It's time to acknowledge that a return to 3% mortgage rates may be unrealistic. If homeowners are forced to sell, we will likely see a drop in home prices, leading to lower property valuations. I know I'm not the only one who shares this outlook.
If you're in the market, now is the time to buy. Home prices are unlikely to decrease further, and if interest rates do decline in the future, refinancing is always an option.
In my opinion, home prices need to decrease by at least 40% before the market finds balance. For those unsure about buying property right now, seeking advice from an experienced financial advisor for optimal portfolio allocation is crucial. This approach has worked for me-I’ve managed to stay profitable over the past five years, accumulating nearly $1 million in investment returns.
That's impressive! I'd be happy to share more details. I understand the hesitation, especially when it feels like many firms offer similar services. However, finding a trustworthy advisor has been key to my success
Julianne Niemann Iwersen has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
Thank you for taking my advice. I'm glad you were able to research her background and feel confident moving forward. I hope your call goes well-her track record speaks for itself, and I'm optimistic you'll find her guidance valuable
IMO it’s difficult to set down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the BAY county area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
It's gotten especially difficult since the pandemic, hence why I decided to use the expertise of an advisor, my spouse kicked against the idea initially, but oh well guess who's best buddies with our advisor now.
Having a fiduciary is essential for proper portfolio diversification to make gains. My advisor is ‘Grace Adams Cook’ who is easily searchable and has extensive knowledge of the financial markets.
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 a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
The issue with assumable loans is different then people think, if a home sold in 2022 for 500k and now comes up for sale for a similar price let's say 520k and the loan ammount left to pay is 480k the buyer has to qualify for a 480k loan + 40k cash . IF The buyer can only qualify for a loan of 450k or even 479k...... Guess what? They cannot assume the loan as most loan assumptions are an AS-IS deal the buyer has to assume the FULL loan sum. The buyer MUST qualify for the full loan. Now there are a few lenders that do let buyers pay off some % so they can qualify which is very nice but from my own work calling lenders they all said NO, its an AS-IS deal. One told me straight up, they do have a lot of issues of buyers not being able to qualify becasue they cannot pay off any of the loan with cash. So they have to buy them home with a brand new loan instead like normal which can reduce the potential buyers. One lender told me, the buyer can have a billion dollars in cash but they have to qualify to assume the loan for the full sum FIRST then after they take it over, then they can pay it all off the next day. Its very strange but its a problem.
A MAJOR POINT was missed in this reporting. When a veteran seller offers an assumable mortgage to a non-veteran buyer, they lose their VA entitlement, which prevents them from getting a VA loan on their next home. This makes it very prohibitive for veterans to let non-veterans assume their mortgage.
@@leok7193 A non Veteran can buy a house with a VA loan and assume it; but the VA says you cannot have more than one VA loan out at any given time, so essentially the person who served; just needs to put 20% down on their next purchase and do a regular mortgage.
yep… does anyone want to assume my VA home loan at 2.875% interest rate? You’ll have to pay 100 grand out-of-pocket for the difference in sale price and equity.
This most important point and disadvantage is at 4:50. Majority of FTHBs don't have extra $100k or more in spare change to plunk down to pick up assumable mortgages. You have to pay the difference of the home's original purchase price and the home's appreciated value. So if your seller bought for $300k, but now the home's value is $600k, you have to come up with the $300k out of pocket PLUS cover the amount the seller has paid towards their mortgage.
I don't think this has been explained much at all when it comes to assumable mortgages. The buyer must have a TON of money to pay for the difference of value AND what the seller already paid.
@@marioustxexcel6375 and whats your point? It would be foolish to even touch a 401k to go towards a home unless you're at the retirement age and won't get penalized.
The biggest lesson I learned in 2023 about the stock market is that nobody knows what will happen next, so practice some humility and low a strategy with a long-term edge.
Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@@amolejoshua7452 I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past seven years, she has helped me find stocks that have performed 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
@@CharliesMcCormicks The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
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.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
This dude just said it's the most unaffordable time to buy a home in the last 40 years, but 40 years ago homes cost 2.8x the median income. This is by FAR the most unaffordable and largest bubble in the history of mankind. In 2007 during what is now the 2nd largest bubble of all time, the median home was 4.9X the median income, and crashed all the way back to the 3x mark by 2010, which is close to the 100-year median trend of 2.5x the median income. Today, and since 2022, the median priced home is around 6-6.5x the median income, and trust me, it's mathematically guaranteed to collapse down to below 4x again. Buying a house between late 2022 and today would be a worse financial decision than buying in 2006-2007 because home prices on average will fall 20-30% more than they did in 2008-2009.
Buying a house is a long term commitment. Unlike an automobile purchase or a 2 year phone plan, buyers typically commit to a house for 10+ years often longer. In the case of a severe market correction, values will bounce back and owners will recoup lost equity. You need to stop regarding real estate like a volatile market and stop trying to buy homes to flip them. It's a place of dwelling and it's a long term bet.
Good to see you enthused same old same old just different day for over 3 years now 😂. Until today your still predicting crash and how long do you expect people to rent another 3-5 years 😂
Took 6 months for my friend to assume a Va mortgage; the seller was top G for actually waiting for ever to go through and continue paying his mortgage this whole time! Not an easy process but durable! To those who know… there’s the option of Subject To purchase… of course with the risk of due at sale being triggered
I have done 11 VA loan assumptions over the past 18 months as a realtor in Charleston, SC. They are AWESOME for both the buyer and the seller. The buyer gets a great interest rate, and the seller has a huge differentiator to stand out from the crowd. I also agree with the point about allowing a non-veteran to assume a VA loan. Definitely shouldn't be done except in cases of extreme duress.
