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