Purchased a home back in 2021 based on a video you did. Prices were high and everyone was assuming everything will eventually go down which wasn't the case. I purchased my home for 360k with a 2.65 APR (with buy down). With the currently interest rates now I would not be able to afford the home I'm in now. Javier, your advice is why I have a roof over my head and I will be forever grateful. Thanks and God bless 🙏.
@waterbug11354 ай бұрын
Happy for you. However, this very popular social media thing of saying "I could not afford my home today" is generally pretty misleading. Yes 2.65% is a low rate and your house is worth maybe $500k today. So the social media math is $500k at 7.5% = $3496/mo payment which I assume you think you cannot afford. Assuming 20% down your current payment is $1161/mo. You now are $140k richer because of your home equity. So if you were to sell and buy another $500k house, moving all equity into the new house, you'd have a $288k mortgage again but now at 7.5% which is $2104/mo. So yeah $943/mo more. Not as scary though as $3496-1161= $2335 more per month. But hopefully your income has also increased the average amount in 2021-2031. Assuming you had an income of $50k in 2021 (min needed to get the mortgage) you would now be earning $778 more per month. So the additional net amount to buy today for you would be $165/mo. OK, I can see it's possible $165 throws a person over the edge, but seems doubtful. My guess is you actually could afford to buy your house today even though that doesn't sound as sexy in social media. It's become very popular for people to say "unaffordable" but this is purely a social media game. Surveys show this. While people say "people" can't afford houses, food, cars, everything... they also say they're in good shape. Thanks to social media most people think everyone else is struggling. That's what they heard, so that's what they think. But they can see the reality of their own finances and they're in good shape. No one can afford a house today... yet houses are selling pretty quickly and prices have been increasing a bit. So who's buying these houses? I assume "people". It's a weird world.
@ryanpeterson95344 ай бұрын
@@waterbug1135yeah but he’s saying if he waited he wouldn’t be able to afford today. So he wouldn’t have an extra 140k equity in a house he never bought.
@raynoldgrey4 ай бұрын
Because so many people overpaid for homes during a period when interest rates were low, I believe there will be a housing crisis because these people are in debt. If housing prices continue to fall and, for whatever reason, they can no longer afford the house and it goes into foreclosure, they will have no equity because they will not make any money if they sell. I feel that many people will be affected by this, especially given the predicted mass layoffs and fast rising living costs.
@danieljackson874 ай бұрын
You are correct. With the help of an investing coach, I was able to diversify my 450K portfolio across markets, and I was able to create a little over $830K in net profit by using high dividend yield stocks, ETFs, and bonds.
@andrewlogan77374 ай бұрын
@@danieljackson87 That is just amazing! Could you please tell me about your Certified Financial Planner (CFP)? This year, I'm considering some financial changes.
@danieljackson874 ай бұрын
It was run by Sharon Ann Meny, whom I found about and contacted through a CNBC interview. It has since acted as a point of entry and departure for the games we have highlighted. If tracking is required, an internet search can be performed.
@mikeharry964 ай бұрын
@@danieljackson87 I simply typed Sharon's whole name into my browser, and her website appeared immediately. You've spared me several hours of tedious research, so thank you.
@CraigC-h6b4 ай бұрын
When the music stops a lot of people will be holding the bag and underwater in their homes.
@patmagic33014 ай бұрын
I think you may have missed one step in the line of who gets paid first, but let’s do another calculation real quick. 6% of $400,000 is $24,000. That’s what the general commission a realtor was paid prior to the NAR settlement. They’re the snakes you step on before the bear hears you scream and you run into the cactus 😅. Consumers should always negotiate the commissions first as a measure cost savings at the beginning of the home buying process. Furthermore, in my experience the “Don’t worry about the rate, you can always refinance when rates drop” is a realtor line. Save as much as you can folks, start right at the beginning 👍
@kimmypee48134 ай бұрын
For someone who bought at 7.25 interest rate… I can tell you it’s not worth it
@MiguelAngel-tc6ht4 ай бұрын
9.1 interest here 20 years loan😬
@elperrocovero4 ай бұрын
@@MiguelAngel-tc6htis a cheaper to rent or buy ?