In other words, you have to buy it from the seller. You have to pay them all the money they had paid. In other words, many won't be able to buy, same thing for most, we are screwed
UNTILL 1989 Most FHA/VA Were assumable no approval loans. As a realtor, we did it all the time. A lot of equity??? You did a seller 2nd. Underwater equity??? do an assumption. Buyer with money but no credit, do an assumption. AGAIN just another way LIFE,,, use to be easier…. For the earlier generations.!!!!!
90% of new builds (single and multi family) are built by 10 companies. They aren’t letting other people in and this is causing artificial inflation in home prices.
Supply and demand. There’s more people looking for a home than are being built. Also homeowners who bought when the interest rate was 3% don’t want to sell and purchase a different home at twice the rate, so that’s also keeping homes off the market.
what doesnt help is companies are demanding return to office 4-5 days a week. This drives up cost of homes (white collar workers outbidding each other) near urban centers. meanwhile you could buy 20 acres of land in rural states, build a modest 400k home and work remotely.
Seems like a really specific buyer that can't afford the morgage but can afford a massive down payment. Unless you catch someone selling that's owned the house less than 5 years it doesn't seem worth it.
@TheBebe2214 because the buyer has to come up with all the money upfront to cover the difference between the current mortgage and the selling price of the house. Unless the seller only owned the place a few years that bill is gonna be huge. Pretty wierd situation that a buyer would have a massive amount of free cash but their income is too low to just get a conventional loan
@@rightsaidmatt2632 it gotta be for immigrants. This how they will replace American ownership. They are the only ones that will come with alot of money their money , plus government funding and not have a good credit history since they would be immigrants.
My wife and I did this. We looked for homes with a realtor for 11 months. Couldn’t afford the house because the rates were changing every month - going up. We had money saved for the down payment for a conventional loan, so we were prepared. We got a 300k home @2.26% for 27 years. Our payment is $1176 per month. The $240k-$260k homes at the going rate (6.2-6.9%) at the time were a $1400-$1600 payment. I try to share about assumable mortgages because we went 11 months without ever being told this was an option. After a plateau of looking one popped up naturally.
Most of therich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them. People rather spend money on liabilities, Rather than trading in assets and be very profitable
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The points discussed focus mainly on the benefits to the buyers and less so for the sellers. If an assumable mortgage takes 90 days to close vs 30 days for a typical sale, there needs to be something to entice the sellers aside from attracting a small subset of buyers looking specifically for assumable mortgages.
@@Sky-yi9nc if I was giving this opportunity to a buyer, as a seller, I'd require a sizeable earnest payment creditable toward closing and for them to rent the home until closing. That way I'm covered if they change their mind or fall through and I'm not on the hook for months of mortgage. Nothing else would make sense financially
Sounds like people overpaid for a house and got a good interest between 2020-2023 and so now this how they are going to glorifying buying an overpriced house
Some of us had no choice, kids born and have to buy now either way, Also seeing if they go up more, priced out forever. If they do down, oh well at least we have a home.
When is the right time to buy a home then? Should I wait? Should I go back in time? Do you realize how much of an idiot you sound like rn? I sure hope so.
Just bought my first home at 20! It cashflows me $4900 a month (it's a 4-unit building and I'm occupying 1 unit) And I only put down $2500 -- But sure, let's live in your lala land lol
aw, poor you. imagine not having something, someone shows you a way that could help you get it, and you laugh in their face. yeah, no wonder you can't afford a home, and it's got nothing to do with prices and all to do with you.
I tried selling my home as an assumable mortgage. Do NOT recommend. We were 8 months into the process before my buyer couldn’t take it anymore and cancelled the contract. Lenders HATE assumable mortgages and will drag their feet with the closing process because they don’t make much money off of it. This has happened to many people I know.
One MAJOR issue with Assumable mortgages is that most financial companies do NOT want to let the buyer put money down. IF the current owner bought the house in the last 2 years AND the price of the home is not much higher, the new buyer might only be able to put down 5% or even 0% and WOW if the new buyer only qualifies for LESS on their debt to income calculation, they can't buy!!!!! BOOM The bank won't let them even if they have millions cash the banks refuse to let you pay off ANY of the outstanding balance on an assumable mortgage so the new buyers may not be able to qualify. Why? I assume the loan holder does not want to see their book value fall, suddenly buyers pay off 20% of the loan is not good news. The lender then has to go out and buy more loans which might not be as good quality perhaps?
I really hate seeing these types of stories, we arn't talking about how we are literally living through the worst rent/home ownership crisis in history. But we have crappy news companies making money off how the 0.1% can get a home, and no one else can....... Like come on, where is the story of how we fix this mess? Where is the story of how many people are suffering because there is literally 0 affordable housing? This is a crisis but everyone treats it like a joke.......
Because the top 2% and megacorps don't want you to think, they want you to keep showing up to your dead end job and keep consuming no matter how expensive goods get.
@@DSNCB919 because lenders don’t make money off the sale. So they will literally take forever to do any paperwork. This makes the closing process go on forever.
Asumible mortgages to avoid high interest rates and just assume the interest rate of the mortgage of the home you are buying sounds like a great strategy in today’s economy!
The average person does not stay in a home for the amount of time necessary to recoup all that money put down versus the higher payment they would be making due to a higher rate mortgage. Plus if you don’t put that money down, you can invest it and make money off the money you’re going to pay for your mortgage. I cannot imagine putting down $75k to save a few hundred dollars per month, especially given the fact that they’d be able to refinance in a few years when they have some equity and the interest rates are lower.
The problem is NOT high interest rates. The problem is that artificially low rates have grossly inflated home prices. What we need is a massive downward correction.
