This Housing market collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
I paid up all my mortgages in 2yrs while working with an asset manager. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the ladder at 40. I wish at 55 I will be testifying to similar success. How can I reach this manager of yours? because I'm seeking for a more effective approach on my savings
I had this exact conversation with my wife a few weeks ago. She was talking about refinancing to consolidate some bills from some unexpected medical expenses. I told her I’d rather we stick out dealing with those bills individually for a couple years, rather than spend the next 30 years paying more than double our current interest rate!
@@jeltoninc.8542 some people marry for nice cans, other for a good brain. the cans are fun for sure but putting up with dumb ideas may not be worth it.
As someone that was in personal finance, that's sound advice. In this market, patience is key. Real estate investors have been driving the market up. I say, let them choke on their purchases and inflated market prices. Every ten or so years the market changes. If one can wait then wait it out and stash as much cash as one can.
@@rankat1841 The interest rates are controlled by the Federal Reserve. I'm all for holding companies accountable, but you guys always seem to misplace blame that should go mostly toward the Federal Reserve. Do you have any idea how much control they actually have? We, essentially, work for them. When you earn money, you earn something they entirely control. Entirely.
I believe medical debt is better than mortgage debt. There is little to no collateral on medical debt. The consequences of negotiating it are lower than other kinds of debt. Also there is a chance the debt is written off. Talk to a professional in this area. A professional you can trust their evaluation. That rules out bankruptcy lawyers 😂
@@mrscassandrasolano Great comment hope you will be left with some kind of inheriting . Children are the ones that have to suck it up. Because of not-so-smart parents.
It really depends how people use it. I bought my 1st rental house in San Diego in June 2009 during crash with fixed 2.75. I have 550-600k on equity and I owe 50k. I missed out cash out refi last year because I was stationed overseas. I’m getting 2k cash flow on rent but the only way I will cash out refi if rates drop 5%. I have 850 credit so I can probably get 4%. If I cash out my tenant can still cover my new mortgage but I will lose my cash flow I can use the cash to buy multi family home or 2 single family house in Las Vegas or Henderson area which will give me 4-8k monthly cash flow. So basically I’m trading my 2k to 4-8k and the risk is low because I’m paying cash on the multi family home.
My debt-to-income ratio was 30%. Mortgage went from having 28 years left to having 20. I sold my home and downsized. Even with high interest rates on mortgages, I was able to drop my home payment by $400. Our economy scares the hell out of me. I'd rather live in a much smaller home and be able to survive if not enjoy my life.
@@francisdecelle5341 what are you seeing? And do you think its more specific to certain region or do you see the bottom falling put across the entire US?
Unfortunately, in my area smaller homes are about as expensive as larger ones. When I see 900- 1300 sf homes on small lots going for $380k+ i just can't wrap my head around it. Mostly because just 3 years ago those same homes were valued at $120-$200K
Michael, anyone can take pictures of their own house and post it online. More people are selling their home on Market Place. Everyone is tired of realtors, and realtors did it to themselves.
I have bought and sold 7 properties in my life. 2 on my own, FSBO, one with a lame realtor and 4 with highly rated realtors. In my experience, a realtor with an excellent reputation and well networked is a win-win. Now I do think the commissions could be cut back on higher priced properties? Yes of course, but having knowledgeable representation in your corner is worth something.
@@Mac-x5ryes, so people bypassing a realtor, they will be targets for scammers. There are professional scammers out there who would be filtered out by a realtor. That’s why people trade in their old car to the dealer. It’s no longer safe to sell it privately, it’s a nightmare. But selling your own home will be smooth sailing? No way.
The cost of paying an agent is merely being passed on to the cost of the property. That’s fine if you don’t need help with the transaction but understand that the total cost of a transaction will NOT go down…
@@blackandgoldoneClosing costs, for instance, will remain the same. But you get to keep 6% from realtor fees. If you're selling your home for $300k, you get to keep $18k in realtor fees. That's huge!
We have been in our house from 20 years, though that was not the original plan. When we bought, our neighborhood was new and many of us were first time buyers. All of the wives wanted to stay and nest, all of the men said they would sell in five years…then the collapse of 2008 hit. That all changed and 20 years later, most of us are still here in those houses. We love it though!
That means you have a unique area where the kids have friends to play with, the neighbors know one another, and all of the kids will look back in great fondness about how awesome childhood was because they never changed school districts, and their friends were their neighbors. My parents planned for the home I grew up in to be their starter home. They still live there, but many improvements have been made. I still love going home to visit and see how the house has advanced in my lifetime, and how my friends parents still live in their starter homes. Once the nest is empty, even the 'starter home' becomes big. In hind sight I recognize the better life we had vs. moving to bigger. On the flip side I wanted my house to be big enough so my parents could come visit as long as they wanted without feeling as though there wasn't enough separation/privacy. It's not always about square footage, but layout.
I don't think I can afford to move out from my current house 😅. The thought of having mortgages is a nightmare.Peace of mind is important. Unless the neighborhood goes bad, then I would probably move.
Imagine if the MLS board did start pulling everything off Zillow. Then Zillow comes out with a new system where Zillow becomes the buyer's agent and says OK buy a property that's listed on our website and we'll charge you 1% instead of the 6% you would pay your realtor. Same deal offered to sellers. Is there anyone who wouldn't prefer to cut realtors out? People have iphones they would probably take better photos than 90% of what's on zillow now. I dare them to try it. I think in truth these aggregator websites have already made realtors obsolete and we're just seeing the beginning stages of this industry transition.
Agreed, bought in 2018 and I knew more about house, schools and other neighborhood details than my realtor. Definitely a rigged system. 3% fee may have been worth it in the past. But with house prices this high. The value a realtor brings is not really there. I think money better spent on a good inspector that has my interest, I would even happily pay a bonus to inspector if no surprise repairs were needed in the first year
But HOW are people going to know that Zillow is really working in their favor? A referral from a good friend telling you that their realtor got them a good deal would weigh more to me, than Zillow. Wasn’t Zillow the one who was taken to task a couple of years ago for inflating home prices or estimated rental income? Buying a house is serious business a person doing all their upfront research about buying a home is more valuable than just assuming a person or entity is working in your favor.
I agree if Zillow and Redfin act fast they might just pull off what Netflix did to blockbuster. It’s so clear to me Zillow could offer 1% listing and directly deal with the consumer and take all the market shares the MLS would be obsolete once the consumer realizes Zillow could cut fees down and streamline the home buying process. Zillow could make money on referrals on RE lawyer, lender, appraisers, inspectors,
My 3% mortgage is one factor that made me stop accruing on credit cards because there was no way we’d want to refinance as a way to get out from under the card debt. It forced me to become more responsible. Now I pay off my card balances every month.
@@tmusa2002 Yeap. This is the key question here. Does this amount represent minimum payment or expense that you incur on every single month when your credit card balance starts from $0?
Locked into 3.5%- one income family, white knuckled it for 8 yrs, but never one missed/late payment. Worked 6 days/week Strict budget Sacrificed much Just thankful I have a roof! Clean, quiet,safe, cozy. It shouldn't be this difficult to simply have reliable shelter. Our adulting children are very worried. They don't have hope for their future.
Here's what they need to do. It's a pretty simple plan, no secrets. 1. Get educated/trained so they can expect a good salary. If you can't get a job that pays well, no matter what you do you won't be able to get ahead 2. Spend less than you make; budget; sacrifice if you have to; avoid unnecessary debt 3. Save a fixed amount (start with $50-100/mo) and put it into some kind of high yield account, or index fund, 4. Put money into 401k at work (at the minimum whatever the max contribution that gets matched) -- start early
I had NO idea about the sharing of the MLS data with Zillow, etc! When I bought my first home in 2012, my realtor signed me up for the MLS and I would get listings emailed to me everyday. When I bought my second house in 2022, I didn’t even look at the MLS, I used Zillow and Realtor and would contact my realtor with the houses I wanted to see!
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.
Having a 3% loan these days is like a gift from heaven, given the current market rates. I couldn't imagine swapping a 3% for an 8% rate simply to get cash out of the property because now whatever cash you got out is gonna have to be spent on the higher interest payments.
3% mortgage is only good if the price of the home was reasonable. A lot of people’s mortgage are still unaffordable because they over paid and taxes and insurance has caused a lot of mortgage payments to become unaffordable. I would gladly take an 8% rate on a normal priced house.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
There are advisors in cities around you but I needed services of one who can guide me irrespective of location. Christine Jane Mclean comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.
I'm only 6 minutes into your podcast so far. Very sad to hear people are refinancing to consolidate debt. This sounds dangerous and sad. They will have more debt!
Very few people are refinancing from 3 or 4% mortgages up to 8% to consolidate debt. Refinancing is at a 30 year low in 2023. Just because a few people tell the video maker that the "bulk of their business are consolidation refi's at 8%" doesn't mean there are a lot of these refi's happening. Sure it's their bulk because the refinance industry is completely dead
@@oldsalt7621 It all comes down to their situation. If you have a mortgage with a balance of 100k and you have 80k ($2,600 minimum payment on consumer debt) in high interest credit card/personal loans (20-30%) going from a 2.5% to 6.5-9% on the mortgage is actually a good thing. Figure 20k closing costs the loan balance would be roughly 200K at 7.5% making a payment on a 30 year of $1,398. If the original purchase price was 250k at about 3% this would put them 21 years into their term and they would have a mortgage payment of $1,054. If you refi to the 7.5% your payment would be saving $2,256 ($1,054+$2,600-$1,398). If you're in a pinch an extra 2.2k in your pocket each month is very helpful. If you're not in a pinch its still worth doing but all you do is apply the savings to the principal balance of the loan. If you applied the full 2.2k savings each month your 30 year loan would now be paid off in under 6 years, shortening your term from where it was originally. Not only that but you now have tax advantaged interest because you can deduct 100% of mortgage interest up to a loan amount of $750k. It all comes down to your credit, current debts, equity, and income. As a licensed MLO I see these every day.
