1 00:00:00,200 --> 00:00:03,120 Speaker 1: Joel, my best buddy. How's it gone, man? I'm fantastic, 2 00:00:03,160 --> 00:00:05,360 Speaker 1: But how are you? I'm doing pretty good, doing pretty good. 3 00:00:05,840 --> 00:00:09,840 Speaker 1: We have an episode here that we actually released somewhat recently, 4 00:00:09,840 --> 00:00:11,440 Speaker 1: but we felt that it was really pertinent for us 5 00:00:11,480 --> 00:00:14,840 Speaker 1: to re release this one given the current situation, given 6 00:00:14,960 --> 00:00:17,919 Speaker 1: the current state of affairs. Yeah, interest rates have been 7 00:00:18,079 --> 00:00:21,760 Speaker 1: plumbering again on mortgages, and so yeah, for a lot 8 00:00:21,760 --> 00:00:24,400 Speaker 1: of people, refinancing makes a whole lot of sense. It's 9 00:00:24,400 --> 00:00:26,240 Speaker 1: heems to be making sense for more and more people 10 00:00:26,280 --> 00:00:30,400 Speaker 1: as rates go down, and they're basically at historic lows 11 00:00:30,600 --> 00:00:32,880 Speaker 1: right now. But also, there are a lot of things 12 00:00:32,920 --> 00:00:35,159 Speaker 1: to consider before you take the plunge and you go 13 00:00:35,200 --> 00:00:37,520 Speaker 1: into doing a refinance. That's kind of what we covered 14 00:00:37,560 --> 00:00:39,600 Speaker 1: in this episode, everything that you need to think about 15 00:00:39,920 --> 00:00:42,560 Speaker 1: before you actually pull the trigger and end up doing it. Yeah. 16 00:00:42,560 --> 00:00:44,239 Speaker 1: One of those things to consider is the fact that 17 00:00:44,240 --> 00:00:47,519 Speaker 1: it costs some money to refinance, right, And I know 18 00:00:47,600 --> 00:00:50,080 Speaker 1: it's kind of hard for folks to think through something 19 00:00:50,120 --> 00:00:53,440 Speaker 1: that's going to cost them more money in these tough times, right. 20 00:00:53,960 --> 00:00:55,880 Speaker 1: Me to give a sports analogy, a lot of people 21 00:00:55,880 --> 00:00:59,240 Speaker 1: are thinking defensively. They're not thinking about ways to get ahead, 22 00:00:59,640 --> 00:01:01,800 Speaker 1: finding and set themselves up to be in a better 23 00:01:01,880 --> 00:01:04,960 Speaker 1: financial position. Most folks are just trying to keep their 24 00:01:04,959 --> 00:01:07,000 Speaker 1: head above the water. They're trying to stay afloat. And 25 00:01:07,040 --> 00:01:08,600 Speaker 1: so I know it can be a challenge for folks 26 00:01:08,680 --> 00:01:11,840 Speaker 1: to to think about the situation that we're in in 27 00:01:11,880 --> 00:01:14,319 Speaker 1: a way that could benefit them. And that's why we 28 00:01:14,360 --> 00:01:16,880 Speaker 1: want more folks to consider, you know, whether or not 29 00:01:16,880 --> 00:01:19,120 Speaker 1: they should refinance their home or not. Yeah, refinancing is 30 00:01:19,160 --> 00:01:21,920 Speaker 1: a long term play typically, right, because there are closing 31 00:01:21,959 --> 00:01:24,840 Speaker 1: costs involved in doing a refinance. And Matt, I just 32 00:01:24,959 --> 00:01:29,680 Speaker 1: recently refinance three properties in one day. So dang dude, Yeah, oh, 33 00:01:29,760 --> 00:01:32,000 Speaker 1: so that's what you did with your stimulus check. You 34 00:01:32,000 --> 00:01:33,640 Speaker 1: said you weren't sure what you're gonna do with it. 35 00:01:34,080 --> 00:01:38,080 Speaker 1: I got my bike, and you refinance some properties, refinance 36 00:01:38,080 --> 00:01:41,000 Speaker 1: some properties. Third, I kind of went right. And in 37 00:01:41,000 --> 00:01:43,440 Speaker 1: this episode, which you'll hear in just a second, we 38 00:01:43,480 --> 00:01:46,200 Speaker 1: talked about the different ways to approach it and how 39 00:01:46,240 --> 00:01:49,520 Speaker 1: actually lowering your term, lowering your mortgage term can be 40 00:01:49,640 --> 00:01:51,720 Speaker 1: a huge benefit to you over time and just paying 41 00:01:51,720 --> 00:01:54,280 Speaker 1: way less interest overall. And so Matt, with two of 42 00:01:54,320 --> 00:01:56,720 Speaker 1: my rental properties, I lowered the term I went into 43 00:01:56,720 --> 00:02:00,040 Speaker 1: fifteen year mortgages on those properties that cut my in 44 00:02:00,080 --> 00:02:02,320 Speaker 1: to strate by a huge amount, because if I had 45 00:02:02,360 --> 00:02:04,680 Speaker 1: just tried to refine to another thirty year, probably wouldn't 46 00:02:04,680 --> 00:02:07,560 Speaker 1: have made sense. And then on my primary residence, I 47 00:02:07,560 --> 00:02:09,840 Speaker 1: went into another thirty year and I pulled cash out, 48 00:02:10,040 --> 00:02:11,960 Speaker 1: and that money I'm going to use to invest in 49 00:02:12,000 --> 00:02:14,160 Speaker 1: real estate some more so in particular, I want to 50 00:02:14,200 --> 00:02:16,480 Speaker 1: build an accessory dwelling unit in my backyard. I think 51 00:02:16,520 --> 00:02:18,679 Speaker 1: we've talked about that, so it's like episode two or three, 52 00:02:18,960 --> 00:02:21,480 Speaker 1: like I just haven't done it episode. Yeah, when we 53 00:02:21,520 --> 00:02:24,079 Speaker 1: talked about it way back then, it was Airbnb, and 54 00:02:24,160 --> 00:02:26,399 Speaker 1: it was an air stream for you specifically. But since 55 00:02:26,400 --> 00:02:28,160 Speaker 1: then you know that you're not going to do Airbnb, 56 00:02:28,320 --> 00:02:30,760 Speaker 1: and it's probably going to be something a little more permanence, 57 00:02:31,160 --> 00:02:34,840 Speaker 1: not a portable trailer, uh that happens to look awesome 58 00:02:34,880 --> 00:02:37,160 Speaker 1: and is made of stainless deal right, I still have 59 00:02:37,280 --> 00:02:39,280 Speaker 1: air streams, but you know, I don't think that's in 60 00:02:39,320 --> 00:02:41,040 Speaker 1: the cards for right now. So yeah, a little more 61 00:02:41,120 --> 00:02:42,880 Speaker 1: of a permanent dwelling. And I pulled enough cash out 62 00:02:42,919 --> 00:02:45,239 Speaker 1: that I could basically do that with cash, which is 63 00:02:45,240 --> 00:02:47,040 Speaker 1: really incredible. And then that a du is just going 64 00:02:47,080 --> 00:02:49,560 Speaker 1: to you know, provide cash flow throughout the years, and 65 00:02:49,639 --> 00:02:52,200 Speaker 1: so yeah, I'm excited about that. But the weirdest thing 66 00:02:52,200 --> 00:02:54,919 Speaker 1: Matt about the closing one doing three at once. Never 67 00:02:54,960 --> 00:02:57,160 Speaker 1: done that, only done one ever in a day, but 68 00:02:57,240 --> 00:03:00,400 Speaker 1: also right now closings for real estate, I had to 69 00:03:00,440 --> 00:03:02,760 Speaker 1: sit in my car and the lawyer would come out 70 00:03:02,960 --> 00:03:06,079 Speaker 1: with a massive stack of papers to shut a tashlow clipboard. 71 00:03:06,120 --> 00:03:08,919 Speaker 1: I'm telling you, it is wild. It was surreal. So 72 00:03:09,040 --> 00:03:11,160 Speaker 1: they come out with a sonic or something like that, 73 00:03:11,560 --> 00:03:13,520 Speaker 1: like older food at your car, except for it's like here, 74 00:03:13,520 --> 00:03:15,840 Speaker 1: I'll here's your legal binder. The cherry line made at 75 00:03:15,840 --> 00:03:17,720 Speaker 1: the same time. No I didn't that would be bather, 76 00:03:18,800 --> 00:03:20,600 Speaker 1: but it was. Yeah, it was really weird to kind 77 00:03:20,600 --> 00:03:22,839 Speaker 1: of do a closing in that way. Usually real they're 78 00:03:22,840 --> 00:03:24,840 Speaker 1: telling you about every single form that you're signing and 79 00:03:24,840 --> 00:03:27,120 Speaker 1: passing it too, normally sitting at a giant conference table 80 00:03:27,160 --> 00:03:28,840 Speaker 1: and they're pointing out where you need to sign, you know, 81 00:03:28,919 --> 00:03:31,359 Speaker 1: explain to you what these forms are, highlighting things, all 82 00:03:31,400 --> 00:03:33,079 Speaker 1: that kind of stuff. Yeah, so it was much quicker 83 00:03:33,120 --> 00:03:35,760 Speaker 1: than than normal closing and I signed it in my car. 84 00:03:35,920 --> 00:03:37,760 Speaker 1: So yeah, that if you do end up going through 85 00:03:37,760 --> 00:03:39,440 Speaker 1: with this, that that might be the part of protocol 86 00:03:39,760 --> 00:03:44,360 Speaker 1: for the foreseeable future for closings. But um, yeah, there's 87 00:03:44,360 --> 00:03:45,760 Speaker 1: so much that we cover in this episode. And I 88 00:03:45,840 --> 00:03:48,400 Speaker 1: think as rates are low and people are seeing more 89 00:03:48,400 --> 00:03:51,960 Speaker 1: and more articles that kind of hint or yell at 90 00:03:52,000 --> 00:03:54,240 Speaker 1: you saying that you should be refinancing. Now, well maybe 91 00:03:54,240 --> 00:03:55,760 Speaker 1: you should, maybe you shouldn't. There are a lot of 92 00:03:55,760 --> 00:03:57,839 Speaker 1: factors to consider. But you know what, we'll get into 93 00:03:57,920 --> 00:04:00,720 Speaker 1: all that right here, right now. Well them to how 94 00:04:00,720 --> 00:04:03,400 Speaker 1: to money. I'm Joel and I am Matt, and today 95 00:04:03,600 --> 00:04:06,800 Speaker 1: we are asking the question to refi or not to REFI, 96 00:04:25,680 --> 00:04:29,000 Speaker 1: to refly or to not REFI. That is a question. 