Adjustable Mortgages Bankrupting Homeowners
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- เผยแพร่เมื่อ 5 ก.ค. 2024
- Adjustable Mortgages Bankrupting Homeowners
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Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you.
"Melissa Elise Robinson" is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.
I am amazed that most of American do not know this fact.
@@ayasensei5709 Boy, no kidding!
Life is short, enjoy your life. Don’t waste time or energy on anything. American home ownership is a scam lol. There is no benefit to owning a home. In other countries, people buy a house with 2/3 year mortgages and after that they are mortgage free. But not here lol🙄
@@ayasensei5709 I am amazed how many American people naively continue to think that the Federal Reserve is NOT federal. They are a private entity on paper, but that is not reality. They are part of the government, controlled by the government - therefore, it's federal.
@sevanarakelian9413 how's mom's basement these days?
Insane. Getting an adjustable rate mortgage is like stepping into quicksand and hoping you don't sink.
Dude I literally was about to buy a couple thousand dollar gold chain. Then I played your video just to get a daily update, and I keep hearing you repeat that story about you losing it all, If you had changed your habits you'd be good. That saved me a couple thousand and I payed off some of my debt. Thanks man keep repeating that story
Do NOT buy the golden chain, brother! Now is not the time. I bought the chains at the end, and through the collapse, I lost them, literally not idea where they went. Probably stolen.
Jeremiah Babe
Buy precious metals bullion, preferably sovereign minted coins. Jewelry has a super high mark up and if you had to sell that chain you'd only get the gold value back for it.
Back around 2008 my husband was buying some rental houses here in Houston and I went with him to sign paperwork. He was just going to sign the stack of papers because they had already agreed on a fixed rate mortgage. I knew nothing about real estate but said I need to read the documents before he signed. Well, they had snuck an adjustable rate mortgage in there with a balloon payment at the end……I made them change the whole document and saved my husband’s ass! I mean his assets! I believe they did this on purpose. It was a lie and the loan people were trying to pull a fast one on him! Good thing I am not so trusting ❤
Similar thing happened to a friend of the family. She had moved into a townhome and they told her it was a fixed rate mortgage. What they failed to tell her is that it was fixed only for the next seven years. They lied to her and she had signed papers with one of those ARMs that reset in seven years. Luckily for her, the housing market was still bubbling enough and she sold it about four or five years later. She was not forced into selling; she sold after retiring so she could move out west to live near her son.
Good.
wow OP good job!
Karen's actually serve a purpose.
Well done.
Low interest rates is NOT the answer! That's how we got into this housing bubble mess (too low rates for 15 years, with pandemic panic buying). House prices need to come down, big time, period. It's pretty simple, but how will it be achieved? That probably won't be pretty. BE PATIENT!!!
Yep, truth here. The problem is the prices. 5 to 7 percent interest rate on a loan is historically spot on.
The problem we have is overpriced housing with these interest rates.
Houses prices 3x
That’s what took me down , 2008
Country wide mortgage.
I was financially illiterate then.
That’s not the case today.
However , I learn everyday.
Thank you for the education.
Property tax should exclude improvements. What we have on the land is none of the govs business. The construction and material was also already taxed via sales tax and permit fees
Yes, but how else could the government steal from us?
My 1st year in my home taxes were 1200 . 3 yrs later $9000!
What city and state?
New build? Or existing home?
Wtf. Mine where 1200.00 now 1800.00
Damnnnnnnnnnnn
Bought our first home in 2018 in DFW area. This was
Built from ground up. What we didn’t know going into this was how Taxes and homeowners insurance affect mortgage payments.
To cut the story short. Our payments increased by 1200. Our HOA also increased from 960/ year to &2000/year. We could not save enough for family of 5. We were able to sell this year and use our equity to purchase a new home. Smaller size but thank God for the peace that comes with this purchase. From my experience, and also watching this channel. I knew exactly what to look for.
