This document is the transcription of the video presentation: You should always be thinking about refinancing because your mortgage is probably the most expensive purchase you’ll ever make. Notice that I didn’t say your house was the most expensive purchase. That’s because when you took a mortgage, you purchased that money to pay for the house. The purchase of that money is paid by the interest charges.

Sandy finds a bank willing to give her a 30-year, fixed-rate mortgage. They require her to give a 20% down payment on the purchase of her home. The interest rate (APR) is 8.4%, and she must pay 1.5 points, which will be rolled into the mortgage. After property taxes, PMI, etc., Sandy can afford $1,500 per month on the mortgage payment. What is the maximum price of the home that she can purchase? ($212,000, $222,000, $232,000, or $242,000)

How much are you really saving to be there for that sale? This is a true situation at our house. My wife drives a Dodge Ram, it gets 12 mpg (miles per gallon). Gas in our area is $2.45 per gallon. The mall is 18 miles each away. If she cuts back and only goes to the mall once a week, instead of twice a week, how much would she save in one year? ($7.53, $7.35, $8.35, or $382.20)