The FED controls interest rates, right? And the FED is evil. House prices react inversely to interest rates because a lower interest rate causes your monthly payment to be lower, so you can "afford" a more expensive house. For instance, the monthly payment on a $500,000 house at 4% interest (avg from 2015) is $2,410. But at only 2.75% that we're seeing now, you could have a house $100,000 more for the same monthly payment.
Now - think back to the 2008 crisis. People were buying houses like crazy and the prices were skyrocketing, much like they are now. Then everything collapsed and people got fucked because they were upside down in their mortgages, they owed more than what the house was now worth. When you have negative equity, plus an economic crisis that causes you to lose your job, you get foreclosures. A lot of them.
But the people that were able to hold on to their homes back then at the low prices could now refinance at a lower interest rate now, and it's smooth sailing.
What will happen to the people buying at the top of the market now, when interest rates inevitably go back up? They will A. be living in a house no one could afford to buy at the price they paid, because higher interest rates, and B. They won't ever be able to refinance because they bought at a record low rate. So they're trapped.
Now. Add in another pandemic. Or a cyber attack. BOOM. Millions of people lose their homes again, owing hundreds of thousands more than what the home is worth. They become slaves to their debt, the banks take ownership of the homes, they're forced to rent in a shitty overpriced apartment where they can never get out from under that debt, and there you have the Great Reset.
thanks ill check him out!
Thank you for this fren. Exactly what Ive been looking for!
move out of city's now
The interest rate on my house was locked in when I bought it.... So if I refinance, it would be locked in at whatever the new rate is.
I am not sure how this works in other states, or if it depends on what kind of mortgage you get. I'm in Texas... not sure if that changes anything.
I'm confused, I thought the point of refinancing was to get a lower rate?
In general, you only refinance if the interest rate drops below the rate you already have.
For example, my rate is right around 4%..... If the rate dropped to 3%, we could refinance our house and get the 3% rate.
But when the interest rate goes back up, my house payment would not go up because it would be locked in at the 3
Now, I am not sure if this is how it works everywhere or for every type of mortgage. We have a fixed 30 year mortgage I believe.
I hope this helps somewhat... To be honest I barely understand it lol. The guy who financed our house was my Bible study leader and a trusted family friend lol. I just signed what he told me to sign hahaha.
Potentially you might want to change the term of the mortgage. Say from 20 to 30 years.
Be smart with your money and don't live beyonf your means...
If the government keeps printing trillions of dollars every year, the only smart place to put your money is guns and ammo, rural property, food supplies, and precious metals.
The market PRICE isn't necessarily booming. The NUMBER OF HOUSES BEING SOLD is booming. Sorry for the caps, but the emphasis must be made on what part of the market is "booming". There are millions of Americans who are nearing eviction. Those Americans are selling their homes. China, large corporate interests etc are buying those homes for dirt cheap. This is why the China virus is being peddled by the same CCP loving traitors in NY, CA, MI etc. The CCP is using their bought politicians to force real estate sales at pennies on the dollar. Every restaurant owner, manager, employee etc is hurting. Ditto for bars, gyms etc etc etc. Those people are forced to sell their homes. CCP is buying.
Tax the shit out of locals, locals sell to CCP shell company, family homes razed, new condos built with 50 year abatements, repeat
I don't mean to be disrespectful but I don't see this being correct at all. My sister is a real estate agent and even in Michigan everything is selling tens of thousands over asking price. In CA it's even worse. Average time on the market is 9 days in the US. No one is buying houses for pennies on the dollar. This was my sister's first year as a realtor and she made $90K in commissions - in MICHIGAN. It's nuts
My Midwestern state is the same. Very average homes sell for tens of thousands of dollars over asking price within days of hitting the market. New York and California real estate are probably a different story, but those markets have always been disconnected from reality.
In real estate. Pro tip right now - do NOT buy new construction unless you absolutely must. If you want a like-new home, buy one that has been remodeled. Lumber costs are outrageous and the builders are increasing 2,500 - 3,000 sf homes in Texas up by $25k to cover it. Seeing several markets going gangbusters and it’s absolutely unsustainable. Also, be smart and recognize the government WILL raise your property taxes as much as possible in big cities if at all possible to make up for the economic damage from 2020. That includes raising the rates in shitty run commie counties like Harris county in Houston or any county in and around Austin.
For those that can don’t living with other people, it is a good way to have other people pay off your mortgage and raise your equity. Or, buy a multi family home such as a duplex/triplex/fourplex and then you can still have your own space while having renters essentially foot your mortgage.
We will likely see a shitload of foreclosures in 2021 regardless of who is president. Do what you can to make sure it isn’t you.
The central bank has always had control over us... they are the true enemy... even more than our own "swamp". Your theory is plausible and the Chinese are already buying tons of houses here in record numbers...but not occupying them. Just driving prices up. Its happening in mass numbers where I am in Tx
yep same in CA where I am. They need to prevent foreigners from buying homes to rent out to locals and obscene rates. Only residents of the state should be able to buy a home here in CA where we have a huge housing shortage.
Yeah i was underwater for about 6 yrs
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.whitlockco.com/thomas-jeffersons-top-10-quotes-on-money-and-banking/&ved=2ahUKEwi3i_zX-IvuAhUFP30KHdDOBGcQFjACegQICRAB&usg=AOvVaw1I9smuB4QxR76UgDgxEYga Thomas Jefferson was way ahead of you.
Welp good thing my house is a century old and I have to repair it everyday.
boPRP BYbg4Huq
It's booming in Florida! New home sales and big commercial properties are getting bought up at a record pace. ITB
Call your Florida Realtor Today!
Yuge observation. I'm not sure of the method, but the goal is to Potter-ize everything. Globalists are Potters who are indignant the slaves own homes, and should be paying them rent and hommage monthly.
I mean Potter from It's a Wonderful Life.
DIdn't connect this with the great reset. My thoughts on it were always that is was just greedy people trying to eliminate private land ownership to merely get richer.
All the construction in my ao is all apartment. Very few subdivisions, unless already zoned and few lots waiting to build. But the apartments are going up everywhere.
Homes are meant to be shelter, not a financial investment of doubling returns.
Chinese money isn’t helping the problem at all. Look at Vancouver
I'm not talking about investment, I'm talking about a roof over your head. If you have no equity in the house you and lose your job, you're fucked. If you have equity, you can at least sell it for a bit of a profit and use that as a down payment on a cheaper house or use the money to float you while you find a new job.
I’m saying too many people treating homes like investments helped get us to this problem. Instead of saving for what one could afford, too many financed what they could not. Financing a lifestyle has been the great downfall of too many americans. Family, savings and faith will always be more fulfilling than square footage and granite counter tops.
oh yes, that's definitely true. consumerism driven by media has also caused our economic downfall.
The housing crisis in 2008 was due to adjustable rate mortgages and mortgage backed securities being falsely rated as safe and secure when in fact they were full of those shitty mortgages.
Don’t have an adjustable rate mortgage and you’ll be fine.
this time it's not the interest rates i'm worried about. it's the inflated and ridiculous prices of homes. unsustainable.
Trump is the one who pushed for the interest rates.
Remember "we should be paying near zero" and "other countries are paying negative interest"?
And if Trump is out, they can fuck us over by doing exactly what I stated above. It works well if the rates STAY low but with the swamp in power, i don't see that happening.
You just lock in to the lower rate. That's literally all you need to do.