What’s NOT told to the people is… sellers rarely choose the buyer who’s asking to assume their loan in the offer, reason being is they take much longer to close. It’s a gimmick to draw in more lookers, collecting multiple offers and then still choosing the one who doesn’t ask to assume.
This is usually a bad deal for the seller, if they’re considering this it’s probably because they are struggling financially and are getting hosed…. Also not only do the loose out on part of their entitlement for the future… they almost never ever ever … get compensation for what they’ve already paid and for any of the house appreciation.. It’s a predatory practice Pre similar to auction or foreclosure
@@objective_evaluation in theory, but in practice this is most often used by short/whole seller type flippers that are experienced in screwing the vulnerable
My house has a 4.75% rate with a $30k gap. I would only sell to a VA approved buyer, so I can reuse my VA loan in my next home. CA to WV losing 15K with all the home improvements.
Big factor with VA loan that is assumable means that seller could possibly not get into another VA loan when they let someone assume their VA loan due to VA certificate of eligibility guidelines
This seems like a bad deal unless you are a current soldier with BAH or military bonus coming up and you are buying it from another soldier and they have to move and you have to live off base. Let's be honest if you got 75k to put down on a house you should already have a house or condo unless your credit is totally shot.
I think the difference is that if you had the saved down payment, you could buy a 30 year mortgage at 2.5%, instead of the 6.3% by getting that other non assumable mortgage. So having that 75K for the down payment would be huge at getting the way lower rate.
@ganthc How many American citizens fit your narrative ? Listen, this seems like something an immigrant family would do. They immigrated to America with their life savings and have no history of credit and probably will go into it with an extended family ( wife, husband, kids, grandparents, uncles and etc). This isn't for first-time home buying American citizens.
@@leok7193 what America buyer has that much cash on hand besides immigrants? Who would be able to cover the equity of a house that could had been owned 10 years or longer. My equity of my old house was 100k after two years when I sold it. So somebody will going to cover that then have enough to finish my loan plus expenses?
@@MalevolentBite I'm not going to describe every buyer that can do it, but I know I can in multiple ways. I have a stock portfolio that I can cash out to cover a downpayment or if I move and sell my home, my equity would cover it. It's called saving and investing. Most Americans don't get it because living in debt is somehow normalized, but not to anyone who understands finances.
All FHA/VA mortgage loans are assumable and always have been! Assumable conventional mortgage loans are rare, because the lender has to make them assumable. Back in the 50's = all mortgage loans were assumable up until about the mid-60's when buyers started buying homes outright! Find a seller with an FHA/VA loan, negotiate, agree to give them some money at the time of closing and get them to ask the lender for the assumption package and get a lawyer to fill it out! You can also refi an assumable FHA/VA mortgage loan, if the interest rate on it is too high.....
there are so many property listings with "assumable loans" but without any details. When I contact them for details of the loan terms they turn into greedy sales broker. hard pass
You need a much bigger down payment to do this.. Imagine taking over someone's mortgage that's paid down 40% of it... + the increase in property value since they bought it. Maybe it works if you blend it with a higher rate 2nd, and you are saving a little...
I live in Southern California, and the house prices are outrageously high. The AVERAGE in my neighborhood runs $2M. 10 years back, average was around $850k. How will the kids afford this? This is insane and unfair
I assumed an FHA mortgage at 7.5% at a time interest rates were 11%. The difference then was house prices were far lower. Especially in the HUD repossession capital of the U.S.
The buyer may need to pay the difference between the mortgage balance and the home's current value, which could require a substantial down payment or a second mortgage.
Large parcels of land are becoming rare in areas with the most need for housing inventory. That rareness increases the value. From a corporate pov it is obviously more profitable with less risk to build targeting the highest price range that can be expected to sell. Capitalism is great other than the many flaws.
@@quadsnipershot the actual issue is the demand. Supply would be fine if everyone wasn't trying to move to the same places and overbid against one another Plenty of real estate markets are stagnant in home prices, yet my home in CA can't stop appreciating. I visited Elko NV and looked at prices and home prices hadn't gone up in years
Assumable mortgages sounds great. I’m still curious as to how housing prices are still so high but no one can afford these prices. So why are the prices staying high?
I paid $500k last year at 6.125% I could only do it because I put down $250k after I sold another property, Out of $3k a month only 400 bucks went towards principal. The Banks win every time
I have an assumable mortgage in Texas at 3.6%. Problem is I have almost 300k in home equity, so it wouldn't really work. Most people can't just give me 300k to close on my ≈900k house. Assumable only really works if it's been less than like 5 years and inflation has been fairly stable.
I just did this with my fathers home i had no idea it was a thing i literally called the lending company explained the situation we were in then surprisingly they helped us with this process i was actually shocked
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Can't they take another loan for paying the previous owners investment? Say if someone already paid 50% of the hois3 plus has a house increment to 50% in price that amount be taken on mortgage at 6% n rest be on the 3%
I think this is extremely rare… Why would the seller allow the buyer to assume their mortgage, unless the seller not buying another home… More often, the seller will need to buy another home, and carry their existing mortgage to their next home… And if rates came down, no buyer want to assume your mortgage (with a higher rate)… I see no use for these mortgage…
There are sellers who need to sell due to job loss, financial distress or inheritance from a death of a relative. If you can find an interest rate of less than 4% that’s a steal. That’s a difference of hundreds or thousands of dollars in monthly mortgage compared to 6%. It all depends on mortgage loan, lender and credit score.
Carry their existing mortgage to a new home? Lol. For those not in real estate, this is called mortgage porting and does not happen in the US. Assumable mortgages are advantageous in times of rate disparity such as now just like the report is stating. Not being able to see is called blindness
I was planning to do that, currently at 2% mortgage and was going to move to a lower cost of living area and use equity to buy a house cash. health problems got in the way. and SURPRISE, if I wanted to take out another mortgage, I could've easily done that too.