If you are buying a new build home, save some thousands’ aside comes for the next January for you will be shocked on shortage on your taxes
It’s like people just keep repeating the mistakes of the past without even learning from them…
@jvz28az or it's like the banks and mortgage brokers are fine tuning their financial scams Read Bailout by Neil Borofsky
My guy moved and upgraded the studio 🔥🔥👌🏽👌🏽💪🏽
There was a report on seeking alpha a long time ago saying 700,000 rate buydowns will reset in 2024 and 2025.
I posted this comment on tour channel back then when yiu were small but I guess you didnt see it.
"Politics is now and always has been just the clever and deceptive art of using euphemisms, lies, emotionalism, and fear-mongering in order to dupe average people like you and me into accepting and demanding the chains of our own enslavement."- Larken Rose. The Dangerous Superstition.
It was the FED under trump that kept the interest rate artificially low so that businesses kept taking out cheap loans, so it’s not just one administration’s economic policy that led to this current situation. Either way, the president doesn’t tell the FED chair what to do. So it’s weird to lay the blame (or praise in times of good economic conditions) on just the president.
Never mind that there’s a few years lag to feel the full effects of an economic policy, so few first term president should be credited for a good or bad economy.
@@Amanda-xx7sj Exactly
Rates were kept low during Obama’s 8 years too. The 7% now is just normal if you recall the 80’s, 90’s and early 2000’s. The problem now is the multi-trillion dollar spending bills and energy policy created last 3.5 years. The “Green New Nutsack” implemented by Dems, specifically. Fed raising rates to normal is to offset the insane Govt spending. The insane Bills they’ve past. The Bills that 100% of Dems voted for and about 50% GOP voted for. Congress is the main culprit. Congress are the idiots who pass the Spending Bills. No President has the keys to our tax dollars. The Border policy since 2021 is the most insane thing I’ve seen in my 52 years on Earth, and that is 100% on Biden.
@@jgringo5516there’s a reason why rates were down during Obama term because bush crash the economy 😂. To fix the economy he has to lower the rate. I’m not trying to get political because I really don’t care who wins. A Trump win is investors dream and 1st time home buyer loss. Tax cuts and lower rates advantage to investors.
Trump told the Fed what to do...twice. once before the pandemic once after. He wants to put himself on the board if he gets reelected...cray cray
Thank you Travis 🙏. I’ve done well over 60 Real Estate transactions and I’ve never done anything else but 30 year notes even if I knew that I was going to flip it. I miss the good times when investing in real estate was fun 🤩.
I’m 100% sure that the SHTF WILL HAPPEN and hopefully I’ll be able to invest again.
Thank you Travis you’re doing a great service to so many people.
Blessings,Carlos ✝️🙏❤️😊🇺🇸
Someone told me they wanted to do an ARM and just refinance after 7yrs. Bonkers!!
As always Absolutely Bonkers Brother Travis 😊
Putting a lot out there for a man on the move!! Dedicated and informative brother...We appreciate you..... As I said, if I were not north of Mpls. I'd be hauling boxes for you...Thank you
Home prices are 3x❌don’t buy
Adjustable rate mortgages were gold in the past. Rates in the past only went down. Home prices only when up.
People I work with often ask why I live in a rural area. Most of the people I work with live in the RDU triangle area. When I tell them my taxes went up $120/mth, they quickly understand why I live in the sticks. Most of them have averaged $500-600/mth increases the past couple of years.
it takes money to make money and if you don't have any money then it won't matter what happens.
For those of you who are getting enticed about 2/1 buydown when buying a new home , please don't do it . I have been in mortgage business for the last 10 years, I know what I'm talking about.
What is it?
@@brandoninhofer6592a 2/1 buy down the 1st year is 2% below the fix rate you’re quoted for. So you buy a house at 600k with 6.5 fixed rate at 3-30 years. Your 1st year is 4.5 and 2nd year at 5.5 and 3-30 at 6.5. You can negotiate the buy down from the seller. It’s pretty much helping you save the money in 2 years. My advice is if you can afford the payment at 6.5% and you’re good with financing and tracking with rates then I’ll definitely go for it. If 2 years from now rates drop to 5% consider refi to fix.