@MiguelAngel-tc6ht4 ай бұрын
@@elperrocovero about even where im from - Tijuana, Baja California, Mexico
@yomoma61414 ай бұрын
@@elperrocovero Figure it out
@alexxx70664 ай бұрын
@@elperrocoveroyour probably a first generation "American" with immigrant parents? If so good luck owning because were you live is probably a immigrant filled city or state 😂 illegal/legal immigration is never going to end and internal "white" immigration isnt either.
@86Framer4 ай бұрын
I really dislike the “marry the house and date the rate” line. It not always possible to refinance and I’ve also heard that it can cost thousands of dollars to refinance. I’m glad that you focus on buying below your means, which makes it a lot easier to hammer away at the principal.
@leri33654 ай бұрын
FHA streamline is basically free.
@SlimSevernick4 ай бұрын
yep. can't refinance everytime rates drop because of the refinance cost. need to calculate how much I can save every month by refinancing, and how long it will take to break even the refinance cost. and go ahead refinance when we think it makes sense.
@coloradobrad67794 ай бұрын
Ikr, if someone loses their job or other major life problem, good luck getting a re-fi.
@getinthespace77154 ай бұрын
That's something idiots say. No guarantee you will be able to refinance. If the market crashes and interest rates drop you'll likely be underwater in a new mortgage and not able to refinance.
@ronijr49184 ай бұрын
Javier I would like to say I'm one of those people with a 7% rate HOWEVER I've also been taught buy when you can afford it no matter what. So I'm very blessed and fortunate to comfortably afford my mortgage. Don't buy when people say to buy, buy it when your life can afford it.
@rasheedgilmer22924 ай бұрын
Bought my home in in Feb 2021 after having an offer accepted December 30, 2020. Bought house for $215k (and even got 3% back at closing, so closer to $209k in real money.) Locked in 2.875% interest rate. Put 5% down. House was appraised at $237k at closing. Had pmi of $99 a month starting off. Just got house reappraised. $330k. Removed PMI early. Didnt make a single update besides a few minor repairs moving in Probably never going to sell this home, even if I moved. Got enough equity cushion where even if there is a recession, I'll never be underwater on my house as long as I dont take out more debt. Your channel helped me big time back in 2020.
@natefreeman14664 ай бұрын
What’s wild is I’m an engineer making six figures and I wouldn’t even qualify for the 2 bed/2 bath house I rent right now unless I put a significant down payment. And even with my wife and I both working (engineer and lawyer) we barely qualify for and could afford average homes in our neighborhood with no debt and a high credit score.
@tazhossain85584 ай бұрын
Kind of in a same boat .
@heathernevill24054 ай бұрын
Same here
@fearlessreview4 ай бұрын
Move man, save up, then go back if you miss it
@anonyghost74224 ай бұрын
Here here! This boat sucks but save until things crash and those who prepared can capitalize! Best of luck
@natefreeman14664 ай бұрын
@@fearlessreview the neighborhood we’re in is nice and good in terms age and in relation to our work so we’re willing to save up and wait it out. But it’s crazy that for the positions we hold we’re in this predicament. I truly feel for people who aren’t even in our situation to be able to save or hope to get a house anytime soon.
@kristine73044 ай бұрын
Lifetime cost of a 400k home after interest is currently over a million at today's rates.
@sleepmoneyken92344 ай бұрын
😵💫🤯😵💫😵
@lickalotlickalot22103 ай бұрын
Basically those who thought buying a house would hold value and appreciate down the line becomes a myth! The high interest rate alone will make sure the owner will never recover what the house is worth!