Once my Kids left the Nest, I sold the house, moved into a nice Downtown Apartment. Concierge Service, great Restaurants, Orchestra Hall, Theaters, 5 minute walk to Work. I enjoyed having nice houses. Now I love not owning a house. My costs are similar, but I have no Management hassle. Simplicity. FYI, Pension Funds also hold huge chunks of REITS, Real Estate Investment Trusts. REITS, a great topic for Michael. I would do it but I'm a retired Boomer.
@@robbydash545 We need to make reverse Inheritance. My Children are way better off than me. I'm quite happy about it. They are independently wealthy on their own.
When my dad purchased our childhood home back in 1990... he knocked on the door and spoke to the owner and made her an offer. He chose that house because it was the property directly behind his brother. So its definitely an uncommon scenario but again there was no middleman getting 6% off the top. In todays world or even before the "internet listing sights" properties were advertised in the local newspaper... realtors are and always have been useless. just like used car salesman
That was back in the day when the country was actually pretty decent. Now put up a property FSBO and every scammer/wholesaler/deadbeat in the world will be contacting you. The realtor deals with all that BS and funnels through that garbage.
If you have massive credit card debt and a big house payment you are in big trouble. Because housing prices very well might crash because of the high interest rates. You could find yourself under water. 2008 all over again.
It's like the whole home buying cycle is based on FOMO. Fear of missing out on buying, not getting the best interest rates, buying too soon, buying too small, buying in a place that doesn't boom soon enough....missing out on that perfect gem of a home (even if it's a gem has weird neighbors, surprise increase in property taxes, and things going wrong unexpectedly). I read books like 30 Days to Overcome FOMO by Harper Daniels and Awareness by Anthony Demello to break that conditioning. It's ingrained in so many in the west.
Thank you for the book recommendations. As someone who has always struggled with emotion regulation I’m constantly looking to improve my emotional fortitude. So the books are greatly appreciated. I started with Emotional Intelligence by Daniel Goleman. It’s a long read, a bit dry and if you’re even slightly hindered by wordy folks this book will be a struggle. However making it through that book is what streamlined my journey into emotional awareness and emotional development. Give it a try if you haven’t already.
A guy at work told me the other day he just closed on a house that’s close to the size of mine. Now his is just over 83k more and while he didn’t say his interest rate, he did say his monthly payment is almost $1300 more than mine!!! That made the hair on my neck jump……
Everything is fine in South Florida.. I just visited. Traffic was insane all day, all bars packed, all stores packed, airport packed, hotels packed. $400 a night in miami beach, $25 cocktails and $100 steaks and people are lining up to pay.
I wouldn't say Michael is a doomer but I've seen the same where I live. People are out spending money. Why is there such a disconnect from youtube to reality?
Glad you mentioned the DTI part of financing. I am a lender and it seems all of my deals (all purchase, no refi) have extremely high DTI's. If buyers today are banking on refinances tomorrow, they need to stay away from opening up new credit otherwise, they won't be refinancing tomorrow.
As a former Loan Processor, I can remember when the threshold was 33-36% DTI. when those requirements were loosened, I saw a lot of issues and loans coming back as foreclosure because the reality was they could not afford the house.
@@Kuulei265 I could not get loans done if the DTI needed to be within 36%. I have a purchase right now at 56% on FHA. Great credit so I was still able to pull an approval
FL here - I went to the grocery store this week , and as I was leaving I saw a man with a huge cardboard sign and lots of writing. In large bold letters it said ‘Need money to pay rent’ . Sitting behind him in two camping chairs was what I presume was his wife and two kids (3&5 years old ). I felt so bad for him and his family. I told my husband that I’d never seen anyone asking for money to pay Rent. Not even in 2008 . Food , yes , but not money specifically for rent. My husband said it was a scam, and the guy was trying to elicit sympathy. I understand that a lot of times this sort of stuff is scamming, and there are programs to help with rent and utilities, but if it’s true , I feel bad for them .
I think that their lobby group is too strong. As I have posted before, when you ask them why buying and selling a house is such an odious process, real estate agents say it's because of the laws. But, these are laws that their lobbyist have pushed to get passed. A bit of circular logic and finger pointing.
If people simple listed their homes as for sale by owner with a catch that agents willing to negotiate a fair rate are encouraged to make contact might drive down ridiculous commissions.
If people simple listed their homes as for sale by owner with a catch that agents willing to negotiate a fair rate are encouraged to make contact might drive down ridiculous commissions.
@Erik-rp1hi. Anyone can see what is for sale and rent. That is the problem...with all this technology we have and buyer/seller know-how, there's no way realtors are worth 6% anymore. I vote for more flat rate companies to do real estate deals
That guy is full off it. I’m a mortgage broker as well and a top producer. My refinance business is none existent. I closed one refinance the whole year. If people are struggling they dont qualify to refinance and put the property up for sale. I was averaging 10-15 loans a month the past few years and I’m down to 2-3 a month that are all purchases. No one is refinancing.
Refinancing one's home to pay off credit cards at a higher rate is absolutely insane. I owned a title company way back during the Refinancing boom and watched people still lose everything, while my company flourished. I actually felt badly about it.
Thank you for the message, it was nice around the water and dock.. I could smell the salty water. I ditched the realtor and found my place a decade ago in Zillow, but this year I tried to use Zillow and noticed that a realtor is needed in order to see a place.
This is what is disingenuous about the United States about “growth”. The government disconnects their touted “growth” from inflation causing higher prices (especially food right now) which causes those without greater income to go into debt. U.S. growth is Americans going into debt to pay inflated prices. That’s all our growth is, and we will see that with folding businesses and empty commercial real estate. Love your content Michael, telling it like it is❣️
I've been saying it for years. I was taught in high school all of the great things about inflation and how it's needed. I still see no positives with inflation. As inflation goes up, spendable income goes down. We move up tax brackets with the added income, our income doesn't match inflation (even if it did, the cost of goods also goes up, and we are left with less buying power). The fact that the government will force an increase in inflation if it's too low is ridiculous. Inflation is basically just a fancy way of saying that the value of your dollar is going down. Any money in your wallet/safe, bank, is all worth less.
I purchased my home at 2.75% two yrs ago with the full understanding that I would never be able to refinance if I wanted or needed to extract some equity. It's a ridiculously great rate but oddly it also closes some doors. Weird how that happens.
You’re absolutely right people that are refinancing out of their 3% and into the 8% is because they want to consolidate their credit card debt. The main reason for that is that when people bought their houses they also bought new cars. new car payments are the killer right in peoples finances. Car payments are destroying peoples lives right now financially.
Not always the case, the case is the cost of living is sky high and companies are laying people off, to save their home they have to file for homeowner assistance, which they force you to refinance, add extra years to your mortgage to keep the payment low and save the home
Bought my house, 4/3 pool home, where I still live in the Tampa, FL area with cash in 1997. In the process of buying 5 acres of mountain land, next to another family member, in the mountains of SC. Will be building a 1 level home with walk-out basement in the near future. Plan to virtually downsize at this point in life. Wife is younger and will live much longer than me near other family members nearby. Getting out of Florida will be a blessing.
I can’t figure out how Miami rents got so high. One bedroom apartments are going for $3k plus, two-bedroom for $4k, three for $5k. That is NYC-level rents. Noxious fees are pretty common too.
Mike, Glad you mentioned amortorization. Not until your 23rd year of payments does half your payment goe to primcipal. Thats right half!!! The bamk always gets paid first, and your not paying off your house till the last 7 years.
Many Credit Card companies will cut cc limits in times like this. When that happens, it causes the Credit ratio to be thrown off and Credit scores drop. It's about to get crazy out here!
Coming from New Zealand I have never understood having a buyers agent. Over here all our properties are listed on a site like Zillow. They get paid by the agent to list and people search for want they. A sole agent working for the seller will show you multiple properties.
Wow refinancing from 3 percent to 8 percent is crazy... People just need to stop spending and splurging... Eat at home... Don't pay $20 for a big Mac, etc ... Hold off on Big ticket purchases like a new 50 inch flat screen TV, new cars, etc and take the scissors to all the credit cards..😜👍
Wow, so the people who are selling today are tripling their money in 3 years, and the people who are buying today are underwater for more than a decade. F’en great!
Every time I tell an agent what I'm Looking for , i get crazy stuff. Nothing at all what I'm looking for. I want older home not over 1970 , couple acres no open concept hopefully on that hasn't had remodeling done. Thats it. I get new construction, mobile homes, empty lots. To be honest with you, I'd like to see more homeowners financing and selling there homes without banks or real estate agents. When we sell our property thats what we are going to do. Lots of happiness for you and your family
It can depend on the agent, or it can depend on your budget. Some clients have unrealistic expectations. While some agents are money hungry & don’t care. But not all agents are like that. Ask the right questions, find out how many years experience they have, ask what their communication style is, & set your standards up front as well. Don’t pick your agent out of a hat, then knock all agents. It sounds like a lot of people are jealous, TBH. They watch “million dollar listing” shows & resent Agents like we’re just rolling in 💰 💰 doing nothing.
Also, I’ve noticed an uptick in people living out of modified camper vans around here . Usually, elderly, and sometimes younger people ( in their 20’s )
It was a fashion trend during Covid that goes by the appellation: van-life. I think there's an eponymous documentary. Kids are running around in converted vans and vlogging on youtube about their experience.
