Video Closed Caption:
Good morning good afternoon good evening
folks michael zuber one rental at a time
back with his wednesday expert matt the
march guy how you doing buddy i’m doing
great mike how are you doing i’m doing
awesome man this one with a time thing
is taking off lots of people are taking
action doing deals and if you’ve been a
part of the community the last couple of
years you have a lot of equity
because we’ve probably seen in most
markets 30 appreciation so i don’t know
about you but i get lots of questions
about should i do a cash out refinance
is it a good idea or a bad idea
and frankly most of the time that’s the
end of the question i’m like i think i
need a little bit more information a
little bit more yeah that’s that’s like
my question i get is what are rates i
was like okay there’s 77 different
variables but uh yeah
where do we start and the interesting
thing mike about the cash out refinance
conversation is obviously as a mortgage
broker i’m getting these questions every
day but
you know when i look at
the
i don’t know five to seven youtube
videos i’ve made on the subject because
i’ve got 500 plus
i went into analytics last week and i’m
like holy cow like
five
ten times the volume on those videos
people are searching for these terms and
looking at these videos means there’s
more and more consumer demand whether
that is demand that comes from
advertising they’re seeing or whether
that’s demand coming from like
friends and family talking about it
the thing about cash out refinance i
feel like
what me and my team try to do
is you’re going to call me you’re going
to talk to me about your situation i’m
going to present you with options and
we’re going to talk through
whether or not it makes sense for you
because
there’s seven thousand different
variables yeah and i don’t know
if twenty two hundred dollars a month is
a comfortable payment for you you know
that i don’t know if um
you know you’re gonna plan on being in
this house for
six more months or 60 more years that’s
something that you know and i don’t and
so you know cash out refinance is an
amazing tool and i’ve seen
absolute home runs being hit or somebody
says
gosh this consumer debt has been
weighing on me i’ve got a 3.75 on my
first mortgage but i only owe 180 this
house is worth 550
and this 80 thousand dollars in debt
they’ve got like a 2400 a month outflow
paying
you know citibank and home depot and all
these others
doing a cash out refinance paying all
that stuff off getting clear with your
budget and moving forward it can be an
absolute home run but on the other side
of the coin like it’s not right for
everybody yeah and just because you have
equity in your house
doesn’t mean you should pull it out yeah
that’s that’s where i want to start just
because you have the equity doesn’t mean
you should
a lot of people
preach
high leverage which makes me
way uncomfortable and again because i
got 21 years doing this now and i saw
people get smoked last time
and a lot of it’s because they kept
treating their rentals or primary even
worse is atms
don’t do that i don’t ever give you
permission if you are going to do a cash
out refi and go splurge it on stuff
i’m not your huckleberry right that’s
that’s right that’s that’s not okay
um but if you have a plan for it if
you’re gonna either you know pay off 80
80 000 and 22 credit card debt have a
plan and that’s why i want here let me
be very clear if you are considering
doing a cash out refinance
you’re going to run into one of two
kinds of mortgage brokers mortgage
broker a is like matt the mortgage scott
he’s going to ask you questions
and when you give him the answers he may
tell you
doesn’t feel right
doesn’t feel right or you’re going to
get mortgage broker b who is going to
slam you with all kinds of fees treat
you like the legacy used car salesman
and oh by the way folks i believe the
next two years is going to be really
tough for mortgage brokers a lot of them
got bloated a lot of them have high
overhead costs and they’re going to try
to get every loan possible and frankly
one of the reasons i think your videos
are up is because mortgage brokers are
buying ads with those keywords so
youtubers ais hey they want to spend 50
bucks for a thousand views let’s push
this to the top yeah that’s that’s a
really good point yeah so that’s the
thing too is as as
the the share of mortgage refinance
decrease because rates are going up
there’s there’s less benefit right for a
lot of people um there’s going to be
folks out there that are pushing it hard
i mean i on on the properties i own get
endless yeah oh you have no idea how
many calls
and and i take them mike just because i
