0% Mortgages Next NAIL IN THE COFFIN For Housing Market
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- Опубліковано 25 вер 2024
- 0% down mortgages along with ninja loans and adjustable rate mortgages is what got us into the subprime mortgage crisis and ultimately led to the housing crash back in 2008. Apparently everybody has short term memory on that since lenders are now starting to offer the 0% down mortgage once again. Looks like history will be repeating itself.
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IT'S FINALLY HAPPENING! Corporations Are TAKING LOSSES! ua-cam.com/video/teNimo4GUbs/v-deo.html
I would love to chat sometime.
1% Down on over priced property at 9% interest? What are we really discussing here? 🤔
Excellent video, but it's on the politicians to be blocking these mortgages. Banks can do whatever is legal and as long as they aren't breaking laws; then they'll do the 0% down. This lets them lend out as much as possible and if we crash; then they'll hope the government bails them out.
I laughed when you complained about life in Florida being overpriced , traffic being bad, and people being rude. You talk about coming to California!!! Other than the weather everything is 1000x worse than you got it in Florida. Crime and homelessness is through the roof, talk about scams we’ve got the same scams with real estate rentals on Craig’s List with people scamming your 1st payment plus security deposits but they’re not even the owner! Insurance here they fleeing the state both homeowners and car insurance. Street take overs everywhere and crazy wrecks everywhere just look at all the skid marks and freeway rail damage! Stolen cars it’s a hobby here cause no one goes to jail, get let out and do it all over again! Records everywhere with crime! Drugs and homelessness…I recommend people still goto Florida just not the main city’s like Miami etc. I went to Texas far better than California!
Please do a video on whether or not to reinstate Glass Steagall.
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.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
Do you think they don’t know they are offering these mortgages with the likelihood that they will probably default. Then the lender can foreclose and take the property back and pocket all the payments they did make. It’s predatory lending at its finest.
They aren't doing this out of the kindness out of their heart.
They'll sit on the market. Broke ppl aren't lookin into gettin into more debt. I'm in the industry. That r@cism will cost them. Watch
@@justme2272……. Racism?
Exactly, get commissions, get that front loaded interest where virtually no equity is paid off, then short sale or foreclose
happening in Canada 🇨🇦 with 6 months left on mortgages...the banks toss equity out, bring in thier own appraiser to devalue from market value...30 days later you are out. It's illegal as heck but in this economy a - most can't afford a lawyer. b - even if you could, lawyers don't want to go against the bank. c - the banks have some fine print now they don't tell you about. at age 63 they cancel your mortgage insurance with no notice. at age 63, good luck trying to get anyone else to carry such insurance for you. I could go on but there is no fight left. The stress of seeing our almost after 25 years buying a small farm....3 months left to go...my husband died with a broken heart. 💔 😢 Are you aware of a Canadian government program called M.A.I.D.? ASSISTED DEATH!!! assisted or not assisted....that is the final option being too easily offered and...taken. Sounds 1934????
On the bright side...in 100 years...no one will care...history teaches memories are very short. 😢
I remember 2008 very well. People were literally walking away from their homes, just leaving the keys on the kitchen counters and bailing.
We've learned nothing.
Many fake loans and high risk buyers with low incomes getting approved for homes that they should of never got approved..
The only thing humans ever learn is that we never, ever learn.
Actually more people stayed in their homes and just didn't pay at all for years ... I worked for the biggest bank during these years doing mods and let me tell u I seen more people past due 36 - 60 months than I did not being able to get ahold of the customer that lived in the home
There were entire subdivisions of abandoned newly built homes in some areas of the U.S..
They left the keys and took the copper pipes.
To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
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.
I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Carol Vivian Constable is the licensed advisor I use.Just research the name. You'd find necessary details to work with to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Michael is the reason no one watches mainstream anything anymore. The real knowledge and creativity lies all around us.
Hopefully you apply this same logic to the antichina and anti Russia propaganda that they are blasting you by the same mainstream medias
Michael and Brian at ClearValue are my favorites!
I always go to my list of UA-camrs. They have the facts and receipts with their info.
Just regular dudes give us better news than the actual news
Good good. Ita about time ppl stopped wasting time on bs like typical tiktok and get informed!
"No money down! You're just going to get the worst interest rates in history - for a house that costs 10xs what it's really worth!"
Bought my house zero % down with a USDA loan at a great price and great rate. We over pay the principal ever since the first payment was due in early summer 21 and knocked years off the life of the mortgage so far.
I don't disagree but I took a different approach. I bought a lot (75k) and paid it off in less than 2 years. After the payoff I had the equity to build a 400k house which assessed for 550k in 2022 and my neighbor (comps well with mine) just sold theirs for 680k. There's ways around the system but you have to be able to afford the payments in the first place...
@@winniethepoohandeeyore2 So you got a loan because of government. lol
Good for you, I guess.
USDA & VA are different than what he is talking about. 0% down "Convention Mortgage" is being discussed and yes the rate will be higher
@@jeffb321 I'm just stacking cash.
The next one will be a depression, not a recession - and people dump houses in depressions; because they need to be mobile to find work, and so they dump the houses to get out of the property taxes.
