Homeside Financial May 2018

may 2018

1730 North Center Street, Hickory, NC 28601 • 828.229.7877 •

Don’t Take Advice From Strangers

Seek a Trusted Source

I t seems like I spend the better part of my days trying to debunk the false information circulating today. The media keeps making promises that the market won’t keep. When you jump on the internet or turn on the radio, you hear the market is like it was in 2009 and rates are the lowest they’ve ever been. This information leads everyone to expect interest rates to be at 3.5 percent, but the public has been misled about what is going on in the industry. To help illustrate this, let’s think about what happened with gas prices a few years back. Do you remember when gas was $4 or $5 a gallon? What about when it was 99 cents? Now, it’s hovering right around $2.50–$3.00. Interest rates fluctuate the same way. In 1981, rates were upwards of 18 percent, which is comparable to the $5 gallon of gas. For the last few years, rates have been around 3 or 4 percent, which is equivalent to the 99-cent gallon of gas. Now as rates start to climb toward 5 and 6 percent, we’re growing closer to what are considered “average” interest rates. Educating people about finance is a big reason why I love what I do. But lately, there are instances when misinformation spread by the media takes

A home is so much more than four walls and a roof.

If this advice was coming from someone established in the industry who has shown the commitment to go through the ups and downs, I might have less of an issue with it. The problem is that these people are just jumping back in the industry to make a buck. When the market went sour, they were nowhere to be found. Now that the market is reinvigorated, all of a sudden, everyone knows how to give mortgage advice. It takes fortitude to stay the course when times are tough. You have to evolve as the industry changes, showing respect and appreciation for the process. This is my town, and these are my people. When I go to the grocery store, I often see my clients. When their kids grow older, I work with them too. I don’t come and go with the wind. I stand firm because I believe that people need to work with someone who values their home as much as they do. There are a million variables in the market, but I vow never to be one of them. If you have questions about the equity in your home, don’t rely on a stranger; seek advice from a trusted source.

a turn that I find morally objectionable. I was driving down the road the other day when I heard an advertisement on the radio that was advising homeowners to pull the equity out of their homes and put it into Bitcoin. Bitcoin! You might as well go to Vegas and put your house on the roulette table. Did we learn nothing from the Great Recession? The old advice is new again, and the problem is that it’s still lousy information. You don’t pull equity out of your home unless you have a sound reason for doing so and are adequately educated about your options. There are plenty of instances when a cash-out refinance makes perfect sense, but moving it to a volatile investment is not one of them. We’re not talking about a few bucks you found under a seat cushion; we’re talking about your home. A home is so much more than four walls and a roof. It’s a place where you develop irreplaceable relationships and build love that lasts a lifetime.

-Jamie Harrington



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