Shaheedah, I've been a Realtor for a long time and I love the way you break this information down for prospective buyers. It shows that you CARE; and we realize that noone cares about how much you KNOW until they know how much you CARE. Knowledge is POWER...but only if you USE IT. You are doing an amazing job. Thank you!😊
Adjustable Arms is what got America in trouble back in '07. I got a fixed rate when I purchase my home in 02 but everyone paid the price for that mess. All the forclosures caused home values to tank and most people where upside down on their mortgage. I was underwater 50k and I did nothing wrong. Bought a house I could afford and paid on time, still got stuck in the mudd.
Lennar is currently offering to buy down 30 year fixed loans to 4.99%. I took the deal, hard to pass up 23k in free buy down money, on top of discounting the new build 60k and offering an additional 20k to closing costs. If they’re doing offers like this the market is probably heading downhill badly.
@@SaharaKnows this is true but that applies to everyone with a mortgage. Might as well get the lowest interest rate as possible if you can. In my case the builder paid to buy the points down. I'm going to try and pay off as fast as possible...a 30 year over 15 years or maybe even 10 years
Mortgage Loan Officer here, you explained points/buydowns EXACTLY how I walk my clients through pricing. No one really knows how much farther home prices may fall, but we are still YEARS behind on supply, so prices will likely shoot up in the near future. Especially if the FED loosens monetary policy, rates will drop and demand will be crazy again. IF YOU ARE BUYING A HOME FOR THE FIRST TIME AND CAN AFFORD IT, NEGOTIATE TO HAVE THE SELLER PAY THE CLOSING COSTS. That way, you're in a home when prices go up and rates drop, so a refinance will benefit you even more.
@@darylllanier2591 That's not going to happen, last spike in rates (the 80's) you saw the federal reserve relentlessly tighten monetary policy. The problem is the government puts too much influence on the central banks borrowing rates. Less government interference leads to a more stable economy and rate situation like we've seen for almost 10 years prior to Covid
Just wait it out the interest rate will go down the same thing happened in 2008 everything went back to normal then & it will again just have patience i wouldn’t dare buy a house now spending this time to save more money is more responsible I want a fixed rate mortgage which my husband & I plan to put 10 % to 20% down payment we make 6 figures but we are smart with our money
I’m done with my house buying process and your videos helped a great deal. I still tune in just to learn more. Very informative. You are great at this. You should do speaking engagements, presentations, meet and greets or Q&A’s if you haven’t been doing them already. Or write a book even. I believe you have a audience that can’t wait to hear what you have to say. ✌️
Mrs. Hill, I recently subscribed to your channel a few weeks ago and I must admit, I love watching your content. It’s evident that you aren’t just posting for views or “likes”, the info you provide is actually beneficial. I wish you were around a couple decades ago to help me figure things out, because it’s clear you are a blessing to your viewers. I pray for your continued success as you continue to help others! God bless you and your family.
With all due respect, and note that I am only commenting here because alot of people including Realtors and what is worse Mortgage Loan Originators have said that they love the way you explained the rate buy downs and that is exactly how they walk their own clients through the rate buy down explanation. Please note that you are using traditional or fixed rate buy down rationale in trying to explain the temporary 3-2-1 rate buy downs. Please note that a temporary rate buy downs are super easy to calculate, but also note that 1 point in rate buy down does not equate to thw 1/8 or 1/4 rate adjustment as you have explained here, again that is the case on traditional fixed or adjustable rate buy downs. Just to make sure people have the correct information, a 1 point rate adjustment on a rate buy down equals the difference on a P&I monthly payment from the lower rates (temp. buy downs) vs. the normal P&I payments from your current rate multiplied by the 12. Say you're supposed to get a 7% rate, you can buy down the rate to 6% by multiplying the savings in the P&I calculation x 12. So if the savings is $200.00 month, then the rate buy down will cost you $200x12=$2,400. If you wanted to do a 3-2-1 buy down, you will then be buying down two points for 24 months and 1 point for 12 months. So using a similar example, you will go from 7% to 5% (2 points buy down) on the first year and then the rate will adjust to 6% for the second year. On the third year, the rate will then adjust to the fix 7% for the remainder time you have this mortgage. As far as the cost, to buy down the rate from 7% to 5% on the first year, multiply the savings in P&I payment times 24 say that difference is $400/month. Then you have $400x24=$8,800 add to that the diference in payment of P&I between 7% and 6% for the second year(say $200) and multiply by 12. $200x12=2,400. Now add both yeara together or $9,600 + $2,400 = $ 12,000. So the total cost of the temporary buydown is $12,000. BASICALLY ALL YOU DOING IS PRE-PAYING THE INTEREST for the period you decide to do the buy down. One thing to always keep in mind is that the Seller or the Realtors are able to pay for this buydowns, you as the buyer/borrower cannot. Shaheedah makes some very good points on the break even point or future consideratios of affordability, but she also leaves out the fact that renting is also not your best option, furthermore, I disagree with the that lenders as getting desperate, everyone in the industry is affected by the market contraction. We as professional Mortgage Brokers simply are putting together and laying out options for our borrowers. At the end of the day when presented with your options in the correct way, you are asked to make the choice, and given the proper explanation, I am sure you will be making the smart choice for your own case. It is my personal opinion that rates will eventually adjust back down, I don't have a crystal ball to predict when, so I need to trust the industry experts and financial indicators to hekp me in making that statement, but I also don't agree with the fear tactics that your home can easily fall underwater and you will have negative equity. Even in the worse housing crisis of 2007 to 2010 the industry figure out a way to help borrowers by doing loan modifications and short sales. We learned from that and with the way we underwrite and scrutinize loans nowadays plus the continue need for housing to meet the market demand as millenials continue to enter the age of settling down and buying homes. Again It is my personal opinion that housing pricing will level off, but will not decline. It is very hard to imagine 20 to 25% appreciation as we had the last few years, but 3 to 5% is not far fetched at all. Ask yourself what other options you have, so I encourage you to continue to pursue your dream of Homeownership, keeping in mind that you are marrying the house, but only dating the rate. Wishing you all the best and many blessings. Edwin Rivadeneira, NMLS #375554.
