Yes and no. Depending on the end product you want.
Yes, the free iMovie app is an excellent product. As long as you don't want to get super sophisticated in your editing the iMovie app does a lot for something you get included free. I found it fairly easy to use, especially since there are You Tube tutorials. Just make sure the tutorials you watch are recent. If you want to post the videos online or make data DVD disks then iMovie is a great tool.
If you really want to make it hum on the video making, watch for some sales... you can replace the hard drive with an SSD and upgrade the RAM to 16GB for around $220. That makes it really zoom and produces a machine that video edits without the slightest hesitation, in my experience. Once you purchase the SSD and RAM, I am sure Geek Squad will replace your hard drive and RAM for a fee, but after watching You Tube instructional videos, it was fairly simple to do myself.
No, if you want to make Home move DVDs that play on any DVD player with Menus and Chapters. That's not the machine, that's Mac. When they took most of the DVD burners out of their newest models, they stopped supporting the iDVD app that allowed you to take your iMovie produced videos and burn them to DVDs with menus and chapters. I think they made this decision prematurely, but it depends on what you want to do with your videos.
There are lots of 3rd party apps available that do Video DVD burning, but being new to Mac, I haven't determined yet which one is a good one. None get great reviews. Final Cut Pro is the Mac app of choice for super great video editing functionality, but that costs $300 and you'd probably want to go to a newer model Mac for that, which isn't exactly a budget option.