97 00:04:29,560 --> 00:04:32,200 Speaker 1: I also had a hamletesque skull in my hand when 98 00:04:32,200 --> 00:04:34,760 Speaker 1: I had that in a candle that was no longer 99 00:04:34,839 --> 00:04:37,640 Speaker 1: lit in your other hand, exactly exactly, man. I saw 100 00:04:37,680 --> 00:04:40,479 Speaker 1: a recent report that on average, for folks who can 101 00:04:40,600 --> 00:04:43,520 Speaker 1: refinance their home, that each individual could say about two 102 00:04:43,880 --> 00:04:48,000 Speaker 1: seventy dollars a month, totaling one point six billion dollars, 103 00:04:48,279 --> 00:04:50,200 Speaker 1: which is a huge amount of money. So we're gonna 104 00:04:50,240 --> 00:04:52,800 Speaker 1: talk about if you should be refinancing your home, and 105 00:04:52,800 --> 00:04:55,520 Speaker 1: we're gonna talk about how to do that on this episode. Yeah, 106 00:04:55,560 --> 00:04:57,080 Speaker 1: and there are some good rules of thumb. I think 107 00:04:57,080 --> 00:04:58,640 Speaker 1: they will be able to offer folks. But but it's 108 00:04:58,640 --> 00:05:00,640 Speaker 1: also very specific, and we're gonna it into some of 109 00:05:00,640 --> 00:05:03,000 Speaker 1: those specifics. But like you said, Matt, a lot of 110 00:05:03,000 --> 00:05:04,680 Speaker 1: people could save a lot of money, and a lot 111 00:05:04,720 --> 00:05:08,320 Speaker 1: of people either have heard or seen an article refinancing, 112 00:05:08,360 --> 00:05:10,560 Speaker 1: like everyone's doing it right now, And yes, you should 113 00:05:10,560 --> 00:05:12,720 Speaker 1: feel the peer pressure to at least consider it. Even 114 00:05:12,760 --> 00:05:16,200 Speaker 1: if you don't have a home, consider refinancing. Yeah, we're 115 00:05:16,200 --> 00:05:18,680 Speaker 1: gonna sell you that hard, you know, but refinancing is 116 00:05:18,720 --> 00:05:20,840 Speaker 1: a good idea for a lot of folks. And if 117 00:05:20,839 --> 00:05:22,440 Speaker 1: you're one of those folks that can save a ton 118 00:05:22,480 --> 00:05:24,600 Speaker 1: of money every month by by doing a REFI I 119 00:05:24,640 --> 00:05:27,800 Speaker 1: mean that's big news, sure is man. But before we 120 00:05:27,920 --> 00:05:30,359 Speaker 1: kick things off, I wanted to talk about going green 121 00:05:30,640 --> 00:05:34,080 Speaker 1: or that zero waste lifestyle that you might see kind 122 00:05:34,080 --> 00:05:35,880 Speaker 1: of cropping up here and there. I'd sell you what 123 00:05:36,000 --> 00:05:38,320 Speaker 1: you do one search for anything now on the Internet, 124 00:05:38,360 --> 00:05:40,120 Speaker 1: and then before you know it, you're getting fed all 125 00:05:40,120 --> 00:05:44,320 Speaker 1: these different ads, specifically for me Instagram. Anytime I google anything, 126 00:05:44,640 --> 00:05:46,960 Speaker 1: three seconds later there's an ad for that very thing. 127 00:05:47,160 --> 00:05:49,680 Speaker 1: Or a competing company popping up in my Instagram feed 128 00:05:49,720 --> 00:05:52,359 Speaker 1: and it is crazy. So evidently I searched something that 129 00:05:52,440 --> 00:05:54,520 Speaker 1: made the algorithms think that I want to spend a 130 00:05:54,560 --> 00:05:57,600 Speaker 1: bunch of money on these zero waste products because I'm 131 00:05:57,600 --> 00:06:01,480 Speaker 1: getting fed things like these, these wax wraps. Have you 132 00:06:01,520 --> 00:06:04,360 Speaker 1: seen these? I mean it's cloth and it's like confused 133 00:06:04,440 --> 00:06:07,160 Speaker 1: with wax. And instead of using type of wear like 134 00:06:07,360 --> 00:06:09,360 Speaker 1: use that you go to the butcher and you put 135 00:06:09,400 --> 00:06:11,560 Speaker 1: your raw meat in this fabric and you take it 136 00:06:11,600 --> 00:06:13,720 Speaker 1: home and then you wash it when you take the 137 00:06:13,760 --> 00:06:15,920 Speaker 1: meat out of it, like that kind of stuff. I see, 138 00:06:16,000 --> 00:06:19,640 Speaker 1: I actually just reuse plastic ziploc back. Yes, well that's 139 00:06:19,680 --> 00:06:21,400 Speaker 1: I think that's the real answer. That's why I want 140 00:06:21,400 --> 00:06:23,640 Speaker 1: to talk about this is because so much of those 141 00:06:23,680 --> 00:06:27,320 Speaker 1: products it's just marketing and it's consumption driven. It's it's 142 00:06:27,320 --> 00:06:31,320 Speaker 1: so ironic that we're being fed these advertisements to buy 143 00:06:31,360 --> 00:06:35,160 Speaker 1: these things that will miraculously allow us to become less wasteful, 144 00:06:35,240 --> 00:06:37,680 Speaker 1: when in fact, that's sort of the epitome of waste, right, 145 00:06:37,720 --> 00:06:40,400 Speaker 1: purchasing something that you don't really need because you already 146 00:06:40,440 --> 00:06:42,960 Speaker 1: have some products that can actually provide that utility that 147 00:06:43,000 --> 00:06:45,520 Speaker 1: you are truly needing. And I'm not saying that I'm 148 00:06:45,520 --> 00:06:47,359 Speaker 1: immune to this either, right, Like I get sucked in 149 00:06:47,400 --> 00:06:50,240 Speaker 1: the advertisements, like I see the cool stainless steel straw, 150 00:06:50,400 --> 00:06:52,280 Speaker 1: the drinking straw, and I kind of want that because 151 00:06:52,279 --> 00:06:53,839 Speaker 1: I see it looks awesome. It looks like something I 152 00:06:53,839 --> 00:06:55,880 Speaker 1: can keep in my pocket. And I like putting cool 153 00:06:55,920 --> 00:06:58,080 Speaker 1: metallic things in my pocket, you know, like one of 154 00:06:58,120 --> 00:06:59,600 Speaker 1: those I might be turning into one of those every 155 00:06:59,640 --> 00:07:01,000 Speaker 1: day care guys. You know, I got like my little 156 00:07:01,000 --> 00:07:02,800 Speaker 1: pocket knife, Like what else can I fit my pockets 157 00:07:02,800 --> 00:07:04,359 Speaker 1: that that might come in handy? If you get some 158 00:07:04,360 --> 00:07:07,440 Speaker 1: cargo shorts, then you can do even more, or cargo kilts. 159 00:07:08,440 --> 00:07:10,200 Speaker 1: But I think a good challenge is to, instead of 160 00:07:10,240 --> 00:07:12,200 Speaker 1: looking at the different products out there that will allow 161 00:07:12,240 --> 00:07:15,000 Speaker 1: us to become something that we aspire to be in 162 00:07:15,000 --> 00:07:17,440 Speaker 1: this case, like look at our actual waste, Like look 163 00:07:17,440 --> 00:07:19,440 Speaker 1: in the trash can, what's going in the trash And 164 00:07:19,480 --> 00:07:21,960 Speaker 1: by identifying those things, I think we can find ways 165 00:07:22,080 --> 00:07:24,760 Speaker 1: that allow us to become less wasteful. And not to mention, 166 00:07:24,800 --> 00:07:26,920 Speaker 1: on top of that, the things I think that oftentimes 167 00:07:26,960 --> 00:07:29,640 Speaker 1: have a lot of packaging tend to cost more because 168 00:07:29,680 --> 00:07:31,680 Speaker 1: they're the sort of like one time use things or 169 00:07:31,680 --> 00:07:34,440 Speaker 1: they're the convenience foods or products, and in reality we 170 00:07:34,440 --> 00:07:37,560 Speaker 1: could probably do with less of those products altogether. Yeah, Matt, 171 00:07:37,600 --> 00:07:39,760 Speaker 1: and we talked with someone who's kind of an expert 172 00:07:39,800 --> 00:07:43,000 Speaker 1: in this field. Back in episode number seventy two, we 173 00:07:43,280 --> 00:07:46,360 Speaker 1: brought Katie Wolk Stanley on and she goes by the 174 00:07:46,400 --> 00:07:49,800 Speaker 1: moniker on the internet, the non consumer Advocate, and the 175 00:07:49,840 --> 00:07:52,240 Speaker 1: title of that episode was stopped buying new Stuff. And 176 00:07:52,320 --> 00:07:54,760 Speaker 1: Katie is is concerned with how we treat the earth 177 00:07:54,840 --> 00:07:56,960 Speaker 1: and the things we waste and the money that we 178 00:07:57,000 --> 00:07:59,120 Speaker 1: waste at the same time, and I think she would 179 00:07:59,120 --> 00:08:02,200 Speaker 1: completely agree that buying new things in an attempt at 180 00:08:02,320 --> 00:08:05,320 Speaker 1: becoming greener is just not the way to go about it. Really, 181 00:08:05,360 --> 00:08:07,240 Speaker 1: the clutch move. The biggest thing that we could all 182 00:08:07,320 --> 00:08:10,000 Speaker 1: do as human beings is to stop buying new stuff 183 00:08:10,160 --> 00:08:13,120 Speaker 1: and focus instead on filling our homes, our apartments wherever 184 00:08:13,160 --> 00:08:16,680 Speaker 1: we live with used items, whether that's clothing, furniture, or 185 00:08:16,720 --> 00:08:19,600 Speaker 1: the car we drive. If we can prioritize buying used 186 00:08:19,640 --> 00:08:22,400 Speaker 1: and holding onto those things longer, that's the biggest dent 187 00:08:22,600 --> 00:08:24,880 Speaker 1: we can make in a culture that attempts to spur 188 00:08:25,000 --> 00:08:28,120 Speaker 1: us on towards more and more consumption. And so yeah, 189 00:08:28,160 --> 00:08:30,720 Speaker 1: I agree, don't buy into the advertisings. Don't think that 190 00:08:30,760 --> 00:08:33,920 Speaker 1: you're becoming more green by buying more things. Shifting our 191 00:08:33,920 --> 00:08:37,200 Speaker 1: mindset of what it takes to be a greener individual 192 00:08:37,520 --> 00:08:40,240 Speaker 1: in this society. I mean, that's that's the key. Yeah, yeah, 193 00:08:40,280 --> 00:08:42,520 Speaker 1: that's so true, man, That's that's a great challenge for us, 194 00:08:42,520 --> 00:08:44,640 Speaker 1: something that we can implement in our lives. I guess, 195 00:08:44,800 --> 00:08:46,880 Speaker 1: you know, you just see so many things in our 196 00:08:46,920 --> 00:08:50,000 Speaker 1: world that oftentimes seems silly, and sometimes when you actually 197 00:08:50,000 --> 00:08:51,959 Speaker 1: see it for what it is, it can kind of 198 00:08:52,000 --> 00:08:54,560 Speaker 1: be darwing almost right, Like I'm thinking specifically too, of 199 00:08:54,600 --> 00:08:56,640 Speaker 1: like the fancy water bottles. I'm not going to name 200 00:08:56,679 --> 00:08:58,440 Speaker 1: any of the name brand ones out there, but they're 201 00:08:58,440 --> 00:09:01,480 Speaker 1: really expensive, like the instantly to you know, bigger water bottles. 