Welcome back to the factor
uncensored a new study shows
that nearly three hundred
thousand home buyers who bought
a house this year- more than
what their home is worth joining
us here on the factor on since
Bagani so tell us exactly what
this is about we know there was
a time in the last two years
where there was a shortage warm
the inventory for homes was
really really low and they were
bidding wars and multiple
overpaid for home yes yes. So
you had a lot of people out
there buying homes over panam if
the house did not appraise then
they would come out of their
pocket and pay the difference
homes where people could be
upside down in on the key is
that they just have to ride it
out because real estate is very
cyclical it's up and down is up
and down. And so if you're in a
situation where you upside down
just stay in your home. Rotted
out and at some point you're
prices right now in Houston have
not really went down they fled
now. But they had went down and
I see the builders all the ones
is doing the- the bigger
discounts all the builders that
are out there. But rotted out
don't get nervous about it and
the reason I say this is because
you buy a car you lose all your
values or just pull it off.
You're not going triggered head
into not selling it so I'm going
to take you from the rules there
really quick though shared for
those who don't understand the
terminology upside down on the.
Water what does that mean. Did
you see a that database means
you all on the house then what
is worth. And so when you UPS
didn't you got negative equity
there so you just have to ride
it out because as you make a
payment. The principal goes
down. And at some point the
values going to go down now one
of the- girls in this deal. That
if you have a VA loan or FHA
loan which is a symbol. And you
decide that you upside down
somebody's going to come pay you
your- some equity. Because
what's going to happen in that
in you got a 3% interest rate.
You got a three and a half
percent ensuring and rates are
now at six and seven. Now many
people are saying though why
don't we just why don't you just
go refinance but the interest
rate. So would you advise
someone refinancing. At at this
time especially if they're
upside down now absolutely not
no one needs to be refinancing
anything right now. You just
hold steady. And the market will
come back to you. We've gone
through this before is a
is No one's refinancing. But the
thing that people need to keep
in mind about interest rates.
You're dating the interest rate
you're married to the house. So
what if interest rates go down
you can always refinance the
home and some deals like VA and
FHA will allow you to refinance
with no money. Out of your
pocket so I just think we need
not be nervous just hold steady
and the market will come back.
And raids the prices are down.
But they're not really down
there flat because of the reason
prices went up. Is because of
months of inventory people we
still had shortages and we still
have those shortages I still
have more buyers. Than I have
houses the sale but the interest
rates have statement. The market
quite what does it take to make
the sellers. Come to reality
that you still can't sell a
house. That hired that expensive
that that day. Last year the
year before last that's gone.
Are watching your show tonight.
That's going to be. But hire a
real estate expert power
professional stop watching all
the things that you're reading
about what your neighbor got all
those deals are gone now. You
have to realistically look at
the price and you still going to
if you bought your house five
years ago even if you took a 10%
or 20% laws you're still going
to make a profit now if this
listen to the real estate expert
that he or she may be D. or they
may be dealing with. Time will
show. Time will tell them
because your house won't sell
right the longer is on the
market the less you will get.
The first thirty days is crucial
that's when you gonna get more
people looking at it is new on
the market but if its own sixty
days you need a reduced price.
All my sellers that I have homes
listen I'm having a conversation
with them right now. Now you
also mentioned that now is not
the time even if you're upside
down or underwater with your
home to refinance. Especially if
you bought. During the time with
the interest rate was two.
Percent or less. What would be a
good interest rate to refinance
at in this current market.
Because we know we're not going
to see 2% anytime soon right.
Any time you can get Bruce B. B.
B. B. low 2% of what you already
hail. So if you at seven if you
can get the five then you should
be fine. So does who a buying
houses at seven. And eight and
six and a half all of those
should be looking to refinance
of the market goes back down to
four. Five percent. Ended thing
yields come the fifteenth of
December we've just been told by
are going up. Three quarters of
a percent so a viewer at five
and a half right man you got it
Within December fifteenth it's
been just talked. About all
across the country all right she
botany always good to see thank
you very much and to see you
live for the first time in a