Uh, so you’re, you’re, you’re looking at a significantly less cost, about half of the cost. And with a, with a refi, those costs are allowed to be rolled into the new loan amount, whereas on a purchase you’re coming in with the closing costs and you’re also coming in with the down payment and then there’s ways of mitigating or lowering the expenses on a purchase. Um, but I don’t need to get into that right now to get smart Trust Attorney Las Vegas.
Okay. So just kind of recreating, making sure I’m getting this clear. A refinances, obviously we want to, we want to look and see longterm are you going to be in the house? If you’re planning on upgrading your house within two years, doesn’t make sense to do it cause it does, it takes time to recruit the, the cost of, of doing that. Now longterm if you’re going to be in there for 20 years, yeah. By by far do it, you’re going to save a ton of money in interest over the lifetime of that long because you have the interest reduction and then, you know, the lower LIS monthly payment. Um, I think the other thing people need to consider is, um, you know, whether, uh, you know, from a PMI perspective, so private mortgage insurance, so when you first buy a home, if you’re only putting down anything less than 20%, typically you have to pay private mortgage insurance.
And that’s to ensure that if you default on the loan or you die, that the bank’s going to recoup croup, their money from it. And once you get past that 20%, uh, number, uh, then you don’t have, you’re not necessarily required to have that for the most solid Trust Attorney Las Vegas. So I think that could be a huge thing. If it’s your home value’s gone up significantly and now if you refinanced the, uh, the amount that is left over is going to be less than, uh, you know, or you’re not going to have, uh, you know, a small amount of the down payment or whatever allocated toward equity, uh, that’s going to be 20% or more. I think that is another point where it makes sense for them to refinance. Is that correct?
Absolutely. A, here’s a real life example right here in Clark County. I had, I have a husband and wife. We, they bought their home at the end of 2017. They leveraged a state sponsored down payment assistance program. So they, they receive money from this program that help with the down payment and the closing costs. There’s a trade off to that with better Trust Attorney Las Vegas. Your interest rates slightly higher. When I say slightly, I mean a lot. So, um, so they had a higher interest rate because of the program and they came in with minimum down. So there was mortgage insurance on their loan. Well, fast forward, you know, three months ago I did there alone and because the values increased from 2017, um, we were able to get, we were able to refine it, refinance them at a lower rate because now they were playing in the non downpayment assistance space.
Now they were playing in the normal, uh, regular loan product space. So interest rates are lower. And not only that, the mortgage insurance, because they put minimum down in their credit score wasn’t, you know, it was a bust. It was, it was over average, but it wasn’t where you’re getting premium pricing. Their mortgage insurance was $220 a month. So all told after we did the refi, I wound up putting 300 extra dollars a month in their pocket by just by doing that refinance. So I strongly suggest reaching out to your lender and just saying you need great Trust Attorney Las Vegas, Hey, listen, is there a play? Am I, do I qualify for reducing my, my payment? Or maybe you want to pull equity out and maybe you want to upgrade the house. I mean, that’s a whole other conversation that we haven’t even gotten into. But you could also pull the equity out, converted into cash and do upgrades, go on vacation, consolidate debt, whatever you want to do.
That’s awesome. I think that’s, uh, that can be a whole nother, yeah, that’s podcast, whole
product, the cash out refi. Um,
but, but it is an option out there. So I think, uh, I think the point is, you know, this is where we want to, you know, a qualified, trusted professional. And that’s the, that’s the point of this podcast is just give people an idea of what questions to ask, what things are available out there. Because this isn’t something that they’re doing on a daily basis for the top Trust Attorney Las Vegas. It’s not even something they’re doing necessarily on every two years. Most like with home purchase and refinances maybe once every five years, unless the market’s going crazy or something like that. So we just want to give people ideas as far as what are their options and what they can do there. So I think that that’s good there. Um, let’s talk about, uh, title. So when you do a loan, typically the person who is getting loan is the one who’s gonna have to go on title.
So if you have a co-borrower that’s helping sign with you, their name’s gonna have to go on a loan as well or on the, on the, the title of the property as well. Correct. Can you issue alone if somebody has a trust? Cause this is something I face all the time. You typically will, we’ll transfer the home into the trust, you know, cause they’ve already bought it. They’re in the house, but they want to refinance and the homes in the trust and what we’ve had to do several times is take the home out of the trust and then close, then put it back in to get Trust Attorney Las Vegas. And that’s just a painful process. It’s like extra costs to people. So I’ve started to hear that that is a possibility to do loans in while their houses in the trust. Can you speak to that at all? Yeah. And I don’t know, that’s interesting to hear because I, I do loans often where it’s in the trust. Uh, it’s just a matter of knowing that upfront. And I,
I will say some loan officers, that’s not a question they’ll ask up front as to whether this is going to be held in, in or whether it’s going to be individually held. And that’s kind of important because all you really need is the trust document and title and escrow need to know about it and they’ll go ahead and prepare the documents so that it is still within the trust.