I bought a camper van 🚐 shortly after retiring. I have three rentals and one is in Bend Oregon. I stay in the van when I’m at the house doing yard maintenance.
It's true. I talked to a distressed homeowner yesterday with a defaulted VA loan of 120K who is trying to refinance to grab 180K in pandemic equity. So make it rain, spend that cash (hopefully to pay off debt but maybe not), and then next year out they go and the house is back on the schedule for auction. The party is raging hardest right before the cops show up.
Well, we really have done it to ourselves though haven’t we? I remember when 12% mortgages were the norm, and if you were lucky enough to get a 8 1/2 or 9% mortgage somehow you were bragging and felt like you were luckiest person in the world. But for many people, then, they settled for smaller homes with less in them on smaller lots. They didn’t expect the latest and greatest of everything in their homes, and didn’t expect wonderful beautiful state of the art places to live in. Due to this whole mess and greed, even modest residences cost a fortune it seems. People also planned for rainy days, and understood what goes up goes down, we’re far too reckless in society today and expect way too much. It always catches up with you. None of this quite frankly is surprising, most people have been predicting it for several years now. I guess we never learn
Twelve percent interest rates back in the late 70's and early 80's? But then again, didn't banks pay higher and compound daily interest on savings accounts? I think these market crashes and homes prices are tied to when the most workers are about to retire. Not the exact year but close enough. Everybody thought Jamie Dimon was the hottest thing around back in the day. It was really Alan Greenspan who made the economy great. Historical growth. Now, it's a hysterical economy. To good times again 🍾 🥂. Hopefully, sooner than later.
12% interest on a nice 3500 square foot split level, Brady Bunch home that cost $40,000 is a lot different than todays 1200 sq ft vinyl siding BOX at 8% that costs $280 grand.
The problem is that housing prices and interest rates are connected, so the long period of low interest rates has resulted in housing prices being much higher. The problem happens when interest rates go back up again, the big mortgages which people could afford at low interest rates, driving prices up, are no longer affordable. People like to blame high housing prices on foreigners, it is the Chinese or whatever the latest bogeyman is, but in reality the rapid increase in housing prices is being driven by low interest rates that allow people access to larger loans which are used to compete for limited housing starts. Most of these people are trapped in their homes now. They will not be able to afford selling and buying a new home somewhere else.
You generated some great commotion today with your buyer's agent stance. I think that the writing is on the wall now since the recent real estate lawsuit. Just like how technology has changed the landscape of manufacturing, communications, and retail, it is about to change the business model of real estate. There is too much money involved in real estate and I'm surprised it's taking this long. Look at how Amazon has changed retail. I personally do not need a buyer's agent and would rather buy a home from "Amazon Realty" if it existed and could save me some bucks. And if you think that the Realtor association can simply snub out the competition, they will be hammered with antitrust lawsuits. Due to the nature of real estate, you will always need "boots on the ground" so to speak, but things are going to change.
Also, in divorce, to get the other person off the mortgage you have to refinance. I have a friend going through this right now. They had a 2.5 interest rate and have to refinance to an 8 percent plus pull out equity to pay off the other person. Unless its an FHA and VA loan I think you can assume it.
You can gain equity in your home by making extra payments. Writ a separate check each month or quarter and write down post to principal. You will pay it off faster
@@irritatedkitty7301 it’s because the Fed had ten years of 0% interest rates. It was a huge mistake. That is why Powell raised the interest rates to 8% . Hopefully it works.
@@Ricocase usually with low interest rates the price of homes go higher. People think: oh I can manage the payment because of the low interest rate, not realizing they’re paying too much for the house. Ten years of low interest rates, thanks to the Fed created the four Five -six -seven -hundred thousand dollar homes. Meanwhile wages have not risen. Also the median wage is around 55,000 a year . The debt to loan ratio has always been at 30%. It’s now 72% The Fed created this mess. Powell is trying to fix it but people are going to get hurt.
let's not forget all of the new student loan payments adding to some people debt! And unfortunately mortgage loans were written to exclude these over the last few years
I've seen many people post Looking to buy a house on FB and even post their home on FB. Just pay a cheap fee to get the documents to sell your home online and then see an attorney to make sure everything is in order. I think it's criminal to pay 19K to realtors for selling my home. Maybe charge for the length of time it takes to sell the home or pay per showing. If real estate companies keep their listings off Zillow, etc, their showings will decrease for sure.
I would love to hear your thoughts on assumable loans! I’ve heard they’re gaining attraction again, and I’ve never heard of the concept up until recently. Love the content and I’m a big fan!
With a loan assumption you still have to qualify for the loan you are assuming. Loan assumptions aren't popular with sellers however because if the buyers defaults on the loan, the lender can go after the Seller (the original borrower). 😐
Sounds like a problem for people who over leveraged. If you live within your means then there's no reason to worry about high rates. As for sites like Zillow, they became freaking flippers. Driving up home prices in many areas all over the country.
Most home markets are still going up based on the HPI. I did a 0% down in 2014 when everyone was screaming at a second crash worse than in 2008. Still living there with no issues.
People are not "forced" to take on debt because of inflation. They are forced into debt to maintain their expensive lifestyles. I still see people spending wildly, going to Disney every year, strutting around with salon nails and hair, tattoos, expensive spa treatments, and $1000/mo payments on new cars. No one is "forced" to do these things. They are just greedy and selfish.
Yeah, I had to divorce my wife because her spending was out of control. I’m ready for the next economic downturn but my ex-wife will be out of money in three years.
You just said everything the system bring them to this. with all this internet bs and influencers. my wife goes to same shit I want to help her about it , and it’s not easy I was looking for some economy class or coach so she can improve more
The major difference between my generation and this younger generation is that when we were able to purchase a house, we did it with the intention to live in that home for the rest of our lives. The new generation treats home purchases like accessories that changes with fashion. This, I believe, is one reason our country as amassed so much debt. The “Live like a Rockefeller” effect.
When you were young you bought a home for your stay at home wife and 2.5 kids. You should see the 💩 🕳 we have to buy to start, I have to work 2 jobs, wife has to work 2 jobs, no benefits and can't afford kids.
I don't think if I was selling a house... and it didn't show up on zillow I would stay with that seller agent... I would go to an agent that got my listing everywhere or do it myself... The realtors monopoly on listing data is ending.
You may be right about restricted access to Zillow, etc, but with the technology today and the internet another company will provide a platform and undercut the MLS. Things are always evolving, just like no more ticket agents for the airlines etc.
Why don’t homeowners selling their homes, carry the interest, at 4 1/2 % interest, or 5 %? What do we need, the banks for, and their high interest? Jerry from Anaheim, California USA.❤
People want to look at the house. Realators are glorified door openers now. Someone needs to escort you through the house. Thats all they do. Most realators are idiots who know nothing about real estate other then how to fill out the paperwork and unlock the door for you.
@@rustyscrapper Before you go using the word idiot so loosely, expecting anyone to take your brilliance seriously, you might want to start using spellchecker. 😂 Realtor, not “realator” Other thAn not “other then”
Good for you lisa. I paid mine off in 2018 and was I ever shocked when I learned that paying off a home loan was a rarity. Most people keep refinancing and never pay it off. So congratulations 🎊🎉🎈 😊
How about retirees retiring with debt still on their house? Ridiculous. My Husband and I retired with just a small balance on our credit card. We could pay the balance off the next month. Two homes paid in full. Older car but maintenance will make it a 20 year plus car. People need to learn the difference between wants verses needs.
Yes. Good question. Where are they getting insurance 😩 😫 😕??? Florida is nice to look at,terrible place to invest these last years hurricanes. Floods.the Bible says it's the end of time. So pray folks,keep the ANTICHRIST out like DeSantis & Trump
I think you have it backwards. If the MLS yank their data. FSBO sales will go through the roof. As data sharing gets even easier all traditional middle men services will suffer.
A battle between the realtors and the public will not end well for the realtors. Revoking access to MLS will only expedite the demise of the realestate business as we know it as realtors will be forced to compete with their fees. Seems like the commission model will eventually be phased out to a service fee model.
Michael yes they will do what ever they can withholding info or what ever they can do. But just like the taxi companies who tried to keep technology and convenience out they lost big time and the apps won. Now if sellers know there is a larger then realtors buyers group throughout the market at a low commission price they will go to that. Remember realtors are not like car deals who have legally controlled the car market. Current apps that sell homes already exist and you know if theres a hole someone will fill it.
Don’t forget about mortgage insurance, on a FHA loan it NEVER goes away, even after you drop below 20%. If you have to get a FHA I would try to get yourself into a financial position so you can refi to a conventional loan.
I’m so glad that I got my house in order so many years ago. At this point I’m just saving my money and paying off debts so that I can take advantage of some awesome deals to come. Thank you Michael for sharing another great video today. Blessings, Carlos ✝️🙏❤️😊🇺🇸
"Waiting" isn't free. It's costing you 25k a year (on average) in rent, lost tax breaks , lost equity gains, lost principal reduction, etc. What- you didn't think of any of that ?
If you are financially stable you don't have to go backwards by refinancing a 3% loan with an 8%. That's just postponing bankruptcy in a very stupid way.
I’m not so sure you are right that the various realtor companies will revoke access to their MLS listings. Most obviously because their sellers will be adversely affected. As a fiduciary of your seller client, revoking MLS access would violate that responsibility.
Nobody wants to work 2 jobs but it is a better idea than refinancing to a higher rate mortgage. It doesn’t have to be forever unless you end up enjoying it. I do it from time to time and having extra money in my pocket always trumps the feeling of how am I going to pay my bills.
That makes sense. So instead of paying 20% on credit cards they us mortgage loan of 8% to consolidate. As long as you have debt you will never be free.
