THE NASDAQ GAINING OVER 160
POINTS. WHILE THE S AND P 500
THAT FUN IS TRADING ABOUT 25
POINTS IN THE GREEN. NOW
DURING THIS PANDEMIC MORE
FAMILIES HAVE BEEN REFINANCING
THEIR HOMES AND TAKING OUT NEW
MORTGAGES AND A NEW REFINANCE
COSTS WAS SET TO GO INTO
EFFECT TODAY. BUT THAT'S NOW
BEEN DELAYED UNTIL DECEMBER
FIRST YEAH AND OUR JESSICA
HAYES SAID DOWN WITH MIKE REES
FROM STRATEGIC WEALTH
DESIGNERS TO TALK ABOUT, BUT
THAT MEANS AND HOW IT WILL
AFFECT THE HOUSING MARKET,
MIKE WHAT IS THIS NEW FEE THAT
WILL BE PART OF MORTGAGES AND
REFINANCE IS.
WELL THEY'RE CALLING IT A
COUPLE DIFFERENT NAMES AND
ADVERSE MARKET REFUND ITS FEET
OR LOW LEVEL PRICE ADJUSTMENT
THEY CALL IT WHAT IT WHAT THEY
WANT, BUT IT'S A HALF A
PERCENT OF CLOSING COSTS WHEN
YOU REFINANCE A HOME SO IF
YOU'RE PURCHASING A NEW HOME,
IT'S NOT LIKE YOUR INTEREST
RATES GOING UP BY HALF
PERCENT. WHAT'S GOING ON HERE
IS THEY'RE TAKING A HALF A
PERCENT OF THE VALUE OF THE
HOME AS A FEE WHEN YOU CLOSE
SO IT'S IT IS A $200,000
MORTGAGE HERE, YOU'RE LOOKING
AT A HALF A PERCENT FEE EQUAL
AND EQUALING A PRICE INCREASE
OF $1000 AND INTEREST RATES
DROPPED WHEN THEY DELAYED THAT
RATE FEE TO DECEMBER HOW MUCH
TIME TO BUYERS OR ANYONE
REFINANCING HAVE TO
REALISTICALLY GET THEIR
AGREEMENT SETTLED BEFORE THIS
AFFECTS THEM.
THEY HAVE ALMOST NO TIME.
SO THIS HAPPENS DECEMBER FIRST
WILL IT'S NOT WHEN YOU
INITIATE YOUR PAPERWORK HAS
ENDED DECEMBER FIRST IS WHEN
THE LOAN IS ACTUALLY DELIVERED
SO IF YOU'RE THINKING ABOUT
REFINANCING THE CURRENT HOME,
NO CURRENT MORTGAGE YOU NEED
TO DO IT RIGHT NOW IN A NORMAL
ENVIRONMENT 30 TO 45 DAYS,
IT'S PROBABLY WHAT IT TAKES
CLOTHES. WELL THINK ABOUT IT
INTEREST RATES PER DID
ALL-TIME LOWS. YOU GOT NEW
HOME PURCHASES AND YOU HAVE
PEOPLE THAT ARE REFINANCING SO
THESE MORTGAGE COMPANIES
UNBELIEVABLY BUSY IF YOU AVOID
THAT FEE YOU GOT TO GET IT
DONE RIGHT NOW.
AND THIS IS SOMETHING A LOT
OF PEOPLE ARE WONDERING IS
THERE A BUBBLE BREWING IN THE
HOUSING MARKET WHERE DO YOU
SEE IT HEADING FROM HERE.
NO CRYSTAL BALL ON THIS ONE
HOWEVER I THINK IT'S MORE
SUPPLY AND DEMAND. SO IN 2008
WE HAD THAT A TERRIBLE CRISIS
IT WAS CENTERED AROUND
MORTGAGES AND HOME BUYING YOU
HAD A LOT OF SUPPLY TOOK A
LONG TIME TO WORK AT ALL AND
DURING THAT TIME NOT ENOUGH
HOMES WERE BUILT. SO THERE IS
NOT ENOUGH HOUSES FOR THE
AMOUNT OF DEMAND OUT THERE
OBVIOUSLY LOW INTEREST RATES
THAT'S A FACTOR. BUT YOU'VE
ALSO GOT THE CORONAVIRUS IN OF
COVID-19. FORCING MORE PEOPLE
TO WORK FROM HOME MAY BE MORE
PEOPLE LIKE TO WORK FROM HOME
THAT TREND CONTINUES CAN'T
REALLY ADJUST YOUR APARTMENT
YOU NEED TO BUY A HOUSE YOU
KNOW IF YOU WANT TO YOU KNOW
TO MAKE CHANGES TO MAKE IT A
BETTER SITUATION IN YOUR
SPACE. A HOME IS GOING TO BE
LIKELY THE WAY THAT YOU WANT
TO GO SO PLENTY OF DEMAND FOR
HOMES AS FAR AS HOW THAT HOLDS
UP TOUGH TO TELL, BUT
OBVIOUSLY INTEREST RATES IF
INTEREST RATES GO UP THAT WILL
PROBABLY SLOW SLOW THINGS DOWN
A LITTLE BIT ALL RIGHT MIKE
THANK YOU.
AND SO YOU'D LIKE MORE
INFORMATION ON THIS TOPIC OR
ANY OTHER MONEY SAVER WE
INVITE YOU TO HEAD TO OUR
WEBSITE. FOX 59 LOOK FOR THE
STRATEGIC WEALTH TAB AND THEN
