Out-of-State Investments , Divorce Deals, Refinance and Interest Rate Impacts

What if the Las Vegas real estate market is teetering on the edge of a notable shift? Join us for an engaging discussion as we dissect current trends and strategies, from buying out-of-state properties to managing real estate transactions amidst a divorce. With a noticeable increase in single-family home listings and a decline in condo and townhome availability, we'll analyze what these changes mean for potential buyers and sellers. Amidst the chill of winter, there's a surprising upswing in under-contract and sold properties that we won't want to overlook. Plus, with the Federal Reserve's recent decision to keep interest rates stable, we explore the possible implications for future rate adjustments and how they might spark shifts in the housing market.

We're not just stopping at market trends; we're shining a light on the real estate industry's pressing issues, such as the surge in class action lawsuits and the challenges faced by the admirable Tunnels to Towers Foundation. Their mission to house veterans in North Las Vegas isn't without hurdles, specifically zoning complications. As we navigate these topics, we'll also tackle Nevada's critical affordable housing crisis head-on, a shortage of 80,000 homes demanding urgent attention. Meanwhile, local initiatives are stepping up to provide lead hazard assessments for older homes, aiming to protect the health of young children. This episode promises a thorough examination of the challenges and triumphs within the real estate sector.

And for those navigating personal complexities like international purchases or divorce amidst home buying, we haven't forgotten you. Learn the intricacies of closing loans from abroad, the legal nuances required to avoid pitfalls during a divorce, and the importance of financial transparency with lenders and realtors. We also unpack the often misunderstood realm of cash-out refinancing and rate buy-downs, sharing valuable insights on making informed decisions in a fluctuating market. Whether you're seeking expert advice or insider tips, our conversation is packed with practical guidance tailored to the dynamic Las Vegas real estate landscape.

Chapters

• 0:00 Las Vegas Real Estate Market Update
• 9:24 Real Estate Lawsuits and Housing Concerns
• 19:56 Divorce, Loans, and Home Equity
• 26:17 Home Mortgage Rate Buy Downs

Transcript

Speaker 1: 0:00

Welcome to Vegas Realty. Check your go-to podcast for all things Las Vegas real estate. Whether you're buying, selling or investing, we bring you the latest market trends, insider tips and expert insights to navigate the ever-changing Las Vegas realty landscape. Tune in each week as we break down the data, answer your questions and help you make the best real estate decisions in the entertainment capital of the world.

Speaker 2: 0:26

Hey. So today we're going to cover buying out of state, buying while in a divorce and, if you can get your home equity to help with your rate, buy down on a refinance. So we're going to cover all those things today on this show. I'm your host, trish Williams, thanks for joining us at Vegas Realty Check, and I'm your co-host Courtney Boehm with JFK Financial.

Speaker 2: 0:47

Yes, so we have a great show in store for you today. Before we get into everything that we are talking about and listener questions, we're going to open up with our market numbers for the week.

Speaker 3: 0:59

Sure, absolutely so. Right now, single family residences on the market, we're looking at 51.27, which is up 40 from last week, All right.

Speaker 2: 1:09

And then condos and townhomes. We have 18.37. Those are down 12. Love to see that inventory dropping Right.

Speaker 3: 1:17

Slowly but surely, we are getting there.

Speaker 2: 1:20

Are people like I was thinking about this this morning because it's cold out. It's like freezing cold out and it's not normal for Vegas. Maybe the buyers are just scared of the cold.

Speaker 3: 1:31

I don't know about you, but when it's cold out I don't like to leave my house at night.

Speaker 2: 1:36

And people in Vegas are like that, like if it's raining they'll cancel all their appointments, so like that could be a Vegas spoiled from the weather thing.

Speaker 3: 1:47

So maybe, maybe, yeah, yeah, so like that could be a Vegas spoiled from the weather thing. So I believe it, maybe, yeah, yeah. So what's cold here is definitely not cold many other places, but I'm telling you pajamas at like 7 30 I'm happy, yeah absolutely um new listings, so we we only went up one on the new listings.

Speaker 2: 2:01

Yeah, so 936 new listings, and that was.

Speaker 3: 2:05

That was just one more from the week before and we have 785 price decreases this week, which is up 122 from last week.

Speaker 2: 2:16

Yeah yeah. Good to see those prices dropping and sellers are trying to get those buyers into contract. These under contract numbers are looking good, though, so 824 for the week, which is 124 more than last week.

