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-- that but it let's get to some of these questions about refinancing and likely we actually have someone.
That has a lot about refinancing.
Right -- vermilion is with -- -- -- -- author of navigating the mortgage mess simple truth about financing your home -- to see about.
By the way thank all of our younger guys like I did I saw on television with date and earlier I think status and come up and join us a little while to it was a very -- conversation for those who didn't see it on the the Fox Business Network and we'll get to Larry out in California little while but.
We were just started to have discovers it as you're walking at about.
Refinancing and so many people are thinking about it now what should be the first thing they think about in terms of because now.
We still hear those old rules about you know how much the rate should fall and everything else are all those out the window -- -- some real rules of thumb when you think about refinancing your home.
You know you hear things like that 2% rural and and those things those rules really don't apply today we are at a 38 year low and interest rates right now -- great time to refinance.
And I would say that for people who are considering financing today the real key is don't look at the traditional things people usually do which is just lower your rate and lower your payment.
With a low rates today you can also British your terms you can pay increase you can't tax deductions you can get cash sometimes at no cost a lot of things you can do -- Is that I mean how do you approach someone and say I came narrowly lower my rate or if an alarming rate what about making sure that I pay less and years on that -- had even.
I need to know -- I would feel about that feel nervous about Afghanistan about that.
-- -- -- I talk of my book about the perpetual refinance would we do this all the time is the thirty year lower my rate lower my payment and we just keep doing again and I don't.
There are a lot of 25 and twenty programs out there that many consumers don't even know exist with lenders today so -- -- -- -- lender.
When I go to them -- -- to say look I wanna take advantage of these low rates today and what I'd really like to do is not just more my payments but what what about getting into a shorter term can you help me reduce the turmoil in mortgage.
But my overall payback as far left that simple example of a 100000 dollar loan if you take a five and -- percent rate today.
You eat for 45 dollars a month you can take a thirty year don't know 25 years and see yourself over 20000 dollars over the term of the -- finished it yet get Iowa I was -- -- some of the questions you want to follow up on that.
Yet no I mean just saying did.
The idea that -- -- -- and fifteen year mortgages have become more more popular right look at how can afford them.
But that can be of that -- -- more costly but the rates are pretty good on those fifteen years vs the thirty years the rates are better right now we're below 5% and fifteen year terms it's the best for you and yet.
But many people can afford the diversity of fifteen and thirty is pretty large 39 point five or twenty not large at all -- pick it up let's go to the -- -- -- -- them because really -- -- think that we're seeing a -- day on a lot of questions he got to work on this together -- a lot of people feeling.
Great deal hopelessness about what to do in their home that I just wanna add is certainly that dead yet in California Paris California -- she says my husband and ire of seg down on a home that was appraised for over 400000 dollars two years ago and it is now valued at somewhere between a 150000 to 175000.
To about half.
We -- 300000.
Dollars in the home.
What should we -- we refinance asked for a loan modification.
Is there any hope -- at all.
And refinance you're upside down and you feel more than the homes were you cannot -- the best program out there today is the hope for homeowners program -- that -- in 97% and we can talk about that position things about that need to be careful with an FHA has a program today that will -- in 97%.
Of the value your home with no cash out 95% with cash out.
In this situation that's not going to help.
For people in this kind of a situation.
Really what you need to do first is try to keep that mortgage current if you can and and hope to ride this wave out as long as possible because.
What comes of loan modifications they're really designed for those were in trouble or delinquent who can't make their mortgage payments not those who can right now.
That's really what those programs -- for so here upside down there's really only two choices you have right now one is to ride it out as it has the second is to take that home.
And rent it and -- somewhere -- but you're not gonna do anything in doing that I hear a lot of people trying to move into that next doesn't make sense because you're not -- end up -- a -- a surplus when you get to ride it -- keep making the -- ride it out of teamwork and getting us to the markets better and if not -- is hope for homeowners an option if -- -- -- find yourself as -- landscape -- that -- one left to -- because I have -- -- pay your mortgage -- for those were in trouble what they need to -- first and foremost -- contact their -- that's the very first let's be honest with the -- tracks except solar.
Absolutely -- work with him.
The lenders don't want to close its way -- -- to -- -- for close they really wanna help homeowners out today and and there's lots of homers getting things fixed so what they wanna you wanna do is approach your lender find out what are my options is there any way you can lower my rate and more -- payments on loan modification because it can't make -- today.
So really quick access my father that the -- if she went to hurt the whoever's holding her mortgage right now me and she said this is my situation I'm worried about this.
And she gets -- down by that the -- holding a mortgage up.
Did she shop it around this sheet call this cold call another bank -- at a mortgage lender and see -- but they can offer her.
No because they won't be able to help for a traditional refinance if she doesn't have the equity in the home the only resource will be her -- -- the kid that is -- that mortgage current because once you go to blink when -- option start to -- quite a bit you know I have an interesting question to follow up kind of on the you're you're talking about -- to have the help out there is for people who are real bad shape and and often and in many cases well John -- Illinois.
Just -- in an interesting question for all you know the rest of the peoples or anything anywhere for those of us.
Who have paid our mortgages on time for twelve plus years -- shut out of refinancing in the current home because the price has dropped right so he's not able to refinance it feels like -- -- if -- it this is his words like a -- I don't pay my mortgage I think it helped that.
You know this is the frustrating part of of what's going on our economy right now is that if you're making your mortgage payments -- the only help -- -- -- get potentially is if we end up with a refinance program or guarantee program flow rates by the government and there's been talk about that yeah but that there's nothing happening -- up front right now.
I would -- just continue -- it -- to -- those mortgage payments because we we -- the hopes that this economy's gonna come back and -- -- property values in the next couple years start to return a rebound again so they'll be nothing and that Wednesday announcement from the president that -- somebody like like that -- I would think right well we don't know there's going to be the stimulus package doesn't address that it addresses different things to help -- that does not -- what about the timing of the -- this is like you know this question everybody -- that -- had told that the market turns around -- and picks up again.
What's your current outlook on when that's gonna happen I think it's going to be at least 24 months right now -- -- -- -- -- I -- it's -- -- -- -- -- when you -- -- supply -- -- that's the -- There -- so much supply of housing out there between new construction for closure homes -- on the market everything else.
This before we're gonna see -- increase in the market real estate values we need to see first time homebuyers are stepping in and buying that's going to be key to it.
Now with rates -- be low if they can stay low and we can see a first time -- market that's gonna really help a lot -- -- back.
Next damaged and -- -- your book is it -- navigating a mortgage maze that's right dale overnight.
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