Real estate is one of the largest investments you can make. And depending upon when you originated your loan, you could have missed out on a low interest rate. Or it may be the time to take cash out of your property to start a renovation, buy an investment property, or pay off high interest debt. We have combed the internet to find 5 videos that can help you become an expert on refinancing, starting with the basics of mortgages and refinancing a loan.
Refinancing A Loan:
Refinancing a loan is when you obtain a new loan to lower your interest rates, reduce your monthly payments, or to take cash out of your property for large purchases or to pay off debt. An ideal time to refinance is when you have equity in your property. Equity can be calculated by subtracting the difference between the amount owed on the loan and the current value of the property.
How Refinancing Works:
Simply put, the first loan is paid off, allowing the second loan to be created and replace the first loan. For borrowers with a perfect credit history, refinancing is a good way to switch a variable loan to a fixed rate loan, which can help reduce the interest rate and lower payments. For borrowers with less than perfect credit, bad credit, or a high debt-to-income ratio, refinancing can be risky, and they may not qualify. Before you decide to refinance your loan, we suggest you look closely at the costs, fees, and payments for the entire term to evaluate if it makes financial sense to refinance.
1. Beginners’ Guide To Mortgages | MoneyWeek Investment Tutorials
In this video you will learn the intricate details about mortgages and how they work. This basic information is useful when looking to refinance your loan so you have a clear understanding of the financial components. MoneyWeek offers a comprehensive guide that outlines the various types of loans offered by most lenders. You can use this information when evaluating which type of loan may be best to replace your existing loan when you refinance.
2. Should I Refinance My Mortgage? | Dr. Mark L. Burkey
Refinancing your loan may be beneficial if you want to lower your rates or take cash out of your home. However, should you refinance? Refinancing a loan certainly has its benefits but there are also many other factors to consider before you decide. Dr. Burkey explains this well and he provides clear and concise spreadsheets to teach you the refinancing math you’ll want to use to calculate the numbers beforehand.
3. Do I Need To Re-Fi My 30 Year Mortgage? | The Dave Ramsey Show
Listen to Dave Ramsey, an American businessman, author, radio host, television personality, and motivational speaker, advise a homeowner from Salt Lake City on the risks and benefits of refinancing a 30 year mortgage. Mr. Ramsey’s advice is detailed and solid.
4. Should I Get a Home Equity Loan or a Cash-Out Refinance to Buy a New Property? | Brandon At BiggerPockets
In this episode of ‘Ask BP’, a homeowner who is interested in purchasing an investment property asks for Brandon’s advice. Brandon explains the difference between a Home Equity Loan and Cash-Out Refinance. Learn what he believes is the best option for someone who is using a home that is paid off as the collateral to secure a loan. This is useful information for someone looking to get into real estate investing.
5. How to Analyze a Fix-and-Rent Property | BiggerPockets BRRRR Calc
This video was made by BiggerPockets to educate folks who are interested in investing in real estate rental properties. This video has easy to follow step-by-step instructions. It also includes their BRRRR calculator, which is useful and helps clearly demonstrate the financial component of investing.