Source: trust me bro
The carnage in the real estate market is going to be brutal.
Bonkers!!! -the new office
It's dope, but for this context? Gives off a very demonic tone to me... passages to the underworld opening up beneath and two simmering cauldrons above? I think he needs to default to "TH-camr blue/purple"
Perfect timing. These folks will have to short-sell or get foreclosed on, then rates will go back down 6 months later.
Reminds me of 1974, when the "ARMS" came into being. Will they NEVER -LEARN ?
My father bought a house in 1976 with an ARM. By 1979 he was pummeled with a high rate as the peanut farmer destroyed the economy.
Fox Business is straightforward with the numbers. Numbers are the truth no matter what political party the mortgage holder supports. ARM are going to be a nightmare next year, the Fed is going to raise rates IMHO.
In some states your property taxes raise based on perceived value and just keep going up.
Isn't that really what they are based on?
Cheaper and way easier to dump a home with a 30 year mortgage than a spouse.
I just became debt free last week. Glory to God
I bought in Texas in 2021 and my property taxes have actually decreased and are set to go lower this year.
FHA with all these downpayment assistance programs are going to bust too. Rather than foreclosing, there will be a bailout for these people.
Only those that bought too much house.
Bought a home in 04 on an FHA arm with downoayment assistance. I couldn't afford it but got roomates and am still glad I did it. With I hadn't sold and waited so long to buy
The data is in. Everything is terrible NOW. Rent and drinking is the answer.
What is that background?
But now instead you're going to buy a house. Put down a down payment with a 30 your amortization and unless there is another housing bubble, during your ownership. Your appreciation will never be more than the deposit and interest payments you make over those 30 years. In fact, buying a home is gambling on another housing bubble to take you out with a prophet. Otherwise the profits you make is less than the cash flow you put in in terms of deposit interest payments, maintenance, taxes, insurance and you net negative.
It’s amazing that people don’t think about this when they buy a house. There is no equity. You spend all of your equity on upkeep. People conveniently don’t factor any of those expenses in.
The amount of people who have Adjustable mortgages is not that significant. I dont think it will have an impact.
Why does medicine and vitamins use limestone to fuse the ingredients together? Some pharmaceuticals use a petroleum binder.
That is a strange decor Travis for your opening. It’s a little dark. Dark like sacrificing small stray animals while playing Judas Priest cassettes backwards.
I'm not doom spending. Got out of debt. Live like a hermit. Just saving and waiting for the everything bubble to burst. But damn is it tempting to spend what I have, you're only young once, my biggest fear is growing old having never actually lived.
Forgot to say you’re not a financial advisor. Now someone will sue you
We were supposed to make ARM’s illegal on SFH after ‘08 :/
ABSOLUTELY BONKERS 😊😂
Its wild to me that anyone would get an ARM..
absolutely BONKERS!!
Someone can explain to me what is different between rent and mortgage, than be smart at least and wait until the prices going down and then buy it other than that it’s stupid anyway buying or renting home there no difference or benefits 😅😅😅😅
whatever happened to alloidial titles
Life is short, enjoy your life. Don’t waste time or energy on anything. American home ownership is a scam lol. There is no benefit to owning a home. In other countries, people buy a house with 2/3 year mortgages and after that they are mortgage free. But not here lol🙄😂😂
not vibing with opening set. As in the actual set/studio/scene etc lol
Precious metals/commodities
Bonkers 😊
Let’s not get political but somehow an adjustable rate mortgage forgiveness plan just might not be so far out there.
Bought in 21 when I retired to a rural red location. 2.5%. Im good brother. House I bought was a third of what I pre qaulied for. Ill have it paid off in 5 years...
Shot out to all the realtors who keep listing homes 100k over! Salute 🫡
Bonkers that anyone would get an ARM!!!
ARMs are for short turn flips but it’s still a huge risk
they cost an ARM and a leg!
Just my opinion. Rates shouldn't ever drop, people need to come back to reality on how much a home is actually worth. Let fools be fools, karma will come a' knockin.