As a MLO, I love how you explained the points and factoring if it is worth the money to buy down! So many lenders will trick people with them not knowing this information.
Rate buy downs are only worth it if you intend to keep that loan term or don't sell for a long time. With these high interest rates, A lot of people are looking to refinance the moment the Fed pivots. That money used in the buy down, can be used for refinance closing costs again.
I appreciate you breaking this down because I was wondering how the buy down work and how many point it takes off but seem like there no sense to do that. I’ll keep waiting ❤
Hi Shaheedah, always enjoy your channel. I'm a Georgia Real Estate Agent! Thanks for all 💎 for our buyers! I love information and also share a lot with my clients as well. I appreciate all you do!!
hi sweetheart, I received an email from Navy Federal saying it's time to buy a house. according to MyFico mortgage scores for October18th are Equifax 773, TransUnion 751, and Experian 748. I'm grateful for these scores but I cannot buy a house with the apr the way it is now! If I get a $300,000 property for 30-year fixed, 20% down with the score 751 and the monthly payment would be $1617 apr 7.127%. I don't think so!
Insane update. I was told last week i no longer qualify at 7.125% and today miraculously I qualify. Builder's Loan officer is using .5 freddie mac rate to calculate my student loan payments which r currently deferred. He got me approved. I still wanna walk. Mortgage is 3,860. It was 2,900 when i signed in march Very sad cuz i was buying to take care of my mom who is now disabled but this is a hard no way. Im pushing back but im not optimistic that they will drop d rate enough for me. They shouldve locked me in august when it was 6.1. And even at 6% it's ridiculous. I missed the 2021 mark.
@@kvmairforce $450,000 homes are now at $2900 a month with current interest rates. And depending on where you live, good luck finding a house in that price range
@@kvmairforce Not really a million dollar home. A $450 - $500 home with these interest will be around that monthly mortgage. That's pretty much the norm these day and age with high prices and high interest. I'm in NJ and $2900 mortgage is on the low to average mark 😢. Some families are bringing home high income as well so 15K or more) having something like 4K monthly mortgage is not a big deal. The key is people need to be realistic and live within their means.
These rates are historically average. If you don’t buy now you will make yourself available to higher rates. You won’t see 3% and below until 20-30 years
My builder is offering a 2 year by down on the rate. Back in April when I signed my contract, I had intentions of putting down 20%, but now I'm thinking I should use some of that down payment money to buy down the rate.
@@ShaheedahHill i watch a good bit but just listen most the time for tips. i just had to share this one. I was so thankful to get that interest rate before it started climbing back up. We closed and i needed a new car so bad but was NOT going to do that before we bought because the debt ratio so after we closed went and got a one year old chevy equinox for only 9% and to me for an almost brand new car that was great. Kept our payment are the low 300. And we were renting paying right at 1000 a month which was still low rent for our area. We bought our home and car and our payment for both are less then our rent was before. I tried to tell everyone that would not last and to jump in while you can! I also have a good realtor friend I kept telling her I KNOW the money is GREAT right now but watch out because this gravy train will not last much longer. And sure enough here we are
@shaheedah hill is right, a lot of flashy pitches are happening within the industry to get people to buy, buying should be a benefit to that person and their family. I am not desperate lol, but my business model is different either purchasing a home fits the buyers financial plan or it doesn't. Of course, I do what I can to make sure they achieve their goals, but you will get no temporary gimmicky solutions from me, I would rather be able to do business with them in the future than get paid now by burning them promoting a quick gimmick.
There is no way I’d buy down points right now. If I couldn’t do conventional then I’d do a 5 year ARM and refinance once the rates come back down. When the market gets better in 3-5 years, if I’m unemployed and can’t refinance, I probably have bigger problems and might look at selling to cut my losses. If a builder is looking to buy down points for you, have the builder put that money back into the house instead with added insulation, better windows, a higher seer HVAC, tankless water heater, or other home improving energy savers. If you do sell in 3-5 years, those higher efficiency items can help you sell and justify your price.
With the buydown, you not only have to live there for 5.5 years. You also can't refinance for 5.5 years. Rates probably will not be this high for that long.