O like how CNBC says assumable mortgages are too complicated for many mortgage companies to figure out and then they leave the viewer with the impression that the major complications are mentioned in the video. They are much more complicated than implied and require the perfect set of circumstances. Perfect credit. Substantial down payment. Desperate seller who also has substantial equity. Seriously, it is rate for a reason.
all mortgages should be able to be assumed, not just government backed ones. The reason why is banks don't like them because they will make less money.
Everyone keeps blaming the interest rate...but what about the insanely inflated prices? In Mass, average house cost is over $700K, how is this normal or accepted by people?
I bought a house in Denver in July of 2008. I had an assumable mortgage on that house. My realtor at the time mentioned it during closing, had no idea what it was until he explained it. When I sold that house in February of 2019 the mortgage rates were lower than what I had on that mortgage. Then when I bought my house in rural Arizona after selling the Denver house my mortgage was also an assumable mortgage. In early 2021 I ended up refinancing that loan when rates were near 3% so the assumable mortgage went away. Not sure how incredibly rare it is if a single guy with one income source has had 2 assumable mortgages consecutively. Both were FHA. What’s the criteria? Is it up to the bank? Depends on the house? Area? Credit score? Race? Job?
All FHA loans are assumable, but it is up to the lender to approve the transfer of the loan to a new borrower. The decision comes down to creditworthiness, so don't attempt to sell the home by assumable mortgage if you know the buyer has less than average credit. Most sellers won't do it anyways unless they are having a hard time selling the home.
Historic rates have never been 3% that's too low. However home prices have effectively tripled in the past 20 years which is not sustainable. Incomes have not went up 300% in 20 years.
Weird how they just glanced over the need to cover all the equity the previous buyer might have. Sure, assume my mortgage, as long as you can hand me my 200k in equity. You're not "expanding the universe" of buyers by substantially increasing up front cost.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Stacy Lynn Staples" I've worked with her for some years and highly recommend her. Check if she meets your criteria.
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So next question. If someone is going through a divorce and both are veterans and both are on the mortgage, can 1 of them still “assume” the loan and not have to refinance?
Went through this as a non-veteran. My lawyer told me it depends on the lender. Our lender said yes, one of us can assume the loan without a refinance as long as I can prove I’ve been paying the whole mortgage out of my own account, not a joint one. I’d say contact your lender.
It's time to acknowledge that a return to 3% mortgage rates may be unrealistic. If homeowners are forced to sell, we will likely see a drop in home prices, leading to lower property valuations. I know I'm not the only one who shares this outlook.
If you're in the market, now is the time to buy. Home prices are unlikely to decrease further, and if interest rates do decline in the future, refinancing is always an option.
In my opinion, home prices need to decrease by at least 40% before the market finds balance. For those unsure about buying property right now, seeking advice from an experienced financial advisor for optimal portfolio allocation is crucial. This approach has worked for me-I’ve managed to stay profitable over the past five years, accumulating nearly $1 million in investment returns.
That's impressive! I'd be happy to share more details. I understand the hesitation, especially when it feels like many firms offer similar services. However, finding a trustworthy advisor has been key to my success
Julianne Niemann Iwersen has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
Thank you for taking my advice. I'm glad you were able to research her background and feel confident moving forward. I hope your call goes well-her track record speaks for itself, and I'm optimistic you'll find her guidance valuable
IMO it’s difficult to set down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the BAY county area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
It's gotten especially difficult since the pandemic, hence why I decided to use the expertise of an advisor, my spouse kicked against the idea initially, but oh well guess who's best buddies with our advisor now.
Mind if I ask you to recommend this particular Advisor you using their service? Seems you've figured it all out.
Having a fiduciary is essential for proper portfolio diversification to make gains. My advisor is ‘Grace Adams Cook’ who is easily searchable and has extensive knowledge of the financial markets.
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 a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
6 months from now "Assumable Mortgage Scams and How to Avoid them"
They're probably already here.
Yup and I’m making so much money off of these clowns 🤡🤡🤡
Only after Snoop Dog hawks them on cable tv 😂
The issue with assumable loans is different then people think, if a home sold in 2022 for 500k and now comes up for sale for a similar price let's say 520k and the loan ammount left to pay is 480k the buyer has to qualify for a 480k loan + 40k cash . IF The buyer can only qualify for a loan of 450k or even 479k...... Guess what? They cannot assume the loan as most loan assumptions are an AS-IS deal the buyer has to assume the FULL loan sum. The buyer MUST qualify for the full loan. Now there are a few lenders that do let buyers pay off some % so they can qualify which is very nice but from my own work calling lenders they all said NO, its an AS-IS deal. One told me straight up, they do have a lot of issues of buyers not being able to qualify becasue they cannot pay off any of the loan with cash. So they have to buy them home with a brand new loan instead like normal which can reduce the potential buyers. One lender told me, the buyer can have a billion dollars in cash but they have to qualify to assume the loan for the full sum FIRST then after they take it over, then they can pay it all off the next day. Its very strange but its a problem.
They probably made the video on the same day and have them ready to upload on a later date
Save the housing for American citizens and block corporate landlords, monopolies, and private parties from buying up tons of homes to rent out.
Pay your rent you bum
Fun fact trusts are the most favorite structure for rentals
It doesn’t really matter anyways. They will fail.
@@caseytheconqueror7958sad, but true
@@llamalover02 I think you forgot that corporate landlords are citizens too. Thanks, Republican supreme court!
A MAJOR POINT was missed in this reporting. When a veteran seller offers an assumable mortgage to a non-veteran buyer, they lose their VA entitlement, which prevents them from getting a VA loan on their next home.