Speaker 3: 2:31

So we are seeing activity out there, absolutely, and I think things are starting to heat up and as far as sold, we have 520, which is up 96 from last week, so that's good.

Speaker 2: 2:42

Yeah, yeah, we're definitely seeing some of that January activity. I still think it's slow, it's not moving as quickly as I would hope it would, but it's doing okay.

Speaker 3: 2:54

Yeah, I think we're slowly going to see an uptick. Come February, march, I think a lot's been very steady.

Speaker 2: 3:02

Yeah, fed met yesterday. How'd that go?

Speaker 3: 3:05

You know it went not like I would love it to go. I would love to see, you know rates go into the fives. But we and I think I talked about this about two weeks ago on this show we predicted that this meeting was going to virtually keep everything exactly the same as far as the rates went, and that's exactly what happened. The the March 18th 19th Fed meeting is supposed to, prediction wise, have the rates come down a little bit. So we kind of knew, based on just different things that we were hearing, that this one was going to be virtually nothing. Nothing was really gonna move, and that's pretty much exactly what happened. So right now we are sitting virtually where we were almost last week right at around a 7% for a conventional loan on a 30-year, and you're looking a little bit lower about a 6.5%, a tad bit lower on a national average for FHA and VA 30-year.

Speaker 2: 4:00

Yeah, yeah, yeah. So those have not moved much. But the Fed is not the end all be all of the rates and where they go, so other things can happen. I know yesterday we were both in this housing forecast and they were talking about how the job reports are really the most impactful as far as where those mortgage rates are going, which I guess that was surprising to me. I didn't really realize that.

Speaker 3: 4:26

I think there's a correlation between so many things versus the bond market jobs, spending, credit card rates, things, everything's kind of in conjunction with and I think that you know we're going to see what happens in the next few months. But March 18th 19th is really a date for us, especially as lenders, to kind of look out for and start seeing that slow trending down. Yeah, we're hoping to come down a little bit into the you know, probably high sixes around that time, but we shall see. I think we've all tried to make great predictions and we just don't know. We thought last year we were gonna be a lot lower than what we ended up ending the year with.

Speaker 2: 5:08

So yeah, and when it comes down to it. I mean, so many buyers are saying they're putting off their buying decisions, they're buying activity until they, until the rates come down. Yet there's so many buyers that still home buying can be affordable for them. They still can afford the payment. They would just like it to be a lower payment. But keep in mind, when those rates do go down, the prices are probably going to increase because we still have a very strong market, even with the environment that we're in right now with rates.

Speaker 3: 5:41

And I think the most important thing, which obviously we're in the industry where we deal with this all the time, but that's where you hear that annoying saying that we always use or hear, date the rate. Right, marry the house, date the rate. Because at the end of the day you have to think, if you're just waiting for the rates to come down, so is everybody else. Oh gosh, and the problem with that is when the rates a lot of property.

Speaker 2: 6:11

Oh yeah, because they're going to buy it with the intent of they know the values are going to increase, so it's going to be we'll. We'll see more people getting into flipping, buying, holding for a couple months, because they know that once those rates come down, the buyer pool will be flooded.

Speaker 3: 6:27

And and then you have, you know people who are coming in with three and a half 5% down getting beat out of a market because people are coming in with 3.5% 5% down getting beat out of a market because people are coming in with 50% down or all cash. And so I'm sure in those type of markets do you see as many seller concessions or things being offered?

Speaker 2: 6:43

No, and buyers have to pay over the appraisals a lot in those types of markets. Absolutely so definitely not a buyer-friendly market. So that is, if you're waiting for those low rates, that you're waiting to be shopping in that type of market, which might not be the best scenario for you Absolutely and keep in mind.

Speaker 3: 7:01

and why we say that is because, as long as you can get into a home and qualify down the road, we can always refinance you and make the payment even more comfortable while you're building equity versus paying someone else's equity and and these homes are not going down.

Speaker 2: 7:16

um, our town is only growing and we're going to get everyone from california and it's been growing and the value's been going up tremendously in the last two, three years yeah, even in spite of all the rates and all the things and the buying market not being so attractive, we still have appreciation, which is definitely something that you need to pay attention to, because that is proof that as soon as those rates come down, the prices are going to increase even more.

Speaker 3: 7:43

Absolutely.

Speaker 2: 7:44

So that is our crystal ball prediction for you.

Speaker 3: 7:47

Yes, rates go down to the low sixes, high fives, that's my wish.