Famous economist John Kenneth Gailbraith was asked once, towards the end of his life, if something like the Great Depression could ever happen again. He thought about it for a minute, and then, this was the answer he gave: "Yes, and all it will take is for another generation of suckers to come along."
Every generation are suckers in their own ways.
Human nature is a very consistent entity.
“The technotronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities. ”
― Zbigniew Brzezinski, Between Two Ages: America's Role in the Technetronic Era (1970)
@@malachi- Dear Lord! This Brzezinski quote is from 1970? We are so screwed.
Galebreath is the man💯.
@@rokyericksonroks The "Unabomber" was reading that stuff way back when it came out.
@@rokyericksonroks Yes... and people really think everything happening is just random chance, the gov is always decades ahead and forming patterns.
I was shocked to see home loans with just 2 % down and thought, "we sure didn't learn from the last crisis."
Why would they? They all got bailed out last time.
No. They're just tryna squeeze more money from the poor. This will backfire on the rich. The poor is already poor. Watch rich ppl lose they chit.
@jasonfuller1001 bingo! Exactly what I was going to comment.
What if you’re using a VA Home Loan?
I put about 5% down. 😂
100% debt free since 2009 , I don't have alot of cool toys but life sure is stress free over here.
Awesome! I just retired today and will be the same next month. It will be a great feeling. 🍻
@@Frank-qs3peany tips for a 28 yr old
@@jaredtheboss yes,get a government job and live within your means. I started at 22 years old , worked 26 years and 2 months and I’m 48 now. Work overtime and save. The medical and the pension are the 2 best benefits.👍🏻
@@Frank-qs3pe any special investments? Or?? Are you still working
@johnnyfudpucker6187
Way to go 😄. And live longer.
Down size I did. basic paid off car, paid credit off, paid off home. I am pinching pennies, dropped my lawn service, purchased a riding lawn mower from a garage sale for 200. dropped netflix and disney, hulu.
That makes you smart. Good for you.
Probably eating more at home, enjoying local events and activities
I was so close to this a couple years ago in my 30's. Then I got leukemia and haven't been able to work the last 2 years. And basically all my savings are gone and I haven't been able to afford to stay ahead. But I'm alive so I got that going for me.
Yep my car is paid off, I sold my boat, went heavily into dividends, precious metals, etc. I wanted to buy a new sportscar like a Corvette or Nissan Z or something but with what's coming? NO WAY.
I doubt paying for a TV service is going to change your life 😂
Rocket Mortgage definitely has the right name. They strap a rocket on your back and aim you towards the "poor house"
When I did a prequalify they called me out of the blues..told them no, not doing anything. It saddens me to have to halt but what choice is there. Interest rates high, pricing high, aweful economy...l
That’s funny
I was a real estate agent in CA. Paying 6% no matter what price the home is, is a rip off. I’m glad people finally woke up
They charge 7% in upstate NY.
Shows your youth and ignorance.
@@nofishtodaylead brained 🅱️oomerrrr
Worst story I ever heard from 2008 in Rhode Island. Immigrant family from the Dominican Republic, husband and wife together making $38k combined. Wanted to buy a 3 family home and could not decide between 2 they had seen. $300k each. Despite not having enough income to afford one house and not having a down payment, the real estate agent and the loan officer from the bank gave them a loan for both houses. Guess what happened to that family? Lost both houses when the crash came. Loan officer and real estate agent got their commissions. 11:26
Remember in The Big Short they were bragging about frauding immigrants cause they would just sign anywhere without reading anything. That was so disgusting. Should be in jail.
Yes this is exactly the same. Not.
That was my parents. To this date, they are still working to pay off their debts 😢
At least they got to enjoy the houses for awhile. I was never given that chance with the realtors around here.
Actions have consequences 🤷♂️
Shit. Here we go again like in 08. Lived through it and survived barely.
I remember that! bought my house in 97 for $137,000 then when going through my divorce house prices dropped $100,000 in one year in 2009 when we had to sell it. So had to sell for $275,00 after a huge addition . Dumb time to get a divorce but at least had a small profit didn't go under. Now that house we had to sell is worth $450,000 more today. But these people buying these houses during the bubble are going to go under water when the prices of the houses go down and have to sell if a similar situation happens to them
If gold drops, I'm getting myself some shiny bullion.
@@ellwoodwolf spot might drop but premiums will rise...
Their loss 📉 and down the road the prudent win.
I was always told, “never, ever take a loan out against your house!“ I never forgot those words and would never do that. They count on you doing that though for sure and then when the house prices drop and you had a $400,000 value home and you took out a loan for 300,000 and the value of the house drops to 250 you’re screwed and you lose your house. So many people are in that situation.
This is as good as it gets. 90% of potential home buyers cannot afford property insurance and taxes let alone the mortgage household utilities maintenence etc.
When my wife and I bought our house we only put down 10k. But that was 20 years ago and our house was only $123k so 10k was almost 10% so the bank was fine with that. I got 17 months left and its paid off. Plus I paid off my car and just paid off all my credit cards. Soon I’ll be debt free.
