Also in this playlist...
This transcript is automatically generated
Welcome back everybody mortgage rates tumbled to a record low Freddie Mac reporting the fifteen year fixed rate is now just two point.
So in today's take charge consumer protection segment I want to tell you how you can benefit from these amazing rates you may think you can't afford to switch to -- fifteen year.
Maybe you can't.
If you're planning on refinancing joining me -- hundred -- real estate experts CEO of the Kendra Todd group -- welcome back.
Things Jamie you know what I try to do in these segments I try to help people save money.
And mortgages can be a little intimidating for folks I want -- to understand the right questions to ask first of all what do you think about these rates have we ever seen them before.
-- this is a new all time low for the fifteen year mortgage.
And you know the viewers might be thinking let's -- new and noteworthy about a fifteen year mortgage it's been around forever well here's what's exciting.
Right now you have nearly a one percentage point rate spread between fifteen and a thirty year affects.
What this means that that you have a whole group of homeowners.
Weren't thirty year fixed mortgages right now at 5% or higher who if they refinance into a fifteen year mortgage.
They might even be able to get a lower mortgage payment.
Either property -- and half the time and save tens of thousands of dollars and.
Contrasts and that's really the key that I wanted to point out to folks is a fifteen year is often not affordable because the payments every month or more.
But if you think about it over time the extra fifteen years of interest.
Ten have you not paying any principal off.
For the first ten years.
So that's exactly right and what year should you be considering converting from the thirty year you went in change to save money.
To this all time low fifteen year rates.
A fifteen year mortgage is going to double your heart and your mortgage payment in comparison at thirty year.
The people that are -- -- ascent to front refinancing.
Right now on to a fifteen year those.
Coupe have about 30% to equity in their property is.
And if they refinance.
And that fifteen here they can save about 72000.
Dollars in interest for every 100000.
Of their loan -- That is that's staggering amount of savings and staggering amount of savings it sounds like you'll be able to buy a second home.
Yeah exactly you know this is a great opportunity.
For people who have a second home or even an investment property to think about refinancing goes into it fifteen year as well how well that have.
-- are the banks.
When you fifteen year are -- underwriting requirements for someone who qualifies for a fifteen year at the same as a homeowner who let's say -- 10%.
Or 15% or if they can make the 20% and not have that private mortgage insurance situation.
Is it tougher to get a fifteen there.
It it's not tougher to get a fifteen year -- -- do you have to.
Have a cash in the bank -- because you're going to be dealing with a lower loan to value ratios which means you have to put more money now.
So you just have to laugh have that on your side however I don't want people who are watching the show right -- Now -- think cannot.
Get into a fifteen year mortgage to feel discouraged.
Very is that true that there is no way you think you can actually reduce the -- of a thirty year mortgage.
And -- -- something called a biweekly payment.
And it's very simple folks all you have to do his pay one additional mortgage payment per year.
And you can actually pay off a thirty year alone in 22 to 24 year that's true.
You know what the banks hate you right now she just took my out of their pocket but that is an age old -- you make that one extra payment a year and a cut the term.
Of your loan down.
This is great and don't forget folks you don't have to refinance the entire balance of your mortgage may -- could split it up and refinance a portion Kendra and this is great.
Definitely help folks thank you for being part of my take charge consumer protection segment.
Filter by section