202 00:09:01,920 --> 00:09:03,959 Speaker 1: And again, there's nothing wrong with getting one of those 203 00:09:03,960 --> 00:09:05,800 Speaker 1: water bottles if you're going to use it. It's literally 204 00:09:05,800 --> 00:09:07,360 Speaker 1: there's a hole in it, right, But if you're getting 205 00:09:07,360 --> 00:09:09,200 Speaker 1: one of those because you don't want your plastic bottles 206 00:09:09,200 --> 00:09:11,800 Speaker 1: to end up in a landfill, but in reality, you're 207 00:09:11,840 --> 00:09:14,640 Speaker 1: buying a new one of those water bottles maybe every 208 00:09:14,679 --> 00:09:16,679 Speaker 1: six months, right, you're like you're getting the new, latest 209 00:09:16,679 --> 00:09:18,880 Speaker 1: and greatest color, or there's a new model that actually 210 00:09:18,880 --> 00:09:20,760 Speaker 1: does this. I think it's just important for us to 211 00:09:20,800 --> 00:09:22,760 Speaker 1: realize that we're being marketed to and that we're being 212 00:09:22,800 --> 00:09:26,000 Speaker 1: sold these products that are a not making us any happier, 213 00:09:26,240 --> 00:09:28,120 Speaker 1: be that they're costing us a lot of money, and 214 00:09:28,120 --> 00:09:30,480 Speaker 1: and see, in reality they may not be helping with 215 00:09:30,520 --> 00:09:32,959 Speaker 1: waste and pollution. Yeah, as you brought this up, and 216 00:09:33,080 --> 00:09:35,679 Speaker 1: it kind of made me think about energy efficiency too. 217 00:09:36,120 --> 00:09:38,719 Speaker 1: And so let's say new TVs or new refrigerators use 218 00:09:38,760 --> 00:09:41,679 Speaker 1: a whole lot less energy than their predecessors of ten 219 00:09:41,760 --> 00:09:43,880 Speaker 1: years ago. That's great. And if you're one of those 220 00:09:43,920 --> 00:09:46,400 Speaker 1: folks that needs a new refrigerator soon or a new TV, 221 00:09:46,760 --> 00:09:48,839 Speaker 1: that's gonna save you every month on your energy bills. 222 00:09:49,000 --> 00:09:52,520 Speaker 1: But just because that new TV uses fifty less energy 223 00:09:52,559 --> 00:09:55,320 Speaker 1: than the one you currently have, that certainly doesn't mean 224 00:09:55,360 --> 00:09:58,280 Speaker 1: you should go to your local Best Buy or go 225 00:09:58,360 --> 00:10:00,920 Speaker 1: to Amazon whatever and buy a new TV right now. 226 00:10:01,200 --> 00:10:03,439 Speaker 1: That's just faulty logic. And I think the same thing 227 00:10:03,520 --> 00:10:05,880 Speaker 1: is true for the kind of the green product movement. 228 00:10:06,160 --> 00:10:08,680 Speaker 1: Some of those things can potentially be helpful. So yeah, 229 00:10:08,760 --> 00:10:11,920 Speaker 1: just like you wouldn't buy new TV to save eight 230 00:10:11,920 --> 00:10:14,719 Speaker 1: dollars a year in electricity. You also shouldn't assume that 231 00:10:14,840 --> 00:10:18,040 Speaker 1: buying products that are marketed as green and great for 232 00:10:18,080 --> 00:10:21,439 Speaker 1: the earth are instantly helping you to waste less. Yeah, 233 00:10:21,440 --> 00:10:23,040 Speaker 1: and Joel, all that to say, I mean, we're not 234 00:10:23,120 --> 00:10:25,560 Speaker 1: against products that are better for the earth, right, Like 235 00:10:25,600 --> 00:10:27,480 Speaker 1: we love the earth. We like there to be less 236 00:10:27,559 --> 00:10:29,160 Speaker 1: waste in the world. But we just want you to 237 00:10:29,240 --> 00:10:30,800 Speaker 1: be to be smart about it and to take it 238 00:10:30,800 --> 00:10:33,120 Speaker 1: back to our friend Katie. She has her motto or 239 00:10:33,160 --> 00:10:35,840 Speaker 1: her slogan, which is use it up, wear it out, 240 00:10:36,120 --> 00:10:38,280 Speaker 1: make it do or do without. Make sure to keep 241 00:10:38,320 --> 00:10:40,480 Speaker 1: that in mind. Cool, Matt, All right, let's mention the 242 00:10:40,480 --> 00:10:43,160 Speaker 1: beer that we're having on the show today. We're drinking 243 00:10:43,240 --> 00:10:46,120 Speaker 1: Old Toffy and it's brewed by New Belgium Brewing at 244 00:10:46,120 --> 00:10:48,559 Speaker 1: a Colorado. This is a Logger beer sent to us 245 00:10:48,600 --> 00:10:51,000 Speaker 1: by listener Maggie. So, Maggie, thanks for sending this one 246 00:10:51,040 --> 00:10:53,080 Speaker 1: our way. Yeah, and it's worth mentioning. Joel, you said, 247 00:10:53,080 --> 00:10:55,520 Speaker 1: Old Toffie this is the mascot for NC State, And 248 00:10:55,520 --> 00:10:57,400 Speaker 1: she certainly picked a beer that she has a vested 249 00:10:57,400 --> 00:10:59,840 Speaker 1: interest with because she is actually a professor there at 250 00:10:59,840 --> 00:11:01,719 Speaker 1: and the States, So I just wanted to mention that 251 00:11:01,760 --> 00:11:04,520 Speaker 1: you and I have no collegiate ties necessarily to NC State. 252 00:11:04,640 --> 00:11:06,080 Speaker 1: I'm sure a second, not gonna let this beer go 253 00:11:06,120 --> 00:11:07,760 Speaker 1: to waste, and we're gonna enjoy this one and share 254 00:11:07,800 --> 00:11:09,680 Speaker 1: our thoughts at the end of the episode. Yeah. I 255 00:11:09,679 --> 00:11:11,320 Speaker 1: have a feeling though, that they're going to contact us 256 00:11:11,320 --> 00:11:14,160 Speaker 1: pretty shortly for honorary doctorates or something like that, so 257 00:11:14,200 --> 00:11:16,000 Speaker 1: then we will have ties to the institution. How do 258 00:11:16,040 --> 00:11:17,840 Speaker 1: you even get one of those an honorary degree? Do 259 00:11:17,840 --> 00:11:19,800 Speaker 1: you have to be invited to give the speech at 260 00:11:19,840 --> 00:11:21,640 Speaker 1: the at the end of the year, the commencement end 261 00:11:21,640 --> 00:11:23,839 Speaker 1: of the year's sort of speech there at graduation? You know, 262 00:11:23,880 --> 00:11:25,240 Speaker 1: I don't know how you do it. I assume it's 263 00:11:25,240 --> 00:11:27,520 Speaker 1: similar to the way you get united in in England, 264 00:11:28,000 --> 00:11:29,720 Speaker 1: and it's just kind of one of those rare things 265 00:11:29,720 --> 00:11:31,800 Speaker 1: that happened. But the fact that we featured their beer 266 00:11:31,960 --> 00:11:33,720 Speaker 1: on our show, I mean, they're totally going to do 267 00:11:33,720 --> 00:11:35,520 Speaker 1: it for us. I think Dr Matt has a nice 268 00:11:35,600 --> 00:11:38,200 Speaker 1: ring to it. Dr Joel, great to see you. Today's 269 00:11:39,240 --> 00:11:41,120 Speaker 1: all right, Matt, let's get onto the topic at a hand. 270 00:11:41,360 --> 00:11:44,560 Speaker 1: Today we're asking the question to refin or not to refy, 271 00:11:44,640 --> 00:11:47,600 Speaker 1: and basically we're in a refinance boom right now. Taking 272 00:11:47,600 --> 00:11:50,440 Speaker 1: the advantage of a refi on your house can lower 273 00:11:50,559 --> 00:11:53,800 Speaker 1: your interest rate and lower your monthly payments, but there 274 00:11:53,800 --> 00:11:57,240 Speaker 1: are also costs involved in refinancing that can make it prohibitive, 275 00:11:57,559 --> 00:12:00,400 Speaker 1: and not everyone is a good candidate to ref finance. 276 00:12:00,679 --> 00:12:02,839 Speaker 1: So is it the right move for you? Well, Matt 277 00:12:02,840 --> 00:12:04,720 Speaker 1: and I were going to discuss what you need to 278 00:12:04,720 --> 00:12:08,320 Speaker 1: consider and how to make sure you're refinancing effectively if 279 00:12:08,360 --> 00:12:10,079 Speaker 1: you decide to go through with it. Yeah, Jo wanted 280 00:12:10,080 --> 00:12:12,000 Speaker 1: to quickly sort of lay the groundwork right as to 281 00:12:12,080 --> 00:12:15,000 Speaker 1: what a refinance is. Essentially, you're finding a new lender, 282 00:12:15,160 --> 00:12:16,960 Speaker 1: and that new lender, once you move forward with them, 283 00:12:17,080 --> 00:12:19,920 Speaker 1: they are going to pay off your current loan and 284 00:12:19,960 --> 00:12:21,480 Speaker 1: then you have a new loan with that new lender, 285 00:12:21,520 --> 00:12:23,920 Speaker 1: and your payments go to them. Hopefully you have a 286 00:12:23,920 --> 00:12:27,080 Speaker 1: lower interest rate. Oftentimes you're gonna have a different length 287 00:12:27,080 --> 00:12:30,199 Speaker 1: of time right, a different term once that refinance is complete. 