Oh, well then you should get a $200k HELOC at 9% interest. /s
Congrats. Stay that way. No better feeling.🎉
who cares. brag somewhere else
There's a possibility that when you get the cc's paid off your house will go wonky. Seems like it happens everytime I pay off a card, something big comes up. Good luck!
@@WhyteHorse2023 He could get a heloc, but not use it. Have it just in case. May as well, as long as it doesn't cost anything to keep it.
Buying is great if you find a great deal in great location. It's not really a "profit" until you sell, though. So your networth will climb, which feels pretty good, but you would still have to pay rent or buy a new house if you were to sell. You would have collateral, though, which means you could borrow money for other things. Or you become a landlord like Graham and you get other people to pay your mortgages for your downpayment/investment. But owning a house will soak up a lot of your income compared to finding cheaper rent. Mortgages kind of suck, because they make you pay more towards the interest than the towards the actual ownership of the house.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Buying a cheap fixer upper in a so so neighborhood is STILL the best way to generate wealth. Multiple units with section 8 is EVEN BETTER!!
You never actually own your house. After the mortgage is done, if you pay taxes, or h.o.a fees you're house can be taken
I’m almost 80…I have seen this happen 3 times since 1979. Then around 1990 then in 2008…each generation does the same thing over and over..people don’t remember and people don’t change..
Thanks for the wisdom Jim!
I was a bit young for the 08 crash (not in the market for a house at 18) but still remember the period. Any other cyclical things you remember from the previous crashes?
@@ahcs2001 ….Yes …in all bad events , the smart people make a killing…they always do..when people loose money , it’s always lost to someone else… it just changes pockets ..
It’s just a matter of positioning correctly before it happens.
Life is clearly understood looking backwards…unfortunately we have to live it looking forward …
History doesn't repeat itself but it sure does rhyme.
People should know history but don't, because effort. Living for the now.
@@ahcs2001 Movie 'the big short'. Very entertaining and truthful. 2008.
@@benton-benton I have seen the big short! It is a great movie.
I'm just asking about what other economic issues people have seen that have lived through more economic downturn cycles. Specifically, is this more of an average bust cycle with layoffs and people going further into debt, FOMO buying houses, rental properties etc!???? Or is this a much bigger downturn?
I mean it's clear we have people denying we are in an economic downturn and the other side saying it's the worst USA economic crisis ever! I'm just trying to calibrate and see what someone who lived through the times has to say!
Been divorced for a while. Alimony and Child support kept me from qualifying so I paid cash for a fixer upper. No mortgage ever again! 100% equity.
Good for you. I'm single with and old mobile on land. It needs alot of work. But it's ok. It's paid for. I will have some work done later.
@@terrihansen2089And you own the land . Hopefully taxes are cheap.
Yes. I own the land. Taxes are cheap. It's old and ugly. But it works for me. I did overpay, but not now.
Now if we can figure out how to abolish property taxes
"May you live in interesting times." I lived through the 08 crash and everything that came after and I'm really kinda over living through economic chaos....but here we are.... again! Buckle up my friends, it's gonna be a bumpy ride.
Never understood why that was considered a curse but now do I understand it😬
@@pamelqtaylor8335 China is definitely living through interesting times. Their consumer economy is in the gutter. Businesses going bust left and right with no end in sight. But we have our problems too...
Same here but the signs are everywhere. When inflation reaches the point people can't afford Mcdonalds you know you have a big problem.
@@billping2633 purposely bought a $17 triple baconator wendys. Was a combo $19.23. Said thats it not ever coming back. Not a lot people in restaurant. Everyone whole restaurant even cook staff looked at me. Later Wendys.
We bought new construction in 2006 in San Antonio. Sold in 2014 and had to write a check to get out. The builder’s “preferred financing “ allowed illegals to get in to brand new homes- at least 1/3 of our neighborhood. By 2009, they had all walked away- loading up uhauls in the night! Destroyed value for the rest of us! 😡😡
similar about to repeat there
Wow...
Yep! Then someone comes in and buys the empty houses, then rents them Sect8. Exactly what happens to anything remotely affordable over here in Houston.
IF they were illegal aliens, how were they able to get financing? They weren't even citizens. Also, how did illegal aliens sign paper-work to rent a U-haul? I'm having a hard time believing anything you're saying, especially because I live in Texas. The laws here are pretty harsh on illegal immigrants.
My condo went from being worth 160k in 2007 to 40k in 2011. The one good thing is we didn't have the problems you had. It was a complex with long term owners. Everyone for the most part rode it out. But it took till 2022 before the prices went back to 160k. There was a mass exodus in the last few years, including me.
The lenders realize that the government will jump in to rescue them again with a bailout or a big tax break, if the proceeds or mortgage insurance doesn't cover them 100%. Virtually no risk, all reward if you're rich. How can you lose?
Sky high mortgage insurance is probably required on the loan like FHA. This is not even close to 08.
Besides those loans are created out of thin air, the money would be created by borrowers over time
Creating money causes Inflation! 😞
Nothing more risky than a loan on $1.5MM home that was just $500K 2-3 years ago and driven all by speculation.