Speaker 2: 7:52

Yes, so we have some news. New York Times reported that NAR and several Michigan real estate associations have filed an overturn, a motion to overturn another class action lawsuit, which is focuses on the MLS requirement to join NAR. So I know most consumers out there have no idea what this means and might not even matter to you, but this is part of this, like big settlement lawsuit and all the disputes that we've been having recently in regards to this, because currently agents that are part of the MLS, which is the multiple listing service, which is like a local association, have to join the National Association of Realtors, so have to be part of the NAR. And you know some agents have been, you know, just kind of looking at that, like why is that necessary? You know what is the purpose of that. So NAR does offer a lot of benefits and does have a lot of things associated with being a member, but it is something that some people are trying to dispute and NAR and some other associations are pushing to overturn that lawsuit.

Speaker 3: 9:09

So it is a requirement to be part of NAR.

Speaker 2: 9:10

It is a requirement to be in If you're like our MLS, if you want to be in the local MLS, you have to be in NAR. So it's. It is a requirement currently, but there's a there's a lot of changes coming out. There's lots of class action lawsuits. Another one was filed yesterday against some other brokerages. I mean this is getting out of control, like absolutely out of control.

Speaker 3: 9:34

I don't think you're going to see this trend not continue. I think there's going to be a lot of lawsuits and I think there's so many gray areas with what was going on. That it's. You're just going to see it continue and you're going to hear news about it probably a lot.

Speaker 2: 9:50

Yeah, I just it. Just it upsets me so much because I look at the bullet points of, like, the initial lawsuit and the reasons and the things that they're you know claiming are done that made this whole thing happen. And I know I wasn't doing that, yeah, and because I, you know, maybe was trained well or you know, things happen. I don't know. I knew that was against the rules, I wasn't doing that. So for me to be part of this now and have the repercussions of it, really upsets me.

Speaker 1: 10:24

Like really upsets me.

Speaker 2: 10:25

And it's not I know I'm not the only one that wasn't doing that. There's thousands and thousands of realtors and it's like the few bad apples we're all paying the price for, and that is just so frustrating to me. But that's the way the system is and there's no way around it and I think people are starting to fight.

Speaker 3: 10:43

Why do I have to pay to be involved in this if I don't want to be? Or I think there's just a lot of uproar and people are changing the future of, I think, how real estate is operating and things that are involved in. Where's my money going?

Speaker 2: 10:57

Well, you know, one of the plaintiffs that filed the initial lawsuit has now opened up this like all inclusive by. You know, we can sell your home on our platform for like a very low price. You know kind of business. I feel like there's a huge conflict of interest in that. Like he started this whole thing to overturn the agency or or that overturn the way that you know that everything, everything in our business was, was done the way everything was practiced, and now he's using it as a personal benefit. I I don't know I mean, I'm not an attorney so I don't know how that stuff works but that seems fishy to me.

Speaker 3: 11:37

And I said that's where, when you hear about all these little regulations or things that change, there's going to be like a literal, like slippery slopes of like people trying to get around things or gray areas that aren't defined, and that's why I think there's going to be a lot more weird. You know issues or lawsuits coming up, but we shall see. It's just continued since that.

Speaker 2: 11:57

So yeah, yeah, another one. Another news report we had Tunnels to Towers, I think that's the name of it. Yeah, tunnels to Towers Foundation, which I actually. This is a foundation that my husband and I contribute to. It's a very good cause. They help build homes for veterans. That's amazing. My husband and I contribute to. It's a very good cause. They help build homes for veterans, so they are a nonprofit organization dedicated to assisting fallen. First responders are now. They're trying to build a project, or they were trying to build a project here in North Las Vegas and I guess, through zoning requirements and everything like that, it got shot down to the request to rezone the area. So that is very unfortunate. It's one of those things that you know, we would have loved to see something good like that brought to the Valley, but I don't think they're giving up there, so that will probably just be.

Speaker 3: 12:56

They'll probably just look to another area, maybe not in North Las Vegas jurisdiction and I think that kind of ties into last week when I was talking about on the news how they said Nevada has the worst housing crisis in the country, especially affordable housing. That were 80,000 homes short here in the Valley, especially for affordable homes, and you know there's a huge waiting list for people to get into those homes, including veterans. So it's just just, it's sad. You know we're growing so fast and I think there's a dire need for affordable housing here and you see it when you're driving around, you can feel it.