@heathernevill24054 ай бұрын
Great video! Gen X here. I will be buying in the next 1-3 years because I am getting closer to retirement, and I need to pay the house down as much as possible before retirement. My strategy is to save up as much as possible to put down the most possible (20% or more) on a smaller home to ensure that the mortgage, taxes, and insurance are well within my retirement pension budget (significantly lower than what I make currently) with a cushion for rising taxes and insurance. (I live in Texas.) My parents (Boomers) bought a home in their hometown 6 months ago while waiting for their home to sell and ended up having to put much more down than they anticipated to qualify because their incomes are much less now (Mom is self employed as a semi-retired real estate broker and Dad is fully retired). They were not able to work the deal so that it was contingent on their old home selling. (Their old home ended up selling 2 months later.) This situation (retirement income & qualification) prompted me to consider buying before retirement rather than afterward to give me more flexibility on what I qualify for - especially if home prices stay inflated and interest rate continue to be over 6%.
@johnnyb33good214 ай бұрын
I'm taking advantage of Fannie mae 5% down on a 4plex in Mesa Arizona. My mortgage interest rate is locked in at 7.5%. But since I locked the rate, interest rates have been going down. Might have to switch lenders I'm going to live in 1 unit and rent the other 3 units out. Helping me reduce my housing costs. Inflation isn't going to stop. In 5, 15 and 30yrs rents and values will be higher.
@rickyal9464 ай бұрын
I closed today, guys pls ask questions when closing, Margate, FL with rate 6.50 for a 415k 4bed and 2 bath
@JavyVidana4 ай бұрын
Not bad! New build? Or rate buy down?
@rickyal9464 ай бұрын
@@JavyVidana rate by down
@adrianbennett24524 ай бұрын
Congrats! I grew up in Margate.
@rickyal9464 ай бұрын
@@adrianbennett2452 Kool, nice, quiet area
@anonyghost74224 ай бұрын
Curious questions. How the heck can you afford that? Not hating, on the contrary congrats! But unless you had some fat savings and make 6 figures plus….not sure how anyone is buying right now
@DubRighteous4 ай бұрын
That same $420k house would rent for around $2400-2700/month in my area. So that rate absolutely kills the logic of buying. You would be paying more in interest and taxes, than renting. And that’s not including insurance, maintenance or hoa fees. The whole situation is ridiculous.
@damondsh4 ай бұрын
We just bought at over 7% recently. The way things are heading, with institutional buyers, regular folks might not be able to buy a house in the near future.
@richardbaker30828 күн бұрын
You pay for a house 3-4 times over to the bank before its paid off. This is the most predatory shit I swear to god
@FastSloW-qt8xf4 ай бұрын
I just bought a home off the market.. it's well within budget so I could and will realistically pay an extra 2 payments a year to try and make up for the high interest
@franciscocaballero99624 ай бұрын
This is golden information
@MallorieOfTheDead3 ай бұрын
I always wondered how that worked! Thank you. First time homebuyer here. Market is brutal right now.
@MikaAKAJada4 ай бұрын
400k on a 30 year is 1.2 million @8%. Yall have fun.
@CraigC-h6b4 ай бұрын
Exactly! The fear of missing out is the problem. I don’t understand people buying these overpriced homes, especially with high interest rates. Crazy
@lIlIllll14 ай бұрын
@@CraigC-h6bwhy wait? As soon as interest rates drop theirs soo many other ppl waiting for the rates to drop so it will be highly competitive to buy at the time it drops. If you can afford to buy right now with the current interest rate then do it.
@arseniowhite9844 ай бұрын
Because we already paying 2500 for rent
@adrian23924 ай бұрын
That’s crazy makes me not even wanna try I live in Houston, Texas and 140k house is not worth it trust me I’d just stay at my rent house I pay $2100 in rent rn and have credit score is 730 but I don’t wanna buy because prices of nice homes are 300k and up I don’t wanna end up like my family and be in debt or house poor
@omnimoeish4 ай бұрын
The price of a median house in the US has doubled every 12 years or so for the last 60-70 years due to government money printing which non coincidentally doubles at the same rate. In other words, I don't want to fear monger you into buying something you can't afford but history is not on your side for waiting for prices to fall. That almost never happens and when it does chances are it's because you and everyone else are out of a job like during the Depression and GFC.