@@shanerogers9386 It’s driven by low supply and tons of buyers on the sideline with finances ready holding prices up.
I learned my lesson in 2008. The key to financial stability is zero debt. I didn’t lose my job or house as so many did but had a lot of debt. It took a few years but I paid off everything just in time to retire.
I had some elderly neighbors save their home from foreclosure by moving their working-age children, nieces, nephews, grandchildren into the house. They got behind on payments due to health problems but with five to seven more paychecks coming in and a great lawyer, they were able to save it. Why give rent to a stranger when you can give the same rent to grandma and grandpa?
Elderly people shouldn't be taking on a mortgage in the first place.
How big is this house to have all these people living in it?
I’ve advocated for multigenerational households for awhile.
Exactly ❤: People don’t understand the concept.
@@wanda520I truly believe it’s going to come to that & if it’s a way for everyone to have a roof over their heads, why not?😊
The problem isn't the program, it's the fact that the only people that qualify are the people that will 100% be unable to support the payments, and WILL lose the house. The lenders make their books look good a little longer at the expense of a family's financial well-being.
People are free to enter voluntarily into a contract.
Unless it's an extremely rural area I'm having a hard time understanding who will be able to qualify AND find a house to buy! If you can't make more then 80% of the median income in the area then you're unlikely to be able to afford the median home in the area. Any house you can afford, that doesn't require a ton of work to be liveable, will be scooped up by an investor.
I need to see who actually uses this before I go off the deep end.
@@RM-jb2bvcorrect, but it's called predatory loaning for a reason.
Nobody is responsible anymore. Just walk away. Dog eat Dog works both ways.
Hard to be responsible when current admin is spending like drunken pirates and creating record inflation
@@YuenanCaoThe Trickle down effect.
We bought our first house using the benefits of the pre-2008 actions. Was in 2004. They qualified us for 5x our income, but we decided 2.5x was much safer. Fresh out of college we got a brand new 3000 sq.ft home for $150,000, interest was around 6 something and our total out of pocket cost was about $700. We were very happy. Though we did see several people in our neighborhood lose their homes over the next couple years. It didn’t work well for people making bad choices, but it worked great for us.
I can't think of a single thing that could go wrong.
😂😂😂😂😂😂
Only upside for everyone... forever! 🐎🌺💕
Me either. Let me know if you come up with something.
What do you mean by ‘wrong’
I’m from the Government and I’m here to help…
I was in the business briefly (very briefly), and none of the real estate agents cared a wit that they were setting their clients up for failure.
Beware if predatory loans for mortgages. They will give you a loan knowing you cant pay it to steal your home. And yes they do it. Watch the big short.
They're already using methods and planning more to steal every home.
It's not "your home."
Nobody is buying because interest rates are high AND prices are high. Prices are more important than interest rates. People will resume buying when the home prices come down.
Exactly. I’m so tired of hearing that when interest rates come down people will buy. It’s the price that is the real problem. Interest rates change, when I very first bought my house in 2001 the interest-rate was 6.1. And before that it was 89 even 10% back in the 70s and 80s. People forget that. The big issue now is the price of the house to begin with.
I’ve seen interest rates higher. Prices are the real problem.
except in wealthy areas like Boston and NJ where silly folks over bid
My landlord did not raise my rent with my new renewal this year. I was shocked. Spoke volumes. It is a small sign that the rental market will level out, albeit very slow. I do see small changes (in the positive for me as a renter), happening. Thank god
Same
Gr8 news.
My rent has been the same for 4 years. Lucky 🍀 me.
Sold mine...I saw my competition sitting
Why should any of these corporations care? The government bailed most lenders out last time, right? "Too big to fail" is what they told us.
It should be “too big to be this incompetent”
@@Jackothy100% agree
They also said if you’re too big to fail, you’re to big to exist and they said they would break them up. Obviously, that never happened!
@@Chiefsfan98 The opposite happened. The government didn't want to do the work to break them up so it forced bank mergers, which made them even more too big to fail.
The price of house is still too high.
It’s only going to get higher.
It's not coming down. That's what extreme inflation does.
I'm waiting for 40, 50 yr mortgage to be a thing. Like you can sign a mortgage at any age and your kids can finish paying it after you "go"
@@ellwoodwolfalready 40 year mortgages
Lol my mom paid 117k......5 years later they are saying it's 270k😂. Absolute nonsense.
In 2006 put $65k down on a house. Put another $25 in improvements. Had to sell in 2013, home value dropped 20%, lost the money. That’s because people walked away from 0% down homes.
Thank you to our host for taking us along on outdoor walk-around tour. We learn a lot from your research
Man. The chips just stack up for the haves and continue to be taken away from the have nots. Absolute shame.
$1.2 million for a dinky house in Long Beach CA right now. It's not even a good city for that type of average value. Another 6 months and Inland Empire will be all over $1 million homes
Why do people stay in these ridiculous places?
What goes up can go down and who really wants to live in crime invested areas is the real estate worth it?
Keep telling the truth! The MSM simply "Lies by omission!"