Just finally got approved by the state today for the grant after the information was sent out on Friday. That was quick. Just waiting for the seller to get the well water back to 100% so we can close. It's supposed to be this Thursday!! Let's Hope!
Correct, never desperate! But when you can comfortably afford it comfortably. No sense in being home and every month sleep is lost due to the financial constraints.
If you’re paying 86% what’s the point of getting a mortgage you might as well pay 100% People think it’s a flex to own a home but you don’t own a home unless there’s no mortgage if you’re paying a mortgage That’s the banks home you’re no different than a person leasing a home if you can’t pay for it out right don’t do it
I just stumbled upon your channel and I am very impressed with how clearly you make this information. I am looking to buy in the beginning of next year and knowing the details will help me make an informed decision. Just subscribed so I don't miss any of your valuable content! Thank you for helping us new home buyers!
Lenders will do anything to help you part with your money! It's their playground you're playing in. You better know your goals and the amount of risk you're taking to achieve those goals? Thanks for sharing!
Thank you so much for these valuable information!! As a Georgia Licensed Real Estate Agent, great tips for our buyers. 💎 💎 💎 So love your channel! Educate your clients 👏🏽
Thank you, If you need a Houton Realtor... I recommend Linda Blue or Shadrya Patton th-cam.com/channels/1d45v0DoZZh24LP1zbU07Q.html th-cam.com/channels/ihqM9vGoLE_r1-KDtmSiYg.html
What a lot of people don’t know is… there is a rate to pay the mortgage and all debt in little as 5-7 years. That’s bigger than any supposed low mortgage rates🤷🏽♂️
This video was 🔥.. I brought my first house in 2020 and the lender was explaining this to me … it would have taken me 5 years to break even .. so I didn’t buy the points..
Girl thank you so much to help us understand the way we can take best decisions, I hope you I can get you my realtor when I have to purchase my house. Good job 👏 👍
Great Vido Shaheedah! I have been teaching this to my clients for 30 years!!! One other thing to add, if the difference between the 30 year fixed and an ARM is realativly small, is an ARM even worth the risk? My goal on buydowns has always been, can you break even in 5 years or less (with exceptions for clients who know they will be there longer)? If the B/E is longer then 5 years, it may not be worth it.
Im an underwriter. This video was confusing to someone who doesnt know anything. Basis points = rate percentage. The points go by .5 or.25 bpts to 1pt. 1 pt = 1 %. .5pts = .5% so you can have 4.5 pts which is 4.5%. Points are just percentage. You can buy down your rate but it's added to your loan. The points you pay come out of your down payment and closing costs money.. Brokers trick you to buy points. It's costing You the consumer. So if you buy down you need more cash to close. SIMPLE
They will begin to come down as supply continues to increase. Supply is still low in many areas because sellers may not have to sell and will rent or take their home off the market if they can't get their price. Also many builders have just stopped building or slowed down significantly.
@@poetz153 That’s because some sellers haven’t gotten the message yet and think it’s still a white hot sellers market like it was in 2020 and 2021. Just hold tight, though. The rate hikes will FORCE these sellers to drop their prices if they don’t want their home to sit on the market for 30+ days with no offers.
You need to make sure all your numbers make sense and if you are doing anything upfront or you adjust you will be about to cover the cost/increase. Even investors foreclose.
I saw a home listing that was perfect except the last line read: " Home utilities may be turned off due to weather conditions." What does that mean? I'm in Texas.
Usually that mean it may be bank owned or corporate owned and they may "winterize" the house to not have frozen pipes, etc. as the seasons change. If this is a house you are interested in you want to add to the contract to have the utilities on through due diligence and until closing, so you can properly inspect the home. Your agent will be able to protect you. Thanks for watching.
I’ve watched a few of your videos you talk about Naca a lot. Can I ask why you don’t like the program? I am currently looking for a house with them and am wondering if it’s something I don’t know about them?
It not that I don't like it, but don't put all your eggs in the NACA basket. It typically takes a long time, employess often leave and you have to start over, I have 3 NACA videos, I think I gave a balanced view, so you know what you are getting into. I also shared a success story in an interview. Just search NACA on my channel.
Make sure it looks amazing, fix anything that may need repair, do any deferred maintenance....buyers have a lot more choice so price it competitively for your market. Best of luck!
Hi Monique, do you have management, or are you negotiating your rates on your own. I definitely want to start a channel, but I have abe so many questions.
I changed the title of this video to make it clearer...mortgage applications are down 86%, so they have to think of creative ways to get you in a home. However, most lenders are only thinking about short-term affordability, you need to think long-term. Thanks for your comment. I appreciate it!
Love this information,Question, my husband wants to sell the house, we paid 2.75% of interest, a new house is around 6-7% .. What I was telling him is no way!! We need to wait to see low rates .. The main reason, taxes increase in our actual house !!! Around 40% up !!! That is why he thinks that is the best option to sell? What do you think???
The taxes are not going to change on the new house, they will be higher as well. Make sure you are getting any homestead exemptions you are qualified for to make sure you are paying less in tax. Get a loan estimate from a lender so he can compare what you pay now to what you will pay in a new house. Thanks for watching.