Great insight and notice to the public about MLS data exclusivity. I am 100% for pulling back our MLS data due to the undeserving and unappreciatvive buyers and sellers, let them scramble on their own in selling and buying, their greed will put them all in lawsuits against each other. So I can say how that feels, how much money you saved for selling and buying on your own. Or the attorneys they hired, taking them to the dumpsters. BTW, it is your problem for hiring unless realtors because you wanted discount agents. You got what you paid for. Professional realtors work hard and earn every dollar we charge. Be thankful and appreciative of professional realtors!
This brought to my mind when interest rates were dropping and banks were refusing to allow people to refinance their loans, claiming that the borrower didn't qualify either because they didn't have enough equity or whatever. It was ludicrous and did the banks' reputations no favors. And now, these same banks are allowing a refinance into a higher interest rate. I typically support banks and businesses, but not in this instance. Also, imho, it's financial suicide to refinance an existing 3% mortgage to 8%, these people's mortgage premiums will skyrocket. I feel so bad for these borrowers because you know they're just trying to hang on. And what if they lose their jobs or have other unexpected financial setbacks? They could well end up losing everything.
Why would any business refinance a loan it issued to a lower interest rate? Banks are not charities. There is risk involved in issuing a loan at a fixed rate, rates may go down in the future, in which case the bank wins, or it may go up, in which case the bank loses. It all averages out over time, and that is part of the risk calculation. The only time it is in the banks interest to refinance is when the rates go up, and so that is what they will do, just as any other business would do. Business is not charity.
Real estate agents do not offer nearly the value that they charge for. If the MLS system did monopolize the system, it should be replaced. The last thing we need right now is extra people in the home buying experience increasing costs for no value.
Effectively people have 13 years of their labor stolen. You don't have to do this guys there is a world out there you can move to. I'm happy that i moved to Japan 4 years ago the stress is all gone.
It's crazy how fast the big Citys grow and develope. If you haven't been in Miami for a few months and it changed a lot, Imagine coming back after 10 years! You wouldn't recognize the city again . But one good point ist that inventory goes Up and home prices are likely to fall 😅
Yes no joke. That's shocking to hear about that 8%, creative scamming unbelievable, sad,greetings. But I like zilliw,found good apartment house that way..in south orange
I remember being in miami back in 2006 so many building and skyscrapers and such going on and it all crashed to dust within 18 months.. it is kinda a true metric if you see.the massive amounts of new construction it's a sign it's all about to crash. .
I used to visit Miami every 2-3yrs until 2012. I was just there this last May. I swear thr whole area has 2x in size. My uncle was on the outskirts 4mi from Ocean. Now houses go 4mi past him!
I wisely chose to build my house without a mortgage back in 1966. However the problem is that property taxes have gone up 20,000% since then. Now the taxes exceed my annual Social Security income.
For a 3 year span its high. The current quarterly or monthly rate may be 5%, but everything costs over 100% more than it did just 3 years ago. So that's another 5% on top of the 100%. Wages can't keep up with that and people already stopped buying 80-100k trucks.
@@francismarion6400 : so what ? in 1980 interest rates were 17% and people were still buying and selling houses. Inflation is subject to many factors. I am not trying to troll you, but you seem to have no solutions for the audience you reach on youtube. So, by default it's just scattered information that is cyclical.
@Billy-eq6sc The difference is that in 1977 a $10k house didn't cost 100% more 3 years later, then 17% interest. Today, it's 8% (more than 200% increase) interest on a (105%) inflated house. Over 30 years the total spent on that house vs the same house 3 years ago is baffling. Someone do the math on that!
@@francismarion6400 : it's called economics based on a fiat currency vs. a gold back currency system. I am not going to school it for everyone here. Houses will never, ever have the same prices as they were 1977, never. and why are you talking about 1977 ? I do not remember the economy of 1977 being the subject matter. What I am trying to say is, no one needs to panic or compare the market years ago to buy a house or rental property. And, not to worry about inflation and just adapt. start reducing expenses and consolidate with others you trust to pool your money and buy a surplus of good and all the other things you need for a few years so you don't have to stress. This will all pass because the economy is cyclical. there will be good times and bad times. The economy will never be perfect all the time forever. It's better to live as life is and not as we wish it would be.
There is no bust in Florida real estate! To compare this market to 2008 is absurd. Building is booming on all levels from commercial to residential! Any every home that's completed has a new owner or renter!
This Housing market collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
I paid up all my mortgages in 2yrs while working with an asset manager. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the ladder at 40. I wish at 55 I will be testifying to similar success. How can I reach this manager of yours? because I'm seeking for a more effective approach on my savings
Rebecca Noblett Roberts is her name. She is regarded as a genius in her area and works for Empower Financial Services.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I had this exact conversation with my wife a few weeks ago. She was talking about refinancing to consolidate some bills from some unexpected medical expenses. I told her I’d rather we stick out dealing with those bills individually for a couple years, rather than spend the next 30 years paying more than double our current interest rate!
Wow your wife is a genius.
@@jeltoninc.8542 some people marry for nice cans, other for a good brain. the cans are fun for sure but putting up with dumb ideas may not be worth it.
As someone that was in personal finance, that's sound advice.
In this market, patience is key.
Real estate investors have been driving the market up.
I say, let them choke on their purchases and inflated market prices.
Every ten or so years the market changes.
If one can wait then wait it out and stash as much cash as one can.
@@rankat1841
The interest rates are controlled by the Federal Reserve. I'm all for holding companies accountable, but you guys always seem to misplace blame that should go mostly toward the Federal Reserve. Do you have any idea how much control they actually have? We, essentially, work for them. When you earn money, you earn something they entirely control. Entirely.
I believe medical debt is better than mortgage debt. There is little to no collateral on medical debt. The consequences of negotiating it are lower than other kinds of debt. Also there is a chance the debt is written off.
Talk to a professional in this area. A professional you can trust their evaluation. That rules out bankruptcy lawyers 😂
I did 95% of the work to find my home. Just needed the realtor to get into the home and present my offer!
Me too😁 And sending m eall the papers I need to sign.
Same here
My realtor didn't do anything and he also screwed me over. Useless. He was not the best negotiator at all and ruined my life in a way.
Go FSBO…all the paperwork is obtainable to do it yourself
I can't believe people treat their house like a bank for loans. What a streesful risk!
stay tuned it is going to get even better next year.
Agreed. Houses are being treated like an ATM.
My dad did this several times growing up. Now him and my mom are retired in their late 60s and owe 2x what they initially paid for the house :(
@@mrscassandrasolano Great comment hope you will be left with some kind of inheriting . Children are the ones that have to suck it up. Because of not-so-smart parents.
Also what you need to consider is doing a line of credit to invest.
I’m also a loan officer and I can confirm this is true. A majority of loans right now are for debt consolidation.
It really depends how people use it. I bought my 1st rental house in San Diego in June 2009 during crash with fixed 2.75. I have 550-600k on equity and I owe 50k. I missed out cash out refi last year because I was stationed overseas. I’m getting 2k cash flow on rent but the only way I will cash out refi if rates drop 5%. I have 850 credit so I can probably get 4%. If I cash out my tenant can still cover my new mortgage but I will lose my cash flow I can use the cash to buy multi family home or 2 single family house in Las Vegas or Henderson area which will give me 4-8k monthly cash flow. So basically I’m trading my 2k to 4-8k and the risk is low because I’m paying cash on the multi family home.
@House_hacker_619 the 30yr was 5% in 2009 🤡🤡🤡
@@House_hacker_619Okay Boomer
@@nastypiglosi1788 I TINK then 5% on CD but those Banks went Broke..🤗🤗🤗🤗🤗🤗🤗
2008 all over again.
My debt-to-income ratio was 30%. Mortgage went from having 28 years left to having 20. I sold my home and downsized. Even with high interest rates on mortgages, I was able to drop my home payment by $400. Our economy scares the hell out of me. I'd rather live in a much smaller home and be able to survive if not enjoy my life.
That fear is legitimate Jason, you'll see. As a mortgage broker I see what's happening every day right in front of my face. It's gonna be bad.
@@francisdecelle5341 what are you seeing? And do you think its more specific to certain region or do you see the bottom falling put across the entire US?
Unfortunately, in my area smaller homes are about as expensive as larger ones. When I see 900- 1300 sf homes on small lots going for $380k+ i just can't wrap my head around it. Mostly because just 3 years ago those same homes were valued at $120-$200K
Michael, anyone can take pictures of their own house and post it online. More people are selling their home on Market Place. Everyone is tired of realtors, and realtors did it to themselves.
Yup I see houses on fb all the time and many look very nice
I have bought and sold 7 properties in my life. 2 on my own, FSBO, one with a lame realtor and 4 with highly rated realtors. In my experience, a realtor with an excellent reputation and well networked is a win-win. Now I do think the commissions could be cut back on higher priced properties? Yes of course, but having knowledgeable representation in your corner is worth something.
@@Mac-x5ryes, so people bypassing a realtor, they will be targets for scammers. There are professional scammers out there who would be filtered out by a realtor. That’s why people trade in their old car to the dealer. It’s no longer safe to sell it privately, it’s a nightmare. But selling your own home will be smooth sailing? No way.
The cost of paying an agent is merely being passed on to the cost of the property. That’s fine if you don’t need help with the transaction but understand that the total cost of a transaction will NOT go down…
@@blackandgoldoneClosing costs, for instance, will remain the same. But you get to keep 6% from realtor fees. If you're selling your home for $300k, you get to keep $18k in realtor fees. That's huge!
We have been in our house from 20 years, though that was not the original plan. When we bought, our neighborhood was new and many of us were first time buyers. All of the wives wanted to stay and nest, all of the men said they would sell in five years…then the collapse of 2008 hit. That all changed and 20 years later, most of us are still here in those houses. We love it though!
