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Should I Refinance My Mortgage Now or Keep Waiting? · Becoming Financially Confident

• 0:37
  Mortgage rates are changing again, and everyone seems to have an opinion.
• 0:41
  Refinance now.
• 0:42
  Wait a little longer.
• 0:43
  The rates are going to come down again.
• 0:46
  When you're talking about one of the biggest financial decisions of your life, following the crowd is not enough.
• 0:53
  So today let's figure out how to know if refinancing actually makes sense for you.
• 0:58
  Because lower rates don't automatically mean you should refinance.
• 1:02
  The smartest decision depends on your goals and not the headline.
• 1:06
  So stay with me today, and I promise you by the end of today's episode, you're going to know the right questions to ask before signing anything.
• 1:14
  Going to be a great show today.
• 1:25
  Hello and welcome to Financially Confident Christian.
• 1:28
  I'm the financial evangelist Ralph Estep Jr.
• 1:31
  And I just want to thank you so much for joining me today.
• 1:34
  And this is one of those questions that homeowners ask every time interest rates start to move, whether they move up or they move down.
• 1:41
  And that's the question, Should I refinance now?
• 1:44
  Should I wait for rates to fall further?
• 1:47
  And how do I know if refinancing will actually save me money?
• 1:51
  I want to tell you something right now.
• 1:53
  From an accounting perspective, even a small rate change can feel like a big opportunity.
• 1:59
  But the key is not that.
• 2:01
  The key is making sure it's a real one and not just a distraction.
• 2:05
  That's what we're going to talk about on today's show.
• 2:07
  Now, if you've got a question that you need help with, I would love to answer your question right here on the show.
• 2:13
  You can reach me by going to financiallyconfidentchristian.com/question We'll put a link right in the show notes.
• 2:20
  But again, that's financiallyconfidentchristian.com/question Let's get right to today's listener question.
• 2:28
  Hi, Ralph, I bought my house a couple years ago when mortgage rates were much higher than they are today.
• 2:34
  And lately I've been seeing news stories saying that rates are starting to come down and several of my friends have already refinanced.
• 2:42
  Now, part of me wants to wait because maybe rates will fall even more.
• 2:46
  The other part of me worries I'll miss my chance if I wait too long.
• 2:50
  Ralph, I'm confused because everyone seems to have a different opinion.
• 2:54
  How do I know when refinancing usually makes the most financial sense?
• 2:59
  Thank you so much.
• 3:00
  Well, thank you for sending in this question.
• 3:02
  And you're right, there are all kinds of opinions about this.
• 3:06
  So today I want to really decipher what's the best for your situation.
• 3:10
  I Want to start by saying something rather bold.
• 3:13
  Refinancing isn't about chasing the lowest rates.
• 3:17
  It's about improving your overall financial picture.
• 3:20
  I want to say that again because so many people get hung up on, well, but the rate's this, the rate's that, I'm doing better.
• 3:26
  No, it's not about that.
• 3:28
  It's bigger than that.
• 3:29
  You've got to understand your overall financial picture.
• 3:33
  So we're going to walk through five questions that will help you decide what to do today.
• 3:37
  Very practical steps we're going to have today.
• 3:40
  It starts off with knowing your current numbers.
• 3:43
  You got to start with your existing mortgage.
• 3:46
  You got to know your interest rates.
• 3:48
  So many people I talk to have no idea what their interest rates are.
• 3:51
  They might say, well, I bought when the interest rates were higher.
• 3:54
  I bought when the interest rates were lower.
• 3:56
  But know your interest rate.
• 3:59
  Know your monthly payment, you got to know what that is.
• 4:02
  Know your remaining balance.
• 4:03
  Those are really the three things that you've got to know your interest rate, your monthly payment and the remaining balance.
• 4:09
  Because you can't compare options if you don't know where you're starting.
• 4:14
  You can't measure a better deal until you know the one you already have.
• 4:19
  So that's where it starts off.
• 4:21
  Know your numbers.
• 4:22
  Second thing, look at the total cost.
• 4:24
  A lot of people lose sight of this, they just see that rate and go, well, the rate's lower than what I'm paying.
• 4:29
  You got to look a little deeper than that.
