Your Housing Questions Answered: Down Payments, Mortgage Recasting, and Buying in Tough Markets

Jun 23, 2025

Join seasoned housing expert Holden Lewis as he shares insights on navigating today's competitive real estate market. He explains the intricacies of mortgage recasting and offers strategies for tackling tough financial decisions, such as whether to save for a larger down payment or pay off existing loans. The conversation also delves into the benefits of placing rental properties in trusts, alongside practical tips for standing out in a crowded market like New York City. Get ready to unlock smart home-buying strategies!

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INSIGHT

Mortgage Payoff vs Savings Insight

Paying off a mortgage early earns you a return equal to the mortgage interest rate.
Compare this to potential returns in savings accounts or investments before deciding where to put extra money.

ADVICE

Prioritize Debt and Cash Reserves

Prioritize paying off high interest credit card debt before extra mortgage payments.
Maintain cash reserves for home selling costs and unexpected expenses.

ADVICE

Trusts Protect Rental Properties

Putting a rental property in a trust offers stronger asset protection and estate planning benefits.
Consult a lawyer to understand pros, cons, and tax implications of trusts versus LLC ownership.

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Explore strategies to strengthen your finances and get smart answers to common home buying and mortgage questions.

When you're looking to buy your next home, should you pay off your current mortgage or save more for a down payment? How does mortgage recasting work? Hosts Sean Pyles and Elizabeth Ayoola answer several questions from listeners about home buying and renting. But first, they talk with NerdWallet experts Amy Knight and Sara Rathner about how people are navigating today’s financial challenges, from rising costs to career interruptions. They explore practical ways to strengthen your money habits, with tips and tricks on using side hustles for independence, turning money talks into regular “money dates,” and saving for the future even in small amounts.

Then, mortgage Nerd Holden Lewis joins Sean and Elizabeth to answer a series of listener questions about home buying. Topics include weighing the pros and cons of saving vs. paying off a mortgage, whether to put a rental property in a trust, what to expect when recasting a mortgage, and how to stand out when buying in a competitive housing market like New York City.

Use NerdWallet’s free mortgage calculator to estimate your monthly mortgage payments and annual amortization: https://www.nerdwallet.com/mortgages/mortgage-calculator

In their conversation, the Nerds discuss: how women can build financial independence, motherhood penalty and finances, side hustles for single moms, investing as a single mom, financial independence for women, Equal Credit Opportunity Act, gender pay gap and retirement, credit card rules for stay-at-home spouses, home buying in a tight market, mortgage recasting explained, pros and cons of putting a house in a trust, trusts vs LLC for rental property, buying a home in New York City, how to buy in a competitive housing market, how much to save before buying a house, how to improve home buying offer, home inspection tips for buyers, why rent is cheaper than buying, how to calculate mortgage payments, NerdWallet mortgage calculator, money dates for couples, budgeting as a single parent, how to avoid the motherhood penalty, flexible home buying offers, asset protection for rental homes, how to build credit as a stay-at-home parent, financial planning for women, and the financial impact of caregiving.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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