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Beware of the cost of borrowing money

Posted at 2:10 PM, Nov 28, 2022
and last updated 2022-11-28 14:10:54-05

The cost of lending has increased in the current economy. WSFL-TV Trusted Advisor, Chad Van Horn of Van Horn Law Group, joined Inside South Florida to share tips to help you when borrowing money in an inflated market.

“There's a new program by Bank of America called the Community Affordable Loan Solution. It's good and it's bad. If you're in an African American or Hispanic community, you're eligible for these loans up to 100% of the mortgage,” says Van Horn. “These loans are going to put these clients underwater from the beginning. They're not going to get the appreciation that they would have had if they did this five years ago. I question the timing of it.”

When borrowing money from a lender, it is advantageous to consider the benefits and the risks.

“It will give more people access to this,” says Van Horn. “I just want people to be careful going in. Then when interest rates go back down make sure you refinance. Don't just jump in headfirst. You should know your options before you get into it.”

For more information, visit vanhornlawgroup.com

This Inside South Florida segment is paid for by Van Horn Law Group.