• 4:31
  A lower interest rate sounds great.
• 4:33
  Absolutely it.
• 4:34
  And generally it is.
• 4:35
  But the thing you've got to take a pause here.
• 4:39
  Refinancing usually also comes with closing costs and fees.
• 4:43
  They don't tell you about that part.
• 4:45
  We'll just build it into the loan.
• 4:48
  So you've got to really calculate how long it takes to recover those costs.
• 4:52
  And what I mean by that is if you're planning to move, you're planning to sell this house, you're going to have to really consider whether refinancing makes sense.
• 5:01
  Big picture, you got to understand whether the savings outweighs the expense.
• 5:06
  That's why I said earlier, you got to focus on that long term financial benefit, not some short term excitement.
• 5:14
  Hear me on this.
• 5:15
  And this is the headline of the whole show.
• 5:17
  A lower rate isn't automatically a lower cost to you.
• 5:21
  So you got to think about how long you're going to stay.
• 5:24
  Are you planning to move within two years or are you going to stay for another 20?
• 5:28
  The longer you remain in at home, the more valuable that refinancing can become, because time matters.
• 5:35
  Time value of money matters.
• 5:37
  Your future plans.
• 5:38
  And you might not know what those are, but you might have an inkling of this.
• 5:42
  Your future plan should shape today's decision.
• 5:46
  Because in the end, the best mortgage is the one that fits the life you're actually living.
• 5:50
  Not what everybody else is living, not what the headlines tell you should be living.
• 5:55
  So don't let the news make the decision.
• 5:59
  Financial headlines are designed to do one thing.
• 6:01
  They're designed to grab your attention.
• 6:03
  And man, they are grabbing it.
• 6:04
  Because you hear this one saying this and this one's saying that there aren't written specifically for your situation.
• 6:11
  So you got to ignore that pressure to act quickly.
• 6:13
  You got to get past that fear of missing out.
• 6:17
  You got to make decisions based on your numbers.
• 6:21
  The wisdom that you're seeking is personal.
• 6:24
  Those headlines are speaking to the crowd.
• 6:27
  Wisdom speaks to your situation.
• 6:30
  But in the end, you got to make the savings count.
• 6:33
  If refinancing lowers your payment, which it could, and it might be the right decision to make.
• 6:38
  I am not the one saying to you, don't refinance.
• 6:40
  I actually think there is an opportunity to refinance now, because this isn't a popular opinion, but I actually think interest rates are at the lowest they're going to be for a while.
• 6:50
  Again, you can check the math, you can see what you think.
• 6:53
  But I think we're at a place where they're actually going to start inching up.
• 6:57
  But it doesn't mean if you refinance, you save money, that you go spend that money, that this is a great time to use that money intentionally.
• 7:04
  Pay down that principle.
• 7:06
  Build that emergency fund.
• 7:07
  Yes.
• 7:07
  Ralph talks about emergency funds all the time.
• 7:09
  This is a great time to do it.
• 7:11
  Make that investment in your future.
• 7:14
  Let those savings that you might very well get today strengthen your tomorrow.
• 7:19
  Because that smaller payment is only a blessing if it improves your future.
• 7:23
  And that's what this we've been talking about today completely.
• 7:26
  Is this the right decision to improve your financial future?
• 7:31
  But I want to go a little deeper in what you said, because sometimes we think wise stewardship means always finding the lowest price.
• 7:37
  I hear that all the time.
• 7:38
  Over.
• 7:39
  I'm being really wise.
• 7:40
  I got the lowest price, but it doesn't always fit.
• 7:44
  Sometimes it simply means making thoughtful decisions instead of emotional ones.
• 7:50
  Here's what faith doesn't promise us.
• 7:53
  Our faith doesn't promise us perfect timing.
• 7:56
  It doesn't promise us we're always going to catch the absolute lowest interest rate.
• 8:01
  And it doesn't promise us that every financial decision is going to feel obvious.
• 8:05
  Some things, they might seem like they're the right decision, but they're not necessarily the best for your situation.
• 8:13
  But here's what fate does promise us.
• 8:16
  God gives us wisdom generously if we ask him for it.
