Refinancing A Home: What Banks DON'T Want you to know...

Refinancing A Home... Is it worth it? Will it actually save you money? Should you trust the banks? In this video, I'm going to expose the banks by sharing what they are NOT telling you when Refinancing A Home. The banks will often tell you that you're saving money by refinancing your home with a lower rate but what they don't want to tell you is this...
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So you're thinking about Refinancing A Home! Whether it's your own personal residence or a rental property, I'm going to expose some truths about refinancing that the banks DON'T want you to know. The banks want you to believe that a lower refinance rate will automatically save you money. Well... Because obviously, 4% sounds less than 5%... But here's what they DON'T tell you.

1. Effective Interest Amount
It's not necessarily the refinance interest rate that'll save you the money. It's about how much in TOTAL you're actually going to pay at the end of your mortgage. This is what we call an Effective Interest Rate. If you ever look at your amortization schedule or chart, you'll notice that your 4% interest rate is not just a simple 4% interest on your total principal amount. You'll actually pay WAY more than just 4% on the total price of your home.

2. The illusion of Money Saved.
The banker or the mortgage broker may tell you that you're saving money because you may see your monthly payment go down after the refinance. But the problem is, you have to start the amortization schedule ALL over. In an amortized loan, the vast majority of the interest is paid on the "front-end". Meaning, at the start of a new mortgage, most of your monthly payment goes straight to paying the interest, not the principal.

3. Refinancing at 7-10 year mark.
Usually 7-10 years into your 30 year mortgage, you're going to expect to pay more of the principal than the interest depending on the rate. The problem is... most people refinance at this time frame. Just as we talked about earlier, refinancing to another 30 year amortized loan will put you back in square one where it'll take another 7-10 years just to get to a point where you're starting to pay more principal than the interest. This is why many don't ever get to pay off their mortgage because of a never-ending cycle of pay-down, refinance, pay-down, refinance, and so on...

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The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investors! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom)

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#refinancingahome #refinancing #banksexposed

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---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.

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