@sammeya53244 ай бұрын
Javier, your video is very timing. I am closing in my home tomorrow and I have yet to ask my lender for amortization schedule BECAUSE!!!! Because I don’t know how to calculate and separate Principal from the interest on the P&I portion of the mortgage payment of the escrow. Because I am planning of making extra payments towards PRINCIPAL ONLY but I was wanting to know how much is the principal ONLY. But my math aint mathing. Anyways, as always you are awesome man! I’m late on the game but when I see you videos, I just click on it coz I know I would learn a lot from you!
@BTCforce4 ай бұрын
If u don’t wanna pay interest than have the cash. Most peeps can’t afford the house they’re buying
@lickalotlickalot22103 ай бұрын
Even with cash, sellers are still thinking their houses are worth the amount that was in 2020!! They only found out when their houses were on the market for over half a year! Why pay that price just to see your new home value goes down in the next few years!
@cvzphotography4 ай бұрын
We bought at the tail end of covid at got in at 4.1%. I was really sad that it was so high. Now i co sider us very very lucky. We couldn't afford the same house with today's rates.
@walkingjustice37032 ай бұрын
U really confirmed my math and fear. I just pulled out of the market and decided not to buy a house right now July 23 2024, but my agent keeps saying it's the right time to buy because with high interest rates and high prices, there's no competition, and for the interest rate he says that I can always refinance. Am skeptical of his statements.
@Drakorvich4 ай бұрын
7.125% on a 140k home isn't as bad as a 7% interest rate on a 400k home, this is my reality, since the house I'm buying is about 140k. I plan to pay it off aggressively though.
@jonvitrano83944 ай бұрын
140k in the northeast would get you a shed 😀
@Drakorvich4 ай бұрын
@@jonvitrano8394 Ohio
@viram18314 ай бұрын
140 here in Los Angeles you'll get a mobile home..🤔
@adrian23924 ай бұрын
140k in Houston Texas will get you a house in the ghetto or worse
@mph58964 ай бұрын
140k in a lot of the Midwest will get you nothing
@GrownWomenBusiness4 ай бұрын
right thats not news but now let talk about some ideas what we can do to change that.
@sallyprzybil24044 ай бұрын
The earlier in the life of your mortgage that you pay extra on the principal ( and the more you can pay on it) then the more in interest you save. For example if you pay an extra $500 to the principal in month #1 of the life of your mortgage then you save paying interest on that $500 for 30 years, but if you wait until year 29 to pay an extra $500 on the principal you only save the interest on it for 1 year. Also, I wonder about refinancing, is it really such a good deal? When you refinance you also have additional closing costs. Let’s say $5000. Wouldn’t you be better off just using that $5000 to pay extra on the principal instead? You can also have your mortgage Recast periodically. Which only cost about $250 or so. That might be a better option in the long run.
@RDS6174 ай бұрын
I owned 3 rentals before I bought my first house. I rented a nice place really cheap so didn’t feel the need to buy a house.
@eli_ace_chicano4 ай бұрын
YES, Fresno CA area prices keep going up and up.....
@alexxx70664 ай бұрын
Too much Immigration in California. Just like ny Arizona ect.
@denniswetzler20244 ай бұрын
Looking for a home RN and selling my current home with 2.5% rate. I hate losing my $1016 mortgage and having it replaced with a 3x mortgage. I my qualify for a 6.69 rate with a possible buy down to 5.29 at the tune of 14k. Which will save me $5500/yr
@CraigC-h6b4 ай бұрын
Why are you selling?
@Hbshomestudio4 ай бұрын
Hey Javier, can you do a video about: If the same person (who doesn't buy the same house because of the interest rates) after 30 years when she retired what is she gonna pay monthly rent? How much is totally paid as rent until time? Also, can you calculate her retirement salary? I'm just trying to understand if she is able to pay her rent with a retirement salary. And please compare if she bought the house and interest goes down she made a refinance how is it gonna affect her monthly payment after 5 years? What is the best option for her at this time.. keep the house get more equity or sell? Since a time machine has not been built yet, we can also think optimistically, right? Thanks a lot ( by the way I just kissed someone's sugar daddy very badly to show that do not try to kiss every girl it can be hurtful at his age and I'm not gonna apologize for this)
@MickySMayer4 ай бұрын
In Hudson Valley NY, sellers are getting multiple over offers. I wish I could find a seller willing to take under value. Greed is prevalent!