Can you please explain how the taxes are determined on a home. Like how is it calculated. Ex. When I'm looking to purchase a home in the same zip code, one has less tax at 9k sq ft. The othe triple tax at 7k sq ft., why does tax vary, what's the driving factor. Just trying to gain knowledge and better understand how it affects your DP n Escrow?
If varies by city/county/state, but this is typically how it works.....Each home has an assessed value and they are usually taxed at the same percentage, usually called a millage rate. There are also exemptions, senior exemptions, homestead exemptions, veteran exemptions, etc. that can have some homeowners paying less than others. Some areas have limits to how much taxes can increase from year to year. When you get pre-approved you can give you lender an address and they can estimate your property taxes or you can contact the loca tax office and they can help you estimate as well. Thanks for watching.
You are conflating Borrower paid points and temporary rate buy downs. They are not the same thing. A 2/1 Buydown can be a great strategy and has a much different mechanism. I did an example on my channel.
2/1 buy downs are different. I was talking about paying to buy down your rate/paying discount points. My overall purpose is for first time buyers to think longer term, not just short term affordability. I will check out your video, thanks for sharing.
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Shaheedah, I've been a Realtor for a long time and I love the way you break this information down for prospective buyers. It shows that you CARE; and we realize that noone cares about how much you KNOW until they know how much you CARE. Knowledge is POWER...but only if you USE IT. You are doing an amazing job. Thank you!😊
Thank you so much, these means a lot coming from a fellow Realtor. I really appreciate it.
Shaheedah Hill, Ive watched some of your videos and I feel the same way. You genuinely care, that’s why I need you to be my realtor!
Adjustable Arms is what got America in trouble back in '07. I got a fixed rate when I purchase my home in 02 but everyone paid the price for that mess. All the forclosures caused home values to tank and most people where upside down on their mortgage. I was underwater 50k and I did nothing wrong. Bought a house I could afford and paid on time, still got stuck in the mudd.
I am looking to buy early 2023 and your channel has really taught me so much! Thank you!
Thanks for watching
Lennar is currently offering to buy down 30 year fixed loans to 4.99%. I took the deal, hard to pass up 23k in free buy down money, on top of discounting the new build 60k and offering an additional 20k to closing costs. If they’re doing offers like this the market is probably heading downhill badly.
Yes, it makes a big difference who is paying for the buy down. Congrats
Did the same. Got 3.99% in August. Just closed. Thanks Shaheedah!
NOTHING is free. Lenders will always look out for themselves.
The first 7 years of mortgage you are mainly just paying interest.
@@SaharaKnows this is true but that applies to everyone with a mortgage. Might as well get the lowest interest rate as possible if you can. In my case the builder paid to buy the points down. I'm going to try and pay off as fast as possible...a 30 year over 15 years or maybe even 10 years
Mortgage Loan Officer here, you explained points/buydowns EXACTLY how I walk my clients through pricing. No one really knows how much farther home prices may fall, but we are still YEARS behind on supply, so prices will likely shoot up in the near future. Especially if the FED loosens monetary policy, rates will drop and demand will be crazy again. IF YOU ARE BUYING A HOME FOR THE FIRST TIME AND CAN AFFORD IT, NEGOTIATE TO HAVE THE SELLER PAY THE CLOSING COSTS. That way, you're in a home when prices go up and rates drop, so a refinance will benefit you even more.
@@darylllanier2591 That's not going to happen, last spike in rates (the 80's) you saw the federal reserve relentlessly tighten monetary policy. The problem is the government puts too much influence on the central banks borrowing rates. Less government interference leads to a more stable economy and rate situation like we've seen for almost 10 years prior to Covid
Thanks for watching and for sharing
I was thinking about becoming a mortgage loan officer, do you feel it’s still a good idea?😅
@@astrogifted8 It would be one of the hardest times in recent history to start, but if you could make it now, you'd always be able to figure it out
Just wait it out the interest rate will go down the same thing happened in 2008 everything went back to normal then & it will again just have patience i wouldn’t dare buy a house now spending this time to save more money is more responsible I want a fixed rate mortgage which my husband & I plan to put 10 % to 20% down payment we make 6 figures but we are smart with our money
I’m done with my house buying process and your videos helped a great deal. I still tune in just to learn more. Very informative. You are great at this. You should do speaking engagements, presentations, meet and greets or Q&A’s if you haven’t been doing them already. Or write a book even. I believe you have a audience that can’t wait to hear what you have to say. ✌️
Thank you so much... working on those things. I appreciate the support and encouragement even after you closed😊
Mrs. Hill, I recently subscribed to your channel a few weeks ago and I must admit, I love watching your content. It’s evident that you aren’t just posting for views or “likes”, the info you provide is actually beneficial. I wish you were around a couple decades ago to help me figure things out, because it’s clear you are a blessing to your viewers. I pray for your continued success as you continue to help others! God bless you and your family.
Thanks for the kind words and welcome to the channel!