My black middle class neighborhoof in Queens NY, Jamaica Queens homes are all pushing a million. The good quality but "cheaper" homes were in that area now it's not cheap. These aren't mansions either
250 acres in NC mountains..waterfall, private..near all you need. Beautiful home,2k taxes..you all need to get out of the blues.. run for the hills...
Sellers will have to reduce their asking price by 50% for starters.
I paid $203,500 for my townhome. I don't think it's value will go down to $100K. 😂
😂😂😂😂 good luck
@@BREEZYM6015Location is key.
@@BREEZYM6015
Best of luck
Zero percent down with a 12 percent interest rate…but hey you can always refinance later, right….
Makes my 6.875% rate look like a steal. 😂
Horrible concept: theoretically, a person could win. However, practically isn’t realistic.
Exactly the scenario with my first home. Zero down VA, 12% interest in the 70s.
Wife and I did 0% VA in 2017 at ~3%. What a deal.
Had to sell to move and am looking to do it again but man those rates are too darn high 😢
@@hueco5002 VA loan 12% in the late 70s for me. My understanding is that you can only qualify once for VA loan.
My brother fell for this back in the early 2000's in California. After 08 his house payment jumped from about 1,500/month to almost 3000/month. Then when he moved out and tried to sell it he couldn't because he owed more than it was worth. Then, squatters moved in and it took him a year and a half to get them out. That was his first, and last house purchase. He said it was a nightmare.
Now the house is worth 1.5M
@@JC-dt7rnBut is it really?
Commitment and a down-to-earth attitude are truly inspiring. Keep it up.
Hello Kathy.
sad to say...those two qualities are not working anymore heart 💔
Home ownership is Not for everyone.
I am 65. I am a homeowner, builder, landlord.
My wife and I manage and maintain our rental properties.
We do all the Work. (Painting, plumbing, all the maintenance)
Houses are Expensive to maintain - When they are over 50 years old, even more so...
If you look at your house as an investment, your plan is Flawed from the start.
Home ownership is Not for everyone.
You're right - homeownership isn't for everyone. Especially people under 50 because we essentially are living in a completely different economy than you did. We can work as hard as we can. My husband was a contracting company so he works harder than most people did.. still impossible to purchase a home or start a family these days. Open your eyes Boomer. We're not all lazy and irresponsible with money
@@apstemrich Buying a house, and starting a family all at the same time (in this economy) could be Real Stressful. By all means, Stay Married. If you Guys are flexible on location, move to the midwest. There is still good value there. If you guys choose to start a family, hold on buying a house for now...
If people have no down payment for a $500K house, how can they afford $4K monthly for the two mortgages? I thought spring is when houses start moving, but sellers are complaining there are no buyers. Wonder how that happened?
Nah bro .... The realtor has convinced them that the down payment money can be their first 5 payments and then they can get a job......
Jobs have slowed. Food is expensive as well as transportation costs.
That's so ridiculously not true though. Houses are selling in 3 days some. Homes never sold this fast in history.
I agree with Michael’s take on lender reasons for offering 0 down loans: they don’t have risk.
As he mentioned, first-time buyers probably don’t factor in PMI, property tax, repairs, insurance.
In 2018 I purchased the worst house in a very good neighborhood with a 0 down VA loan. I fixed the house up over the years and it’s now beautiful.
But, yeah, taxes and insurance way up. And I keep getting HELOC offers that say “Use $200k equity for other things!” No way. My 24 yr old Tahoe still drives like new :)
Those loans are a trap waiting to close on fools.
It's just sub-prime lending all over again. I was a mortgage broker before the the 2008 bust. I saw the writing on the wall when we started doing nonverifiable sub-prime loans at 125% loan to value. I walked away. Money be damned, I just couldn't do it anymore. Watching people literally sign their lives away on the dotted line. This is crazy that they haven't learned. This is going to fail spectacularly all over again. Crazy, just crazy.
🪜 Ladders give, snakes 🐍 take…
People need to do a search on UA-cam of all news reports from 2007-2012 and watch documentaries like Getting By, Million Dollar Shack, Incredible Shrinking Middle Class, Maxed Out:Keeping up with the Joneses, Spent:Looking for change,etc…
Learn about the Great Recession,housing crash,empty abandoned subdivisions, banks kicking people out of their homes,short sales,foreclosures ,homeless, Silicon Valley housing bubble,etc. and all the stupid things people did back then buying homes.
Scary stuff.
All these people in 2008 that were upside down in California made about 700,000 by waiting another 12 years. For an example the mechanic told me that my Toyota tundra isn’t worth anything 12 years ago and then I ended up selling it for 8000 ten years later. Things usually work themselves out if you have patience.
Riding on the country making the same mistakes, interesting. Doesn't sound much different then gambling imo lol
Thank you to our host for being the adult in the room. We are hearing reasons for waiting till we can afford a mortgage obligation. It sounds negative, but it is reality.
Do you even know what mort / gage means?
@@expose_theoccult1541I didn't know the the term mort / gage has two different meanings. 😂
Ugh. Will we never learn!!! This will (again) end in tears as people get tossed out of their homes and lose their possessions, what little cash they put in, and worse, their ability to get credit for the next decade or so.
I hope no one gets one of these loans.