This makes it very prohibitive for veterans to let non-veterans assume their mortgage.
Welp.. let me save my time …..19 seconds in
well, here's a perk for you, your lender will not let your VA loan to get assumed by someone without VA entitlement. problem solved.
@@leok7193 A non Veteran can buy a house with a VA loan and assume it; but the VA says you cannot have more than one VA loan out at any given time, so essentially the person who served; just needs to put 20% down on their next purchase and do a regular mortgage.
@@null1808 yep, and yet your lender won't sign off on it
yep… does anyone want to assume my VA home loan at 2.875% interest rate? You’ll have to pay 100 grand out-of-pocket for the difference in sale price and equity.
This most important point and disadvantage is at 4:50. Majority of FTHBs don't have extra $100k or more in spare change to plunk down to pick up assumable mortgages. You have to pay the difference of the home's original purchase price and the home's appreciated value. So if your seller bought for $300k, but now the home's value is $600k, you have to come up with the $300k out of pocket PLUS cover the amount the seller has paid towards their mortgage.
Can they take out a second traditional mortgage to cover the difference?
I don't think this has been explained much at all when it comes to assumable mortgages. The buyer must have a TON of money to pay for the difference of value AND what the seller already paid.
@@GahBoe They can, but it will be at the market rate.
Wrong, a lot of people have 100k in their 401k
@@marioustxexcel6375 and whats your point? It would be foolish to even touch a 401k to go towards a home unless you're at the retirement age and won't get penalized.
The biggest lesson I learned in 2023 about the stock market is that nobody knows what will happen next, so practice some humility and low a strategy with a long-term edge.
Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
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I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
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.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
This dude just said it's the most unaffordable time to buy a home in the last 40 years, but 40 years ago homes cost 2.8x the median income. This is by FAR the most unaffordable and largest bubble in the history of mankind. In 2007 during what is now the 2nd largest bubble of all time, the median home was 4.9X the median income, and crashed all the way back to the 3x mark by 2010, which is close to the 100-year median trend of 2.5x the median income. Today, and since 2022, the median priced home is around 6-6.5x the median income, and trust me, it's mathematically guaranteed to collapse down to below 4x again. Buying a house between late 2022 and today would be a worse financial decision than buying in 2006-2007 because home prices on average will fall 20-30% more than they did in 2008-2009.
Buying a house is a long term commitment. Unlike an automobile purchase or a 2 year phone plan, buyers typically commit to a house for 10+ years often longer. In the case of a severe market correction, values will bounce back and owners will recoup lost equity. You need to stop regarding real estate like a volatile market and stop trying to buy homes to flip them. It's a place of dwelling and it's a long term bet.
Why would it fall? If venture capital or private equity companies owns a monopoly on the market then they can set their own prices?
But median income increases as well - right?
Good to see you enthused same old same old just different day for over 3 years now 😂. Until today your still predicting crash and how long do you expect people to rent another 3-5 years 😂
I remember you telling me you’re from Florida. I hope and pray you and your family are safe.
Took 6 months for my friend to assume a Va mortgage; the seller was top G for actually waiting for ever to go through and continue paying his mortgage this whole time! Not an easy process but durable! To those who know… there’s the option of Subject To purchase… of course with the risk of due at sale being triggered
I have done 11 VA loan assumptions over the past 18 months as a realtor in Charleston, SC. They are AWESOME for both the buyer and the seller. The buyer gets a great interest rate, and the seller has a huge differentiator to stand out from the crowd. I also agree with the point about allowing a non-veteran to assume a VA loan. Definitely shouldn't be done except in cases of extreme duress.
How do we shop around for them
In other words, you have to buy it from the seller. You have to pay them all the money they had paid. In other words, many won't be able to buy, same thing for most, we are screwed
UNTILL 1989 Most FHA/VA Were assumable no approval loans. As a realtor, we did it all the time. A lot of equity??? You did a seller 2nd. Underwater equity??? do an assumption. Buyer with money but no credit, do an assumption. AGAIN just another way LIFE,,, use to be easier…. For the earlier generations.!!!!!
my question is how houses are so expensive in a country with lot of land and less population
No one wants to buy in the wilderness
90% of new builds (single and multi family) are built by 10 companies. They aren’t letting other people in and this is causing artificial inflation in home prices.
There’s a lot of land but it’s not all for sale
Supply and demand. There’s more people looking for a home than are being built. Also homeowners who bought when the interest rate was 3% don’t want to sell and purchase a different home at twice the rate, so that’s also keeping homes off the market.
what doesnt help is companies are demanding return to office 4-5 days a week. This drives up cost of homes (white collar workers outbidding each other) near urban centers. meanwhile you could buy 20 acres of land in rural states, build a modest 400k home and work remotely.
Seems like a really specific buyer that can't afford the morgage but can afford a massive down payment. Unless you catch someone selling that's owned the house less than 5 years it doesn't seem worth it.
Then you might end up with a house with alot of issues too.
you are totally correct, it is a tough purchase. VA makes sense in some cases cause they only put 0% down to begin with.
Curious why catch a seller selling in under 5 years? I didn’t get that part
@TheBebe2214 because the buyer has to come up with all the money upfront to cover the difference between the current mortgage and the selling price of the house. Unless the seller only owned the place a few years that bill is gonna be huge. Pretty wierd situation that a buyer would have a massive amount of free cash but their income is too low to just get a conventional loan
@@rightsaidmatt2632 it gotta be for immigrants. This how they will replace American ownership. They are the only ones that will come with alot of money their money , plus government funding and not have a good credit history since they would be immigrants.
