Podcast
Questions and Answers
What is the purpose of calculating the payback period?
What is the purpose of calculating the payback period?
- To determine the new interest rate
- To evaluate the financial benefits of refinancing (correct)
- To determine the original loan amount
- To calculate the monthly savings
Why is it essential to review the loan terms and conditions when refinancing?
Why is it essential to review the loan terms and conditions when refinancing?
- To determine the new interest rate
- To determine the loan balance
- To avoid unexpected costs (correct)
- To calculate the prepayment penalty
When does a soft prepayment penalty apply?
When does a soft prepayment penalty apply?
- When refinancing to a lower interest rate
- When refinancing within a specified period (correct)
- When making an early balance payment
- When selling the home
Why is it important to calculate the payback period?
Why is it important to calculate the payback period?
What is the estimated monthly savings if you refinance your $200,000 mortgage from a 6% interest rate to a 4.5% interest rate for 30 years?
What is the estimated monthly savings if you refinance your $200,000 mortgage from a 6% interest rate to a 4.5% interest rate for 30 years?
If you refinance your mortgage to a 4.5% interest rate for 30 years with $3,000 in closing costs, how long would it take to recover the closing costs?
If you refinance your mortgage to a 4.5% interest rate for 30 years with $3,000 in closing costs, how long would it take to recover the closing costs?
What is the prepayment penalty if you decide to pay off the entire loan balance of $150,000 with a 3% prepayment penalty?
What is the prepayment penalty if you decide to pay off the entire loan balance of $150,000 with a 3% prepayment penalty?
Are you legally obligated to receive a mortgage disclosure statement before finalizing your loan?
Are you legally obligated to receive a mortgage disclosure statement before finalizing your loan?
By how many months will you shorten the loan term if you refinance from a 30-year to a 20-year mortgage?
By how many months will you shorten the loan term if you refinance from a 30-year to a 20-year mortgage?
What type of prepayment penalty is a flat $2,500 fee?
What type of prepayment penalty is a flat $2,500 fee?
What does a no closing costs or origination fees loan on $5,000 mean?
What does a no closing costs or origination fees loan on $5,000 mean?
What is the best approach to no out-of-pocket cost loans?
What is the best approach to no out-of-pocket cost loans?
What is the downside of extending the loan term?
What is the downside of extending the loan term?
What is the benefit of consolidating other debts into your mortgage?
What is the benefit of consolidating other debts into your mortgage?
If your home appraises for $250,000 and your current balance is $150,000, how much equity do you have?
If your home appraises for $250,000 and your current balance is $150,000, how much equity do you have?
What is the LTV when your home is worth 200,000, and you have a remaining mortgage of 180,000?
What is the LTV when your home is worth 200,000, and you have a remaining mortgage of 180,000?
When is PMI required?
When is PMI required?
What is the typical treatment of refinancing costs like closing fees?
What is the typical treatment of refinancing costs like closing fees?
What is the term for the period required to maintain an LTV below 80% to cancel PMI?
What is the term for the period required to maintain an LTV below 80% to cancel PMI?
How many months of PMI payments would it take to offset 3,000 in closing costs if the PMI is in closing costs if the PMI is 100/month?
How many months of PMI payments would it take to offset 3,000 in closing costs if the PMI is in closing costs if the PMI is 100/month?
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