With all due respect, and note that I am only commenting here because alot of people including Realtors and what is worse Mortgage Loan Originators have said that they love the way you explained the rate buy downs and that is exactly how they walk their own clients through the rate buy down explanation. Please note that you are using traditional or fixed rate buy down rationale in trying to explain the temporary 3-2-1 rate buy downs. Please note that a temporary rate buy downs are super easy to calculate, but also note that 1 point in rate buy down does not equate to thw 1/8 or 1/4 rate adjustment as you have explained here, again that is the case on traditional fixed or adjustable rate buy downs. Just to make sure people have the correct information, a 1 point rate adjustment on a rate buy down equals the difference on a P&I monthly payment from the lower rates (temp. buy downs) vs. the normal P&I payments from your current rate multiplied by the 12. Say you're supposed to get a 7% rate, you can buy down the rate to 6% by multiplying the savings in the P&I calculation x 12. So if the savings is $200.00 month, then the rate buy down will cost you $200x12=$2,400. If you wanted to do a 3-2-1 buy down, you will then be buying down two points for 24 months and 1 point for 12 months. So using a similar example, you will go from 7% to 5% (2 points buy down) on the first year and then the rate will adjust to 6% for the second year. On the third year, the rate will then adjust to the fix 7% for the remainder time you have this mortgage. As far as the cost, to buy down the rate from 7% to 5% on the first year, multiply the savings in P&I payment times 24 say that difference is $400/month. Then you have $400x24=$8,800 add to that the diference in payment of P&I between 7% and 6% for the second year(say $200) and multiply by 12. $200x12=2,400. Now add both yeara together or $9,600 + $2,400 = $ 12,000. So the total cost of the temporary buydown is $12,000. BASICALLY ALL YOU DOING IS PRE-PAYING THE INTEREST for the period you decide to do the buy down. One thing to always keep in mind is that the Seller or the Realtors are able to pay for this buydowns, you as the buyer/borrower cannot. Shaheedah makes some very good points on the break even point or future consideratios of affordability, but she also leaves out the fact that renting is also not your best option, furthermore, I disagree with the that lenders as getting desperate, everyone in the industry is affected by the market contraction. We as professional Mortgage Brokers simply are putting together and laying out options for our borrowers. At the end of the day when presented with your options in the correct way, you are asked to make the choice, and given the proper explanation, I am sure you will be making the smart choice for your own case. It is my personal opinion that rates will eventually adjust back down, I don't have a crystal ball to predict when, so I need to trust the industry experts and financial indicators to hekp me in making that statement, but I also don't agree with the fear tactics that your home can easily fall underwater and you will have negative equity. Even in the worse housing crisis of 2007 to 2010 the industry figure out a way to help borrowers by doing loan modifications and short sales. We learned from that and with the way we underwrite and scrutinize loans nowadays plus the continue need for housing to meet the market demand as millenials continue to enter the age of settling down and buying homes. Again It is my personal opinion that housing pricing will level off, but will not decline. It is very hard to imagine 20 to 25% appreciation as we had the last few years, but 3 to 5% is not far fetched at all. Ask yourself what other options you have, so I encourage you to continue to pursue your dream of Homeownership, keeping in mind that you are marrying the house, but only dating the rate. Wishing you all the best and many blessings.
Edwin Rivadeneira, NMLS #375554.
As a MLO, I love how you explained the points and factoring if it is worth the money to buy down! So many lenders will trick people with them not knowing this information.
Thank you so much.
Rate buy downs are only worth it if you intend to keep that loan term or don't sell for a long time. With these high interest rates, A lot of people are looking to refinance the moment the Fed pivots. That money used in the buy down, can be used for refinance closing costs again.
@@daywzy so true I'd rather take that money and put it towards the principal and have more equity in the home
8% 30yr fixed rate mortgage. Pass
Points are paying interest not profited...in advance ..in trade for a lower. Rate ..heres your interest in advance...cash....
I bought my house with NACA , I spend $27k in buy down interest.. I pay $6 a month in interest on a $180k mortgage loan, I being in the home 5 years.
Thank you for explaining so simply. I hope those who are in the decision process to do what had been spoken here, will receive this information
Thank you, me too.
Within the first minute, I subscribed.
Thanks so much and welcome to the channel!
I appreciate you breaking this down because I was wondering how the buy down work and how many point it takes off but seem like there no sense to do that. I’ll keep waiting ❤
Hi Shaheedah, always enjoy your channel. I'm a Georgia Real Estate Agent! Thanks for all 💎 for our buyers! I love information and also share a lot with my clients as well. I appreciate all you do!!
Awesome! Thank you!
As a MLO I appreciate how you explain everything. I know your clients are well informed.
Thanks so much Naomi!
hi sweetheart, I received an email from Navy Federal saying it's time to buy a house. according to MyFico mortgage scores for October18th are Equifax 773, TransUnion 751, and Experian 748. I'm grateful for these scores but I cannot buy a house with the apr the way it is now! If I get a $300,000 property for 30-year fixed, 20% down with the score 751 and the monthly payment would be $1617 apr 7.127%. I don't think so!
Great scores, you will know when it's the right time. Just keep watching the market and be financially prepared.
Thank you for breaking this down. I’ve never had anyone explain and give examples to what this means and how it affects the homebuyer. 🙏🏽
Thanks so much
Insane update. I was told last week i no longer qualify at 7.125% and today miraculously I qualify. Builder's Loan officer is using .5 freddie mac rate to calculate my student loan payments which r currently deferred. He got me approved. I still wanna walk. Mortgage is 3,860. It was 2,900 when i signed in march
Very sad cuz i was buying to take care of my mom who is now disabled but this is a hard no way. Im pushing back but im not optimistic that they will drop d rate enough for me. They shouldve locked me in august when it was 6.1. And even at 6% it's ridiculous. I missed the 2021 mark.
