Refinancing Your Mortgage – Hidden Benefits

Key Takeaways

  • The benefits to refinancing your mortgage are savings on interest over time, getting rid of Private Mortgage Insurance (PMI), receiving cash for the difference, and using the savings from the reduced monthly mortgage to pay off other debts or save money.
  • Consider refinancing if it takes 1-2 years to break even on the closing costs versus monthly savings, if the new interest rate is a ¼ % lower or better, you have a credit score of 740 or greater, and you’ve got all the necessary documents for loan underwriting.
  • The goal of refinancing your mortgage is to get the best terms and the best interest rate.

Leveraging Expenses

Key Takeaways

  • There are actually ways you can use your expenses as leverage to help you pay off your debt and save more money.
  • Developing a budget, paying your bills on time, and prioritizing expenses helps to gain clarity of your financial picture, keeps your expenses low and credit ratings high, and helps you build a strategy to best leverage your expenses to save money.
  • Prioritizing your expenses helps you take advantage of tax levers that can ultimately help you save more money over time.

Taxes—The Good, the Bad and the Smart

Key Takeaways

  • You can’t get away from taxes, but people who are well-informed pay less.
  • The majority of Americans pay not one but three taxes on their salary—federal, state and payroll.
  • There are a myriad of deductions, exemptions and strategies you can use to lessen your tax bite and accumulate wealth from Day One of your working years.
  • When investing, always look for tax-deductible, tax-deferred and tax-free options.

3 Key Money Math Skills

Key Takeaways

  • Compound interest, computational skills and amortization are the three key money concepts we all need to master.
  • As Einstein observed, compound interest is a saver/investor’s greatest friend and a debtor’s greatest enemy.
  • Creating a budget and sticking to it are essential to building wealth and a secure financial future. Budgeting just takes discipline and the basic math skills that you learned in middle school.
  • When paying off a long-term loan, pay attention to the principal versus the interest, not just your monthly payment amount.