Nothing wrong with that, why do people keep trading up to larger homes when what they have is fine?
That means you have a unique area where the kids have friends to play with, the neighbors know one another, and all of the kids will look back in great fondness about how awesome childhood was because they never changed school districts, and their friends were their neighbors.
My parents planned for the home I grew up in to be their starter home. They still live there, but many improvements have been made. I still love going home to visit and see how the house has advanced in my lifetime, and how my friends parents still live in their starter homes. Once the nest is empty, even the 'starter home' becomes big. In hind sight I recognize the better life we had vs. moving to bigger. On the flip side I wanted my house to be big enough so my parents could come visit as long as they wanted without feeling as though there wasn't enough separation/privacy. It's not always about square footage, but layout.
I don't think I can afford to move out from my current house 😅. The thought of having mortgages is a nightmare.Peace of mind is important. Unless the neighborhood goes bad, then I would probably move.
Imagine if the MLS board did start pulling everything off Zillow. Then Zillow comes out with a new system where Zillow becomes the buyer's agent and says OK buy a property that's listed on our website and we'll charge you 1% instead of the 6% you would pay your realtor. Same deal offered to sellers. Is there anyone who wouldn't prefer to cut realtors out? People have iphones they would probably take better photos than 90% of what's on zillow now. I dare them to try it. I think in truth these aggregator websites have already made realtors obsolete and we're just seeing the beginning stages of this industry transition.
Great Point
Theyve collected so much data via online last 20yrs. Zillow or Redfin can list any house with staged photos.
Agreed, bought in 2018 and I knew more about house, schools and other neighborhood details than my realtor. Definitely a rigged system. 3% fee may have been worth it in the past. But with house prices this high. The value a realtor brings is not really there. I think money better spent on a good inspector that has my interest, I would even happily pay a bonus to inspector if no surprise repairs were needed in the first year
But HOW are people going to know that Zillow is really working in their favor? A referral from a good friend telling you that their realtor got them a good deal would weigh more to me, than Zillow. Wasn’t Zillow the one who was taken to task a couple of years ago for inflating home prices or estimated rental income? Buying a house is serious business a person doing all their upfront research about buying a home is more valuable than just assuming a person or entity is working in your favor.
I agree if Zillow and Redfin act fast they might just pull off what Netflix did to blockbuster. It’s so clear to me Zillow could offer 1% listing and directly deal with the consumer and take all the market shares the MLS would be obsolete once the consumer realizes Zillow could cut fees down and streamline the home buying process. Zillow could make money on referrals on RE lawyer, lender, appraisers, inspectors,
This would happen because now buyers have to pay and the commission they want is so much!
My 3% mortgage is one factor that made me stop accruing on credit cards because there was no way we’d want to refinance as a way to get out from under the card debt. It forced me to become more responsible. Now I pay off my card balances every month.
Dude If I refinanced to 8% I couldn't afford my house.
My CC debt is like 200 a month VS paying an extra 500 just on the house before anything else
@@prettyboyjeremy Is $200 your minimum amount due?
@@tmusa2002 Yeap. This is the key question here. Does this amount represent minimum payment or expense that you incur on every single month when your credit card balance starts from $0?
@tmusa2002 Oh no it's like 65$ I just pay 200
I racked up all kinds of credit card debt because I thought I would be able to refinance in 2024. Oops ! 😂
Locked into 3.5%- one income family,
white knuckled it for 8 yrs, but never one missed/late payment.
Worked 6 days/week
Strict budget
Sacrificed much
Just thankful I have a roof!
Clean, quiet,safe, cozy.
It shouldn't be this difficult to simply have reliable shelter.
Our adulting children are very worried. They don't have hope for their future.
They should be smart like you and be just fine.
You sacrifice leisure now, for security later, your kids can do like you did.
Here's what they need to do. It's a pretty simple plan, no secrets.
1. Get educated/trained so they can expect a good salary. If you can't get a job that pays well, no matter what you do you won't be able to get ahead
2. Spend less than you make; budget; sacrifice if you have to; avoid unnecessary debt
3. Save a fixed amount (start with $50-100/mo) and put it into some kind of high yield account, or index fund,
4. Put money into 401k at work (at the minimum whatever the max contribution that gets matched) -- start early
I had NO idea about the sharing of the MLS data with Zillow, etc! When I bought my first home in 2012, my realtor signed me up for the MLS and I would get listings emailed to me everyday. When I bought my second house in 2022, I didn’t even look at the MLS, I used Zillow and Realtor and would contact my realtor with the houses I wanted to see!
Their time has come. Do we truly need a professional tour guide?
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.
Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds.
Stop with the spam!!!
@@HD-eu4en they’re all spambots, they do this on all the financial videos. Just chatting to each other about their fake financial gurus. 🙄
Having a 3% loan these days is like a gift from heaven, given the current market rates. I couldn't imagine swapping a 3% for an 8% rate simply to get cash out of the property because now whatever cash you got out is gonna have to be spent on the higher interest payments.
You can't imagine it because it's totally nonsense. Nobody is doing that.
3% mortgage is only good if the price of the home was reasonable. A lot of people’s mortgage are still unaffordable because they over paid and taxes and insurance has caused a lot of mortgage payments to become unaffordable. I would gladly take an 8% rate on a normal priced house.
If you refinanced your purchase before the pandemic and got a 3% rate, why would you settle for 8% rate?@@CraigC-h6b
If these people had any brains, they wouldn't be in trouble in the first place.
They ask the lender what he recommends.
Some people really do live in their houses for 20 or more years. It is called stability, and it is a pretty nice way to live.
Tell me youre a boomer without telling me you're a boomer.
@blissdad13 who cares if they’re a boomer
@@tiffanyjohnson9989 the new generation has their own ideas of how they want to live... and they don't care what boomers think.
It's called a 'forever' home. People tend to live in them until they die.
@@escah9150 once upon a time that was true.
Same at my office. People refinancing to roll in cars and credit cards. Seema insane to double interest rate to save $500 a month
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
There are advisors in cities around you but I needed services of one who can guide me irrespective of location. Christine Jane Mclean comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.
I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing
I'm only 6 minutes into your podcast so far. Very sad to hear people are refinancing to consolidate debt. This sounds dangerous and sad. They will have more debt!
Very few people are refinancing from 3 or 4% mortgages up to 8% to consolidate debt. Refinancing is at a 30 year low in 2023. Just because a few people tell the video maker that the "bulk of their business are consolidation refi's at 8%" doesn't mean there are a lot of these refi's happening. Sure it's their bulk because the refinance industry is completely dead
@@888strummer Excellent point.
@888strummer what would even be the point of refinancing?
lower payment to free up cash for other expenses@@oldsalt7621
@@oldsalt7621 It all comes down to their situation. If you have a mortgage with a balance of 100k and you have 80k ($2,600 minimum payment on consumer debt) in high interest credit card/personal loans (20-30%) going from a 2.5% to 6.5-9% on the mortgage is actually a good thing. Figure 20k closing costs the loan balance would be roughly 200K at 7.5% making a payment on a 30 year of $1,398. If the original purchase price was 250k at about 3% this would put them 21 years into their term and they would have a mortgage payment of $1,054. If you refi to the 7.5% your payment would be saving $2,256 ($1,054+$2,600-$1,398). If you're in a pinch an extra 2.2k in your pocket each month is very helpful. If you're not in a pinch its still worth doing but all you do is apply the savings to the principal balance of the loan. If you applied the full 2.2k savings each month your 30 year loan would now be paid off in under 6 years, shortening your term from where it was originally. Not only that but you now have tax advantaged interest because you can deduct 100% of mortgage interest up to a loan amount of $750k. It all comes down to your credit, current debts, equity, and income. As a licensed MLO I see these every day.
Wow. What he said about refinancing to a higher rate to pay off credit card debt was shocking.
No joke. I just had to chime in. I rote out another comment about credit card debt.
in thr uk we have 2 or 5 year fixed rate mortgages. No option for long term like the states.
@@serenitycoastUK what are homes selling for in the UK?
I thought so too. Heck, cut your spending way back. Sell those expensive cars.
Never ever put your home in jeopardy. Ever. I used to own a title company and we watched so many people lose everything.
What A crock of BS, you don't have to get a HELOC to pay UNSECURED debt, screw them. Pay your low percent mortgage payment and they can't touch you.
Once my Kids left the Nest, I sold the house, moved into a nice Downtown Apartment. Concierge Service, great Restaurants, Orchestra Hall, Theaters, 5 minute walk to Work.
I enjoyed having nice houses. Now I love not owning a house. My costs are similar, but I have no Management hassle.
Simplicity.
FYI, Pension Funds also hold huge chunks of REITS, Real Estate Investment Trusts. REITS, a great topic for Michael. I would do it but I'm a retired Boomer.
You sold your kids inheritance.
@@robbydash545 We need to make reverse Inheritance.
My Children are way better off than me. I'm quite happy about it. They are independently wealthy on their own.
I didn't think about that aspect either Michael. Thank you for bringing this subject up. CC debt at 25% plus is crazy!
When my dad purchased our childhood home back in 1990... he knocked on the door and spoke to the owner and made her an offer. He chose that house because it was the property directly behind his brother. So its definitely an uncommon scenario but again there was no middleman getting 6% off the top. In todays world or even before the "internet listing sights" properties were advertised in the local newspaper... realtors are and always have been useless. just like used car salesman
Especially with camera phones
They're useless and have a stranglehold on who can sell a house. I think it's easier to get a security clearance than a real estate license.