$2,900 for a mortgage? Must be like a million dollar home. That is pretty much what your average American makes a month.
Stand your ground that's a big difference. Go with your gut.
@@kvmairforce $450,000 homes are now at $2900 a month with current interest rates. And depending on where you live, good luck finding a house in that price range
@@kvmairforce Not really a million dollar home. A $450 - $500 home with these interest will be around that monthly mortgage. That's pretty much the norm these day and age with high prices and high interest. I'm in NJ and $2900 mortgage is on the low to average mark 😢. Some families are bringing home high income as well so 15K or more) having something like 4K monthly mortgage is not a big deal. The key is people need to be realistic and live within their means.
$550k home at these rates is $4,850 /mth… it’s crazy out here.
Do nt buy a home in this market if you dont HAVE to. These rates are ridiculous
These rates are historically average. If you don’t buy now you will make yourself available to higher rates. You won’t see 3% and below until 20-30 years
Thanks for the info . I’m going to wait and purchase next year
My builder is offering a 2 year by down on the rate. Back in April when I signed my contract, I had intentions of putting down 20%, but now I'm thinking I should use some of that down payment money to buy down the rate.
Ask the lender to give you some options and calculate your break even point. Thanks for watching
Ohhh I’m here for this
We got in at a good time, our rate is fixed for 30 years is 2.75% thank you Jesus
Congrats, yes hold on to that! Thanks for watching.
@@ShaheedahHill i watch a good bit but just listen most the time for tips. i just had to share this one. I was so thankful to get that interest rate before it started climbing back up. We closed and i needed a new car so bad but was NOT going to do that before we bought because the debt ratio so after we closed went and got a one year old chevy equinox for only 9% and to me for an almost brand new car that was great. Kept our payment are the low 300. And we were renting paying right at 1000 a month which was still low rent for our area. We bought our home and car and our payment for both are less then our rent was before. I tried to tell everyone that would not last and to jump in while you can! I also have a good realtor friend I kept telling her I KNOW the money is GREAT right now but watch out because this gravy train will not last much longer. And sure enough here we are
Lucky you
The seller offered to pay down my VA Loan Rate. :)
If they are paying that does make a difference
@shaheedah hill is right, a lot of flashy pitches are happening within the industry to get people to buy, buying should be a benefit to that person and their family.
I am not desperate lol, but my business model is different either purchasing a home fits the buyers financial plan or it doesn't. Of course, I do what I can to make sure they achieve their goals, but you will get no temporary gimmicky solutions from me, I would rather be able to do business with them in the future than get paid now by burning them promoting a quick gimmick.
You know I had to get the attention with the title😊. Thanks for watching. You prepare your clients well in every market.
Love this!! Thx. Simple. Straightforward. My focus is on making sure the credit side is together.
Great, check out my credit playlist
There is no way I’d buy down points right now. If I couldn’t do conventional then I’d do a 5 year ARM and refinance once the rates come back down. When the market gets better in 3-5 years, if I’m unemployed and can’t refinance, I probably have bigger problems and might look at selling to cut my losses.
If a builder is looking to buy down points for you, have the builder put that money back into the house instead with added insulation, better windows, a higher seer HVAC, tankless water heater, or other home improving energy savers. If you do sell in 3-5 years, those higher efficiency items can help you sell and justify your price.
I would rather downgrade on a home to avoid all of this trickery. All of these mortgage options seem hella risky. 👎🏾
Thanks for watching!
With the buydown, you not only have to live there for 5.5 years. You also can't refinance for 5.5 years. Rates probably will not be this high for that long.
Just finally got approved by the state today for the grant after the information was sent out on Friday. That was quick. Just waiting for the seller to get the well water back to 100% so we can close. It's supposed to be this Thursday!! Let's Hope!
Congratulations, it will happen! 🙏🏾
Great Voice, Diction, Speaking skills.
Never desperate,,,I'll wait until I get it all,,no matter if it takes two years!!!
Right. And you happily get what you want.
Correct, never desperate! But when you can comfortably afford it comfortably. No sense in being home and every month sleep is lost due to the financial constraints.
so is it a bad idea to buy now
Mrs. Hill, I know your videos mainly concentrate on the "refinancing" once you have purchased your first home with the pros/cons? Thank you.
I'll have this video soon... November
OMG! You explained this so well.
Thanks for watching
If you’re paying 86% what’s the point of getting a mortgage you might as well pay 100% People think it’s a flex to own a home but you don’t own a home unless there’s no mortgage if you’re paying a mortgage That’s the banks home you’re no different than a person leasing a home if you can’t pay for it out right don’t do it
Hell no lmao you clearly don't own a home if you think paying a mortgage and paying a lease is the same
I just stumbled upon your channel and I am very impressed with how clearly you make this information. I am looking to buy in the beginning of next year and knowing the details will help me make an informed decision. Just subscribed so I don't miss any of your valuable content! Thank you for helping us new home buyers!