Speaker 2: 13:26

Yeah, absolutely, and KLAS, which is one of our local Las Vegas news stations. Here they are offering a lead hazard assessment and remediation in older homes that have small children that are within the city limits. So Bullet Point has to be built before 1978, which that was the risk of lead-based paint. You have to have a household, has to have a child under six years of age who resides or frequently visits the property, and household has to meet the HUD guidelines. If you are interested in this or you want to look into more information, you can call 229-7444 or email SHIFT that's S-H-I-F-T at lasvegasnevadagov. So that's a great thing that can help people that are, you know, at risk or still have lead-based paint hazards in their home, and definitely that is a concern for small children.

Speaker 3: 14:32

And it is a big deal. I was actually reading some stats on it and it said about an average of 170,000 homes here in the Valley they do think have lead-based paint issues obviously older homes and then typically in serious cases it can cause seizures and death and in mild cases, especially children, it can cause headaches, a lot of brain fog and, I think it said, like nausea, stomach aches. So it is something serious and if you have an older home, it's a free assessment. Get it checked out, because it might not be so visible now but it definitely will be really visible later and it's a really big deal.

Speaker 2: 15:11

Yeah, it's one of those like underlying things that you don't really know is making you sick. So definitely you have an older home. Check it out and remediation of that it can be very costly, so it's great that there's a service available to be able to help people with that. Absolutely.

Speaker 3: 15:27

I think that's great.

Speaker 2: 15:28

Check that out if you're out there, and let's get into our listener questions, starting withuricio absolutely, and then I'll go into um.

Speaker 3: 15:36

I have a good loan program too oh, let's talk about your money, okay yes, so, um, I've covered different types of loans and one of them I covered, I think maybe three or four weeks ago, was an i-10 loan, which is someone without a social security number. So this loan is a foreign national loan. So if you have friends, family and other countries, of course it can't be a primary, but they can actually purchase a home here for an investment or a second property, so they don't have to actually live in the United States to be able to purchase a home here.

Speaker 2: 16:08

Okay, so what are the requirements on?

Speaker 3: 16:12

this Absolutely. So we can do a one to four unit property and it must be non-owner occupied. Obviously, if they're coming from another country, we would be looking at their income in a different currency. Typically right, Not always, but usually they're overseas and their currency is different. Some people are working remote from another country, so we can use their income to qualify the loan. The biggest thing is they must have a US bank account.

Speaker 2: 16:39

Okay.

Speaker 3: 16:40

So when they're doing all the closing, wiring the funds, they can't not have a US bank account, so that's something that they would have to open. They're going to look at proof of residency and we're going to look at their, their living situation and and verify that that's all good as far as their current home, and then the loans typically are going to be 30 down or more. You're not going to see a foreign national loan under 30, so it is a decent amount down.

Speaker 2: 17:07

but the great news is that they can get a loan and we're usually going to look to make sure they have an average of six to 12 months reserves okay, yeah, definitely, because you want to make sure that, uh, you, that they're covered, they're covered here, especially not being in the states or being able to absolutely, um, to track that absolutely so.

Speaker 3: 17:25

not a hard loan to get done, but there are going to be some stipulations and the biggest thing is the 30 down must have a us bank account's vital we can't do it without that. They can't wire the money to us title all the closing costs and things like that.

Speaker 2: 17:40

Yeah, you mean you can't do the. What is that WhatsApp where they say I'm wiring funds from. I'm like please do Just give me your account number so I can send it over. No, it goes through escrow.

Speaker 3: 17:51

Sadly, I've heard stories of that working, which is crazy. I have too. It's unbelievable. Yeah.

Speaker 2: 17:57

Yeah, so all right. Well, that's a great, that's a great thing, great product. If you have, you know, friends or family that are not in this country that are interested in purchasing hair, then let them know we have options. Absolutely, yeah, all right. So going into Mauricio, mauricio is buying a home, but he is not buying one out of the country, he's buying one out of Las Vegas and he wants to know that if he is out of state and he doesn't think that he's going to be able to be here for the final closing or signing, what can he do? Can he sign electronically?

