Today’s Smart Money Question:
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
In the past few weeks, Matt has talked to five different people about mortgages. Why? Because mortgage rates are at historic lows. On today’s show we talk about the important distinctions between different mortgages and what you should know ahead of time. Then we’ll also dive into HSA accounts and what kind of benefits they could provide.
What are the different types of mortgages? If making a purchase, who are you working with throughout the process? What kind of experience do they have? Matt shares some examples from his own experiences in real estate.
Are you trying to get a cash out refinance or a rate and term refi?
Consider how the terms will be different and what your options are within them. What is the rate going to be? What will the fees be? Are there any additional requirements for your loan? What will your closing costs entail? What will your taxes be?
When it comes to Health Savings Accounts (HSA), this can be an extremely advantageous account. Does your company contribute to it? Do you know the contribution limit? How does it impact your taxes? Do you have this option if you are self-employed? How is this money being invested?
It’s important to consider the risk you take when investing the money in an HSA.
Matt shares how he uses his HSA and how he invests it. Do you understand the drawbacks and limitations? The HSA can be a great account if it fits in your overall plan and you understand how to use it.
Listen to the entire episode or check out the timestamps below to jump ahead.
1:22 – Today we’re going over mortgages and HSAs.
4:17 – Mortgage rates have dropped to historic lows.
8:18 – What is a cash out refinance and rate and term refinance?
9:30 – What requirements are in your loan?
11:11 – How does a variable rate work?
12:27 – What are the closing costs?
15:55 – Are you eligible for any discounts?
17:20 – Make sure you understand what you are getting into.
20:01 – How is the bank expecting you to pay back a home equity line?
20:40 – A home equity line of credit can be very valuable when needed.
21:42 – What is a Health Savings Account?
23:31 – Qualified medical expenses can be paid out in the future, tax-free.
24:49 – How does Matt use his HSA?
26:15 – What are the drawbacks?
The reality is, for many people, a home is the largest purchase that they are ever going to have. How we use that asset, especially not only when we purchase it, but potentially refi it later or use it as collateral. – Matt Hausman
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