288 00:12:30,400 --> 00:12:32,600 Speaker 1: And so first let's talk about the why. Let's go 289 00:12:32,640 --> 00:12:35,400 Speaker 1: over some of the sort of overarching guiding principles of 290 00:12:35,520 --> 00:12:38,200 Speaker 1: why you might want to refinance and all. We kind 291 00:12:38,200 --> 00:12:40,400 Speaker 1: of touched on this a second ago, but oftentimes folks 292 00:12:40,440 --> 00:12:43,880 Speaker 1: refinance in order to lower their monthly mortgage payment. So 293 00:12:43,920 --> 00:12:46,280 Speaker 1: by lowering your rate, you can potentially lower your monthly 294 00:12:46,280 --> 00:12:49,480 Speaker 1: payments and give yourself a little more financial breathing room, 295 00:12:49,559 --> 00:12:51,640 Speaker 1: just a little bit more margin in your life. But 296 00:12:51,880 --> 00:12:54,760 Speaker 1: that being said, that is not our favorite reason to 297 00:12:55,000 --> 00:12:58,680 Speaker 1: actually refinance. Yeah, the best reason to consider doing a 298 00:12:58,679 --> 00:13:01,840 Speaker 1: refinance on your house is to save money on overall 299 00:13:01,880 --> 00:13:04,839 Speaker 1: interest paid over the life of your loan. This is 300 00:13:04,880 --> 00:13:07,600 Speaker 1: the even more important reason to consider a refight. It's 301 00:13:07,600 --> 00:13:11,400 Speaker 1: going to have a bigger overall impact on your finances. Yeah, Jill, 302 00:13:11,400 --> 00:13:13,600 Speaker 1: both of those are good reasons right to refinance. But 303 00:13:13,679 --> 00:13:15,920 Speaker 1: the idea of sort of stepping back and looking at 304 00:13:15,960 --> 00:13:18,400 Speaker 1: the total cost, the total amount that you're gonna pay 305 00:13:18,440 --> 00:13:20,599 Speaker 1: for financing your home. The idea there is to be 306 00:13:20,600 --> 00:13:22,120 Speaker 1: able to step back a little bit and to not 307 00:13:22,280 --> 00:13:25,240 Speaker 1: just focus on making payments, not just seeing how much 308 00:13:25,240 --> 00:13:27,920 Speaker 1: house you can afford month to month. It's essentially more 309 00:13:27,920 --> 00:13:30,280 Speaker 1: of a holistic, sort of bird's eye view of your 310 00:13:30,320 --> 00:13:33,040 Speaker 1: overall finances. Yeah, I mean, just like we would recommend 311 00:13:33,080 --> 00:13:35,040 Speaker 1: when someone's buying a car, Well, you don't want to 312 00:13:35,080 --> 00:13:36,880 Speaker 1: finance it over seven years. Sure it's going to give 313 00:13:36,920 --> 00:13:39,200 Speaker 1: you a lower monthly payment, but that's not the biggest 314 00:13:39,240 --> 00:13:41,360 Speaker 1: thing you want to take into consideration. In the United 315 00:13:41,360 --> 00:13:44,840 Speaker 1: States of America, we've kind of become payment buyers, and 316 00:13:44,960 --> 00:13:48,160 Speaker 1: for only considering the actual outgoing number every month and 317 00:13:48,200 --> 00:13:50,680 Speaker 1: not that holistic overall picture, it's going to lead us 318 00:13:50,720 --> 00:13:53,079 Speaker 1: to make some poor decisions. So, just like with buying 319 00:13:53,080 --> 00:13:56,360 Speaker 1: that car, you don't want to refinance your house just 320 00:13:56,520 --> 00:13:58,840 Speaker 1: to get a lower monthly payment, although that could be 321 00:13:58,960 --> 00:14:01,080 Speaker 1: a nice side benefit. And Joe, you know what, to 322 00:14:01,120 --> 00:14:03,600 Speaker 1: refinance it costs money, right, It costs a lot of money. 323 00:14:03,640 --> 00:14:05,800 Speaker 1: Because it does cost so much. There are a number 324 00:14:05,840 --> 00:14:08,000 Speaker 1: of things that you want to consider. One of the 325 00:14:08,000 --> 00:14:10,360 Speaker 1: things you want to consider is how long you'll actually 326 00:14:10,360 --> 00:14:12,440 Speaker 1: own that home. If you think you might only be 327 00:14:12,520 --> 00:14:15,320 Speaker 1: there for another, say, year or two, it's probably a 328 00:14:15,320 --> 00:14:16,760 Speaker 1: bad idea for you. It's not gonna make a whole 329 00:14:16,760 --> 00:14:19,440 Speaker 1: lot of sense because you'll never make up that money 330 00:14:19,440 --> 00:14:21,960 Speaker 1: that you spent on those closing costs in the amount 331 00:14:21,960 --> 00:14:23,600 Speaker 1: of money that you're gonna be able to save every 332 00:14:23,640 --> 00:14:25,480 Speaker 1: single month. But then maybe on the other end, of 333 00:14:25,520 --> 00:14:27,160 Speaker 1: the spectrum. Let's say you're gonna be there for like, 334 00:14:27,200 --> 00:14:30,320 Speaker 1: say at least ten years, Well, for you, it's likely 335 00:14:30,360 --> 00:14:32,240 Speaker 1: going to be a pretty good move, right. It's it's 336 00:14:32,280 --> 00:14:34,360 Speaker 1: not a matter of if you'll be able to earn 337 00:14:34,400 --> 00:14:36,920 Speaker 1: that money back, but just when. Yeah, good rule of 338 00:14:36,920 --> 00:14:39,240 Speaker 1: thumb is a thirty month rule. So if you run 339 00:14:39,240 --> 00:14:41,640 Speaker 1: the numbers and you will break even, and because the 340 00:14:41,680 --> 00:14:44,920 Speaker 1: savings of your new loan and lower interest rate, you'll 341 00:14:45,000 --> 00:14:48,040 Speaker 1: break even versus the cost you incurred in order to 342 00:14:48,040 --> 00:14:50,320 Speaker 1: make this refi happen, well, then likely it's a good 343 00:14:50,320 --> 00:14:53,080 Speaker 1: idea for you to do the refi. It's so incredibly 344 00:14:53,160 --> 00:14:54,800 Speaker 1: rare for someone to stay in their house for an 345 00:14:54,960 --> 00:14:58,400 Speaker 1: entire thirty year mortgage term, right that that almost never happens. 346 00:14:58,600 --> 00:15:00,720 Speaker 1: And so really it comes down to how along you're 347 00:15:00,760 --> 00:15:03,400 Speaker 1: planning on being in the house. Obviously, things can happen 348 00:15:03,600 --> 00:15:05,440 Speaker 1: and life doesn't always work out the way we think 349 00:15:05,480 --> 00:15:07,560 Speaker 1: it's going to. But it's important for you to assess 350 00:15:07,720 --> 00:15:09,840 Speaker 1: how long do I think I will be in this home? 351 00:15:10,040 --> 00:15:11,280 Speaker 1: And if you think you will be in the home 352 00:15:11,320 --> 00:15:13,320 Speaker 1: for quite a while, and the math works out in 353 00:15:13,320 --> 00:15:15,560 Speaker 1: regard to that thirty month break even point, well, then 354 00:15:15,600 --> 00:15:18,000 Speaker 1: refinancing can make a whole lot of sense. So next 355 00:15:18,000 --> 00:15:20,840 Speaker 1: we're gonna cover some of the specific considerations that you 356 00:15:20,840 --> 00:15:23,360 Speaker 1: want to keep in mind as you are deciding whether 357 00:15:23,440 --> 00:15:25,720 Speaker 1: or not you should refinance. We're gonna get to those 358 00:15:25,840 --> 00:15:36,640 Speaker 1: right after the break. All right, man, We're gonna get 359 00:15:36,680 --> 00:15:39,040 Speaker 1: to some of those specific factors that are really helpful 360 00:15:39,240 --> 00:15:41,520 Speaker 1: as you are working through whether or not you should 361 00:15:41,520 --> 00:15:44,280 Speaker 1: be refinancing. And honestly, it's a question on so many 362 00:15:44,280 --> 00:15:47,480 Speaker 1: people's minds because mortgage rates are near all time loads 363 00:15:47,520 --> 00:15:50,560 Speaker 1: again and they've really plummeted over the last year. And 364 00:15:50,560 --> 00:15:53,040 Speaker 1: I feel like, as we're asking ourselves this question, should 365 00:15:53,080 --> 00:15:56,200 Speaker 1: we be refinancing? This is an instance where analysis paralysis 366 00:15:56,280 --> 00:15:59,360 Speaker 1: can keep you from taking advantage of uber low rates. 367 00:15:59,560 --> 00:16:02,000 Speaker 1: The bottom line is that nobody knows where rates are going, 368 00:16:02,320 --> 00:16:05,560 Speaker 1: but they're currently incredibly low. So right now is a 369 00:16:05,600 --> 00:16:09,440 Speaker 1: specific time where a lot of people should be considering refinancing. 370 00:16:09,640 --> 00:16:12,000 Speaker 1: So is now the right time? Well, it could be, 371 00:16:12,200 --> 00:16:14,680 Speaker 1: and Matt, let's talk about the specific factors that will 372 00:16:14,720 --> 00:16:16,920 Speaker 1: help you determine whether or not it's the right time 373 00:16:16,960 --> 00:16:19,160 Speaker 1: for you. Yeah. Well, first I wanted to address if 374 00:16:19,160 --> 00:16:21,000 Speaker 1: someone is listening to this episode and they happen to 375 00:16:21,040 --> 00:16:23,680 Speaker 1: be listening, say six months later, and you're thinking, dang it, 376 00:16:23,720 --> 00:16:26,520 Speaker 1: like I totally missed the train on refinancing. Well, there's 377 00:16:26,560 --> 00:16:28,480 Speaker 1: two things that you can do. First, you can look 378 00:16:28,560 --> 00:16:30,880 Speaker 1: at a graph and you can see where rates currently 379 00:16:30,920 --> 00:16:33,200 Speaker 1: are as you are listening to this episode, and you 380 00:16:33,200 --> 00:16:34,760 Speaker 1: can probably zoom out a little bit and look at 381 00:16:34,760 --> 00:16:36,680 Speaker 1: the past couple of years and see rates are still 382 00:16:36,760 --> 00:16:39,000 Speaker 1: historically low. You know, we are still in a great spot. 383 00:16:39,280 --> 00:16:41,280 Speaker 1: Even if they're not the lowest they've ever been exactly, 384 00:16:41,360 --> 00:16:43,600 Speaker 1: could still be really good. Yeah. And secondly, we would 385 00:16:43,600 --> 00:16:46,000 Speaker 1: recommend that you look at the mortgage rate that you 386 00:16:46,160 --> 00:16:48,800 Speaker 1: currently have right now, because it doesn't really matter if 387 00:16:48,920 --> 00:16:51,240 Speaker 1: rates were historically low and you kind of missed that boat. 388 00:16:51,440 --> 00:16:54,440 Speaker 1: If the current market rates are significantly lower than the 389 00:16:54,560 --> 00:16:57,520 Speaker 1: rate that you currently have, then you should still really 390 00:16:57,520 --> 00:16:59,520 Speaker 1: consider a refinance. You're gonna want to dig a little 391 00:16:59,560 --> 00:17:03,080 Speaker 1: bit deeper, specifically into your own finances. All right, So 392 00:17:03,160 --> 00:17:05,520 Speaker 1: let's talk about those specific things meant that people should 393 00:17:05,640 --> 00:17:08,520 Speaker 1: be considering before they decided to actually get going and 394 00:17:08,680 --> 00:17:11,880 Speaker 1: make a REFI happen. Even though mortgage rates are insanely low, 395 00:17:12,000 --> 00:17:13,760 Speaker 1: that doesn't mean that it's a no brainer for you 396 00:17:13,840 --> 00:17:16,439 Speaker 1: to refinance before you actually do it. Here are the 397 00:17:16,440 --> 00:17:18,960 Speaker 1: main factors you need to consider to know whether you're 398 00:17:18,960 --> 00:17:21,439 Speaker 1: a good candidate or not. The first thing is to 399 00:17:21,560 --> 00:17:25,000 Speaker 1: know your credit score. To qualify for the lowest of 400 00:17:25,040 --> 00:17:28,000 Speaker 1: mortgage rates, you're gonna need a really solid credit score, 401 00:17:28,000 --> 00:17:31,399 Speaker 1: and that means typically in the range of seven seven forty. 