I feel lucky I got 3.25% 15-yr fixed rate back in 2017
My wife and I did this. We looked for homes with a realtor for 11 months. Couldn’t afford the house because the rates were changing every month - going up. We had money saved for the down payment for a conventional loan, so we were prepared. We got a 300k home @2.26% for 27 years. Our payment is $1176 per month. The $240k-$260k homes at the going rate (6.2-6.9%) at the time were a $1400-$1600 payment. I try to share about assumable mortgages because we went 11 months without ever being told this was an option. After a plateau of looking one popped up naturally.
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The points discussed focus mainly on the benefits to the buyers and less so for the sellers. If an assumable mortgage takes 90 days to close vs 30 days for a typical sale, there needs to be something to entice the sellers aside from attracting a small subset of buyers looking specifically for assumable mortgages.
@@Sky-yi9nc if I was giving this opportunity to a buyer, as a seller, I'd require a sizeable earnest payment creditable toward closing and for them to rent the home until closing. That way I'm covered if they change their mind or fall through and I'm not on the hook for months of mortgage. Nothing else would make sense financially
@@leok7193 100%. Gotta grease the wheel.
The seller is also still liable
Sounds like people overpaid for a house and got a good interest between 2020-2023 and so now this how they are going to glorifying buying an overpriced house
The crazy thing is home prices are still increasing from those 2020-2023 rates...
In 2020 you could get big loans because interest rates were near zero and a lot of people jumped on it.
@@chad9971liars get scalped
It’s either that or no house
It is most definitely overpriced. 100%
Home prices go up 30% seemingly overnight and homebuyers are like, “it was just the right time for us to buy our home.” 🥰
What? How long do you want people to wait? It’s been years
Some of us had no choice, kids born and have to buy now either way, Also seeing if they go up more, priced out forever. If they do down, oh well at least we have a home.
When is the right time to buy a home then? Should I wait? Should I go back in time? Do you realize how much of an idiot you sound like rn? I sure hope so.
@@IICassaII yup OP is in lala land
Just bought my first home at 20! It cashflows me $4900 a month (it's a 4-unit building and I'm occupying 1 unit)
And I only put down $2500
--
But sure, let's live in your lala land lol
I saw an assumable mortgage recently the current owner paid $255k in 2021. They now want $505k with that assumable mortgage. Pretty neat
Greed is the problem.
Thank you for showing us another way of how not to buy a house.🙄
It works if you can get one
aw, poor you. imagine not having something, someone shows you a way that could help you get it, and you laugh in their face. yeah, no wonder you can't afford a home, and it's got nothing to do with prices and all to do with you.
@@leok7193 I actually own two homes in California. I was joking, relax.
@@Luca.121 sure you do and gosh you're funny 🤦♂️
The large down payment would be the biggest challenge.
I tried selling my home as an assumable mortgage. Do NOT recommend. We were 8 months into the process before my buyer couldn’t take it anymore and cancelled the contract. Lenders HATE assumable mortgages and will drag their feet with the closing process because they don’t make much money off of it. This has happened to many people I know.
One MAJOR issue with Assumable mortgages is that most financial companies do NOT want to let the buyer put money down. IF the current owner bought the house in the last 2 years AND the price of the home is not much higher, the new buyer might only be able to put down 5% or even 0% and WOW if the new buyer only qualifies for LESS on their debt to income calculation, they can't buy!!!!! BOOM The bank won't let them even if they have millions cash the banks refuse to let you pay off ANY of the outstanding balance on an assumable mortgage so the new buyers may not be able to qualify. Why? I assume the loan holder does not want to see their book value fall, suddenly buyers pay off 20% of the loan is not good news. The lender then has to go out and buy more loans which might not be as good quality perhaps?
1:50 Assumable Mortgage
3:30 VA FHA USDA loans
5:50 Issues
I got lucky and assumed a buddy’s loan. Took the cash from my retirement, and paid him the equity. Saved myself least 600/mo
I really hate seeing these types of stories, we arn't talking about how we are literally living through the worst rent/home ownership crisis in history. But we have crappy news companies making money off how the 0.1% can get a home, and no one else can.......
Like come on, where is the story of how we fix this mess? Where is the story of how many people are suffering because there is literally 0 affordable housing?
This is a crisis but everyone treats it like a joke.......
Because the top 2% and megacorps don't want you to think, they want you to keep showing up to your dead end job and keep consuming no matter how expensive goods get.
*how this article will ruin it for everybody else*
They take 6+ months to close, and they often fall through
Whys that
@@DSNCB919 because lenders don’t make money off the sale. So they will literally take forever to do any paperwork. This makes the closing process go on forever.
Asumible mortgages to avoid high interest rates and just assume the interest rate of the mortgage of the home you are buying sounds like a great strategy in today’s economy!
The average person does not stay in a home for the amount of time necessary to recoup all that money put down versus the higher payment they would be making due to a higher rate mortgage. Plus if you don’t put that money down, you can invest it and make money off the money you’re going to pay for your mortgage. I cannot imagine putting down $75k to save a few hundred dollars per month, especially given the fact that they’d be able to refinance in a few years when they have some equity and the interest rates are lower.
The problem is NOT high interest rates. The problem is that artificially low rates have grossly inflated home prices. What we need is a massive downward correction.
What’s NOT told to the people is… sellers rarely choose the buyer who’s asking to assume their loan in the offer, reason being is they take much longer to close. It’s a gimmick to draw in more lookers, collecting multiple offers and then still choosing the one who doesn’t ask to assume.
This is usually a bad deal for the seller, if they’re considering this it’s probably because they are struggling financially and are getting hosed…. Also not only do the loose out on part of their entitlement for the future… they almost never ever ever … get compensation for what they’ve already paid and for any of the house appreciation..
