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- [00:01]
A
Want to make a difference in your community, but not sure how? Go to GoFundMe.com right now and start a GoFundMe. Seriously. Your next fundraiser doesn't have to start in a school parking lot or a church basement. You can start a GoFundMe today in just minutes. Fundraise for yourself, a friend or family member or an organization. All that matters is that you care about them. GoFundMe is the trusted place to fundraise for what you care about. With no pressure to hit your fundraising goal but tons of tools to help you reach it, you can confidently start fundraising right now. Whether it's creative, local or critical, your cause matters. And there's a reason why GoFundMe is backed by millions and chosen by fundraisers everywhere. It works and it matters. GoFundMe helps you make a real difference. Start your GoFundMe today at gofundme.com that's gofundme.com G O F U N D me dot com this is a commercial message brought to you by GoFundMe.
- [00:59]
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- [01:31]
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Our no free lunch warning of the week this time about home loan refinancing. I'm David Brancaccio in Los Angeles. Good morning to you. First, Texas has launched the first state run cryptocurrency reserve with a $5 million purchase of Bitcoin. Texas has also been very welcoming to electricity intensive data centers that create new cryptocurrency. These big bitcoin miners and other states are looking to add crypto to their state coffers. Marketplace's Nova Safo has more.
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Texas welcomed crypto mining after China banned it in 2021 and by one count at least 60 power hungry crypto mines, essentially computer clusters running 24, seven are now operating in the state.
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C
Texas has had a tremendously open grid situation with plenty of electricity.
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That's Ed Herz, an energy fellow at the University of Houston's Department of Economics. And while a $5 million Bitcoin reserve is not much. Lee Bratcher of the crypto industry trade group Texas Blockchain Council says it matters for the companies that now call the state home.
- [02:37]
E
It does send a powerful signal that Texas is going to be and continues to be a pro business state that's open for innovation. Texas is making a play to be where the future of finance is and capital formation happen.
- [02:52]
D
But Hilary Allen of American University says the signal Texas is really sending is that there are governments willing to back cryptocurrencies which can have wildly fluctuating prices.
- [03:04]
E
I think, you know, this is something that the crypto industry wants because they want to have this baseline demand to sort of keep the floor from falling out completely under these, these crypto assets.
- [03:16]
D
Some Texas lawmakers say a crypto reserve can be a good investment because the state can sell assets later for a profit, and other state governments may soon follow suit. Arizona and New Hampshire have enacted laws to create similar crypto funds. I'm Nova Salfo for Marketplace Student loan Borrowers.
- [03:34]
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Check to see if you got cheaper terms for repaying, specifically under a plan dubbed save from 2023. The Trump administration has long called Save illegal and has now announced plans to stop new people from enrolling and to borrowers into other repayment plans. Save let some people pay less based on income or family size, or to stop interest rate payments from ballooning.
- [04:12]
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- [05:12]
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Want to make a difference in your community, but not sure how? Go to GoFundMe.com right now and start a GoFundMe. Seriously. Your next fundraiser doesn't have to start in a school parking lot or a church basement. You can start a GoFundMe today in just minutes. Fundraise for yourself, a friend or family member or an organization. All that matters is that you care about them. GoFundMe is the trusted place to fundraise for what you care about. With no pressure to hit your fundraising goal, but tons of tools to help you reach it, you can confidently start fundraising right now. Whether it's creative, local or critical, your cause matters and there's a reason why GoFundMe is backed by millions and chosen by fundraisers everywhere. It works and it matters. GoFundMe helps you make a real difference. Start your GoFundMe today@gofundme.com that's gofundme.com G O F U N D me.com this is a commercial message brought to you by GoFundMe.
- [06:12]
C
Early this afternoon, Eastern time, we'll get confirmation from the Federal Reserve about what is very likely a small 1/4 of 1 percentage point drop in a short term interest rate to perhaps pump some more energy into an economy with weak spots. But don't think that translates to lower home loan rates necessarily. A sense among bond market participants that we might get fewer rate cuts from central banks in 2026 is driving down 30 year BO, which could push up mortgage rates. This is just one reason if you get a phone call offering mortgage refinancing with no cost to you, beware. Let's get more from Jacob Faber, an associate professor of sociology and public service at New York University. Professor, welcome.
- [06:55]
E
Thank you for having me.
- [06:56]
C
One of our reporters shared this story the other day, her mom, her mom received a call from a lender promising her that with lower mortgage rates she could reduce her monthly mortgage payment. And it wasn't going to cost her a anything. But sure enough, the mother's now on the hook for the fees associated with refinancing and new terms for the loan. Are you seeing the likes of this out there?
- [07:18]
E
Absolutely. We are hearing a lot of reports of calls like this. You know, it's important to distinguish between outright scams where people are being lied to by someone claiming to be an underwriter or mortgage rescuer, but that person doesn't actually represent your lender. And you know, real offers from lenders that sound great but don't end up benefiting the borrower in the end.
- [07:45]
C
I mean, if it's fraud, it's fraud. But wrapping the cost into a refinancing package is legal. I mean, it's what you would expect at some level, that's true.
- [07:54]
E
That doesn't mean that it's good for the borrower. So it can be difficult to understand how a homeowner can balance short term cost of refinancing against medium and long term savings of a lower interest rate. And it's always important to remember that your lender's primary incentive is to make profit and not necessarily make the best decision for your specific circumstance. There's never a free lunch. And speaking as someone who has been studying the mortgage industry for well over a decade and buying a home this past summer, it still was hard for me to understand all of the things that were going on and were being offered to me in that instance.
- [08:40]
C
What are some of the warning signs that you look out for when trying to negotiate a complex deal like this?
- [08:46]
E
You know, anything that sounds strange or too good to be true, this is going to cost. Nothing is a pretty big flag. People being asked to pay fees up or cancel their mortgage payments or send them to someone other than who they've been sending them to, and anyone who's being too aggressive, putting pressure on you to agree to something or asserting that something will definitely guarantee a financial return. These are all things we should be worried about.
- [09:18]
C
If you're sitting there alone trying to make a huge money decision like this, it might behoove you to get some expert opinion or some other family opinion or to talk to at least one other person person before agreeing to something.
- [09:31]
E
I'll also say that Google search will lead you to many useful resources that are provided by, you know, state level governments. There's plenty of advice available for how to avoid these types of scams and how to make the calculation of whether or not refinancing at any particular time is worth it.
- [09:54]
C
Jacob Faber teaches at New York University. Thank you so much for the time.
- [09:58]
E
Have a good one.
- [10:00]
C
In Los Angeles, I'm David Brancaccio, Marketplace Morning report from APM American Public Media.
- [10:08]
Dear Listener, this week only you can get your very own Marketplace hoodie for half the price. Yes, it's officially half price hoodie week. They say it's soft, it's cozy, and it's our way of saying thanks when you make your year end donation a little early. Well, don't wait though. The deal ends on Friday and once it's gone, it is gone. Give now@marketplace.org or click the link in the show notes.