402 00:17:31,520 --> 00:17:35,119 Speaker 1: If you're above seven twenty, in all likelihood with most lenders, 403 00:17:35,160 --> 00:17:37,000 Speaker 1: you're going to get the best rate that they offer. 404 00:17:37,280 --> 00:17:39,480 Speaker 1: Some lenders might have a threshold of seven forty, but 405 00:17:39,560 --> 00:17:41,280 Speaker 1: if you're in that range, you know that you'll be 406 00:17:41,320 --> 00:17:43,359 Speaker 1: able to get a really good rate. And if you 407 00:17:43,400 --> 00:17:46,200 Speaker 1: don't know what your credit score is, well, we've talked 408 00:17:46,200 --> 00:17:48,560 Speaker 1: about multiple resources for you. Go check that out. Your 409 00:17:48,600 --> 00:17:51,720 Speaker 1: current credit card company might offer that every month. If not, 410 00:17:51,840 --> 00:17:54,000 Speaker 1: credit scorecard dot Com is a great tool, and so 411 00:17:54,160 --> 00:17:56,960 Speaker 1: is credit Karma. Basically, if refinancing is on your radar, 412 00:17:57,040 --> 00:17:59,000 Speaker 1: you need to know your credit score because that is 413 00:17:59,000 --> 00:18:01,679 Speaker 1: going to have a huge impact on whether or not 414 00:18:01,760 --> 00:18:04,159 Speaker 1: it's gonna make sense for you. Ye duel that you 415 00:18:04,200 --> 00:18:06,040 Speaker 1: know the size of that impact is going to depend 416 00:18:06,119 --> 00:18:08,840 Speaker 1: on a lot of different things. But For instance, let's 417 00:18:08,840 --> 00:18:10,520 Speaker 1: just say you had a hundred point drop in your 418 00:18:10,560 --> 00:18:12,920 Speaker 1: credit score from seven forty maybe down to six forty. 419 00:18:13,080 --> 00:18:15,760 Speaker 1: That score is gonna cost you anywhere between like sixty 420 00:18:15,840 --> 00:18:18,080 Speaker 1: and eighty bucks a month on a median home in 421 00:18:18,080 --> 00:18:20,240 Speaker 1: the US. And that doesn't sound like much, right, You think, 422 00:18:20,240 --> 00:18:21,879 Speaker 1: sixty bucks, that's not that big of a deal. But 423 00:18:21,960 --> 00:18:24,000 Speaker 1: over the course of the loan, that's over twenty five 424 00:18:24,440 --> 00:18:26,439 Speaker 1: dollars that you're gonna be paying just for having a 425 00:18:26,440 --> 00:18:28,400 Speaker 1: credit score that got busted up a little bit before 426 00:18:28,480 --> 00:18:30,879 Speaker 1: you're refinanced. All right, Another factor that you want to 427 00:18:30,920 --> 00:18:32,879 Speaker 1: keep in mind when you are considering if you're a 428 00:18:32,880 --> 00:18:35,959 Speaker 1: good candidate for a refinance or if your house actually 429 00:18:36,000 --> 00:18:38,560 Speaker 1: is a good candidate to be refinanced, right, is equity, 430 00:18:38,840 --> 00:18:41,280 Speaker 1: And real quick equity is just the market value of 431 00:18:41,280 --> 00:18:43,119 Speaker 1: your home less the amount that you owe on it. 432 00:18:43,440 --> 00:18:45,600 Speaker 1: And if you have less than equity in your home, 433 00:18:45,880 --> 00:18:49,320 Speaker 1: a conventional loan refinance is likely not going to be 434 00:18:49,359 --> 00:18:51,719 Speaker 1: possible for you. And so if you don't have enough equity, 435 00:18:51,840 --> 00:18:54,200 Speaker 1: bringing cash to the closing table can actually help you 436 00:18:54,240 --> 00:18:56,800 Speaker 1: to get a conventional loan. Well, it's not impossible, but 437 00:18:56,840 --> 00:18:59,520 Speaker 1: you're gonna be paying private mortgage insurance right p m I, 438 00:19:00,000 --> 00:19:03,640 Speaker 1: which is a p I T A. So many abbreviations 439 00:19:03,640 --> 00:19:05,760 Speaker 1: on this episode, right. So keep in mind though, that 440 00:19:05,800 --> 00:19:08,640 Speaker 1: if you don't have enough equity, you can bring cash 441 00:19:08,640 --> 00:19:10,439 Speaker 1: to the closing table and that can help you to 442 00:19:10,440 --> 00:19:13,520 Speaker 1: get a conventional loan at a great rate without p 443 00:19:13,680 --> 00:19:16,480 Speaker 1: m I. Another but maybe similar scenario is if the 444 00:19:16,800 --> 00:19:19,200 Speaker 1: value of your home has gone up since you purchased it. Well, 445 00:19:19,280 --> 00:19:21,440 Speaker 1: guess what if you didn't have enough equity initially when 446 00:19:21,440 --> 00:19:23,440 Speaker 1: you purchased it, but the value of your home has 447 00:19:23,480 --> 00:19:25,119 Speaker 1: gone up, Well, in that case, you don't have to 448 00:19:25,119 --> 00:19:28,120 Speaker 1: come to the table with additional funds. Are Another thing 449 00:19:28,200 --> 00:19:31,240 Speaker 1: you're going to need to know in advance of pulling 450 00:19:31,240 --> 00:19:33,639 Speaker 1: the trigger on a refinance is your d T I 451 00:19:33,760 --> 00:19:36,800 Speaker 1: ratio that's debt to income. Knowing your debt to income 452 00:19:36,880 --> 00:19:39,760 Speaker 1: ratio is a crucial factor in qualifying for a loan. 453 00:19:40,160 --> 00:19:42,000 Speaker 1: Lenders are going to look at you if you have 454 00:19:42,080 --> 00:19:46,080 Speaker 1: a debt to income ratio of more than forty and 455 00:19:46,119 --> 00:19:48,359 Speaker 1: your debt to income ratio you can find that out 456 00:19:48,560 --> 00:19:52,000 Speaker 1: by dividing your monthly debt payments by your gross monthly income. 457 00:19:52,280 --> 00:19:55,160 Speaker 1: That number is the way that lenders measure your ability 458 00:19:55,200 --> 00:19:57,280 Speaker 1: to be able to repay your loan. So the lower 459 00:19:57,320 --> 00:20:00,240 Speaker 1: your debt to income ratio is, the more favorable you look, 460 00:20:00,440 --> 00:20:02,960 Speaker 1: which means they're happy to lend you money. Yeah, you know, 461 00:20:03,000 --> 00:20:05,439 Speaker 1: calculating your debt to income ratio. That's not tricky math, right, 462 00:20:05,440 --> 00:20:07,800 Speaker 1: You're just kind of making a calculation. But you do 463 00:20:07,800 --> 00:20:09,600 Speaker 1: want to make sure that you are getting accurate numbers 464 00:20:09,600 --> 00:20:12,160 Speaker 1: in there. And so when you are calculating your debt payments, 465 00:20:12,320 --> 00:20:15,280 Speaker 1: you want to calculate everything. We're talking student loans, credit card, debt, 466 00:20:15,720 --> 00:20:17,919 Speaker 1: car payment, any debt that you owe, any payment that 467 00:20:17,960 --> 00:20:19,800 Speaker 1: you have that needs to go into your total debt 468 00:20:19,880 --> 00:20:22,040 Speaker 1: number in order for you to get an accurate debt 469 00:20:22,080 --> 00:20:24,880 Speaker 1: to income ratio. All right, Matt, Now let's get into 470 00:20:25,040 --> 00:20:28,680 Speaker 1: some of the specific good reasons to refinance. We talked 471 00:20:28,720 --> 00:20:30,639 Speaker 1: about the big picture that it's helpful to lower your 472 00:20:30,680 --> 00:20:33,680 Speaker 1: monthly payments. It's even more helpful to save in overall 473 00:20:33,680 --> 00:20:36,760 Speaker 1: interest paid over the years. But additionally, let's say you're 474 00:20:36,800 --> 00:20:39,879 Speaker 1: in an arm an adjustable rate mortgage. Well, considering we 475 00:20:39,960 --> 00:20:42,560 Speaker 1: just talked about the fact that we're at historic low rates, 476 00:20:42,880 --> 00:20:46,440 Speaker 1: the likelihood of your interest rate going up on your 477 00:20:46,440 --> 00:20:50,719 Speaker 1: adjustable rate mortgage is decently high because as rates fluctuate 478 00:20:51,000 --> 00:20:55,159 Speaker 1: ultimately over the years, they are barring something catastrophic going 479 00:20:55,200 --> 00:20:57,840 Speaker 1: to rise. So getting out of an arm getting out 480 00:20:57,840 --> 00:21:00,480 Speaker 1: of an adjustable or mortgage and into a fixed term 481 00:21:00,560 --> 00:21:02,160 Speaker 1: makes a whole lot of sense for a lot of folks, 482 00:21:02,240 --> 00:21:03,879 Speaker 1: especially if you're going to be in the house for 483 00:21:03,960 --> 00:21:06,639 Speaker 1: quite a while all right. Another good potential reason to 484 00:21:06,720 --> 00:21:08,679 Speaker 1: get a refi is if you can knock out some 485 00:21:08,760 --> 00:21:10,760 Speaker 1: p m I. If you're able to get rid of 486 00:21:10,840 --> 00:21:13,600 Speaker 1: private Morgan insurance while at the same time securing a 487 00:21:13,600 --> 00:21:16,119 Speaker 1: lower rate, so that would end up saving you, you know, 488 00:21:16,200 --> 00:21:18,879 Speaker 1: twofold in the long run, then you definitely want to 489 00:21:18,880 --> 00:21:21,800 Speaker 1: consider p m I. On a typical two home, you 490 00:21:21,840 --> 00:21:24,320 Speaker 1: could be paying anywhere between one to two hundred bucks 491 00:21:24,320 --> 00:21:26,400 Speaker 1: a month and p m I, and