@Outroyal4 ай бұрын
That's cool cuh 😆
@QMANVEGAS14 ай бұрын
Thank you
@jalamela1480Ай бұрын
It’s not the interest rate that’s the problem it’s the price of the home that is the problem.
@Ice_Solid4 ай бұрын
My H06 policy cost more then my principal and interest.
@sheffrespawnz72354 ай бұрын
I’m in need of a home by the end of the year I hope interest rates go down.
@IWearACrown4 ай бұрын
$70,000-$80,000 annual salary. How much house can I get with a minimum score of 700?
@michellehernandez97904 ай бұрын
The problem with not buying your home you rent and pay the same amount you would pay for a mortgage and then the landlord will raise the rent
@CraigC-h6b4 ай бұрын
At least you don’t have to worry about overpaying and being underwater. If you rent you can walk away anytime once lease is up. Rent until these prices correct themselves is a smart move in my opinion
@greylindjames17864 ай бұрын
I don’t understand buy down the rate. If you can do that, that means they didn’t approve for the lowest rater possible
@WholeLottaRandoms4 ай бұрын
To bad only idiots think the interest going down will make it all better. The real issue is the purchase cost. Example homes in my area used to go for 120k-250k. In 2019, I would see if I could afford these homes at 6% when, at the time. My rate would have been lower. At the 6% on a home @ 150k was affordable for me and my wife making 70k a year. Now that same home with a guarantee 0f 6 plus % is going for 350k plus no renovation homes sold as is needs work. The point is 6% @ 150k is much less than at 300k plus. So interest is really not too big of an issue as long as the asking price isn't insane interest is affordable at 6%
@redmachine83544 ай бұрын
Too*
@landlubber420694 ай бұрын
P+I on 500K at 5% is 2680. At 7%, it’s 3320. How does that not move the needle for buyers? Rates can change. Prices generally aren’t coming back unless you buy in an area that other people don’t want to live in.
@NadyaPena-014 ай бұрын
That’s so true. I think it’s both. Inflationary home prices combined with high interest rates are making many homes unattainable
@CraigC-h6b4 ай бұрын
It’s not the interest rate it’s the homes price. Let them sit until they come down. But that want happen people have FOMO
@heelzrule-ln1jb4 ай бұрын
Why would you give bank xtra $158,000??
@SirTrizzle4 ай бұрын
What happens if you pay an extra 1000 more than the minimum mortgage? Would the monthly mortgage minimum decrease over time? Or is it still the same through out the life of the mortgage/finish paying off the house?
@JavyVidana4 ай бұрын
Payment stays the same you just pay the mortgage off years sooner.
@arh12344 ай бұрын
Sometimes the bank will let you "recast" the mortgage reducing the rate based on current money owed... costs money and be sure not to extend the term
@SirTrizzle4 ай бұрын
@@JavyVidana right on brotha. I used the website to do the estimates and by paying 1000 more, I’ll pay off the mortgage in 16 years. I’ll pay more from now onto get it out of the way in 14 years. But would be nice if the interest goes down in a few years.
@SirTrizzle4 ай бұрын
@@arh1234 thanks for the tip. I’ll look into it and talk to the mortgage company after a few years
@trell0194 ай бұрын
So question what if i pay it off 10 years early tho
@trell0194 ай бұрын
And sofi gives me a 5.89 due to my credit score.. FYI this was a pre-approval letter
@cabot1004 ай бұрын
If a person can afford to pay off a loan early typically that is beneficial.
@JavyVidana4 ай бұрын
Then you’re an OG
@JavyVidana4 ай бұрын
Then you’re an OG
@fatboy71613 ай бұрын
U the man Javy
@Kanafa-pb19x4 ай бұрын
How is this fair? The whole system of interest is predatory and oppressive.
@arh12344 ай бұрын
It's how debt exists. Debt objectively moves people and societies forward, especialy if used in moderation.