And the traumatic effect it has on the children.
Good get out of a home that you couldn't afford in the first place so I can buy it with cash because I actually have money and no debt and rent it to them instead
@@AH-ne3qnDisaibled senior wanna donate a home to me until i die then you can have it back. Then it will be a much smaller box I will be placed in.
What I’m seeing is apartments going up everywhere but barely any new homes. I wish it would crash but in my area prices are still sky high.
I may be the exception but I got my house for zero down with pmi at 4.25%. I refinanced to 2.6% during pandemic and now have no pmi and a lot of equity bc the house is now worth double.(purchased in 2018. A lucky millennial)
Adjustable rate mortgages were the biggest reason people walked away from their purchase of a house in 08. Payments were lower to qualify for the first one pr two years. After that period ended they couldn’t afford to pay the mortgage once it adjusted to the normal rate.
I knew a few people with fixed rates that walked when the values dropped. And they could have afforded the payment. But they still decided to toss the keys back.
So many people did that and they coined the term “strategic default”
But it was mostly flippers and investors.
Now we have WAY more flippers and investors and the values are significantly higher
@@shanerogers9386 WOW! That’s crazy.
What's gonna happen when they get into their 0% down house... and then the roof leaks, or the plumbing fails, or any of the expensive house things break. Or someone gets sick and they have crap insurance. And their real estate taxes increase (ours just climbed $2400, to 10K+ annually), the car & house insurance blow up, etc, etc.
Taxes are out of order…
exactly
Wait you went from 2500 to 10,000?
@@beefnacos6258 No. The increase was 2.4k. And I misspoke - the total annual is now just shy of 12k, not 10k.
I sold a property to a family, 3 people on the mortgage. All had bad credit. 5% down and we listed the house for way above what it should have been and they offered 20k above asking. And they got approved. Beyond me. I would have never done what they did.
They’re probably going to be successful as inflation increases and payments get easier to make. People who overpayed in 2020 are considered lucky by the same people who are telling you the crash is going to happen. lol Real Estate Mindset said they got lucky.
@@Francisco-po1cf I sense some sarcasm lol.
@@CC-nq7mp na, I’m serious. I don’t think the housing market is going to crash the way people think or want it to be. I’ve lost my own job in 2021, changed careers and I still have my home and never missed a payment. 3 people on a mortgage have even more redundancy. If 1 person loses their job, the other 2 people can pay until they find work. The one person that lost their job can use unemployment until they find work. I’m sure they can find work quicker than they think they can. If they have smaller payments they could have money saved up while they’re paying the mortgage.
I’ve lost my job plenty of times through layoffs in the last 10 years and didn’t end up on the streets and was able to buy as a single taxpayer. I did what I had to do working in 4 different nearby cities while I was renting and after I bought a house. My income is very stable now and I’m so grateful I bought my house. Just because you loose your job, doesn’t mean it’s the end and you immediately lose everything.
What course is that ?
I can see how that can happen due for desperation. I remember getting foreclosed on in 2009 from our rental and I literally would take anything I could get approved for. It did not matter. When people hit rock bottom there are no rules.
Last year I looked at a house in my area and wasn’t really in the market to buy. All the realtors are still reaching out to me trying to get me to buy and they seem pretty desperate now. They kept pushing these zero down loans which makes little sense to me financially
In 2008 it seemed that everywhere I went-like standing in the supermarket queue, the break room at work, at a party-everyone was talking about how there was going to be a “soft landing” and then house prices would go right back up. That’s not happening now, this feels different. Everyone’s talking about the price of eggs and gas.
These programms are just an option to kick the can further down the road!
I bought my 2-story condo in 2018 for 90K. I put 25% down and my mortgage is $570/month plus $225/month for HOA fees. I have 60K left on my mortgage and the condo is now worth $160K (My neighbor just sold his identical condo for $160K). Pretty good situation for now, although I don’t expect the value to remain this high for much longer.
Personally, I think you should have sold last year and run. You probably could have bought your place back in 18mos for 1/3 or 1/2 what you sold it for and pocketed all the profits.
My townhouse was 170k purchase. It got to 240k. A few years later they sold at foreclosures for 40k. I could have sold my house, pocketed the money, rented for 2yrs and bought another house in that division on the Court house steps at auction for cash.
Hindsight is 100%. 😂😂😂 Obama did me a total solid. My mortgage was refinanced. My second was forgiven. I sold it and broke even. I was one of the lucky ones.
I work from home, so now, I'm waiting to buy some nice abandoned new consteuction anywhere. Builders will be giving these houses away.
Reading the comments reminded me of some of the things people accused the bank of doing when a loan went into foreclosure. Foreclosures COST the bank money. The file gets assigned to an Attorney who is a specialist in Foreclosure proceedings. I know, I had to submit their bills for payment as a Litigation Specialist. Interest is valuable to lenders and in foreclosure there is the loss of interest. Finally there is the access and marketing of a property whose value is diminished. I don’t know who cooks up these programs. The biggest flaw in these is that there is “no skin in the game.” The borrowers have invested nothing. When the bottom falls out, they just walk away or file bankruptcy.
