Should I Refinance?

Today a client called me and told me that he and his wife have been on the fence about refinancing for a while but they have been receiving so much mail about reducing their monthly payment that they finally started looking into it. They are afraid of making a move that will mess up the sweet situation they currently have with built up equity and a comfortable lifestyle! Here’s my email to my clients, hopefully it can help you too!

Hi Allison!

I was speaking with Joe earlier about how refinancing works.

It’s very simple and goes something like this:

How it works:
You get a new loan from a bank to pay off an existing loan.

The REASON people refinance is for many reasons but here are the most common:

1. Lower your monthly payment
2. Pull equity out of their home
3. Shorter time frame to pay back loan (15 years, 20 years, 30 years)
4. Attain different loan terms

Your Goal
You want to reduce your monthly payment.

Your Scenario
You would replace your current loan (approximately $190,000) with a new loan with a lower rate. If your current rate is 4.75% then because of the state of interest rates in today’s market, you should be able to replace it with a loan that has a lower rate, therefore reducing your monthly mortgage payment.

There are different types of institutions that give out refinance loans.

1. Large Direct Lenders (Wells Fargo, Chase, Bank of America, Credit Unions)
2. Broker’s (they don’t give you the money directly, they find you a bank that will.)
3. Private Direct Lenders (they give you the money directly and only handle loans).

What type of institution is the best for you?

I would say in your scenario, where you’d like to reduce your payment, but don’t have any time frames to abide by (you’re not in a hurry), you should go with the lender that will give you the best rate (they are pretty similar) but most importantly has the least amount of fee’s since fee’s tend to kill profits, especially in refinances.

A Warning: When you refinance, you can chose how many years you have to payoff the entire balance. If you currently have a 30 year loan and you are 7 years into it, that means in 23 years, you’ll have the loan paid off.

If you replace your current loan with a new 30 year loan, it’s going to take you another 30 years to pay this loan off. However, you have the option to chose a loan with a shorter payoff term such as 15 years. Some of these shorter term loans even offer lower rates.

The best bet is to speak with the loan officer about the different options they have for refinancing.

Again, since I would say that your priority is getting a low rate and low fee’s, I recommend that you speak with a Large Direct Lender. They can provide a refinance with low fee’s.

Best of luck and let me know if you need anything else!

$10,000 to $200,000! – “Becky’s” Story!

$10,000 to $200,000! – “Becky’s” Story!

Posted by Voltaire Lepe on Sunday, January 7, 2018

New Year Reservations and Generational Wealth

New Year Reservations

January’s newsletter update: How to Create Generational Wealth!

Posted by Voltaire Lepe on Saturday, December 30, 2017

 

“It’s December 31st and we in Miami just meditating, you got your resolutions, we just got reservations.” This Drake line, in my mind was very clever but it didn’t resonate with me until years later.

I was like most people always quick to make New Year’s resolutions during the last days of December and like most people, I’d give up on them by mid January– or worse, forget what I had pledged to do that upcoming year! Looking back over the past few years it dawned on me that I haven’t committed to a New Year’s resolution as I used to try to do in years past. As I searched my mind to make sense as to why not, I quickly found the answer. (DON’T STOP reading, I promise I’ll help assuage the guilt you may carry from previous failed attempts at improving your life!)

Years ago I found my why. You may be asking yourself “what does he mean by that?”, my answer to that is summed up in the word purpose, but not in a specific manner but rather in a general sense. Years ago when I figured out my purpose in this crazy journey we call life, it allowed me to stifle all the noise that I used to have in my life and really have clarity that I’ve never experienced before. With this new found clarity it was no longer necessary to come up with yearly goals because I knew what my life‘s purpose was. Looking back, I’m assuming Drake knew his purpose when he wrote the above mentioned lyrics, therefore there was no reason to write a New Years resolution.

How do you find your why? That’s an animal in and of itself and maybe we can touch on it in a future letter, but I’ll share with you what it’s allowed me to do and how you can do the same, if your purpose is similar to mine. My purpose, plain and simple, is to help others. Whether that means helping just one person or a thousand people it doesn’t matter.

If I could, I’d prefer to help many people. I look around and most of the people that have or are touching the lives of others in a positive way are wealthy and many are setting up their bloodline to have generational wealth for generations to come. Many policymakers have inherited wealth that has trickled down generation after generation.

Lucky for me, I’m in a unique position that has allowed me the experience and exposure of witnessing how other people have created wealth–lots of it! This is the reason why I rhapsodize about real estate so often 🙂 How much is a lot? A couple of people I know have accumulated over $100 million in wealth through real estate! Sound amazing? Probably, because it is! One of these wealthy people in particular taught me a good lesson. At first I thought to myself “so what if this guy is Rich, what’s the big deal?!” But then I took a closer look and saw how he was helping others with his wealth.

This particular person has thousands of tenants. How is he fulfilling his WHY? Well he’s helping the world like this:

  1. He’s providing affordable apartments to those who need it
  2. He’s providing people with jobs they need, landscapers, property managers, handyman, contractors, book keepers, accountants, realtors, escrow officers, lenders, and the list goes on and on
  3. With his clout he can now impact policies that affect other people

These are just a few examples on how he helps others. Now his children, grandchildren, great-great grandchildren don’t have to worry about money therefore they can focus on other things like educating themselves and helping others (if it is in their heart to do so.)

I think most people want to make moves and invest in real estate but something always holds them back: too expensive, payment too high, down payment too steep, I have a car payment, I have other priorities, a.k.a. noise!

For me personally, I figured out my why several years ago so there is zero noise. My focus and the focus of agents at my office is to create generational wealth for others and ourselves. Knowing my WHY gets me out of bed early in the morning and energizes me on those dreaded Mondays! Knowing your WHY will energize and inspire you too!

So again 2018 is here, are you still making New Year’s resolutions or will you make reservations for you and your loved ones?