An update for anyone looking to refinance their loan I called Wells Fargo today to…
An update for anyone looking to refinance their loan
I called Wells Fargo today to find out about new financing as an American to our New York home. The bank told me the interest rate would be 5.75 percent!
Our interest rate today is 3.75 percent.
and why so? After all, the Fed has cut interest rates to zero
And we are American, with income, credit and social
So very simple - banks are now receiving thousands of refinancing applications
Investors want to get a valuation of their property according to the current high price, because they know that prices have fallen, and all the value they have in the property will disappear, and on the other hand banks are limited in their resources and know the level of risk has gone up. And soon probably no loans will be given at all as there was in 2008
Predictors will have the highest number of unemployed in history in March
Manhattan is empty. Business is closed. Restaurants are closed. Schools are closed
These are all your tenants
Soon many of them will not be able to pay a mortgage
Banks are already taking security coefficients - instead of 10 percent lack of occupancy in assets, take 30 or 40 percent
And the banks, instead of lowering the interest rate, raise the interest rate
So what should you do?
After the crisis, there is no doubt that cash will be king
Asset value dropped significantly
There will be lots of bargains in the market
Many property owners will not be able to continue to pay a mortgage due to lack of work or lack of a tenant
So what am I doing?
Refinancing by asset value at peak, i.e. today
The banks work according to the value of assets of the last 3 months
So this is a last chance
Before asset values go down
Spending money out of assets
- I had a conversation today with a borrower -
Assume the value of the property is 100
You can spend 65 percent today, even at high interest rates
The property in Detroit
Close the factories there
Tesla, Ford, GM and others fell 70 percent
The workers were laid off
The value of the assets could return to the value of 2008
What is smart to do?
Take out 65 of the property
Sit on the money until anger rages
Stay with the property
Even if customs dropped to 40
You still have 65 cash in hand
And the property
You haven't lost value
And with that money you can collect assets cheaply after the price drop is sure to happen
We receive dozens of inquiries a day
But what's good - we are prepared
We have 6 brokers running for you
To bring you the best conditions
in parallel!
Forms should only be filled once
The opportunity window will close soon
Because the banks will stop lending
So right, interest rates are not what you thought
We gave interest of 4.56 percent yesterday
Think they will get 3
Remember you are still foreigners!
You have no social!
You have no credit!
Remember that until a few months ago an interest rate of 7 percent for a foreign resident was excellent!
Remember that as an American, I have now received from Wells Fargo, known for cheap interest rates, 5.75 percent!
Remember that your property value is going to go down, and all the equity you have accumulated will simply disappear!
Remember, cash is king!
Whoever made the most money in 2008 is the one who kept cash and bought at the bottom!
The one who loses the most, is the one whose asset value has gone down - it will happen anyway - so at least get the money out of the assets
* All of the above is not a recommendation and we are not qualified consultants. Zarat faded based on years of experience and follow-up of what happened in similar crises
We still receive funding requests and all by filling out only one form:
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