want to hear what’s being said i do not
take them
i’ve got i’ve got investment properties
sub 3
rate
and i’ll tell the person no need for any
cash well what about this i mean they’re
trying
to come up with with some sort of reason
and and they’re and they’re pure
salesmen they have no other intentions
you know here here’s one thing that i
think is going to be besides debt
consolidation where you pay off really
high interest rate debt what i’m also
i think going to see where it might make
sense for some people is
rather than sell your current home
and buy something that cost 600 000 have
a new really high tax bill probably a
higher interest rate because of the
future what some people might do is say
you know what
really if if our kitchen was nicer and
we can add a bathroom this could be our
forever house
you know you might pull out 80 000 in
equity do a couple projects and
you know you don’t get taxed on the
money you take out on a cash out
refinance your your property doesn’t get
reassessed um because you know it’s not
a sale there’s no transfer of ownership
and so in in that sense there’s i’ve
done a lot of those where people say you
know what like the market was so crazy i
you know didn’t want to go through
trying to sell and buy
i’m gonna take some equity and make my
current house what i want it to be you
know that is is another way where this
equity can be utilized you know like you
said it’s not a trip to vegas and it’s
not you know going out and buying sixty
thousand dollars for the dogecoin
that lottery ticket works out that’s
yeah do not advise not invite that bad
bad bad yeah the other thing i want to
say uh about doing a cash out refund as
an investor is you can do them badly
read my book one rental at a time my
first cash out refi was stupid i took as
much as i mean i would
probably like a lot of you right the
bank tells you how much do you want i go
how much can you give and i said i want
that amount well lo and behold i was
writing i i created an alligator and i
was losing money every month for until i
sold it it was a horrible feeling i felt
so stupid don’t do that
uh and then lastly you just brought up
something is why i think real estate’s
gonna slow down going forward as rates
go up people are going to
make their nest better they’re just not
going to move because they don’t want
the price increase and the rate increase
uh so a lot of that stuff is coming so
in the end a cash out refi can be great
but it also can be horrible right it’s
what your plan is so do yourself a favor
reach out to an agent or a broker like
matt the mortgage guy who’s gonna ask if
if you reach out to a mortgage broker to
do a cash out refi and they force
paperwork down your hand
day one not not that not a good guy if
they’re not asking questions they are
out
out for themselves
versus you
so matt the mortgage guy and his team
are going to ask you questions because
it may not be the right answer right and
here’s here’s some actionable advice
whether it’s us or whether it’s somebody
else this is what i think that the
consumer should do so that they can kind
of wrap their head around does it make
sense if you reach out to our team and
you say
you know here’s what i owe here’s what
it’s worth here’s what i’m looking at
doing i don’t know whether i need forty
thousand sixty thousand or eighty
thousand
let us prepare a quote
show you what that looks like because
you wanna not only see
you know
okay i can get out 80 000 but what are
the payments
and what do i know about my monthly
budget whether that’s comfortable
payment what that’s going to look like
if times are good if times slow down
whatever the case may be you want to
analyze that stuff before you just say
oh i’ve got 200 000 in equity and i know
i can pull 80 000 of it out i’ll figure
out something to do with that money you
know just cash me out to the max i mean
because truth be told there’s some
people mike that just literally go 80
the maximum i go on my primary okay
whatever it appraises for 600 will go to
80 ltv
and you know no care in the world that
that could get you hurt you don’t want
to do that don’t do that yeah
greatmortgagebroker.com
is is a quick uh little you know
questionnaire form that gets you in
touch with us and we’ll we’ll be able to
guide you in the right direction yeah
again folks great mortgagebroker.com go
there if you’re in our one room solid
time community watching this
get somebody that’s going to ask you
questions it’s
and it’s only going to get worse
mortgage brokers
are about to get super uber aggressive
so be careful watch yourself go to
someone like matt the mortgage guy who’s
going to be on your side and help you
out thanks buddy yeah thanks mike