That was back in the day when the country was actually pretty decent. Now put up a property FSBO and every scammer/wholesaler/deadbeat in the world will be contacting you. The realtor deals with all that BS and funnels through that garbage.
Mine found loopholes in the paperwork that saved me 5k at closing
Smart people would meet in the middle on cost. The seller would make 3% more, and the buyer would save 3%. win, win
Refinancing from a 3% to an 8% is a dumb move. The best thing to do is the leave the loan and pay it. Some people know how to fumble the bag lol
That part of this video was a bit shocking!
I think if you had massive credit card debt at 20% rates, it might be a smarter move.
@@christinecortese9973those folks should've made better decisions.
If you have massive credit card debt and a big house payment you are in big trouble. Because housing prices very well might crash because of the high interest rates. You could find yourself under water. 2008 all over again.
@@christinecortese9973 The problem is that they start charging up their credit cards AGAIN. Rinse and repeat.
It's like the whole home buying cycle is based on FOMO. Fear of missing out on buying, not getting the best interest rates, buying too soon, buying too small, buying in a place that doesn't boom soon enough....missing out on that perfect gem of a home (even if it's a gem has weird neighbors, surprise increase in property taxes, and things going wrong unexpectedly). I read books like 30 Days to Overcome FOMO by Harper Daniels and Awareness by Anthony Demello to break that conditioning. It's ingrained in so many in the west.
Scarcity brain.
Thank you for the book recommendations. As someone who has always struggled with emotion regulation I’m constantly looking to improve my emotional fortitude. So the books are greatly appreciated. I started with Emotional Intelligence by Daniel Goleman. It’s a long read, a bit dry and if you’re even slightly hindered by wordy folks this book will be a struggle. However making it through that book is what streamlined my journey into emotional awareness and emotional development. Give it a try if you haven’t already.
A guy at work told me the other day he just closed on a house that’s close to the size of mine. Now his is just over 83k more and while he didn’t say his interest rate, he did say his monthly payment is almost $1300 more than mine!!! That made the hair on my neck jump……
Everything is fine in South Florida.. I just visited. Traffic was insane all day, all bars packed, all stores packed, airport packed, hotels packed. $400 a night in miami beach, $25 cocktails and $100 steaks and people are lining up to pay.
young millennials can afford to go on Vac. Us older folks are hurting. Many of us lost our businesses due to jabs
I wouldn't say Michael is a doomer but I've seen the same where I live. People are out spending money. Why is there such a disconnect from youtube to reality?
People are either in denial or oblivious.
@@serene889 Millennials and Zoomers going in to debt. Eventually, credit runs out and there is no more. That's what you're seeing.
@@youtoldharpotobeatme5023People may be in denial, but money is still being spent. The money is coming from somewhere.
Glad you mentioned the DTI part of financing. I am a lender and it seems all of my deals (all purchase, no refi) have extremely high DTI's. If buyers today are banking on refinances tomorrow, they need to stay away from opening up new credit otherwise, they won't be refinancing tomorrow.
As a former Loan Processor, I can remember when the threshold was 33-36% DTI. when those requirements were loosened, I saw a lot of issues and loans coming back as foreclosure because the reality was they could not afford the house.
@@Kuulei265 I could not get loans done if the DTI needed to be within 36%. I have a purchase right now at 56% on FHA. Great credit so I was still able to pull an approval
Do most of your borrowers have large debts?
@@adrianmechelle3784 Most do but it's not usually that bad. Just your average car payments and things
FL here - I went to the grocery store this week , and as I was leaving I saw a man with a huge cardboard sign and lots of writing. In large bold letters it said ‘Need money to pay rent’ . Sitting behind him in two camping chairs was what I presume was his wife and two kids (3&5 years old ). I felt so bad for him and his family.
I told my husband that I’d never seen anyone asking for money to pay Rent. Not even in 2008 . Food , yes , but not money specifically for rent.
My husband said it was a scam, and the guy was trying to elicit sympathy. I understand that a lot of times this sort of stuff is scamming, and there are programs to help with rent and utilities, but if it’s true , I feel bad for them .
It’s a scam.
They use kids for sympathy. He could be working. Showing your kids your a beggar is the worst example set
Just got back from the Philippines,, thay use there kid or grandkids to beg for money 💰 I don't give my money to nobody
Disgusting a "father" would use his children as props. He's exploiting his children probably for drugs or alcohol
@annjames1837 He probably rented the kids.
The realtor association is a syndicate. The law makers need to break up their monopoly on who is allowed to see what is for sale or rent.
I think that their lobby group is too strong. As I have posted before, when you ask them why buying and selling a house is such an odious process, real estate agents say it's because of the laws. But, these are laws that their lobbyist have pushed to get passed. A bit of circular logic and finger pointing.
If people simple listed their homes as for sale by owner with a catch that agents willing to negotiate a fair rate are encouraged to make contact might drive down ridiculous commissions.
If people simple listed their homes as for sale by owner with a catch that agents willing to negotiate a fair rate are encouraged to make contact might drive down ridiculous commissions.
@Erik-rp1hi. Anyone can see what is for sale and rent. That is the problem...with all this technology we have and buyer/seller know-how, there's no way realtors are worth 6% anymore. I vote for more flat rate companies to do real estate deals
@@shesmymamatrue, should be a cap and not a % anymore since prices are way different than it was before laws were made.
That guy is full off it. I’m a mortgage broker as well and a top producer. My refinance business is none existent. I closed one refinance the whole year. If people are struggling they dont qualify to refinance and put the property up for sale. I was averaging 10-15 loans a month the past few years and I’m down to 2-3 a month that are all purchases. No one is refinancing.
Refinancing one's home to pay off credit cards at a higher rate is absolutely insane. I owned a title company way back during the Refinancing boom and watched people still lose everything, while my company flourished. I actually felt badly about it.
Simple, just look at the layoffs at banks and mortgage companies, they are though the roof.
My wife works at a small credit union. She told me they laid off a large portion of their loan origination team.
Thank you for the message, it was nice around the water and dock.. I could smell the salty water. I ditched the realtor and found my place a decade ago in Zillow, but this year I tried to use Zillow and noticed that a realtor is needed in order to see a place.
"The only winning move is not to play" = F the Housing Market, Banks, prices need to come down, let it collapse. Travel Live abroad.
This is what is disingenuous about the United States about “growth”. The government disconnects their touted “growth” from inflation causing higher prices (especially food right now) which causes those without greater income to go into debt.
U.S. growth is Americans going into debt to pay inflated prices. That’s all our growth is, and we will see that with folding businesses and empty commercial real estate.
Love your content Michael, telling it like it is❣️
We also see it in a surging jobs market…it ain’t all gloom and doom nationwide
I've been saying it for years. I was taught in high school all of the great things about inflation and how it's needed. I still see no positives with inflation. As inflation goes up, spendable income goes down. We move up tax brackets with the added income, our income doesn't match inflation (even if it did, the cost of goods also goes up, and we are left with less buying power). The fact that the government will force an increase in inflation if it's too low is ridiculous.
Inflation is basically just a fancy way of saying that the value of your dollar is going down. Any money in your wallet/safe, bank, is all worth less.
I purchased my home at 2.75% two yrs ago with the full understanding that I would never be able to refinance if I wanted or needed to extract some equity. It's a ridiculously great rate but oddly it also closes some doors. Weird how that happens.
They will continue till no one but Blackrock has a house.
If realtors revoked their sharing of listings all zillow would do is offer sellers a listing platform for $49.99
Because all the esisting FSBO sites are all so popular, you think more will make a difference?
You’re absolutely right people that are refinancing out of their 3% and into the 8% is because they want to consolidate their credit card debt. The main reason for that is that when people bought their houses they also bought new cars. new car payments are the killer right in peoples finances. Car payments are destroying peoples lives right now financially.
Not always the case, the case is the cost of living is sky high and companies are laying people off, to save their home they have to file for homeowner assistance, which they force you to refinance, add extra years to your mortgage to keep the payment low and save the home
Bought my house, 4/3 pool home, where I still live in the Tampa, FL area with cash in 1997. In the process of buying 5 acres of mountain land, next to another family member, in the mountains of SC. Will be building a 1 level home with walk-out basement in the near future. Plan to virtually downsize at this point in life. Wife is younger and will live much longer than me near other family members nearby. Getting out of Florida will be a blessing.
I can’t figure out how Miami rents got so high. One bedroom apartments are going for $3k plus, two-bedroom for $4k, three for $5k. That is NYC-level rents. Noxious fees are pretty common too.
Mike, Glad you mentioned amortorization. Not until your 23rd year of payments does half your payment goe to primcipal. Thats right half!!!
The bamk always gets paid first, and your not paying off your house till the last 7 years.
Many Credit Card companies will cut cc limits in times like this. When that happens, it causes the Credit ratio to be thrown off and Credit scores drop. It's about to get crazy out here!
More cards $5K works BUT always ZERO Balance..🤑🤑🤑
Coming from New Zealand I have never understood having a buyers agent. Over here all our properties are listed on a site like Zillow. They get paid by the agent to list and people search for want they. A sole agent working for the seller will show you multiple properties.
Wow refinancing from 3 percent to 8 percent is crazy... People just need to stop spending and splurging... Eat at home... Don't pay $20 for a big Mac, etc ... Hold off on Big ticket purchases like a new 50 inch flat screen TV, new cars, etc and take the scissors to all the credit cards..😜👍
Yes but it's not just about cutting back. Everything costs so much more!
Everyone needs to watch and learn, we must not jump in the worst direction
Wow, so the people who are selling today are tripling their money in 3 years, and the people who are buying today are underwater for more than a decade. F’en great!