It’s a predatory practice
Pre similar to auction or foreclosure
The buyer puts down a larger down payment and has to cover principle and appreciation.
@@objective_evaluation in theory, but in practice this is most often used by short/whole seller type flippers that are experienced in screwing the vulnerable
That's short sale, but this appears to be a little different. The sellers are not in a bind.
My house has a 4.75% rate with a $30k gap. I would only sell to a VA approved buyer, so I can reuse my VA loan in my next home. CA to WV losing 15K with all the home improvements.
Big factor with VA loan that is assumable means that seller could possibly not get into another VA loan when they let someone assume their VA loan due to VA certificate of eligibility guidelines
This seems like a bad deal unless you are a current soldier with BAH or military bonus coming up and you are buying it from another soldier and they have to move and you have to live off base. Let's be honest if you got 75k to put down on a house you should already have a house or condo unless your credit is totally shot.
I think the difference is that if you had the saved down payment, you could buy a 30 year mortgage at 2.5%, instead of the 6.3% by getting that other non assumable mortgage. So having that 75K for the down payment would be huge at getting the way lower rate.
@ganthc How many American citizens fit your narrative ? Listen, this seems like something an immigrant family would do. They immigrated to America with their life savings and have no history of credit and probably will go into it with an extended family ( wife, husband, kids, grandparents, uncles and etc). This isn't for first-time home buying American citizens.
bad deal for who? seller gets higher bids, buyer pays 250k less over 30 years in interest and 800 less a month on a 400k home 6% vs 3%
@@leok7193 what America buyer has that much cash on hand besides immigrants? Who would be able to cover the equity of a house that could had been owned 10 years or longer. My equity of my old house was 100k after two years when I sold it. So somebody will going to cover that then have enough to finish my loan plus expenses?
@@MalevolentBite I'm not going to describe every buyer that can do it, but I know I can in multiple ways. I have a stock portfolio that I can cash out to cover a downpayment or if I move and sell my home, my equity would cover it.
It's called saving and investing. Most Americans don't get it because living in debt is somehow normalized, but not to anyone who understands finances.
All FHA/VA mortgage loans are assumable and always have been! Assumable conventional mortgage loans are rare, because the lender has to make them assumable. Back in the 50's = all mortgage loans were assumable up until about the mid-60's when buyers started buying homes outright! Find a seller with an FHA/VA loan, negotiate, agree to give them some money at the time of closing and get them to ask the lender for the assumption package and get a lawyer to fill it out! You can also refi an assumable FHA/VA mortgage loan, if the interest rate on it is too high.....
why is the video narration so bad?? some words are even slurred
there are so many property listings with "assumable loans" but without any details. When I contact them for details of the loan terms they turn into greedy sales broker. hard pass
You need a much bigger down payment to do this.. Imagine taking over someone's mortgage that's paid down 40% of it... + the increase in property value since they bought it. Maybe it works if you blend it with a higher rate 2nd, and you are saving a little...
I live in Southern California, and the house prices are outrageously high. The AVERAGE in my neighborhood runs $2M. 10 years back, average was around $850k. How will the kids afford this? This is insane and unfair
You realize that’s only 8% appreciation a year
@@kevoreilly6557 Yeah, nothing..
My parents bought their first house in the 1970s by assuming the mortgage.
My house is eligible, but the measly $50k mortgage ain't gonna cover it's $250k value
I assumed an FHA mortgage at 7.5% at a time interest rates were 11%.
The difference then was house prices were far lower. Especially in the HUD repossession capital of the U.S.
Sounds like you have to be lucky and have to deal with more headaches.
People want 200% of their value, not looking to lend a helping hand....
Creative finance is the answer.
Nothing is rare about an assumable mortgage
If banks don't want to touch it...well you should stay away too😢
The buyer may need to pay the difference between the mortgage balance and the home's current value, which could require a substantial down payment or a second mortgage.
5-6% is not a horrible interest rate. The actual issue is home prices and the fact builders are not building starter homes.
Large parcels of land are becoming rare in areas with the most need for housing inventory. That rareness increases the value. From a corporate pov it is obviously more profitable with less risk to build targeting the highest price range that can be expected to sell.
Capitalism is great other than the many flaws.
@@quadsnipershot the actual issue is the demand. Supply would be fine if everyone wasn't trying to move to the same places and overbid against one another
Plenty of real estate markets are stagnant in home prices, yet my home in CA can't stop appreciating. I visited Elko NV and looked at prices and home prices hadn't gone up in years
The builder I purchased with said my 2200 sqft home is considered a starter 😂
Mines a 10 year fixed at 2.2% APY ☺️ only 6-7 years left, paying it off early, we got it in 2022.
Assumable mortgages sounds great.
I’m still curious as to how housing prices are still so high but no one can afford these prices. So why are the prices staying high?
I paid $500k last year at 6.125%
I could only do it because I put down $250k after I sold another property, Out of $3k a month only 400 bucks went towards principal. The Banks win every time
I have an assumable mortgage in Texas at 3.6%. Problem is I have almost 300k in home equity, so it wouldn't really work. Most people can't just give me 300k to close on my ≈900k house. Assumable only really works if it's been less than like 5 years and inflation has been fairly stable.
You can always do a homeowner loan
I just did this with my fathers home i had no idea it was a thing i literally called the lending company explained the situation we were in then surprisingly they helped us with this process i was actually shocked
I heard alot of nothing
Yea… people are so broke now they can’t even afford their home and have to sell it to downsize.
4000.. come on.
Its not the %. I mean, its part of it. But its outrageous for a 2 bathroom and 2 bedroom home costing 250k. THATS CRAZY.
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I would really like to know how this actually works.