Speaker 3: 18:33

Absolutely so. That happens all the time, so you don't have to physically be here to get your loan closed on time. So we always ask that you let us know. There has been situations where people left last minute and didn't tell us and it's not fun to try to find. You know we have to find a title company but based on what state you're in. Each state has like a different regulation of closing. Some can be done by a notary, so we can actually send a notary to wherever you are, and the great thing about a notary is usually they work into the night as well. So if you get off work or you're on vacation or whatever needs to be done, or we can also set it up at a title company for you to go into the title company wherever you are If you're in California or out of state somewhere else. Not a big deal at all. Typically there's going to be a little bit of an extra fee for that versus you just coming to your local title company and signing.

Speaker 2: 19:26

Right, but it's a minimal fee, like usually $150, $200. It's not definitely worth the convenience and. I mean, I've had people sign at Starbucks before. Like it is, they can literally meet you anywhere at any time that you need.

Speaker 3: 19:41

Super simple.

Speaker 2: 19:43

Mobile notaries. That even works when you're in the state and you just have a crazy work schedule or something's going on and you can't go to the tile company during business hours. You have options there, so that works out for you, mauricio.

Speaker 3: 19:56

And you can. Actually, I've had a loan close and they were in another country, so we sent everything to the United States embassy and they actually had to go there and sign.

Speaker 2: 20:05

Yeah, we've had to do that before too, so, yeah, that is an option too, so it works.

Speaker 3: 20:11

It works anywhere.

Speaker 1: 20:11

We can work it out, no matter where you're at.

Speaker 3: 20:14

You do not have to physically be here the biggest thing is just tell your lender, tell your agent, that you're all of a sudden leaving town. That way you know we're getting the home closed on time and it's not a frantic. Where are you and what do we have to figure out last minute?

Speaker 2: 20:27

Yeah, definitely, let us know ahead of time what we need to be preparing for.

Speaker 3: 20:32

Absolutely yeah. And then the next one is let's see, amy. Yes, amy, I'm getting a divorce, but it's not finalized yet. But I want to purchase a home right away. Is that possible while I'm in the middle of a divorce situation?

Speaker 2: 20:48

You have to be very careful with this, amy. Yeah, the reason why you have to be very careful with this is I have seen so many times where the let's just say it's your ex-husband just for conversation, purchases or soon to be or purposes soon to be ex-husband, and he says, yeah, go ahead, I'll sign the paperwork whatever's needed when it comes time. And in the meantime, during this 30-day escrow, you and him are having a dispute. Maybe it's with child support, maybe it's with child custody, maybe it's alimony, maybe it's something you're not seeing eye to eye. That happens during a divorce and they say their attorneys will say, well, they need this quick claim deed signed. So now this is going to be an item that we use to negotiate, to back them into a corner, to make it to where you have to do what we want you to do. You have to do what we want you to do, so be very, very careful about that.

Speaker 2: 21:53

I tell people that if you are getting a divorce or you're in the midst of a divorce, the spouse has to sign what's called a quit claim deed releasing their interest in the property that you're purchasing. Absolutely. I require or highly recommend that is done during the 10-day due diligence period when we open escrow, because that is your cancellation period as well, where you have the right to cancel and if we don't, they can do that ahead of time. They don't have to wait until closing. If we get that document executed, notarized and signed on file before closing, then we have no last-minute surprises at the end of the transaction and you're within that due diligence where, if the other party is not cooperating, you have time to cancel and get back your deposit.

Speaker 3: 22:38

Absolutely and I think on a lender standpoint. Can you get a loan when you're going through a divorce? The simple answer is yes. However, there are a lot of things that we need to see before we can close a loan. Is it the best time to necessarily get a loan?

Speaker 3: 23:00

It's always the best time once everything's finalized, and the reason being is that, as a lender, we have to look at how much you know we're qualifying a loan based on what their debts are, their finances. So, on an FHA loan, if we're doing an FHA loan, if you're not legally divorced yet, typically their debts are going to hit you as well. So, even if you don't have a credit card commingled, if they owe $50,000 on a Visa credit card and you're not legally divorced on an FHA loan, we have to hit for it as well. So with FHA VA, it's the same, especially in a community property state. Now, when we get into conventional loans, we don't have to count the debts debts.

Speaker 3: 23:45

However, no lender is going to close a loan until they see all the finalized divorce decree, for the reason being is we don't know if the husband's going to owe $5,000 a month in alimony or $1,000 a month in child support. So we need to see those final numbers to be able to feel confident that he has the ability to repay. He may not qualify after being told he has the ability to repay. He may not qualify after you know being told he has to pay a thousand dollars a month for child support or you know, five thousand dollars a month for alimony, whatever that looks like. So typically we'll wait and then the second we get that, then we can move forward and close. But there's a lot of moving parts that go into that. Divorces are messy. Not everything goes as smooth. So can you get a divorce? Can you get a divorce? Can you get a loan when you're getting a divorce? The simple answer is yes. It's just there's a lot of things that have to be finalized before we can just hand you the loan Absolutely.