I've never owned a home. Even when they pay it off, like my dad did, he reminded me "If you think you're the home owner then don't pay your taxes and you'll find out who the real owner is". Not only that but after he got tied up in that house he always said "You can't actually save your money, it's all bled off, while I drive around in my Lambo which I'm what, making payments on and if I don't I'll find out who IT'S real owner is". He said Son, it's simple if you want to save money - don't spend it. So I don't, and in this SHTF scenario he who has the gold will then make the rules.
So you will die with absolutely nothing, but you will have saved a bunch of money...... for someone else to enjoy. Makes perfect sense 😂. Saving is one thing, but you've got to find a balance, between saving and having what you need
I have visited Venezuela three times in the past 15 years.
I’ve seen what happens to people when others find out they have gold.
No thanks.
@@blackworldtraveler3711been there many times myself! You are so RIGHT!
If by gold, you mean brass (as in ammo) 😂
@@rickkuithe5677 No we don’t mean ammo. We are talking gold. Like jewelry you are wearing for example. They disarmed the citizens there, long ago. You’d be hard pressed to get ammo there too. In 2012, Maduro signed into law the Disarmament and Arms Munitions Control, which carried the explicit objective to “disarm all citizens.”
I have extended family there. They came door to door of registered gun owners and confiscated their guns.
2008 all over 😂 they never learn
1920s all over again more like it
No need to learn, when there's a bailout coming. It's in their interest really..
They learn these are not stupid people They are doing it on purpose
@@SpiKSpaN-ei6zq No private borrowers were bailed out by the government....only the banks.
When you said 0% down it reminded me of ARM NINJA loans that helped cause the 2008 housing crash.
Same story as 2008
Everyone will soon live in pods and eat the bugs
most ppl won't accept that lmao but it definitely is raining before a storm in 2024 i only went down the financial rabbit hole so u prolly know more than me but im genuinly scared for humanity with all the shit that's happening
Yep 😂😭😂
Delicious!
Are there any pods available where you are? huge waiting list here...
Own nothing and be happy...
High mortgage interest rates, overpriced homes, high inflation, growing layoffs, business closures and bankruptcies, and now 0% down mortgages. What could go wrong....🤔🤨🤦
2008; 2.0 . Desperate times 😢 Keep it Real Michael 👍
It's cool that you're getting some 1m+ viewed videos. I can see you hitting 1m subs not too far away. Thx for the great info and your hard work.
I know I can’t believe it! that was always a goal ahead for UA-cam and finally have achieved it. 1 million subscribers will come eventually. But it will be some time still.
New favorite channel to watch. Thanks for all the advice 🙌 Love the walking tours as well!
It'll be worse then the great depression soon. 😢
It is going to be so bad.
It will make the great depression look like a kindergarten.
@@Kededian It is going to be really bad. I’ve never seen people so poor.
its like deja-vu all over again
Housing prices jumped 40% in the last 4 years while Rents jumped 100%. Rentals have no equity and no tax benefits. People who waited are paying more than mortgages that originated 4 years ago.
where?
@@tobyk5149
Wasn’t where I live.
Everything normal.
Our lender is now making the marketing push for 0% ...🤣
Most of the time, banks are not allowed to make a profit on forclosures. They recover any balance on the mortgage, and then if there's any left over, it goes goes to the forclosee.
Mike, I bought a house in 2007 on a VA loan. My wife and I never looked at a house as an investment, but a home we house our family and turn it into a home. Even though the house was an inventory house and at a much reduced price compared to what my neghbors prrviously paid a year or two earlier. Over time as we paid down the house and the market started to come back we broke even. We sold and pocket a couple thousand dollars. I guess the bottom line of what I'm trying to say is don't look at your house as an investment, although it is. Do your due dilligence and be honest with yourself, why are you really buying, after the dust settles (closing) can you afford it, and buy based on being able to afford with the current interest rate and not hoping for lower interest rates. And the real bottom line, live beneath your means. I could have bought a million dollar house in 2022, but my $400 thousand home is great when I make that monthly payment. Good show.
My wife and I could have written these very words. We always lived well below our means yet wanted for nothing. Sound advice.
That's only with one purpose, keeping prices high for as long as they can
The real risk right now is putting your 20% down for a 7% mortgage.
That happened to a friend of mine in 08 they would not let her refinance because her income didn’t qualify for the refinance even though she was making more than she was when she first bought the home. She fought it for 2 years but ultimately walked away from the house.
They gave her the initial loan but wouldn’t work with her down the road. She probably still be making payments if they were a little more flexible. Greedy
The mortgage companies don't keep the paper. They will put the 0% down loans into the "tranche" with the decent loans, sell the pile of paper, and move on.
same they did during last housing price bubble
@@tobyk5149 The homebuyer had to put up *something* with the last housing bubble. All bets are off now. Vanguard holds a big chunk of UWM. Your 401(k) money at work.
2008 Subprime ! Banks did not enforce verifying income, like looking into your job, tax returns, length of employment, yes people just got in with closing cost only, guys got in with 620 FICO score
What’s good bro. This is a fuckin mess! I moveing to the middle of nowhere & off the grid shits about to hit the fan world wide…
At least you have cell service.