@Kanafa-pb19x4 ай бұрын
@@arh1234 the problem is it isn’t used in moderation. Just look at the us national debt and the average consumer credit card debt. It’s a system that is designed to enslave the borrower and enrich the lender.
@omnimoeish4 ай бұрын
You're welcome to buy a house paying all cash - people do it all the time. Or if you've got a better idea I'm happy to hear it. Before you say anything about the government fixing it, the government is only paying its bills thanks to debt too. You can say our capital/debt system sucks but I promise you any system you think of won't give people as high of a standard of living. You sound like one of my coworkers that insists everything is the banker's fault and billionaire's fault like Jeff Bezos. In reality debt is why we have a middle class.
@Kanafa-pb19x4 ай бұрын
@@omnimoeish you know you’re right. I’ll just pay cash. Thanks for the tip.
@omnimoeish4 ай бұрын
@@Kanafa-pb19x Glad we cleared that up lol.
@Joe-lp3db4 ай бұрын
I see so many videos on how to purchase a home with great facts and experience from fantastic realtors and industry experts..... Can I request a video please. Can you make a video about buying a house "opposite day style" With the following....... Scrooge MCDuck level "Tight Wad" Mr Crabs level "Cheap" Peggy Bundy level "Lazy" Mr backstabby level "backstabbin" Just levels of horrible, cheap and funny. TY
@Hbshomestudio4 ай бұрын
When some sugar daddy makes recommendations about the economic futures based on their brain 🧠 level I just want to say f…
@kevinkidneyy4 ай бұрын
try renting and paying 3000 a month 36k you will never get back
@shulyakav4 ай бұрын
I've been watching "How Much It ACTUALLY Costs to Buy a House." When comparing rent vs. buy, the salesman completely ignores interest and maintenance costs. Also compare rent for 3000 and house for 400 000.
@500KLA4 ай бұрын
You gotta have the gabbagool 🔥
@cheesemaster1134 ай бұрын
Buying a house that isn't capping you out is more important when you have a higher interest rate.
@mdel3104 ай бұрын
Gabagool ova here!
@JavyVidana4 ай бұрын
I see you are a man of culture.
@rogerpope4 ай бұрын
Marone! These rates!
@PaintingandExercise4 ай бұрын
I cannot believe that in Canada people have to refinance their homes every 5 years. Can you imagine purchasing a home at 3% and then 5 years later being forced to refi at 7%+? What if you do not qualify for 7%+? Do you have to sell your home? I cannot even fathom that.
@TheSterlingArcher164 ай бұрын
Quick way to fix a market though. It’s kind of ridiculous that you have high earning high credit families unable to buy homes on the market when comparable homes are owned by individuals making way less. Having mortgages reset keeps the market balanced.
@markfennell16044 ай бұрын
I feel bad for these people trying to buy a house these days. My suggestion is to just keep saving your money until the market goes back to normal whenever that maybe, I was fortunate enough to have purchase my home prior to Covid in 2020 and locked in 2.5% APR. My mortgage is only $900 because of my hundred percent disabled Veteran so much property tax it waved off
@blackflagbarbering47534 ай бұрын
How do I find the market rate in my area? How do I look for sold listings in the past couple years?
@omnimoeish4 ай бұрын
Zillow has an option to show you previously sold homes with actual sales pricees and will even suggest houses that are similar to any address you put in.
@blackflagbarbering47534 ай бұрын
@@omnimoeish Unfortunately i live in australia and we dont use zillow but thank you for replying.
@stephanienguyen69924 ай бұрын
American paid all interest to the Big Banks. That is why we have so many Banks in the America.
@natashag24544 ай бұрын
I don’t think a Seller would sell a home for cheaper than a home is worth and pay extra to buy the rate down for a buyer. If a buyer is looking for this, Florida may be a good spot.
@getinthespace77154 ай бұрын
Pay Bi-monthly and 10% extra to knock almost 11 years off your mortgage for minimal cost.
