Stage 6 of 6
Owning
The first year, extra payments, removing PMI, refinancing, HELOCs and becoming an investor.
Start with lesson 18 lessons, about 19 minutes in all. Last reviewed October 2026.
Lessons
- Your first year as an ownerYour mortgage payment can change even with a fixed rate, because escrow covers taxes and insurance. A yearly escrow analysis resets it.
- Paying extra on your mortgageExtra mortgage payments go straight to principal, so they cut interest and shorten the loan. Extra paid early in the loan saves the most.
- Dropping mortgage insuranceConventional mortgage insurance can be dropped at 80% of the original value and ends at 78%. FHA and USDA insurance work differently.
- Should you refinance?People refinance to lower the rate or payment, drop mortgage insurance, take cash out or change the term. Start with your goal, then check the math.
- Will it pay off? The break-evenDivide the cost of refinancing by the monthly savings to find how many months it takes to come out ahead. Then check the total cost over time.
- Streamline refinancesFHA, VA and USDA streamline refinances need less paperwork and usually no appraisal. Each has a waiting period and a test that the new loan helps you.
- Cash-out, or a second mortgage?A cash-out refinance re-prices your whole mortgage balance. If your current rate is low, a HELOC or home equity loan on top may cost less overall.
- Becoming an investorReal estate investing can start with a 2 to 4 unit home you live in, renting out your old home or buying a rental. Lenders usually count 75% of rent.