How to make money on your home renovations with a home equity loan
Fox News host and conservative commentator Sean Hannity is warning that home renovation financing is becoming more and more risky.
The conservative talk show host says that home renovations are increasingly being financed with a loan, or “mortgage.”
This is because most homeowners are still paying the mortgage on their home, which in most cases is higher than the home is worth.
Hannity said that if the lender defaults, then the homeowner is likely to owe even more money on the loan, and he added that home owners are not taking advantage of the home’s value to make a down payment on a new home.
“The mortgage on a home is essentially the same as the interest rate on a car,” Hannity said.
“A car can be worth a lot of money, and you can’t pay that mortgage with interest.
The interest rate is what you’re paying to pay the interest, and that’s the difference between buying a car and buying a house.”
Hannities said that home prices are rising at an accelerating rate, and the economy is going through a recession.
“I know I’m probably going to go crazy,” he said.
He said the mortgage rates are too low for many homeowners to afford the interest on their loan, which is a key point.
“It’s a mortgage with a 2 percent rate and you’re basically paying more than the mortgage,” Hannity explained.
“And if the mortgage rate gets to 2 percent, you’re going to be in default.”
He said that is a “problem” because people aren’t making the most of their home’s valuable value, and there is no way for homeowners to make back the money they have invested.
“You’re essentially going to have a house that’s worth less and less and that will be a problem,” Hannity added.
“You’re going the wrong way, you know?
You’re paying a higher interest rate and not making a profit.”
He explained that it is a good idea to take advantage of home improvement projects that are on the market.
“In my experience, I have never seen an average person who is buying a home that they haven’t done some renovations on,” he added.