@viram18314 ай бұрын
I dont know...🤦♂️ Where i rent is 2300$ If i would to buy property from landlord, payment would be 5k
@DavidM-h7c4 ай бұрын
Just do a 15 year mortgage. You will also get a lower rate. You will see that much more of your payment will go to principal.
@anonyghost74224 ай бұрын
But not a single home will be within that payment. You NEED to go 30 year fixed to even afford a shed in the hood
@DavidM-h7c4 ай бұрын
@@anonyghost7422 Then it sounds like you might be better off renting. Trust me, home ownership is not as glamorous as it sounds. It's a very expensive commitment. Not just the payment but maintenance and repairs will break you. I sold in 2022 and went back to renting after 15 years. Best move I ever made. No headaches. Sitting with the cash in the bank and when prices come down, I will possibly buy again. Renting in cheaper right now. Be patient.
@anonyghost74224 ай бұрын
@@DavidM-h7c oh for sure! But right now isn’t the time to buy. We got into our current rental because we kinda got screwed on the last place we got. At the time the rent was expensive for the market. Now we laugh because no one has rent this cheap anywhere near us. Landlords love us and have only raised rent to offset taxes (like $80). Saving now until market cools! Thanks for the advice
@fastdeliveryl7084 ай бұрын
Bought it at 5% unfortunately. I owe 70k and im making extra payments every month.
@Richardcarlett4 ай бұрын
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.
@donna_martins4 ай бұрын
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
@Walter_hill_4 ай бұрын
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments
@Robert_Seaman4 ай бұрын
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments
@jacobnapkins11554 ай бұрын
How can Tony Soprano afford to loan money like that as a lowly sanitation inspector?
@MrShycity554 ай бұрын
Gas still haven’t went down 3 to 4 dollars the new norm same with mortgages it could go to 9 percent
@CAL-zq3dk4 ай бұрын
400000$ , In Canada you need an average 700000 $ mortgage , so technically nobody can afford a house .
@maxpayne0444 ай бұрын
It’s more like150% interest not 7%
@lukamilas86484 ай бұрын
A 7% interest on 400k would be $28,000 in interest. So you pay back $428,000 total.
@maxpayne0444 ай бұрын
@@lukamilas8648 yes but instead you would be paying back a million instead of $428k. So that 7% interest is a lie.
@mhodge08904 ай бұрын
This is stupid. Idk how people are buying houses now
@JavyVidana4 ай бұрын
Look at the prices!
@frozenpride87134 ай бұрын
Yea, I must be looking at the wrong numbers. I assumed the prices were from stubborn sellers
@ronijr49184 ай бұрын
People who can afford it? People overlook starter homes and want a mansion.
@sebas82254 ай бұрын
@@ronijr4918 Think for a minute people should always look for homes worthy of retirement not Work Homes.
@goldenlifelove72514 ай бұрын
@@ronijr4918that's not always true. A starter home in my area is at least $3000 a month. My friend bought a starter home condo & paid $330,000 for it. The HOA is over $300 aa month. It's not new construction, about 1500 sq ft, has 2 bedrooms & 2 bathrooms. You gotta know some areas are just expensive & that starter homes often times require repairs pople don't want to do.
@jonvitrano83944 ай бұрын
What if you pay half your mortgage payment on the 15th and the other half the end of the month? Are mortgage rates compounded daily?
@iphone-and-foodstamps4 ай бұрын
Refinance and buy what you can afford. You overpay for everything anyway. Live life
@mateofernando50664 ай бұрын
You think that's its bad you end up paying almost 2-3X for the house after all is said and done. Think about the financially illiterate people paying interest over 10 years for their car payment. The car is a depreciating asset, never borrow money to pay for a car that is worth less and less every year!!!
@alexarnold31173 ай бұрын
Closing soon with 7.6 rate lol
@mateofernando50664 ай бұрын
Yes, you are paying a lot of interest on the life of the mortgage. However, if the house is held long enough i.e. >10 years, it will appreciate in value. So, if the house appreciates faster than the total interest paid, you will have gain equity when the house is sold. This is better than renting. When you rent, you are at mercy of the landlord that can and will raise the rent every year. And, you can be evicted at any time too. So, no peace of mind. Owning is always better renting when the time window is long enough.