so you get 492 00:21:26,480 --> 00:21:28,200 Speaker 1: enough equity in the home to where you no longer 493 00:21:28,280 --> 00:21:30,360 Speaker 1: have to pay that. Yet your lender has to stop 494 00:21:30,480 --> 00:21:32,119 Speaker 1: charging you for p m I once you hit a 495 00:21:32,200 --> 00:21:35,119 Speaker 1: seventy eight percent loan to value ratio, but that is 496 00:21:35,160 --> 00:21:38,399 Speaker 1: based on the initial appraisal price of the home, and 497 00:21:38,400 --> 00:21:40,680 Speaker 1: if your home has gone up in value a good bit, 498 00:21:40,960 --> 00:21:43,040 Speaker 1: you could still be waiting a long time for p 499 00:21:43,160 --> 00:21:45,439 Speaker 1: m I to naturally drop off so that you're not 500 00:21:45,560 --> 00:21:47,119 Speaker 1: charged for it anymore. And and that can be a 501 00:21:47,160 --> 00:21:50,320 Speaker 1: hundred and fifty two hundred dollars a month. And by refinancing, 502 00:21:50,359 --> 00:21:52,639 Speaker 1: getting a lower rate and knocking out p m I 503 00:21:52,680 --> 00:21:54,840 Speaker 1: at the same time, that can save you hundreds of 504 00:21:54,880 --> 00:21:57,800 Speaker 1: dollars every month while paying less interest over the life 505 00:21:57,800 --> 00:21:59,680 Speaker 1: of a loan. That can be just a win win 506 00:21:59,800 --> 00:22:02,000 Speaker 1: for folks in a pm I situation where they have 507 00:22:02,080 --> 00:22:04,520 Speaker 1: seen a good bit of equity growth. You know, refinancing 508 00:22:04,560 --> 00:22:07,160 Speaker 1: your home to knock out p m I, REFINANCI your 509 00:22:07,160 --> 00:22:09,240 Speaker 1: home to get out of an arm those are both 510 00:22:09,280 --> 00:22:12,560 Speaker 1: great reasons to refinance. Now let's talk about a reason 511 00:22:12,640 --> 00:22:15,560 Speaker 1: that might be a good reason to refinance, and that 512 00:22:15,720 --> 00:22:17,919 Speaker 1: is if you're gonna do a cash out REFI. That 513 00:22:18,080 --> 00:22:21,080 Speaker 1: is when you basically refinance, but you remove equity from 514 00:22:21,119 --> 00:22:23,239 Speaker 1: the home. Yeah, it's basically like saying, give me some 515 00:22:23,280 --> 00:22:25,040 Speaker 1: cash in my palm while I'm doing the three five. 516 00:22:25,240 --> 00:22:27,280 Speaker 1: I'll take that lower interest rate and some cash in 517 00:22:27,280 --> 00:22:29,520 Speaker 1: my pocket at the same time. Like we said, that 518 00:22:29,640 --> 00:22:31,920 Speaker 1: might be a good idea, but you will pay a 519 00:22:32,000 --> 00:22:34,159 Speaker 1: higher rate of sometimes you're gonna pay an eighth or 520 00:22:34,160 --> 00:22:36,439 Speaker 1: a quarter of a point higher if you go with 521 00:22:36,480 --> 00:22:38,920 Speaker 1: that cash out. And this is only ever going to 522 00:22:39,000 --> 00:22:40,520 Speaker 1: be a good idea if you're going to use that 523 00:22:40,600 --> 00:22:43,760 Speaker 1: money in a positive way. So basically if you're investing it. 524 00:22:44,040 --> 00:22:46,080 Speaker 1: That could be if you're investing in yourself, right, so 525 00:22:46,200 --> 00:22:49,320 Speaker 1: like higher education or more traditionally, you know, an a 526 00:22:49,359 --> 00:22:52,199 Speaker 1: rental property or in another business. In any case, you're 527 00:22:52,240 --> 00:22:54,440 Speaker 1: taking this money and you're looking to grow it more 528 00:22:54,480 --> 00:22:56,520 Speaker 1: than it would grow if it was just sitting there 529 00:22:56,520 --> 00:22:58,480 Speaker 1: tied up in your house. Actually did a cash out 530 00:22:58,480 --> 00:23:01,040 Speaker 1: REFI on a property that we owned in order to 531 00:23:01,040 --> 00:23:02,560 Speaker 1: take that money, and we use that as a down 532 00:23:02,560 --> 00:23:04,560 Speaker 1: payment on another house that we're buying. So we ended 533 00:23:04,640 --> 00:23:07,239 Speaker 1: up renovating the house. We essentially flipped it, sold it, 534 00:23:07,440 --> 00:23:09,000 Speaker 1: and man, we made a good bit of money that 535 00:23:09,080 --> 00:23:11,399 Speaker 1: year in that specific instance. You know, it was a 536 00:23:11,440 --> 00:23:13,680 Speaker 1: smart move for us, but you've got to be really, 537 00:23:13,680 --> 00:23:16,480 Speaker 1: really careful, honestly, Like, even looking back, I'm not sure 538 00:23:16,480 --> 00:23:20,080 Speaker 1: if I would do that again. Yeah, And I'm considering 539 00:23:20,280 --> 00:23:22,920 Speaker 1: doing a cash out refinance right now in order to 540 00:23:23,040 --> 00:23:25,640 Speaker 1: build the accessory dwelling unit in my backyard. Mat We've 541 00:23:25,640 --> 00:23:27,119 Speaker 1: talked about that, so I'm just kind of in the 542 00:23:27,119 --> 00:23:29,320 Speaker 1: middle of thinking through is it a good idea or not? 543 00:23:29,680 --> 00:23:31,760 Speaker 1: And based on the hard numbers, I think it is. 544 00:23:31,920 --> 00:23:34,320 Speaker 1: For me. I still hesitate at going to cash out 545 00:23:34,320 --> 00:23:37,880 Speaker 1: REFI route. So cash out refis can be a good 546 00:23:37,880 --> 00:23:41,240 Speaker 1: idea for seasoned investors who know what they're doing, but 547 00:23:41,280 --> 00:23:43,720 Speaker 1: I would be very very careful before taking that route. 548 00:23:43,880 --> 00:23:46,119 Speaker 1: And it's definitely not a good idea to go the 549 00:23:46,160 --> 00:23:48,960 Speaker 1: cash out refined direction if you're pulling that money out 550 00:23:49,000 --> 00:23:51,400 Speaker 1: to consume it, if you're planning on taking a vacation 551 00:23:51,520 --> 00:23:54,640 Speaker 1: or something like that, or buying a boat. Let's say 552 00:23:54,680 --> 00:23:56,720 Speaker 1: you're doing that like that, there's definitely not a boat, 553 00:23:56,840 --> 00:23:58,800 Speaker 1: right like maybe a tesla right like that sounds like 554 00:23:58,800 --> 00:24:00,119 Speaker 1: a lot more fun to me than a boat. Well, 555 00:24:00,119 --> 00:24:02,000 Speaker 1: at least it's gonna save you a little on electricity 556 00:24:02,040 --> 00:24:05,199 Speaker 1: every month, right But always, cash our refis are a 557 00:24:05,359 --> 00:24:08,000 Speaker 1: total no if you're looking to add to your consumption 558 00:24:08,080 --> 00:24:11,200 Speaker 1: or inflate your lifestyle by doing so. Okay, So those 559 00:24:11,240 --> 00:24:13,840 Speaker 1: are some different reasons why folks refin. You know, this 560 00:24:13,880 --> 00:24:16,200 Speaker 1: is called how the money. So we're gonna talk about now, 561 00:24:16,240 --> 00:24:18,760 Speaker 1: how to refinance We're gonna get to that right after 562 00:24:18,800 --> 00:24:31,120 Speaker 1: the break, all right, Matt. We've talked a lot about refinancing, 563 00:24:31,240 --> 00:24:34,160 Speaker 1: but we haven't really covered how to do it yet. 564 00:24:34,280 --> 00:24:36,200 Speaker 1: So let's get into that if you feel like you're 565 00:24:36,240 --> 00:24:38,000 Speaker 1: a good candidate based on the things that we've covered. 566 00:24:38,280 --> 00:24:41,719 Speaker 1: The biggest key to saving money when you are refinancing 567 00:24:41,800 --> 00:24:45,000 Speaker 1: is to shop with multiple lenders. Oftentimes we shop a 568 00:24:45,200 --> 00:24:48,200 Speaker 1: lot for the home. We go into fifteen or twenty 569 00:24:48,200 --> 00:24:50,640 Speaker 1: homes before we make an offer, but we shop very 570 00:24:50,640 --> 00:24:53,000 Speaker 1: little for financing. Lots of times people go with the 571 00:24:53,080 --> 00:24:56,040 Speaker 1: lender that their real estate agent recommends without shopping the market. 572 00:24:56,400 --> 00:24:58,960 Speaker 1: Online lenders can be a great option. Quaking Loans is 573 00:24:58,960 --> 00:25:01,640 Speaker 1: a great place to check. Their Rocket mortgage product has 574 00:25:01,680 --> 00:25:05,240 Speaker 1: done well in customer satisfaction surveys. Credible has a new 575 00:25:05,359 --> 00:25:08,840 Speaker 1: online mortgage shopping tool that's really really good. Costco has 576 00:25:08,880 --> 00:25:11,439 Speaker 1: a mortgage program that shops rates with multiple lenders. I 577 00:25:11,480 --> 00:25:12,920 Speaker 1: know you're gonna try to find a way to slide 578 00:25:12,920 --> 00:25:15,520 Speaker 1: Costco in there. I always do, man. I go there 579 00:25:15,560 --> 00:25:18,680 Speaker 1: by my favorite Kirkland Signature branded products, and then you 580 00:25:18,720 --> 00:25:20,640 Speaker 1: know what, I also shop for mortgages with them. Yeah, 581 00:25:20,640 --> 00:25:23,080 Speaker 1: I'd like to sign up for that Kurrikland Signature Premium 582 00:25:23,080 --> 00:25:26,000 Speaker 1: refinance please and if only the company that did your 583 00:25:26,040 --> 00:25:29,080 Speaker 1: refive was Costco under the Kirkland signature label, that'd be amazing. 584 00:25:29,440 --> 00:25:32,080 Speaker 1: Another great place to go when you're looking to refinance 585 00:25:32,320 --> 00:25:35,280 Speaker 1: is to check local credit unions. Credit unions oftentimes have 586 00:25:35,320 --> 00:25:38,080 Speaker 1: the lowest overall rates in the market. Another place to 587 00:25:38,119 --> 00:25:40,919 Speaker 1: go is to contact a mortgage broker who shops rates 588 00:25:41,200 --> 00:25:43,760 Speaker 1: with a lot of different lenders. Basically, there are a 589 00:25:43,840 --> 00:25:46,840 Speaker 1: lot of potential good places to go to look for rates. 