On this episode of Financially Naked: Stories from The Financial Gym, three of our Certified Financial Trainers, Garrett, Jazmin, and Danielle sit down to talk about mortgages and refinancing.

Podcast Notes

• When it comes to applying for a mortgage or refinancing the one you already have, there are many factors to consider.
• Your first home does not have to be your forever home.
• When saving for a home, keep in mind that things will go wrong. It is inevitable.
• Go in with a plan. You'll want to save for the down payment, closing costs, and extra contingency.

Getting Pre-Approval

• Having the pre-approval before you start the process of looking for a home will give you more power. It makes your offer stronger.
• You'll likely need W2's, (or a letter from your tax preparer if you're a freelancer), 2 years of tax returns, and certain bank statements. Get these things in order ahead of time.

The Down Payment

• You don't have to put 20% down in order to apply for a loan. There are First TIme Home Buyers programs that allow you to put down as little as 3.5%.
• If you do have a down payment of less than 20%, private mortgage insurance (PMI) will be required.

What to look for in a lender:

• Always do your research and talk to a few different lenders.
• These are big numbers, working with someone who makes you comfortable and takes the time to answer questions is important.
• You can shop around for different interest rates, and negotiate with the lenders.

Refinancing Your Mortgage

• You could
• knock out the PMI, if you have more equity now
• lower the monthly payment and/or interest
• change the length of time on the loan
• free up money with a cash out refinancing
• You will pay closing costs again when refinancing
• When considering if it's worth it, do the math, reflect on what your goals are for the property, and the best way to achieve them.
• A Mortgage & Refinancing Calculator can help you figure out if refinancing is a good option for you!

Meet The Trainers

Meet Garrett, Level 3 Certified Financial Trainer

Meet Jazmin, Level 2 Certified Financial Trainer

Meet Danielle, Level 2 Certified Financial Trainer