BUY BUY BUY. lumber prices are dropping like a knife. The number of homes are in short supply. It may look like there are many but not really. Builders are no longer building b/c they know that no one can afford to buy it. Thus, the number of available will shrink and prices will continue to rise, regardless of the interest rates or prices.
I seriously doubt I would ever take out a mortgage again. You don't own the house.
Yo
Only fixed rate debt
Too many houses got bought as an investment in my opinion
More money into something more risky, like tesla stock. Like the stock market.
What happened to “Boots on the ground?” I think you should only do boots on the ground instead of the studio talks!
I just dropped one last night. Case Study visit #2
I was warning people back in 2015-2017 because the writing was on the wall that far back.
1) people back in 2001-2008 couldn’t afford the mortgages they took out because they bought “too much house”
2) that lead to housing bubble
3) peoples wages didn’t increase during that time
4) GFC-housing bubble crash
5) 2013-2016 house prices were right back to where they were in 2007 pre crash
6) peoples wages still had not increased enough commensurate to prices of housing
7) 2008 all over again
8) everyone called me crazy
9) here I stand, not in debt as the financial crisis builds up again
10) no one is calling me crazy now
Bible is always right, prophets are not welcome in their own towns.
I was shunned, ostracized, ridiculed but in the end I hold no animosity towards them.
May God have mercy on you all.
It’s about to get REAL.
3X🏠 ❌❌❌
Doom spending on AliExpress 😊
Bonkers
Don’t feel bad for anyone who has an adjustable rate mortgage. Sucks to be them! 😂
No it doesn't, I got an ARM when buying a house in Santa Fe when I moved from ATL and sold our house we had been in over 20 years. 30-year amortization, fixed rate of 1.625% for 84 months, still have 50 months remaining and a rate cap of 6% when the rate changes. Owe a whopping $247k on a $800k property, and my wife and I have very high value taxable brokerage and retirement accounts. ARMs are great for those that know how to use them to their advantage, unfortunately way too many people make a lot of stupid decisions over time and don't learn from mistakes.
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
That first clip you chose to display did seem very biased
Sorry 😞
bonkers
Definitely gave up a while ago.
I applaud you for not getting political, politics is mostly kabuki theater, most of my success and failures are my fault, not who's in power!
True...but who's causing the the COUNTRY'S "successes and failures" sure DOES have whole lot to do with who's in power and THAT impacts OUR successes/failures....not to mention ignorant, in-denial and clueless voters who put those people in office, THEN keep re-electing them. You can't get away from politics...or politicians. ;-)
-- BR
@@billredding2000 I get that, but every president in my lifetime has over saw the destruction of the currency and the country overall, so yes I am 'political' too, I know they're all more concerned on reelection than actually fixing our country 😉
Your new intro backdrop has a stark contrast to Brandon’s satanic red backdrop. Not being political, just what immediately came to mind.
If you only knew how bad it's going to get.
This is very valuable information and advice I hope a lot of people listen.
I thought this time was different because thers no more arms, helocs and mortgages to pple with no jobs. Yet i know alot of pple who have no formal job and not even a legal resident and have mortgages thru LLC and alot with HELOCS and Buy Down (ARMS).
Brohan, you moved into a satanic church of Texas? Jk, Congrats, Travis!
I was homeless, did drugs, went into prison, where I got to know God. He changed my life. Now I have a home, a wife and a lovely year old daughter (zoe), and a stream of income that gats me $47,000 weekly. Plus a new identity.
Really!!
So you RATTED on some one !!
(Wittness protection)
It has nothing to do with Biden. The housing market was already bubbling before he even took office. I was living in Austin as it started to happen in early 2020, when powers that be thought that it would be a good idea to allow real estate agents to be essential workers, rates dropped to near zero, and people were being given a bunch of stimulus money whether they needed it or not. Air BnB became the new craze for "passive income." This started before the current administration. Austin was already bubbly as is, due to its transformation from an eccentric artsy college town to Little Silicon Valley. (As much as I dislike trump, it is not entirely on him either. Neither he nor Biden have control over the federal reserve and he was unable to get stimulus checks out there all by himself. Also he was not the one who decided who essential workers are, including RE agents. Again I never liked him and he is convicted felon now for other things, but those are the facts that I understand so far regarding the housing bubble) I know a lot of people wanted to blame Bush Jr for the last housing bubble and Bush Jr made a comment in his last departing speech about the terrible things that happened under his watch, yet I don't think that was his fault but he expressed remorse about it just the same.
