On this episode we talk about Streamline Refinancing. Specifically, how Matt used it to shave over $130 a month off his mortgage payment without being hit with more interest or increasing the term of his mortgage.
The refinance also bought him a month without a payment and the closing costs were less than the monthly mortgage payment he saved.
Matt also doesn’t have a steady paycheck and the way he streamlines refinanced didn’t require a pay stub. We calculated that over the remaining term of his mortgage he will save over $13,000. A lower payment and lower cost overall – profit all around!
In addition to discussing the details of Matt’s refinance we go a bit into the difference between the various types of mortgages and their merits. We may also make fun of financing a car but if you know me, that’s to be expected ;)
Fixed Rate Mortgage – The 30 year mortgage and 15 year mortgage fall under this category. The majority of mortgages are fixed rate although that doesn’t mean it’s the best option. Just the most popular.
Adjustable Rate Mortgage – Otherwise known as an ARM, these mortgages are front loaded with a ton of savings (way low rates) for the risk that in a certain number of years the rate will be adjustable. Since you can always refinance into a fresh ARM with fresh savings some say this is a no brainer.