What people are hearing and what is actually happening in the marketplace couldn’t be more different.
The public is hearing about record prices and record interest rates. However, nobody is talking about the massive traffic car jam in the real estate industry. The cause could be a fatal blow to housing and here is how to take advantage of it.
BIG BANKS are doing it again. They are extracting hard-earned equity from homeowners all across the country. If you are like me you have had dozens of postcards, e-mails, and letters begging you to refinance your house to a lower interest rate.
On the surface, this sounds like a no-brainer. Refinance to a lower rate and save money. Your payment goes way down and you feel great. There is a catch and it is a big catch.
70% of all loan applications are refinances. These homeowners are not selling because their rate went down. There is a catch.
#1 – Refinances cost you more money than a traditional loan. There are more fees.
#2 – Refinances have higher interest rates than buying a home.
#3 – Your mortgage term of 30 years is reset. You may have paid on your loan for 5 years or even 15 years. They tricked you into paying them interest for longer by resetting it to 30 years.
#4 – Most of their fees are wrapped into your principal balance. After your refinance you will actually owe more money than before.
#5 – Even worse they offer you the option to pull equity out on a loan to buy things you don’t need. They then make interest on that money they loaned you for the next 30 years. Increasing your mortgage.
Big BANKS are making trillions refinancing your home. They also tricked you into staying in your home longer and not exploring other options.
Other options like…a bigger home, a nicer home, a newer home, a safer home, a nicer location, a better view, a more private home and location, acreage, irrigation, a big garden, a bigger shop/garage.
Smart homeowners consider selling and buying. I’m not saying one is better than the other but, everyone should consider both options.
Nick McLean Real Estate
PS. Call our team today 509-255-8070 to get a free home equity report of your home.