If you study technocracy and Patrick Wood's 50 years of scholarly research you'll fully understand they're mere puppets of supranational policy organizations such as Trilaterals, UN, WEF, BIS, IMF, etc. There are other researchers finding the same patterns. Whatever alternating figureheads are in office we still head down the same route via a political whipsaw that at times goes off narrative for expediency to include the big amnesty under Reagan and then G.W. Bush trying and failing to do the same. Similarly, Clinton dismantled a lot of the big welfare programs. Order out of chaos.
Algorithm
To be fair, people taking ARMs now have a higher probability of adjusting lower than higher..
I have been hearing all this economic nonsense since Q3 of 2023. When will the collapse be coming? Is it going to come in 6 months or 6 years or 60 years. When when when the fuck. Is it just a crying wolf thing!?😅😂
Bidenomics!!!!
Do you want an asset that appreciates faster than inflation, or affordable housing? Can't have both. This is independent of political party, this is about a financialized economy that needs people in as much debt as they can handle.
The appreciation from overflated could not be sustained
Please stop trying to act so concerned about people getting adjustable rate mortgages! Weren’t you a mortgage broker?? Wasn’t LOAN SUITABLITY YOUR RESPONSIBILITY?? All of these builder rate buydowns
Are also adjustable rate mortgages. Tell us all how many ARMS you sold when you were a broker data man.
Zero
I’m still holding on to my 2.5% rate
In Canada, everything revolves around supply and demand, with mortgage rates being the easiest way to control these factors. My clients and followers are well aware of this. Partnering with a knowledgeable Realtor who understands the dynamics of supply and demand in Ontario's real estate market is crucial for success. The global downturn following Putin's invasion of Ukraine illustrates the importance of understanding geopolitical economics and their impact on inflation, stagflation, and market fluctuations. If your real estate professional lacks this insight, you've chosen the wrong advisor. Ensure you work with true professionals; the best aren't the ones advertising on buses, billboards, and benches. THINK OUTSIDE THE BOX.
PS: Keep up the good work! Good content as always💪
Thankfully Joe will soon be gone, maybe before November, but definitely after January. Federal monetary change is coming, the brakes will be put on the out of control federal spending. Voters need to get educated and vote for your own wallet and economic interests. Vote GOP in November if you want any hope of stopping the out of control Keynesian policies in place today!
These are completely normal history rates over last 30 years get over it
Vote for trump. Tax cuts and low interest rates. It will definitely benefit me😂
Amazing to be in the presence of a millionaire/billionaire commenting on TH-cam. That’s great to hear. You’ll be the only one getting a tax break if Trump gets elected.
@@House_hacker_619 take Econ 101 you might learn something
@@bobroberts2217actually I really don’t care who wins. I feel sorry for 1st time home buyer because if Trump wins he’s going to cut the rates and everybody is going to jump all over the market.
@@ChistaMoonEcon 101 supply and demand? 😂
@@ChistaMoondon’t worry about me I’m doing really good 😂
Topics not to talk about at work Religion and Politics!❤
You are getting political...
I just got a house $406k
I don't think 🏠 will see a significant nominal "crash" per say.. but rather in real terms (vs inflation) because the US gov NEEDS inflation to continue to deficit spend and inflate the debt away...i think we're going to see stagflation for YEARS until wages increase to match 🏠 prices...sucks I know. The only crash is in transactions welcome to 🤡 🌎
Why is Austin, Jacksonville, New Orleans and Birmingham crashing? When did prices drops start to spread significantly nationwide during the last crisis? During the recession right? Hard to know what's going to happen next exactly when they keep hiding it. I appreciate and understand your opinion. Thank you sir
Bonkers