@Theashleydenise4 ай бұрын
Facts!
@sandorvarga.69824 ай бұрын
VRAU BANI MEJ.CHES 990.BILLION DATA.25.maj.2023.
@kevinkidneyy4 ай бұрын
well that's why when all you other debts are paid off and have emgerngcy fund , you add extra money on your house .
@kevinkidneyy4 ай бұрын
we know money is losing value so you must get a asset thats why house are still selling
@El_5Zero4 ай бұрын
PAY 558K FOR 400K LOAN!? HOW IS THIS LEGAL!? Thats why we need to add as much as possible to the principle ASAP!
@fearlessreview4 ай бұрын
imagine you transport $400k to the year 2054 ,with inflation it’s 839k. Your borrowing money worth less every year and have an asset that appreciates
@naomi75944 ай бұрын
Do the pill method
@bethan.gruffydd4 ай бұрын
Content that absolutely everyone thinking about buying a house, especially right now, should see. It's a terrible idea for 99% of people right now. Don't fall for it
@ShayWilliam3414 ай бұрын
You buy a home whenever you’re ready as long as you can afford a mortgage.
@anonyghost74224 ай бұрын
@@ShayWilliam341agreed! But OP isn’t wrong. Most people (even “middle” class) can’t possibly afford to buy in most places
@justwait98224 ай бұрын
I thought you were the comics explained guy at first. I was thinking this is the worst comic ever.
@JavyVidana4 ай бұрын
🤣
@cyuca43484 ай бұрын
Enjoy when your playful personality comes out more! 😁
@Jimmycraccornandidc4 ай бұрын
Javier the snake 🐍
@Truebaconluver4 ай бұрын
.......Who cried a river and drown the whole world....
@waterbug11354 ай бұрын
If you want to be poor watch KZbin videos. Seriously. Being poor isn't really that hard, but I guess some people need help. Yes, interest on a mortgage is very scary. Do you really need a reason to not buy? This one could do it for ya. Interest on a car loan is really scary too. So don't buy a car. Take the bus, walk, get a bike. Wait, what? You need a car need a car to get to work? Oh, so paying $200/mo in interest for the car enables you to earn $5000/mo. Yeah, but isn't that interest scary? Same for a house. Yes $2333/mo interest is scary so don't buy a house. Live in your car or under a bridge. Wait, what? You want a roof, shower, fridge? So rent an apartment...for say $1800/mo. That's a huge savings. Screw the bank! But if we learn from squirrels we might ask about the future. Well, if we assume 2.5% average inflation for the next 30 years your $1800/mo rent would now be $6,187/mo vs about a $0 interest cost. Your house is paid off and worth $1,374,843 while renter's home equity is $0. Owning a home is an investment. That Americans have accessed to a 30 year fixed rate mortgage makes the choice easy. No other country in the world has such a great mortgage. Every other country only have variable rate mortgages.
@andrew89724 ай бұрын
That 7.899% interest rate is the 7% percent interest rate lol😂. If you went to go get a mortgage today your interest rate would be closer to 8% not 7%. Use real word numbers next time. Thanks.
@JavyVidana4 ай бұрын
Usually I avoid comments like this but since you decided to be extra pompous I’ll address it. Today’s rates are 6.8 for FHA and 7.005 for conventional according to optimal blue so you’re clearly wrong. Also the point of the video is to help people figure out how to do the math to work these number. And lastly, recently it was announce the rates will stay stable for a while so I believe they are going to stay in this range for a while. Thanks.
@cabot1004 ай бұрын
The intent of the video was to illustrate the cost of a loan that is the interest portions, the numbers he uses are "real world" the interest rate may vary from his example. It was expressed that there are mortgage calculators on the internet where a person can run the numbers specific to their situation.
@joepeng63714 ай бұрын
It is not how it count, money you pay back to the bank will decrease value because inflation.
@leticiabeanguido4 ай бұрын
As a Mexican trauma girl, I appreciate this advice 🇲🇽🫡 , lots to consider with this market