You one smart dogg
Every time I tell an agent what I'm Looking for , i get crazy stuff. Nothing at all what I'm looking for. I want older home not over 1970 , couple acres no open concept hopefully on that hasn't had remodeling done. Thats it. I get new construction, mobile homes, empty lots. To be honest with you, I'd like to see more homeowners financing and selling there homes without banks or real estate agents. When we sell our property thats what we are going to do. Lots of happiness for you and your family
They throw something at you, and hope it sticks.
It can depend on the agent, or it can depend on your budget. Some clients have unrealistic expectations. While some agents are money hungry & don’t care. But not all agents are like that. Ask the right questions, find out how many years experience they have, ask what their communication style is, & set your standards up front as well. Don’t pick your agent out of a hat, then knock all agents. It sounds like a lot of people are jealous, TBH. They watch “million dollar listing” shows & resent Agents like we’re just rolling in 💰 💰 doing nothing.
Unfortunately this isn’t possible for everyone
Also, I’ve noticed an uptick in people living out of modified camper vans around here . Usually, elderly, and sometimes younger people ( in their 20’s )
It was a fashion trend during Covid that goes by the appellation: van-life. I think there's an eponymous documentary. Kids are running around in converted vans and vlogging on youtube about their experience.
I bought a camper van 🚐 shortly after retiring. I have three rentals and one is in Bend Oregon. I stay in the van when I’m at the house doing yard maintenance.
There was a school bus that parked in home Depot where I live that was used that way until Home Depot ran them off recently.
So happy I use the Dave Ramsey method and owe nothing on anything
It's true. I talked to a distressed homeowner yesterday with a defaulted VA loan of 120K who is trying to refinance to grab 180K in pandemic equity. So make it rain, spend that cash (hopefully to pay off debt but maybe not), and then next year out they go and the house is back on the schedule for auction. The party is raging hardest right before the cops show up.
Really enjoy our guest who hits the ground running and delivers important content. Glad I found this vlog.
Well, we really have done it to ourselves though haven’t we? I remember when 12% mortgages were the norm, and if you were lucky enough to get a 8 1/2 or 9% mortgage somehow you were bragging and felt like you were luckiest person in the world. But for many people, then, they settled for smaller homes with less in them on smaller lots. They didn’t expect the latest and greatest of everything in their homes, and didn’t expect wonderful beautiful state of the art places to live in. Due to this whole mess and greed, even modest residences cost a fortune it seems. People also planned for rainy days, and understood what goes up goes down, we’re far too reckless in society today and expect way too much. It always catches up with you. None of this quite frankly is surprising, most people have been predicting it for several years now. I guess we never learn
Twelve percent interest rates back in the late 70's and early 80's? But then again, didn't banks pay higher and compound daily interest on savings accounts?
I think these market crashes and homes prices are tied to when the most workers are about to retire. Not the exact year but close enough. Everybody thought Jamie Dimon was the hottest thing around back in the day. It was really Alan Greenspan who made the economy great. Historical growth. Now, it's a hysterical economy. To good times again 🍾 🥂.
Hopefully, sooner than later.
Alan Greenspan made the economy great? Didn’t the market crash of 2008 happen on his watch? 😮
So true!
12% interest on a nice 3500 square foot split level, Brady Bunch home that cost $40,000 is a lot different than todays 1200 sq ft vinyl siding BOX at 8% that costs $280 grand.
The problem is that housing prices and interest rates are connected, so the long period of low interest rates has resulted in housing prices being much higher. The problem happens when interest rates go back up again, the big mortgages which people could afford at low interest rates, driving prices up, are no longer affordable.
People like to blame high housing prices on foreigners, it is the Chinese or whatever the latest bogeyman is, but in reality the rapid increase in housing prices is being driven by low interest rates that allow people access to larger loans which are used to compete for limited housing starts. Most of these people are trapped in their homes now. They will not be able to afford selling and buying a new home somewhere else.
You generated some great commotion today with your buyer's agent stance. I think that the writing is on the wall now since the recent real estate lawsuit. Just like how technology has changed the landscape of manufacturing, communications, and retail, it is about to change the business model of real estate. There is too much money involved in real estate and I'm surprised it's taking this long. Look at how Amazon has changed retail. I personally do not need a buyer's agent and would rather buy a home from "Amazon Realty" if it existed and could save me some bucks. And if you think that the Realtor association can simply snub out the competition, they will be hammered with antitrust lawsuits. Due to the nature of real estate, you will always need "boots on the ground" so to speak, but things are going to change.
Wow...raw, salient points have been developed on this forum today.
Also, in divorce, to get the other person off the mortgage you have to refinance. I have a friend going through this right now. They had a 2.5 interest rate and have to refinance to an 8 percent plus pull out equity to pay off the other person. Unless its an FHA and VA loan I think you can assume it.
You can gain equity in your home by making extra payments. Writ a separate check each month or quarter and write down post to principal.
You will pay it off faster
Agree. Interest plus principal, plus one month principle each month. But everything is more expensive. Terrible economy!!!
@@irritatedkitty7301 it’s because the Fed had ten years of 0% interest rates. It was a huge mistake. That is why Powell raised the interest rates to 8% .
Hopefully it works.
Makes no sense to pay off low rates early with inflated dollars.
@@Ricocase usually with low interest rates the price of homes go higher. People think: oh I can manage the payment because of the low interest rate, not realizing they’re paying too much for the house.
Ten years of low interest rates, thanks to the Fed created the four Five -six -seven -hundred thousand dollar homes.
Meanwhile wages have not risen.
Also the median wage is around 55,000 a year .
The debt to loan ratio has always been at 30%. It’s now 72%
The Fed created this mess. Powell is trying to fix it but people are going to get hurt.
let's not forget all of the new student loan payments adding to some people debt! And unfortunately mortgage loans were written to exclude these over the last few years
No, they were not.
Literally the opposite of that. 🙄
I've seen many people post Looking to buy a house on FB and even post their home on FB. Just pay a cheap fee to get the documents to sell your home online and then see an attorney to make sure everything is in order. I think it's criminal to pay 19K to realtors for selling my home. Maybe charge for the length of time it takes to sell the home or pay per showing. If real estate companies keep their listings off Zillow, etc, their showings will decrease for sure.
100%. People will just find a way around it.
Apparently no showing happened before Zillow huh?
I would love to hear your thoughts on assumable loans! I’ve heard they’re gaining attraction again, and I’ve never heard of the concept up until recently. Love the content and I’m a big fan!
you got cash you can assume.
@@sandblast5636 that’s one aspect of it, yes.
@@sandblast5636that isn’t an assumable loan
With a loan assumption you still have to qualify for the loan you are assuming. Loan assumptions aren't popular with sellers however because if the buyers defaults on the loan, the lender can go after the Seller (the original borrower). 😐
Sounds like a problem for people who over leveraged. If you live within your means then there's no reason to worry about high rates. As for sites like Zillow, they became freaking flippers. Driving up home prices in many areas all over the country.
Reckless buyers drive up home prices.
Most home markets are still going up based on the HPI. I did a 0% down in 2014 when everyone was screaming at a second crash worse than in 2008. Still living there with no issues.
People are not "forced" to take on debt because of inflation. They are forced into debt to maintain their expensive lifestyles. I still see people spending wildly, going to Disney every year, strutting around with salon nails and hair, tattoos, expensive spa treatments, and $1000/mo payments on new cars. No one is "forced" to do these things. They are just greedy and selfish.
You just said the truth few will recognize or admit 👍
Not true
Yeah, I had to divorce my wife because her spending was out of control. I’m ready for the next economic downturn but my ex-wife will be out of money in three years.
You just said everything the system bring them to this. with all this internet bs and influencers. my wife goes to same shit I want to help her about it , and it’s not easy I was looking for some economy class or coach so she can improve more
@@Mike-qc8xdHow so?
MLS listing will likely paid to view. So anyone can view so long as you paid the monthly fee.
The major difference between my generation and this younger generation is that when we were able to purchase a house, we did it with the intention to live in that home for the rest of our lives. The new generation treats home purchases like accessories that changes with fashion. This, I believe, is one reason our country as amassed so much debt. The “Live like a Rockefeller” effect.
Good point like house flippers too
Nah avg length of ownership has only changed marginally
I've owned several of my vehicles longer than this younger generation will own same house.
@@BruceLee-xn3nn how many jobs you had in your neighborhood too? The world is a bigger place today than 20 years ago
When you were young you bought a home for your stay at home wife and 2.5 kids. You should see the 💩 🕳 we have to buy to start, I have to work 2 jobs, wife has to work 2 jobs, no benefits and can't afford kids.
I don't think if I was selling a house... and it didn't show up on zillow I would stay with that seller agent... I would go to an agent that got my listing everywhere or do it myself... The realtors monopoly on listing data is ending.
You may be right about restricted access to Zillow, etc, but with the technology today and the internet another company will provide a platform and undercut the MLS. Things are always evolving, just like no more ticket agents for the airlines etc.
Why don’t homeowners selling their homes, carry the interest, at 4 1/2 % interest, or 5 %? What do we need, the banks for, and their high interest? Jerry from Anaheim, California USA.❤
When selling my home, the agent uploaded the listing herself to Zillow, Redfin, etc. it did not come from the mls according to her
Not true. She inputs it into MLS, then MLS syndicates the listing data to multiple websites, including Zillow, etc.
RE market needs to be revised into a a RE exchange where sellers and buyers post their bid to " sell or buy" on a open exchange " replacing the MLS..
Yes, let the bidding be public! None of this behind closed doors “highest and best” BS!
As a realtor, even I LOATHE those secret “highest & best” scams! I wish it would be banned & criminalized.
It is criminal. How do you know anybody was even gonna put an offer in on the house??
People want to look at the house. Realators are glorified door openers now. Someone needs to escort you through the house.
