:50,320 --> 00:29:53,240 Speaker 1: notified of new episodes when they come out. Alright, buddy, 693 00:29:53,400 --> 00:30:06,200 Speaker 1: until next time, Best friends out, best Friends out. Mmmm