This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "The Rise In Mortgage Rates | What To Do Now?" (uploaded April 14, 2022) featuring Joe Homs 949-625-4533 delivering a solo English-language real-estate advice presentation. He explains recent mortgage rate hikes, gives a $300,000/30-year loan example (monthly payment rising from about $1,300 to $1,500), and discusses what higher rates mean for buyers, investors and flippers (noting flippers are least impacted, buyers most). He emphasizes inflation/uncertainty, the importance of shopping for competitive financing, doing due diligence, and provides calls-to-action to subscribe and view related videos.
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In today's video, I'm going to talk about the recent mortgage rate hikes and what that means to investors and buyers. Coming up next. Mortgage rates play a very crucial role in real estate. With the way things are going today, what can investors expect coming into 2022? Welcome back. I made this channel for the new and experienced investor. Those of you that want to live the life they've always wanted through real estate. Make sure that you like, subscribe, and share this video with a friend. Let's jump right on in. To put this into context, let's say you have a $300,000 loan on a 30-year mortgage. You would have only been paying about $1,300 when the year started. After one quarter, the monthly mortgage payment has already gone up to $1,500. Why do mortgage rates matter? Even a 1% increase in mortgage rates can cost you tens of thousands of dollars over a 30-year period. So they do matter. And the more they go up and the higher the sales price or a loan is, the more you're going to end up paying at the end of the day. What does this mean for investors and buyers? Buyers and investors can expect for home prices to continue to climb throughout the year. Inflation and other global conditions make predicting near-term movements quite unpredictable. Even determining ROI on rental properties has proved to be quite a challenge. Other stuff to keep in mind. So it really kind of depends if you're a buyer, an investor, a flipper, for example. The least impact would probably be on a flipper because if they get— they're getting hard money, they're paying 8 to 12% right now anyways. So it's not like they're going to raise it up to 20%. I hope not, but I don't see that happening. So really, the person that's going to be hurt the most is the consumer or buyer in this point. An investor, as long as you work your numbers and your numbers come out positive at the end of the day, there's no reason to shy away from an interest rate hike. With the instability of mortgage rates today, it is very important for real estate investors and homebuyers to look for the most competitive rates that they can afford. Looking for the best possible financing options is a huge part of performing due diligence. That alongside having the right tools and information can make a world of difference in acquiring a property. If you're new to investing and want to determine how to figure out what the ARV is, click on this video right here. I show you 3 different ways. As always, feel free to reach out anytime. I'm here to help.