• 8:20
  We don't have to have some crystal ball to predict the future.
• 8:24
  We simply have to be faithful stewards of today's opportunity.
• 8:28
  And living in wisdom is more valuable than perfect timing.
• 8:33
  Patience protects us.
• 8:35
  God leads faithful stewards to better decisions.
• 8:38
  And peace is a better guide than panic.
• 8:42
  So trust God while you're going through this.
• 8:45
  Trust him while you're doing the homework.
• 8:48
  Friend.
• 8:48
  You don't have to make the perfect decision.
• 8:51
  You simply need to make the wise one.
• 8:55
  Financial confidence grows when decisions are based on wisdom instead of urgency.
• 9:00
  So stop chasing those headlines.
• 9:01
  Stop worrying about what this one did and that one did.
• 9:05
  Take your time.
• 9:06
  Go through the five things we talked about.
• 9:08
  Ask good questions.
• 9:10
  So here's your win for today.
• 9:12
  Review your current mortgage.
• 9:14
  Write down your interest rate, your monthly payment, your remaining loan balance, and compare those financial refinancing offers using total cost, not just the interest.
• 9:24
  You got to understand that it's bigger than that.
• 9:28
  The best financial decisions begin with understanding your current situation.
• 9:34
  So understand your current situation.
• 9:36
  First, let's get right to today's Bible verse.
• 9:38
  It comes to us from the book of Proverbs, chapter 15, verse 22.
• 9:42
  It says, Plans go wrong for the lack of advice.
• 9:45
  Many advisors bring success.
• 9:49
  And I just love this verse.
• 9:50
  It kind of defines what I do as an accountant.
• 9:53
  Major financial decisions deserve careful planning and wise counsel.
• 9:58
  Reaching out to people like this show, talking to other people.
• 10:02
  Wise counsel helps us avoid costly mistakes.
• 10:06
  Good stewardship includes asking questions and preparation.
• 10:12
  Hear me on this.
• 10:13
  Preparation leads to better outcomes.
• 10:16
  How about we pray together right now?
• 10:19
  Heavenly Father, I just want to thank you for providing homes to us, Lord, and shelter and every blessing you've entrusted to us.
• 10:27
  And I just ask right now that you would give us wisdom as we make important financial decisions.
• 10:33
  Help us to avoid acting out of fear or acting out of excitement.
• 10:37
  Teach us to seek wise counsel, Lord.
• 10:39
  Understand the numbers and make choices that honor you.
• 10:44
  And Lord, may every financial decision strengthen our families and increase our ability to serve others.
• 10:51
  And we ask this in Jesus name.
• 10:54
  Amen, friend.
• 10:57
  Refinancing isn't about chasing headlines.
• 11:00
  It's about understanding your numbers, knowing your current mortgage, counting the total cost, and thinking long term.
• 11:08
  And then if you do that, using those savings wisely and trusting God throughout the whole process.
• 11:14
  So know your current details.
• 11:16
  Compare the total cost, not just the rates.
• 11:19
  Consider how long you're going to stay in your home and ignore.
• 11:21
  Listen to me.
• 11:22
  Please ignore this financial hype.
• 11:25
  And if you do decide to refund, if it's the right thing for you, put any monthly savings to work to improve your financial situation for the long term.
• 11:34
  Now, maybe right now you're facing a dilemma.
• 11:36
  You're facing a financial question.
• 11:38
  You're like, ralph, I need wise counsel.
• 11:40
  I would love to offer you that wise counsel.
• 11:42
  The best way to reach me is to go to financiallyconfidentchristian.com/voicemail we'll put a link right in the show notes.
• 11:49
  You just click on the link and record your voice.
• 11:51
  I want to hear from you again.
• 11:53
  That's financiallyconfidentchristian.com/voicemail thank you so much for joining me today.
• 11:59
  I promised you receipts today and I hope you feel like I've delivered those.
• 12:02
  So share this episode with somebody else who might be hearing all this hype and is trying to decide what to do.
• 12:08
  As I always encourage you, stay financially savvy.
• 12:11
  Seek that discernment.
• 12:12
  Seek that wisdom.
• 12:13
  May God bless you and you have a truly great day.
• 12:26
  Happy.