Thats all they do. Most realators are idiots who know nothing about real estate other then how to fill out the paperwork and unlock the door for you.
@@rustyscrapper Before you go using the word idiot so loosely, expecting anyone to take your brilliance seriously, you might want to start using spellchecker. 😂
Realtor, not “realator”
Other thAn not “other then”
Just paid mine off.
I had a 4.5% 15 year from 2018
It was paid for in 2016, but divorce forced me to buy it back
Good for you lisa. I paid mine off in 2018 and was I ever shocked when I learned that paying off a home loan was a rarity. Most people keep refinancing and never pay it off.
So congratulations 🎊🎉🎈 😊
good for you.All the best.
How about retirees retiring with debt still on their house? Ridiculous. My Husband and I retired with just a small balance on our credit card. We could pay the balance off the next month. Two homes paid in full. Older car but maintenance will make it a 20 year plus car. People need to learn the difference between wants verses needs.
We live in a grass is always greener on the other side America
@Michael.....did you see the size of that iguana on the right side of you walking in the grass at 01:27 ? that thing is huge!
for months you talked about the insurance problems so what happened if there is new buildings going up where will they get insurance from?
Yes. Good question. Where are they getting insurance 😩 😫 😕??? Florida is nice to look at,terrible place to invest these last years hurricanes. Floods.the Bible says it's the end of time. So pray folks,keep the ANTICHRIST out like DeSantis & Trump
I think you have it backwards. If the MLS yank their data. FSBO sales will go through the roof. As data sharing gets even easier all traditional middle men services will suffer.
A battle between the realtors and the public will not end well for the realtors. Revoking access to MLS will only expedite the demise of the realestate business as we know it as realtors will be forced to compete with their fees. Seems like the commission model will eventually be phased out to a service fee model.
You hit the nail on the head with the "For sale by owner" sites. If Zillow and the like die, someone will fill the void without realtors.
Michael yes they will do what ever they can withholding info or what ever they can do. But just like the taxi companies who tried to keep technology and convenience out they lost big time and the apps won. Now if sellers know there is a larger then realtors buyers group throughout the market at a low commission price they will go to that. Remember realtors are not like car deals who have legally controlled the car market. Current apps that sell homes already exist and you know if theres a hole someone will fill it.
Don’t forget about mortgage insurance, on a FHA loan it NEVER goes away, even after you drop below 20%. If you have to get a FHA I would try to get yourself into a financial position so you can refi to a conventional loan.
I’m so glad that I got my house in order so many years ago. At this point I’m just saving my money and paying off debts so that I can take advantage of some awesome deals to come. Thank you Michael for sharing another great video today. Blessings, Carlos ✝️🙏❤️😊🇺🇸
I’m pulling in 37k per month. Not to bad
@@kernelkorn6545What's your secret? 😂
"Waiting" isn't free. It's costing you 25k a year (on average) in rent, lost tax breaks , lost equity gains, lost principal reduction, etc.
What- you didn't think of any of that ?
@kernelkorn6545 So? A rookie in the NFL pulls in 62k per month.
@@kernelkorn6545 I'm pulling in 129 k month not bad
If you are financially stable you don't have to go backwards by refinancing a 3% loan with an 8%. That's just postponing bankruptcy in a very stupid way.
Which is why nobody is doing that.
I’m not so sure you are right that the various realtor companies will revoke access to their MLS listings. Most obviously because their sellers will be adversely affected. As a fiduciary of your seller client, revoking MLS access would violate that responsibility.
When homeowners are forced to refi at 8% then ALL OF SUDDEN prices are too high. Lol
Refinancing to "get out of dept" will achieve nothing but collapse.
Nobody wants to work 2 jobs but it is a better idea than refinancing to a higher rate mortgage. It doesn’t have to be forever unless you end up enjoying it. I do it from time to time and having extra money in my pocket always trumps the feeling of how am I going to pay my bills.
That makes sense. So instead of paying 20% on credit cards they us mortgage loan of 8% to consolidate. As long as you have debt you will never be free.
And when you pay it off, property tax ensures you will still never be free.
People can just list thier homes on a public website. Or a site that charges 1% or less from sales to pay for upkeep. Easy fix.
Great insight and notice to the public about MLS data exclusivity. I am 100% for pulling back our MLS data due to the undeserving and unappreciatvive buyers and sellers, let them scramble on their own in selling and buying, their greed will put them all in lawsuits against each other. So I can say how that feels, how much money you saved for selling and buying on your own. Or the attorneys they hired, taking them to the dumpsters. BTW, it is your problem for hiring unless realtors because you wanted discount agents. You got what you paid for. Professional realtors work hard and earn every dollar we charge. Be thankful and appreciative of professional realtors!
Would like to know what more do you need other then a inspection(s) of the buyers chooseing and a bonded title?
This brought to my mind when interest rates were dropping and banks were refusing to allow people to refinance their loans, claiming that the borrower didn't qualify either because they didn't have enough equity or whatever. It was ludicrous and did the banks' reputations no favors. And now, these same banks are allowing a refinance into a higher interest rate. I typically support banks and businesses, but not in this instance. Also, imho, it's financial suicide to refinance an existing 3% mortgage to 8%, these people's mortgage premiums will skyrocket. I feel so bad for these borrowers because you know they're just trying to hang on. And what if they lose their jobs or have other unexpected financial setbacks? They could well end up losing everything.
Why would any business refinance a loan it issued to a lower interest rate? Banks are not charities. There is risk involved in issuing a loan at a fixed rate, rates may go down in the future, in which case the bank wins, or it may go up, in which case the bank loses. It all averages out over time, and that is part of the risk calculation.
The only time it is in the banks interest to refinance is when the rates go up, and so that is what they will do, just as any other business would do. Business is not charity.
Real estate agents do not offer nearly the value that they charge for. If the MLS system did monopolize the system, it should be replaced. The last thing we need right now is extra people in the home buying experience increasing costs for no value.
Great video and important information. I also loved seeing the iguanas near the water (smile).
jay pow did not raise interest rate to a level we expected. House prices will continue to increase.
Just like they have been.
😢😢OMG. People are living way above what they can afford.
Effectively people have 13 years of their labor stolen. You don't have to do this guys there is a world out there you can move to. I'm happy that i moved to Japan 4 years ago the stress is all gone.
Japan ain't cheap either
@@Alongebaby 8 million empty houses here says otherwise.
Japan has been staving off hyperinflation for the last decade. It’s overdue
Japan has one of the worst debt to GDP ratios. Good luck!
The people and culture of Japan are incredible. I see you even grow your own rice!
One of your best here Michael 👍
It's crazy how fast the big Citys grow and develope. If you haven't been in Miami for a few months and it changed a lot, Imagine coming back after 10 years! You wouldn't recognize the city again .
But one good point ist that inventory goes Up and home prices are likely to fall 😅
Yes no joke. That's shocking to hear about that 8%, creative scamming unbelievable, sad,greetings. But I like zilliw,found good apartment house that way..in south orange
In 10 years? It'll be decay, and ruin. The American Empire is over.
How the government force these micro hotels into MICRO APTS AFFORDABLE, BUT THEY USING THEM TO HOUSE MIGRANTS,THROWING CITIZENS OUT!!!???
I remember being in miami back in 2006 so many building and skyscrapers and such going on and it all crashed to dust within 18 months.. it is kinda a true metric if you see.the massive amounts of new construction it's a sign it's all about to crash.
.
I used to visit Miami every 2-3yrs until 2012. I was just there this last May. I swear thr whole area has 2x in size. My uncle was on the outskirts 4mi from Ocean. Now houses go 4mi past him!
Yep, the most cranes in the sky ever where im at. They got all their funding at the peak and now ready to build
That refinancing sounds like you're going down to the neighborhood loanshark?😂
I wisely chose to build my house without a mortgage back in 1966. However the problem is that property taxes have gone up 20,000% since then. Now the taxes exceed my annual Social Security income.
Interest rates are NOT record high. They are still at record low.
Good point. It was those great low rates that people took advantage of that make 7 seem super high.
For a 3 year span its high. The current quarterly or monthly rate may be 5%, but everything costs over 100% more than it did just 3 years ago. So that's another 5% on top of the 100%. Wages can't keep up with that and people already stopped buying 80-100k trucks.
@@francismarion6400 : so what ? in 1980 interest rates were 17% and people were still buying and selling houses. Inflation is subject to many factors. I am not trying to troll you, but you seem to have no solutions for the audience you reach on youtube. So, by default it's just scattered information that is cyclical.
@Billy-eq6sc The difference is that in 1977 a $10k house didn't cost 100% more 3 years later, then 17% interest. Today, it's 8% (more than 200% increase) interest on a (105%) inflated house. Over 30 years the total spent on that house vs the same house 3 years ago is baffling. Someone do the math on that!
@@francismarion6400 : it's called economics based on a fiat currency vs. a gold back currency system. I am not going to school it for everyone here. Houses will never, ever have the same prices as they were 1977, never. and why are you talking about 1977 ? I do not remember the economy of 1977 being the subject matter. What I am trying to say is, no one needs to panic or compare the market years ago to buy a house or rental property. And, not to worry about inflation and just adapt. start reducing expenses and consolidate with others you trust to pool your money and buy a surplus of good and all the other things you need for a few years so you don't have to stress. This will all pass because the economy is cyclical. there will be good times and bad times. The economy will never be perfect all the time forever. It's better to live as life is and not as we wish it would be.
There is no bust in Florida real estate! To compare this market to 2008 is absurd. Building is booming on all levels from commercial to residential! Any every home that's completed has a new owner or renter!
This is scary 😢. I am not rich but i have no debts. Thank God in Heaven!
Then you ARE rich.