100% my thoughts as well. 5 acres of land for $20,000 South of me, tempting.
@@knappieboyYeah that would be awesome
Flood zone?
As far as people losing a place to live, that can happen with rental as well. And you can be put outside MUCH FASTER if you are a renter. The knife cuts both ways.
Sorry guys but this is how we got our first home. And by the grace of God it really worked out for us! I hope others can do this too. For some people this is their only chance
I remember the "no pulse no problem" loans offered by Wells Fargo in the 2000s.
The rent is too damn high!
We do the same thing over and over again. No one should be surprised about our next crash. When you bail out Wall Street, Banks, and the Real Estate sector repeatedly, you tell them it's OK to be this stupid/greedy.
Housing is five years overdue for a crash, only the massive COVID money printing prevented a big correction in 2019.
When I said in 2020 the housing mlt would be crashing people looked at me like I was crazy. It was a business cycle cycling. COVID deferred the crash.
I bought a condo at the peak back in the early 1990’s in LA. Being underwater and trapped into that condo was the worst, lost 50% on that when the market collapsed. Lesson learned.
History always repeats itself
or at least it rhymes
But the government keep on interfering in the housing market.
@@kenchow6741 they always do
@@kenchow6741I’m from the Government and I’m here to help…
You form your thoughts into sentences very well and get your point across effectively...while walking on public streets.
I hope you understand how skilled you are at speaking.
These buyers have no emergency fund for the many things that WILL go wrong with their house.
This is very interesting for someone not in the US. Hard to get head around property taxes and 0% deposit loans, HOA costs. How does anyone even afford to own a house. I live in Spain , I earn a significant salary but your $figures there in the US scare me. To put it in perspective. We own an olive farm with 3 houses, 20 min from Barcelona in a very sought after area. We have solar and a waterbore.( If we didn't , the cost would be $600 more) Our total utility and land taxes last year came to $800 and the local govt had to show how this money is spent. They even had to replace the chain and locks to the entry to our driveway as this is considered public land. Best of luck guys and I hope it dont crash but these figures are longterm unsustainable.
Yes, here our gov just tells people, this is America, so nobody holds them accountable.
@@malachi- that's the strange bit. Seems like don't question.
Majority of people don't care about the risks involved. They are greed driven. They don't care......
We put 0% down on a $120,000 house in 2012. Because the prices were down, we were first time home buyers, AND we didn't get more house than we could afford, it worked out.
Great for agents, brokers, and banks, not so good for johnny homebuyer,, next is the 60 yr. mortgage😢
60 year mortgage? Wouldn't that be something. 😂
With the 15 year car loan. Better get that 15 year warranty.
Interview with famous investor...
JACOBY:Even some of the largest beneficiaries of this trend told me it made them uncomfortable,
like legendary investor Jeremy Grantham.
Grantham: In my career in America, the percentage of GDP that goes to finance
has gone from three-and-a-half to eight-and-a-half. (chuckling): We're, in a way, we're like a giant bloodsucker,
and we have more than doubled in size, and sucking more than twice the blood out of
the rest of the economy. And we do not generate any widgets.
We do not generate any, any real increase in income. We are just a cost.
JACOBY: When you say "we," you mean you and other members of the financial community have been this kind of
"bloodsucker" on the economy? Is that, is that what you're saying?
Grantham: Yes-- collectively, we fulfill a completely necessary service, but what we have done is created layers upon layers
of more and more convoluted, expensive financial instruments. And that's what makes all the profits for the financial industry.
And it's, it's taken a lot of ingenuity and salesmanship to make this happen. And a lot of lobbying in Congress, et cetera, et cetera.
And we have imposed on the rest of the economy the idea that banking and finance are utterly important at all times.
If, if you do anything wrong to us, the entire economy will collapse in ragged disarray. (said with a smile, sarcastic tone and inflection)
I purchased my house in Missouri in 2022. I was an all cash buyer and it has appreciated about 7% each year, so I personally am not seeing a problem so far.
Especially with no mortgage. Mine was paid in 2 years. Basic simple housing.
But realtors will tell you it’s different this time. 😂😂
It is.... They missed some profit last time, but not this time.
Who listens to a salesman for advice? Come on man!
That's how people end up with a timeshare....
But it will be different. Look at it from an objective standpoint. 😂
Exactly Micheal, you nailed it on this subject, as well as other topics that I've been listening to, these past months !!!!!!
People only care about the monthly payments, cars, houses, credit card minimums !!!!
It's legalized loan sharking !!!!!
In 2007-8 I remember lots of zero down NINJA loans. The loans were adjustables or low fixed rate for 2-3 years, balloon payments.
I had something similar but it was FHA and they raked me over the coals trying to qualify me lol
This year is terrible on so many levels: we bought an SFR home using our VA loan, negotiated a 20% reduction from the seller, locked and closed at 4% fixed for 30 yrs; then came extreme home owners insurance that literally tripled, property taxes went to $10K, and then we were just impacted by two tornadoes. Now, insurance is total BS and not responding to claims, we had to move out, the home will never appraise to where it was, and we are scraping to get by.