Speaker 2: 24:36

Yeah, definitely so. I would talk to your lender, talk to your realtor, before you move forward with that decision, don't, don't surprise us last minute at closing and say, oh yeah, I have a husband and we're getting divorced, because I've seen that happen last minute, where it can throw a big curve ball into everything. So, no secrets, no surprises. Make sure we know everything up front.

Speaker 3: 25:01

And also too, once we have, you know, a divorce decree, when we're looking at that we can use for possibly whoever's getting the child support, the alimony. As long as it's gonna continue for three years or more, we can actually use that as income as well To help you qualify Correct so things have to be somewhat finalized before we can just move forward, so it is stressful. Obviously, we're there to help, but there are things that have to be in place before we can just issue you a loan absolutely.

Speaker 2: 25:27

Okay, all right. And then we have Rick, our Rick, here asked us a question last week. That I thought was a very good one, and so can you use the equity in your home. If you're doing a refinance and you have a substantial amount of equity in your home, are you able to use that equity to a rate buy down on the refinance?

Speaker 3: 25:50

Yes. So the answer is yes. So anytime you're doing a refinance, a cash out refinance, we can typically go up to 80% of the loan to value, meaning whatever the house's value is 80%. So if you have 40, 50, however much money you have left of that right before you hit the 80% let's say you have $100,000, you want to do a cash out refinance we can use that money, that equity at closing, to buy down the rate for the closing costs and everything.

Speaker 3: 26:17

Now, with that being said, based on what you're doing right now, ideally, if you're one of those amazing fortunate people that have a 3%, a 4% mortgage, even a 2.5%, typically, unless you're in dire need, you're probably not going to want to do a cash out refinance and buy down a rate right now, for the simple fact that I mean you might be using the money to pay off debts and things. But because the rates are so high right now, most people are going to end up refinancing anyways in the next 12, 24 months and so, yes, you can buy it down. I think when the market was during COVID at three, three and a half 4%, obviously spend the extra money and buy down the rate. Never going to see rates like that again, but right now it's just not really worth using your equity to buy down a rate in this current market. Can you do it?

Speaker 2: 27:09

though? Yes, because the cost, what it's going to cost you, is going to wipe out the benefit right.

Speaker 3: 27:18

Most of the time at these rates. Yes, now in the market, when we were at three 4%, people were pulling out a hundred thousand dollars paying off all their credit card debts. That maybe saved them $1,500 a month in cashflow, but their mortgage went up $250 a month Right, so for them it was really worth it. Right now, because the rates are so high, you might be at a break even. It really depends on each individual situation how much credit card debt you have or what you're trying to do, but usually if you have a pretty low mortgage right now as far as the rate on a first I don't recommend doing that unless you absolutely have to, and right now is not the best time to buy down a rate.

Speaker 2: 28:00

Yeah, and the important note about rate buy downs is I think that often people think that, um, if you buy down rate, they think, oh, I can, you know, pay five or ten thousand dollars and get my rate from seven percent to five percent? It doesn't work that way. Um, so it's when you're buying down a rate first off. They're very costly and it's a cost. That isn't. It's not like there's a certain number gets you a certain point.

Speaker 3: 28:19

It's daily, it's their price, the rates change, the cost changes based on debt to income credit. There's so many factors that go into how or how much it's going to cost when you buy down a rate.

Speaker 2: 28:31

Yeah.

Speaker 3: 28:38

And typically those rate buy downs are just little percentages of points and really you have to look at if it's going to cost you $5,000 to buy down a rate but it's saving you $100 a month. What is your break-even amount of time and are you even going to be in the home once you hit your break-even? Are you going to sell the home in three, four years? And so right now it's just not the best market for that. Are there markets where you want to buy down a rate during COVID all day long? You're never going to see those rates again. I mean, I don't think so.

Speaker 3: 29:01

But this market is just not for that.

Speaker 2: 29:04

Well, I have. When I bought my home in 2018, 2018, um, I did a I I paid at the. At that time, rates were in the fives, um, so I yeah, it was great, um, but they were in the fives and I paid $5,000 for a quarter of a point buy down. So it was like 0.25% buy down, um, from the rate that I was at, so I think it got me to like an even five, so $5,000, I was very happy with that.

