if Home Prices Collapse, no REFINANCE!

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A young couple purchasing their first home were told by their Mortgage Broker to "Rent the Rate and Buy the House". This is a strategy to refinance when the rates come down as they historically do when the US enters a recession. However, just as is happening RIGHT NOW in the Commercial Space, housing values may fall. If the values fall, then the Loan-to-value ratio for refinance may be way below the Mortgage loan. In other words, the buyers will be substantially underwater.
My Timing model is a Real Estate Cycle Timing model indicating what to expect.
These cycles repeat over and over again on a fairly regular basis.
Those that buy too late in the Cycle risk taking major losses as the Historic Bubble deflates.
Please call for an appointment to discuss your situation, your goals, your retirement cash flow needs.
For all segments of Real Estate. Most are focusing on Housing, which is also set to complete, but evidence that the Cycle is completing is centered in the Commercial Real Estate space.
I am encouraging Investors in Endangered Cities to move their investments to better markets via an IRC 1031 Tax deferred exchange. This is very inexpensive and does not trigger a tax implication.
Schedule an appointment to review your situation.
Let's get ready to invest when the time is right. Contact me to schedule an appointment.
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[@johnray3069]

Just follow the bond market- not hard

[@michaeldouville690]

Thank you for your comments. The fallacy resides in the expense of refinance plus the assumption that home prices will not retrace. Leave Hope next to Luck by the door! Michael Douville

[@cmeola1066]

I had just gotten maried in September of 2007 and my wife and I excitedly bought the house we still live in with out three kids in November of 2007. By June of 2008 my portfolio had gotten blown up because I thought the banks were a safe place to be because if they go, we all go. Since then I've listened to and read 10K plus hours of financial information. I wish more people took understanding finance and how money works seriously. I firmly believe when the bubble is simply too big to pump there will be lots of tears

[@michaeldouville690]

Thank you for your very thoughtful comment. If the time horizon is 10 years and beyond, buyers are probably fine. However, as you and I know, first time buyers rarely stay 10 years! Those that were hurt during the Real Estate Collapse took a decade to recover and severely retarded their Wealth Creation. I hear "No one can time the Market"; it does not take genius to realize not to BUY AT THE TOP! Michael Douville