590 00:25:47,160 --> 00:25:49,480 Speaker 1: Just don't be one of those people that designs to 591 00:25:49,480 --> 00:25:52,040 Speaker 1: do a refinance and doesn't shop for the best one 592 00:25:52,119 --> 00:25:54,679 Speaker 1: for them. Yeah. Man, it's all about that due diligence, right. 593 00:25:55,040 --> 00:25:57,600 Speaker 1: And also, don't just look at the headline rates like 594 00:25:57,640 --> 00:25:59,320 Speaker 1: you don't just go to the website and see whatever 595 00:25:59,400 --> 00:26:01,800 Speaker 1: rate that they're averag tizing on the home page. You 596 00:26:01,800 --> 00:26:04,040 Speaker 1: want a factor in all the different costs and you 597 00:26:04,080 --> 00:26:06,240 Speaker 1: can see those on your loan estimate to give you 598 00:26:06,520 --> 00:26:09,520 Speaker 1: sort of that apples to apples comparison. Lenders are actually 599 00:26:09,520 --> 00:26:12,800 Speaker 1: required to give you those estimates within three business days 600 00:26:12,960 --> 00:26:15,440 Speaker 1: after you apply with them, and those costs are gonna 601 00:26:15,480 --> 00:26:17,320 Speaker 1: be on that loan estimate. They're gonna be itemized. It's 602 00:26:17,320 --> 00:26:20,000 Speaker 1: gonna be nice. And because you've shopped around, it's gonna 603 00:26:20,000 --> 00:26:22,040 Speaker 1: be really easy for you to compare one of those 604 00:26:22,080 --> 00:26:24,280 Speaker 1: loan estimates to the two other ones, because you're gonna 605 00:26:24,320 --> 00:26:27,480 Speaker 1: have at least three loan estimates there, right or right, 606 00:26:27,720 --> 00:26:29,879 Speaker 1: or maybe five lown estimates. I okay, I'll do it, 607 00:26:29,880 --> 00:26:31,359 Speaker 1: I'll do it. Yeah, you definitely want to make sure 608 00:26:31,359 --> 00:26:33,879 Speaker 1: you're getting quotes, you're getting those loan estimates in hand 609 00:26:34,119 --> 00:26:36,080 Speaker 1: from a lot of different lenders. That's gonna be the 610 00:26:36,080 --> 00:26:39,360 Speaker 1: biggest way you end up saving money in the refi process. 611 00:26:39,680 --> 00:26:41,000 Speaker 1: And Joel, you know, I think a lot of folks 612 00:26:41,040 --> 00:26:42,640 Speaker 1: would hear us say that, and they're gonna freak out 613 00:26:42,640 --> 00:26:44,480 Speaker 1: because they're gonna think, what's gonna happen to my credit score? 614 00:26:44,480 --> 00:26:45,919 Speaker 1: It's gonna plumb it. When I fill out all of 615 00:26:45,960 --> 00:26:49,000 Speaker 1: those applications, all those inquiries, they're gonna lower my score 616 00:26:49,040 --> 00:26:50,920 Speaker 1: in a big way. Right, Well, they do a little bit, 617 00:26:50,960 --> 00:26:53,240 Speaker 1: but not nearly as much. If you make those inquiries, 618 00:26:53,400 --> 00:26:55,399 Speaker 1: if you apply for that refinance within a short period 619 00:26:55,440 --> 00:26:57,959 Speaker 1: of time, within a week or two, all those separate 620 00:26:58,000 --> 00:27:00,760 Speaker 1: hard polls against your credit essentially kind of get lumped 621 00:27:00,760 --> 00:27:02,919 Speaker 1: together as one. So when the time comes and you're 622 00:27:02,920 --> 00:27:05,480 Speaker 1: shopping for that refi, man, just go about the business 623 00:27:05,560 --> 00:27:08,200 Speaker 1: of knocking all those out because a you do want 624 00:27:08,200 --> 00:27:09,879 Speaker 1: a bunch of them to be able to compare, but 625 00:27:10,160 --> 00:27:12,439 Speaker 1: b you also want to make sure that you're not 626 00:27:12,520 --> 00:27:14,879 Speaker 1: damaging your credit. Yeah, Matt, and folks to just know 627 00:27:15,080 --> 00:27:18,480 Speaker 1: that typical closing costs for a refinance are two to 628 00:27:18,560 --> 00:27:21,600 Speaker 1: four percent of the overall loan value. So it costs 629 00:27:21,600 --> 00:27:23,760 Speaker 1: a good bit of money to do a refi, which 630 00:27:23,800 --> 00:27:25,879 Speaker 1: is why we mentioned earlier on in the episode that 631 00:27:26,000 --> 00:27:28,800 Speaker 1: thirty month break even point. If you're refinancing your home 632 00:27:28,920 --> 00:27:31,480 Speaker 1: and your total loan amount is a hundred fifty thousand dollars, 633 00:27:31,560 --> 00:27:35,320 Speaker 1: well you can expect like four thousand dollars in closing costs, 634 00:27:35,359 --> 00:27:37,600 Speaker 1: so you want to make sure that it's worth it. Yeah, 635 00:27:37,760 --> 00:27:39,800 Speaker 1: you know, the loan amount that you're refinancing like that 636 00:27:39,840 --> 00:27:41,879 Speaker 1: has a pretty large impact on those closing costs. But 637 00:27:41,960 --> 00:27:44,159 Speaker 1: there are a lot of different variables to to keep 638 00:27:44,200 --> 00:27:46,320 Speaker 1: in mind, and because of that, it makes it difficult 639 00:27:46,359 --> 00:27:48,280 Speaker 1: to sort of have a rule of thumb, you know, 640 00:27:48,320 --> 00:27:50,800 Speaker 1: lowering your rate by one percent like that sounds pretty great, 641 00:27:51,080 --> 00:27:53,800 Speaker 1: but refinancing still might not be worth it for you. 642 00:27:54,119 --> 00:27:56,960 Speaker 1: There just are so many different individual factors at play 643 00:27:57,040 --> 00:27:59,520 Speaker 1: when determining if a REFI is the right move for you, 644 00:27:59,680 --> 00:28:01,920 Speaker 1: Like if out like at the bank cost, title cost, 645 00:28:02,000 --> 00:28:04,199 Speaker 1: there's different third party costs. Some of those things you 646 00:28:04,240 --> 00:28:06,760 Speaker 1: can shop for, but others you can't. Just don't be 647 00:28:06,840 --> 00:28:09,520 Speaker 1: afraid to actually negotiate on some of the different items 648 00:28:09,560 --> 00:28:11,679 Speaker 1: that you do have control over. Yeah, once you have 649 00:28:11,760 --> 00:28:14,600 Speaker 1: those loan estimates in hand, you can always go back 650 00:28:14,720 --> 00:28:17,119 Speaker 1: to a potential lender and ask if there's any wiggle 651 00:28:17,200 --> 00:28:19,680 Speaker 1: room to pay less, Matt. The last mortgage I got, 652 00:28:19,880 --> 00:28:22,160 Speaker 1: there was one lender I felt a little more comfortable with, 653 00:28:22,200 --> 00:28:24,000 Speaker 1: but the overall cost I was going to incur by 654 00:28:24,040 --> 00:28:27,280 Speaker 1: going with them were more than another lender. So I 655 00:28:27,320 --> 00:28:29,439 Speaker 1: just showed them my other loan estimate. I asked if 656 00:28:29,440 --> 00:28:31,240 Speaker 1: they can match it. They did some work and they 657 00:28:31,280 --> 00:28:33,720 Speaker 1: actually ended up beating it. Nice man. Yeah, so don't 658 00:28:33,720 --> 00:28:35,639 Speaker 1: be afraid to negotiate. Don't be afraid to ask the 659 00:28:35,720 --> 00:28:37,840 Speaker 1: question to see if that lender can do better than 660 00:28:37,880 --> 00:28:41,000 Speaker 1: their initial offering. Yeah, Negotiating closing costs on a refine 661 00:28:41,080 --> 00:28:43,760 Speaker 1: like that is an instance where it is perfectly acceptable 662 00:28:43,840 --> 00:28:45,760 Speaker 1: to show up at the table. You've got other numbers 663 00:28:45,760 --> 00:28:47,880 Speaker 1: to compare to you, and you ask basically like, can 664 00:28:47,880 --> 00:28:51,160 Speaker 1: you beat this right? There's other instances where you shouldn't negotiate, 665 00:28:51,320 --> 00:28:54,040 Speaker 1: like the price of your dinner. Yeah, but this is 666 00:28:54,080 --> 00:28:56,680 Speaker 1: not one of those. And another tool that can be 667 00:28:56,720 --> 00:28:59,840 Speaker 1: helpful in this whole process is an online mortgage re 668 00:29:00,040 --> 00:29:02,560 Speaker 1: high calculator. It can help you analyze the numbers and 669 00:29:02,600 --> 00:29:04,560 Speaker 1: the cost you might be going back to that over 670 00:29:04,600 --> 00:29:08,120 Speaker 1: and over as you consider different loan terms and interest rates. 671 00:29:08,480 --> 00:29:11,960 Speaker 1: The ultimate sweet spot for refinancing is lowering your rate 672 00:29:12,360 --> 00:29:14,880 Speaker 1: and lessening your term at the same time. So let's 673 00:29:14,880 --> 00:29:16,760 Speaker 1: say you originally got a thirty year mortgage, You've been 674 00:29:16,760 --> 00:29:18,600 Speaker 1: in that home for eight years, you've got twenty two 675 00:29:18,680 --> 00:29:20,680 Speaker 1: years left on it, and your interest rate is four 676 00:29:20,680 --> 00:29:22,520 Speaker 1: and a half. Well, the sweet spot for you is 677 00:29:22,560 --> 00:29:25,240 Speaker 1: to go into a fifteen or twenty year mortgage, lower 678 00:29:25,320 --> 00:29:28,160 Speaker 1: your interest rate by hopefully over a point, and at 679 00:29:28,160 --> 00:29:31,120 Speaker 1: the same time lower your overall remaining years left on 680 00:29:31,160 --> 00:29:34,000 Speaker 1: that mortgage. Not everybody can hit that sweet spot, but 681 00:29:34,080 --> 00:29:36,080 Speaker 1: that is an ideal circumstance to make sure you at 682 00:29:36,160 --> 00:29:41,000 Speaker 1: least consider lessening your term as part of refinancing, and 683 00:29:41,200 --> 00:29:44,400 Speaker 1: you know, the whole idea behind lessening that term shortening 684 00:29:44,440 --> 00:29:46,560 Speaker 1: the number of years you have left paying that mortgage. 