3491: [Part 1] Should I Refinance My Mortgage by Scott Rieckens of Playing With Fire on Long-Term Mortgage Planning

This episode is brought to you by Indeed. Stop waiting around for the perfect candidate. Instead, use Indeed sponsored jobs to find the right people with the right skills fast. It's a simple way to make sure your listing is the first candidate see. According to Indeed data, sponsor jobs have four times more applicants than non sponsored jobs. So go build your dream team today with Indeed. Get a $75 sponsor job credit at indeed.com/podcast. Terms and conditions apply. Hey. It's Justin from Optimal Living Daily. Before we start, I wanna share a super powerful practice I use called NSDR or non sleep deep rest. In just about ten minutes or so, this yoga nidra practice leaves you feeling as refreshed as after a nap without actually sleeping. Experience it for yourself on our guided podcast. Search NSDR and look for the one from Optimal Living Daily. This is Optimal Finance Daily. Should I refinance my mortgage? Part one, by Scott Rickens of playingwithfire.co. Interest rates are low right now, so you've probably heard a lot of people talking about refinancing their home mortgage. While refinancing can save you money, it's not always a slam dunk decision, especially when it comes to financial independence. When used correctly, refinancing a mortgage can be a great choice. When used incorrectly, it could lead you down a slippery slope of never paying off your debt. We'll walk you through when and how to refinance your mortgage. What is mortgage refinancing? Mortgage refinancing works by taking out a new mortgage to replace your existing mortgage. Refinancing helps you change your loan terms by changing the length, the interest rate, or the amount of the mortgage. Common types of mortgages. There are a number of different types of mortgages. Before jumping into refinancing, it's important to be familiar with the different options so you know what's available to you. Here's a quick overview of the common mortgages you'll see. Conventional mortgages, conforming. These are mortgages that aren't backed by a government agency. Conventional mortgages can either be conforming or nonconforming. A conforming loan means that it meets the criteria set forth by Fannie Mae or Freddie Mac, two government sponsored agencies. Conventional mortgages, nonconforming. Just like conforming conventional mortgages, these loans aren't backed by a government agency. The difference is that they don't meet all of the criteria required to be a conforming loan. A common type of nonconforming loan is a jumbo loan. These loans have limits that are higher than what you'll find with a conforming conventional loan. And government insured mortgages. The government isn't in the business of making home loans, but they do insure mortgages under certain programs. The most common government insured mortgages are FHA loans, USDA loans for rural areas, and VA loans for members of the US military. There are also two other loan types you'll see, fixed rate and adjustable rate mortgages. A fixed interest rate means that your interest rate remains the same during the …