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Are homes with assumeable mortgages selling at a premium? Nothing is free and that sub 3% loan is worth A LOT over the years
If not now Im sure they will be soon when this becomes a trendier thing to do.
Can't they take another loan for paying the previous owners investment? Say if someone already paid 50% of the hois3 plus has a house increment to 50% in price that amount be taken on mortgage at 6% n rest be on the 3%
Sellers could also private note their property and collect all interest on the loan.
Hahahahahahaha. That eliminates the greedy loan officer. Awesome
I think this is extremely rare… Why would the seller allow the buyer to assume their mortgage, unless the seller not buying another home… More often, the seller will need to buy another home, and carry their existing mortgage to their next home… And if rates came down, no buyer want to assume your mortgage (with a higher rate)… I see no use for these mortgage…
There are sellers who need to sell due to job loss, financial distress or inheritance from a death of a relative. If you can find an interest rate of less than 4% that’s a steal. That’s a difference of hundreds or thousands of dollars in monthly mortgage compared to 6%. It all depends on mortgage loan, lender and credit score.
I don’t think we will see rates drop to less than 4% again.
Carry their existing mortgage to a new home? Lol. For those not in real estate, this is called mortgage porting and does not happen in the US. Assumable mortgages are advantageous in times of rate disparity such as now just like the report is stating. Not being able to see is called blindness
I was planning to do that, currently at 2% mortgage and was going to move to a lower cost of living area and use equity to buy a house cash. health problems got in the way. and SURPRISE, if I wanted to take out another mortgage, I could've easily done that too.
The seller lets the buyer assume the mortage to get a premium on the price.
O like how CNBC says assumable mortgages are too complicated for many mortgage companies to figure out and then they leave the viewer with the impression that the major complications are mentioned in the video.
They are much more complicated than implied and require the perfect set of circumstances. Perfect credit. Substantial down payment. Desperate seller who also has substantial equity. Seriously, it is rate for a reason.
We are in the process of closing on a va assumable mortgage. Not easy finding a second lien for there home, but possible.
all mortgages should be able to be assumed, not just government backed ones. The reason why is banks don't like them because they will make less money.
Everyone keeps blaming the interest rate...but what about the insanely inflated prices?
In Mass, average house cost is over $700K, how is this normal or accepted by people?
Another thing that happens is a lot of mortgage lenders actually have agreements that prevent from someone selling their house this way.
Anyone with a sub-4% mortgage in 2024 has to be on their lender's hit list.
🚨There are millions in the wait - interest rates must fall to see significant changes in the housing market
Will drive up prices … issue is not enough houses built
Inflation overtime will support the prices bought in 2020's. Or a housing crash predictions of utube won't happen?
😮💨OK😮💨That’s fine😮💨
I thought it was just another subprime mortgage scams 😮💨
Subprime doesn’t exist anymore. Last crash of 2008 was once in a lifetime. We’re lucky if we get nationwide 10% price correction.
Kuphal Neck
I bought a house in Denver in July of 2008. I had an assumable mortgage on that house. My realtor at the time mentioned it during closing, had no idea what it was until he explained it. When I sold that house in February of 2019 the mortgage rates were lower than what I had on that mortgage. Then when I bought my house in rural Arizona after selling the Denver house my mortgage was also an assumable mortgage. In early 2021 I ended up refinancing that loan when rates were near 3% so the assumable mortgage went away. Not sure how incredibly rare it is if a single guy with one income source has had 2 assumable mortgages consecutively. Both were FHA. What’s the criteria? Is it up to the bank? Depends on the house? Area? Credit score? Race? Job?
All FHA loans are assumable, but it is up to the lender to approve the transfer of the loan to a new borrower. The decision comes down to creditworthiness, so don't attempt to sell the home by assumable mortgage if you know the buyer has less than average credit. Most sellers won't do it anyways unless they are having a hard time selling the home.
Can anyone assume VA and FHA mortgages?
This is a huge deal
Historic rates have never been 3% that's too low. However home prices have effectively tripled in the past 20 years which is not sustainable. Incomes have not went up 300% in 20 years.
Weird how they just glanced over the need to cover all the equity the previous buyer might have. Sure, assume my mortgage, as long as you can hand me my 200k in equity. You're not "expanding the universe" of buyers by substantially increasing up front cost.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Stacy Lynn Staples" I've worked with her for some years and highly recommend her. Check if she meets your criteria.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Must be nice
Not good smh .. this isn’t helping many people at all 🙄
Assumable mortgages: like a time machine to a 3% rate in a 6% world, saving you hundreds monthly through real estate nostalgia.
These would be way better videos if they didn’t have over stimulating music in the background.
If you can't afford it with the higher rate, you can't afford it period.
Bring Julianne Iwersen Niemann on the show. She changed my life Financially I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Julianne Iwersen Niemann, for her expertise and exposure to different areas of the market.
Strange how my re103 re law and practice professor was also Singh. CSN Las Vegas Fall 2024
Dean"s List
I think it’s fairer to drop prices
Pace Morby where you at?
You know what they say when you ASSUME?
if a normal size house on a half acre land is more than 80k it's unafordable
Wait, I thought Utube influencers said the housing market is crashing?
in some markets it is, in others it's going up. imagine 2 things can be true at the same time?!
But wouldn't the seller want more of a profit? Taking over the previous mortgage would mean less pay for the seller right?
No … seller paid on sell price
So next question. If someone is going through a divorce and both are veterans and both are on the mortgage, can 1 of them still “assume” the loan and not have to refinance?
Went through this as a non-veteran. My lawyer told me it depends on the lender. Our lender said yes, one of us can assume the loan without a refinance as long as I can prove I’ve been paying the whole mortgage out of my own account, not a joint one. I’d say contact your lender.