Awesome, thank you! Welcome to the channel😊
Lenders will do anything to help you part with your money! It's their playground you're playing in. You better know your goals and the amount of risk you're taking to achieve those goals? Thanks for sharing!
Thanks for watching!
Thanks for the great information! Do you have any realtor recommendations in the MS area?
Thanks for watching, if we have anyone we will email you. Here is the form -📌Need an Agent Referral - forms.gle/qC2uP4YRednyEyLa6
Phenomenal breakdown!
Hi Matt, thank you.
Thank you so much for these valuable information!! As a Georgia Licensed Real Estate Agent, great tips for our buyers. 💎 💎 💎 So love your channel! Educate your clients 👏🏽
Thanks for watching, also a good marketing tool for listings.
😁😁 Extremely important information 👌
Thank you Shaheedah! Your videos are always informative. I wish you can be my realtor in Houston.
Thank you, If you need a Houton Realtor... I recommend Linda Blue or Shadrya Patton th-cam.com/channels/1d45v0DoZZh24LP1zbU07Q.html
th-cam.com/channels/ihqM9vGoLE_r1-KDtmSiYg.html
Thank you for another great video.
Your channel is so helpful
Thanks for watching!
What a lot of people don’t know is… there is a rate to pay the mortgage and all debt in little as 5-7 years. That’s bigger than any supposed low mortgage rates🤷🏽♂️
Please explain?
Another great videos mrs hill ❤❤🙏
Thank you
I'll take a 3and one arm on a duplex.
Another great 👍 video.very informative. 😊 thanks
My pleasure!
I absolutely love the lipstick. What is it please? If you see this. ❤️❤️
This video was 🔥.. I brought my first house in 2020 and the lender was explaining this to me … it would have taken me 5 years to break even .. so I didn’t buy the points..
Thanks for watching
New sub!👍🏿
Welcome to the channel!
Great video info as usual! Thank you for explaining it to us in a way we can understand it. 🥰
Thanks so much
thank you so much for explaining this!!! i loveeeee your videos
You're so welcome, thank you
This is so good
What part of Texas?
@@Dunn_mortgage_advisor I'm In Dallas!!!
Thanks for watching
Girl thank you so much to help us understand the way we can take best decisions, I hope you I can get you my realtor when I have to purchase my house. Good job 👏 👍
Thanks for watching
This is sooo helpful!!!
Thanks for watching
Thank you!!
Thanks very much.
Thanks for watching
You’re an Angel @Shaheeda! A savior! 👏👏👏
Thanks for watching
Beautifully explained. Subscribed and thank you for your time.
Thank you for watching
I’m in atl looking to buy in December or January I wish you could be my realtor 😢
Wish you the best
Congratulations on taking the step toward home ownership!
Thank you 🙏
Are you currently working with a Realtor?
No I don’t have one yet
Not all states have the same rules on how much you can pay it down.
Very well done…
SUBSCRIBED!!!
Welcome to the channel!
❤thanks for dropping knowledge
My pleasure
Great Vido Shaheedah! I have been teaching this to my clients for 30 years!!! One other thing to add, if the difference between the 30 year fixed and an ARM is realativly small, is an ARM even worth the risk? My goal on buydowns has always been, can you break even in 5 years or less (with exceptions for clients who know they will be there longer)? If the B/E is longer then 5 years, it may not be worth it.
Great points, thanks for watching and sharing.
Great advice! 👍🏾
Thanks for watching
Thank you for this info!!
Thanks for watching
Thank you so much for this video
Thanks for watching
Love your videos. You are the best.
Thanks for watching
what bank asks for an 86% down payment?
I am thinking about doing an arms and refinance later
Just make sure you can afford the adjustment if you are unable to refinance. Watch my ARM video
I did that in 2007. Big, big mistake. Be prepared for the monthly payment hike!!
@@ShaheedahHill thanks, I will check the video out.
@@59564 really... Does the rate go up more than 1 point?
I’m waiting for the house to be Low…it’s NOT worth it, housing was already too expensive before the rate hikes
Im an underwriter. This video was confusing to someone who doesnt know anything. Basis points = rate percentage. The points go by .5 or.25 bpts to 1pt. 1 pt = 1 %. .5pts = .5% so you can have 4.5 pts which is 4.5%. Points are just percentage. You can buy down your rate but it's added to your loan. The points you pay come out of your down payment and closing costs money.. Brokers trick you to buy points. It's costing You the consumer. So if you buy down you need more cash to close. SIMPLE
Thanks for this info
Why aren’t rates dropping? People are mad they didn’t sell sooner and missed the action. I still have houses in my area way over where they should be.
Rates won’t drop. The feds have said they will consistently raise them to push house prices and inflation down
@@jopaea I need to correct my statement. The prices of homes are not dropping in my area. I should not have said rates.
The Fed is raising rates aggressively to get inflation under control. They will likely not come down soon. Thanks for watching
They will begin to come down as supply continues to increase. Supply is still low in many areas because sellers may not have to sell and will rent or take their home off the market if they can't get their price. Also many builders have just stopped building or slowed down significantly.