685 00:29:46,880 --> 00:29:49,120 Speaker 1: It's not just a numbers game, but there's also that 686 00:29:49,200 --> 00:29:51,760 Speaker 1: mental and psychological element to it. If you're a total 687 00:29:51,760 --> 00:29:54,440 Speaker 1: nerd and you're all about the numbers, you might argue that, like, no, 688 00:29:54,520 --> 00:29:56,200 Speaker 1: I want to have a thirty year term and I 689 00:29:56,240 --> 00:29:57,720 Speaker 1: want to get that rate as low as possible. I'm 690 00:29:57,720 --> 00:30:00,360 Speaker 1: gonna invest that money. And while that might work for some, um, 691 00:30:00,400 --> 00:30:02,560 Speaker 1: I think for a lot of other folks, there is 692 00:30:02,600 --> 00:30:05,200 Speaker 1: gonna be a greater benefit from not having a mortgage 693 00:30:05,240 --> 00:30:08,760 Speaker 1: altogether because of refinance to that shorter term, and that's 694 00:30:08,760 --> 00:30:10,680 Speaker 1: no longer a debt, that's no longer a payment that 695 00:30:10,720 --> 00:30:13,720 Speaker 1: they have every month that is hanging over their heads. Man, personally, 696 00:30:13,760 --> 00:30:16,240 Speaker 1: I'm not anywhere close to having a mortgage paid off 697 00:30:16,240 --> 00:30:18,000 Speaker 1: on any of my properties, but I look forward to 698 00:30:18,000 --> 00:30:20,000 Speaker 1: it knowing that one day that's just one of those 699 00:30:20,240 --> 00:30:22,600 Speaker 1: huge outgoing payments that I'm no longer going to have 700 00:30:22,640 --> 00:30:24,760 Speaker 1: to pay, just to have that burden lifted off of me. 701 00:30:24,800 --> 00:30:26,640 Speaker 1: You know what I'm saying, what a sweet feeling. That 702 00:30:26,680 --> 00:30:28,719 Speaker 1: would be right. Yeah. Yeah. But by the way, on 703 00:30:28,720 --> 00:30:30,960 Speaker 1: that mortgage three five calculator, we will link to one 704 00:30:30,960 --> 00:30:33,320 Speaker 1: of our favorites in the show notes on our website, 705 00:30:33,480 --> 00:30:35,120 Speaker 1: and also on our website, we're gonna have a picture 706 00:30:35,200 --> 00:30:37,200 Speaker 1: of the beer that we're enjoying right now. Joel, you're 707 00:30:37,200 --> 00:30:40,440 Speaker 1: gonna take us back to the beer. Oh yeah, nice transition, Matthew. Okay, yes, 708 00:30:40,520 --> 00:30:42,440 Speaker 1: So today on the show, we drank a beer called 709 00:30:42,480 --> 00:30:45,800 Speaker 1: Old Tuffie by New Belgium Brewing, and it's a beer 710 00:30:45,880 --> 00:30:48,880 Speaker 1: that New Belgium specifically brewed for n C State and 711 00:30:48,960 --> 00:30:51,800 Speaker 1: listener Maggie is a professor there, and so she sent 712 00:30:51,880 --> 00:30:53,920 Speaker 1: this on our way. Big thanks to Maggie. Dude. I 713 00:30:53,920 --> 00:30:56,360 Speaker 1: don't always drink loggers, Matt, but when I do, I'm 714 00:30:56,360 --> 00:30:58,760 Speaker 1: gonna drink Toffy Lagger. Name that beer commercial that I 715 00:30:58,800 --> 00:31:01,560 Speaker 1: just stole a line from. Oh, I know the commercial. 716 00:31:01,720 --> 00:31:04,400 Speaker 1: I just wasn't gonna talk about a Mexican style beer 717 00:31:04,480 --> 00:31:07,480 Speaker 1: because I personally feel that those are pretty terrible. There's 718 00:31:07,520 --> 00:31:09,640 Speaker 1: a couple of good ones. Yeah, I like Negro Modelo 719 00:31:09,760 --> 00:31:12,480 Speaker 1: a lot, so yeah, a little more flavor going on there. Yeah, 720 00:31:12,520 --> 00:31:13,840 Speaker 1: but I feel like when it comes to a logger. 721 00:31:13,880 --> 00:31:15,920 Speaker 1: For me, I what I really enjoy about a logger 722 00:31:16,000 --> 00:31:18,520 Speaker 1: is that they're so clean and refreshing, right and specific 723 00:31:18,520 --> 00:31:19,960 Speaker 1: to this beer, That's what I like so much about 724 00:31:20,000 --> 00:31:22,479 Speaker 1: it is that it's just really clean. Sometimes with loggers, 725 00:31:22,480 --> 00:31:24,400 Speaker 1: you can kind of get this off putting maybe like 726 00:31:24,440 --> 00:31:27,200 Speaker 1: some metallic flavors or there's like a skunkiness to it. Man, 727 00:31:27,240 --> 00:31:28,719 Speaker 1: that was not the case with this one. It was 728 00:31:28,800 --> 00:31:30,840 Speaker 1: so good. I feel like, in my mind, like the 729 00:31:30,960 --> 00:31:33,800 Speaker 1: essence of beer is a logger, you know, like if 730 00:31:33,840 --> 00:31:36,280 Speaker 1: there's one beer that had to be qualified, like which 731 00:31:36,360 --> 00:31:39,520 Speaker 1: one beer exists that you would call pure beer, Like, 732 00:31:39,560 --> 00:31:41,360 Speaker 1: it's got to be a logger, you know. Yeah, I 733 00:31:41,400 --> 00:31:43,560 Speaker 1: guess when you boil it down, the essence of a beer, yeah, 734 00:31:43,640 --> 00:31:47,360 Speaker 1: probably is just a super clean, crisp, refreshing logger. Yeah. Yeah. 735 00:31:47,400 --> 00:31:49,600 Speaker 1: And this was that. It really was so much better 736 00:31:49,640 --> 00:31:52,360 Speaker 1: than a macro beer logger. I would say it's perfect 737 00:31:52,360 --> 00:31:55,720 Speaker 1: for an anti state basketball or football game, perfect for 738 00:31:55,800 --> 00:31:58,360 Speaker 1: game day, right exactly. Yeah. It was like Hams. Have 739 00:31:58,440 --> 00:32:00,520 Speaker 1: you ever had a Hams before? Yeah? That's like the 740 00:32:00,520 --> 00:32:02,160 Speaker 1: old school vine is kind of like an old school one, 741 00:32:02,160 --> 00:32:04,680 Speaker 1: but it's really good. It's like a hands but way better. Yes, 742 00:32:04,760 --> 00:32:07,080 Speaker 1: most definitely, most definitely yes. So thanks to Maggie for 743 00:32:07,120 --> 00:32:08,840 Speaker 1: sending this one our way. It was really enjoyable to 744 00:32:08,920 --> 00:32:11,280 Speaker 1: drink on the show, and honestly, it's not the style 745 00:32:11,480 --> 00:32:15,000 Speaker 1: that I gravitate to most often, but it's so nice 746 00:32:15,040 --> 00:32:17,320 Speaker 1: to have a really good one. And most folks out 747 00:32:17,360 --> 00:32:19,680 Speaker 1: there that are only drinking butter Miller, like they just 748 00:32:19,760 --> 00:32:22,360 Speaker 1: haven't had a good logger in their life yet, so yeah, 749 00:32:22,360 --> 00:32:24,240 Speaker 1: they need to check out something like this brewed by 750 00:32:24,480 --> 00:32:27,040 Speaker 1: a quality craft brewer. Man, we don't drink a lot 751 00:32:27,080 --> 00:32:30,360 Speaker 1: of laggers, but personally, the more good loggers I drink, 752 00:32:30,400 --> 00:32:32,680 Speaker 1: I I also realized that that I've never really had 753 00:32:32,760 --> 00:32:35,520 Speaker 1: a great logger in the course of my beer drinking years, 754 00:32:35,760 --> 00:32:37,280 Speaker 1: and so it's a lot of fun to switch it up. 755 00:32:37,320 --> 00:32:40,160 Speaker 1: So again, thanks Maggie so much for donating this beer 756 00:32:40,240 --> 00:32:42,200 Speaker 1: to the show. All right, maw let's get to our 757 00:32:42,240 --> 00:32:45,760 Speaker 1: final thoughts for this episode. When we're talking about why 758 00:32:45,920 --> 00:32:49,040 Speaker 1: you should consider refinancing, Well, the best reason to consider 759 00:32:49,080 --> 00:32:51,760 Speaker 1: it is to save money in the overall interest that 760 00:32:51,800 --> 00:32:54,040 Speaker 1: you're going to pay over the life of the loan. 761 00:32:54,400 --> 00:32:56,440 Speaker 1: If you're going to be able to do that, then 762 00:32:56,440 --> 00:32:58,800 Speaker 1: there's a good chance refinancing makes a lot of sense 763 00:32:58,800 --> 00:33:00,840 Speaker 1: for you. But before you really know if you're in 764 00:33:00,880 --> 00:33:04,320 Speaker 1: a financial position to refinance, there are some individual considerations 765 00:33:04,320 --> 00:33:06,040 Speaker 1: that you need to take ato account. Your credit score. 766 00:33:06,040 --> 00:33:07,800 Speaker 1: You want to make sure that you've got seven twenty 767 00:33:07,960 --> 00:33:10,200 Speaker 1: or higher to get the best rate, and also the 768 00:33:10,240 --> 00:33:12,280 Speaker 1: amount of equity that you have in your house. You 769 00:33:12,320 --> 00:33:14,840 Speaker 1: want to make sure that you have at least or 770 00:33:14,920 --> 00:33:17,440 Speaker 1: more in order to qualify for a solid conventional loan 771 00:33:17,520 --> 00:33:19,840 Speaker 1: without p M. I yeah, and don't forget to shop 772 00:33:19,880 --> 00:33:23,160 Speaker 1: with multiple lenders. You can shop with online lenders, local lenders, 773 00:33:23,360 --> 00:33:25,680 Speaker 1: even costco right, but the key is to apply and 774 00:33:25,720 --> 00:33:28,400 Speaker 1: get loan estimates from a handful so that you can 775 00:33:28,400 --> 00:33:30,920 Speaker 1: make the apples to apples comparison and choose the best 776 00:33:30,960 --> 00:33:33,040 Speaker 1: lender that's going to save you the most money. I 777 00:33:33,080 --> 00:33:35,360 Speaker 1: guess it doesn't have to be an apples to apples comparison. 778 00:33:35,360 --> 00:33:37,840 Speaker 1: It can be like a logger to logger comparison. There 779 00:33:37,840 --> 00:33:39,680 Speaker 1: we go, Well, man, I think that's gonna be that 780 00:33:39,800 --> 00:33:41,840 Speaker 1: for this episode. As always, you can find our show 781 00:33:41,880 --> 00:33:44,480 Speaker 1: notes up on our website at how some money dot com. Yeah, 782 00:33:44,520 --> 00:33:46,880 Speaker 1: and if this is your first episode, or you're new 783 00:33:46,920 --> 00:33:48,840 Speaker 1: to the show. Well, don't forget to hit that subscribe 784 00:33:48,880 --> 00:33:51,880 Speaker 1: button so that you're notified of new episodes when they 785 00:33:51,880 --> 00:33:55,120 Speaker 1: come out. Alright, buddy, until next time, Best friends out, 786 00:33:55,160 --> 00:34:05,520 Speaker 1: Best Friends Out. M