Speaker 2: 29:32

However, you have to look at this time, how long, like, what's the savings of that over the stretch of time? Um, I was thinking with the intent that, on a 30 year loan, or 20 years or however long it took me to pay off the loan, that would break even and make sense. But what happened? What changed? Covid hit and rates got down to nothing and I refinanced in March of 2020 when rates were 2%. I didn't, you know, I had that loan then for, you know, less than two years, and that $5,000 I paid was kind of basically flushed down the toilet because I may have, you know, like, seen a return of that of $100 a month, for, you know, I mean less than less than $2,000, I'm sure.

Speaker 3: 30:20

Granted. Did we ever think we were going to see rates that low?

Speaker 2: 30:23

No, I could have never called that, could have never expected it. Um, it was. You know so it is. You have to keep in mind um of that. You know so it is. You have to keep in mind um of that. You know. The return of that buy down if I look back again, I wouldn't have bought down the rate, I would have just wrote it out for until until, uh, refinancing.

Speaker 2: 30:41

But I never would have seen that coming, so I you know, didn't know what was going to happen and in the end I won, so it's fine but this market rates are coming down, so don't buy down.

Speaker 3: 30:52

It's just not cash out, refinances, things like that. Right now. You have to really look at each individual situation.

Speaker 2: 30:57

It's just right now you're going to refinance yeah, especially if you're in the sevens yeah, and the cost to buy down for the little minimal percentage that it is is, uh, really very, yeah, very costly. And unless that rate is somewhere where you say I'm good with this rate for 30 years, you know, then um, then maybe it makes sense, but if not, then you have to really look at that return and how long you're intending on staying in that rate.

Speaker 3: 31:23

Absolutely, and that 5%. Yours is a very rare case, which I'm sure other people have. The same situation where it was absolutely worth it, but did you hit your break even?

Speaker 2: 31:31

No, no, no, definitely didn't hit the break even, because it was, you know, like I said, not too long after that rates came down, so fun stuff.

Speaker 3: 31:41

But either way, you have a great rate. I have a great rate, saved me hundreds of dollars every month.

Speaker 2: 31:46

I was so happy for that.

Speaker 2: 31:48

So yeah, that's and that's would never, touch a refinance, and that's even when it comes to because I have, you know, a few properties, we have a few properties and when it comes to looking at paying down, because I always advise paying down your mortgage doing those extra payments, trying to get the note paid off quicker, is a great strategy. Everybody should be doing it. It's very easy to do. Even the littlest payment towards your principal can make a big difference overall. But for me, we have some other properties that have much higher rates, so those are priority, my primary. I'm like that rate's costing us nothing.

Speaker 2: 32:29

So it's fine. Those were the days. Yeah, so it's the other ones with the days. Yeah, so it's the other ones with the high rates that we're trying to get down first. So those are good and we can talk about that on future shows too, of strategies of working towards your finances and getting everything in order. So, if you guys are watching the show, please check out our link tree, which is wwwrealtycheckvegas. Right there you can see everything Realty Check, all of our social medias, all of our um, all of our links to everything about the show and everything about both of us. Um, I, uh, I did do over the last week I did a comedy show at the improv, um, so if you want to see me, do stand up. Um, you can. You can check out the um, connect with me on Facebook through that link and I have a video there on Facebook If you guys want to see it it was my first time ever, so it was uh, it was all right, it was.

Speaker 2: 33:32

I laughed yeah and I.

Speaker 3: 33:35

I would have been brutally honest if I was like, I didn't think I was actually, I thought you were really funny.

Speaker 2: 33:39

No, thank you, yeah, I thought it was good I have some hilarious plus it's like vegas humor, so I always think that's funny yeah, yeah. No, it was fun. It was fun. It was definitely an experience, but a lot of fun. So you can check that out if you want to and if you need to reach me, my phone number is 702-308-2878. How do?

Speaker 3: 33:58

people reach you, courtney, so you can reach me at 702-416-6918. Call or text me.

Speaker 2: 34:03

I'm always available All right, courtney, is your money girl, I will help you find the home or sell the home. So, yes, all right, you find the home or sell the home. So, yes, all right. Thanks, guys, and we'll see you next week. And thank you, chicago title oh, thank you, chicago title for being our marketing partner. We appreciate you, thank you you, thank you.