@@poetz153 That’s because some sellers haven’t gotten the message yet and think it’s still a white hot sellers market like it was in 2020 and 2021. Just hold tight, though. The rate hikes will FORCE these sellers to drop their prices if they don’t want their home to sit on the market for 30+ days with no offers.
Does this same analogy matters on a multi family building as well or maybe not so much?
You need to make sure all your numbers make sense and if you are doing anything upfront or you adjust you will be about to cover the cost/increase. Even investors foreclose.
Excellent
Thanks for watching
Great video, thanks !
You are welcome!
Excellent! TY
Thanks for watching!
What is NACA
Here is a video on NACA - th-cam.com/video/GHifxDBaM3s/w-d-xo.html
Shaheedah always provides great information 👏🏿 thanks for everything 👍🏿
Thank you
Your welcome!
Random but I love your teeth!!! Lol. Love the videos as well ❤️
😊 thank you
Hello 👋 Question: how are upgrades calculated within the base price of a newly build construction home? I didn't see any video on these.
They are typically just added to the base price. They usual have va design center with the price of all the upgrades
I have a new construction video... it's old but it goes over all the basics.
@@ShaheedahHill Thank you so much. 🙏
I saw a home listing that was perfect except the last line read: " Home utilities may be turned off due to weather conditions." What does that mean? I'm in Texas.
Usually that mean it may be bank owned or corporate owned and they may "winterize" the house to not have frozen pipes, etc. as the seasons change. If this is a house you are interested in you want to add to the contract to have the utilities on through due diligence and until closing, so you can properly inspect the home. Your agent will be able to protect you. Thanks for watching.
@@ShaheedahHill thanks so much for your detailed response. You are amazing.
I’ve watched a few of your videos you talk about Naca a lot. Can I ask why you don’t like the program? I am currently looking for a house with them and am wondering if it’s something I don’t know about them?
It not that I don't like it, but don't put all your eggs in the NACA basket. It typically takes a long time, employess often leave and you have to start over, I have 3 NACA videos, I think I gave a balanced view, so you know what you are getting into. I also shared a success story in an interview. Just search NACA on my channel.
We are closing nov4th, we just need to sell our house what is best way to do so quickly at good price
Make sure it looks amazing, fix anything that may need repair, do any deferred maintenance....buyers have a lot more choice so price it competitively for your market. Best of luck!
great stuff as usual!!
Thanks John
Hi Monique, do you have management, or are you negotiating your rates on your own. I definitely want to start a channel, but I have abe so many questions.
I have a Facebook group for agents working on one for non-agents
Not much was explained about how lenders are desperate. But great explanation on points.
Lenders are desperate because buyers are dropping out of the housing market which means they are not working.
Exactly, thank you.
I changed the title of this video to make it clearer...mortgage applications are down 86%, so they have to think of creative ways to get you in a home. However, most lenders are only thinking about short-term affordability, you need to think long-term. Thanks for your comment. I appreciate it!
@@ShaheedahHill I appreciate the additional context 🙏🏾
Love this information,Question, my husband wants to sell the house, we paid 2.75% of interest, a new house is around 6-7% ..
What I was telling him is no way!!
We need to wait to see low rates ..
The main reason, taxes increase in our actual house !!! Around 40% up !!!
That is why he thinks that is the best option to sell?
What do you think???
The taxes are not going to change on the new house, they will be higher as well. Make sure you are getting any homestead exemptions you are qualified for to make sure you are paying less in tax. Get a loan estimate from a lender so he can compare what you pay now to what you will pay in a new house. Thanks for watching.
Can you please explain how the taxes are determined on a home. Like how is it calculated. Ex. When I'm looking to purchase a home in the same zip code, one has less tax at 9k sq ft. The othe triple tax at 7k sq ft., why does tax vary, what's the driving factor. Just trying to gain knowledge and better understand how it affects your DP n Escrow?
If varies by city/county/state, but this is typically how it works.....Each home has an assessed value and they are usually taxed at the same percentage, usually called a millage rate. There are also exemptions, senior exemptions, homestead exemptions, veteran exemptions, etc. that can have some homeowners paying less than others. Some areas have limits to how much taxes can increase from year to year. When you get pre-approved you can give you lender an address and they can estimate your property taxes or you can contact the loca tax office and they can help you estimate as well. Thanks for watching.
@@ShaheedahHill thank you
Thank you Shaheedah. They use big words(flip flap) to confuse us.
Yes, they do. Do what you makes the most sense for you financially
You are conflating Borrower paid points and temporary rate buy downs. They are not the same thing. A 2/1 Buydown can be a great strategy and has a much different mechanism. I did an example on my channel.
2/1 buy downs are different. I was talking about paying to buy down your rate/paying discount points. My overall purpose is for first time buyers to think longer term, not just short term affordability. I will check out your video, thanks for sharing.
@@ShaheedahHill Roger that.
I recommend you studying how to discharge mortgages because all deaths belong to the government not to the people and all mortgages are pre-paid
If you sell or refinance your home what happens to “the rate buy down money?”
Nothing, you paid that upfront for the low interest rate, so you could be at a loss if you sell or refinance early.
In other words you lose the money.
they haven’t got money to lend out anyway so they should chill out …
I already know arms is not for me. Thxs for the video
Thanks for watching