Friday Flight - Mortgage Rates at All Time Lows and Back to School Spending #231

Refinancing

Refinancing a mortgage can be a strategic move, especially with the current low rates. Matt Altmix and Joel Larsgaard discuss no closing cost refinancing, where closing costs are rolled into the mortgage balance or result in a higher interest rate. This option can be beneficial if you lack immediate cash but plan to move soon 1. They also highlight the importance of understanding your financial situation, especially if impacted by Covid-19, as it affects your ability to qualify for refinancing 2.

If you don't plan to be in the house very long, opting for a slightly higher than market rate can make sense, because effectively, you're not realizing all of those expenses right then and there.

--- Matt Altmix

Evaluating your income, debt, and credit score is crucial before submitting a refinancing application, ensuring you get the best possible terms 2.

   

Home Buying

For those considering buying a home, the current low mortgage rates offer a compelling reason to act sooner. Joel Larsgaard and Matt Altmix advise that if your financials are solid, locking in a low rate now can be advantageous 2. They also discuss strategies for tenants looking to get out of a lease, emphasizing the importance of communication with landlords and understanding state laws regarding lease termination 3.

I think for a lot of our listeners who have put themselves in a good financial position, they might be interested in accelerating that decision.

--- Joel Larsgaard

Helping landlords find new tenants can mitigate potential financial penalties, making it a viable option for those needing to reduce housing costs 4.