Life as you own with mark McDougal and Craig Miller. Remember you've got questions we've got answers 804924664. You may not take time to educate yourself about the single worst investment and opportunity have. That investment in the roof of your head in real estate we talked about your home financing make investments real estate we keep the fact you know it's just good old fashion. The -- I don't mark McDougal that he is that he's Craig Miller he's happy to be here -- that's right it's a good day folks hopefully you're enjoying some sunshine wherever you are present -- spring spring has officially -- writes from all over the place or where you are we are hopeful the shore warm. That it is greening up in your neighborhood of course if you're an Arizona hopefully it's not greening up too much pressure watering the lawn. On but folks we appreciate you checking -- show with your first time listener then now we speaker and have some fun. If you are irregular than now welcome back to the show we got a lot of great information. For -- day yet which includes. He saw Craig uniter favorite restaurant. You know the -- of seconds. While it appears a growing number of homeowners are equally fond of second second homes that is. Looks like the second home market is rebounding quite nicely we think it's time for you to follow our lead in -- the use of second homes that is. We'll give you the stats and five suggestions for financing you war right away yeah -- and that's not all will also gave you six. Cheap places to retire. Abroad. Nice nice Anita and that's not cheap place to retire abroad abroad like a Democrat and I accept that -- -- that far from here okay. Looks further awaited visit code anyway all right but mostly -- -- okay let's talk about those -- -- toddler from the housing bubble cracked would you learn from the housing bubble. Well it can pop once in awhile that's what I've learned and now we're gonna talk about what we've learned actually really helped the listeners prepare themselves in case we're setting ourselves up for yet another. Bubble moment at five lessons for your consideration and if Craig's Craig wanted to discuss this we battled over that. Five things to watch in housing in 2014. At the first quarter of the way it's time to talk but what are -- -- that I wanted to warriors bus and it did -- 7% -- I was in the way they are they exactly west and its generic you know they are fast and those of you that are looking to retire maybe not. Abroad but retire period would get -- for consideration nine states with no income taxes. Greg Craig has also let you check that after the -- -- you know we'd like to answer your questions. Sometimes off the air sometimes on there in fact if you call our number which is. UP RE 001 lend exclamation point. Or for those -- -- a more difficult way to remember that would be 877301536. That's 87731536. 24 hours a day seven days a week we've got people standing by -- they'll take your questions they may give the answers on the spot. But at a minimum they'll make sure they get to the life if you own a team they need to get the Smart guy. -- would be me mark we do military and that we will answer your question either on a year or via email we encourage you reach out to lose. You can also go to questions at like -- dot com. You can -- FaceBook you can follow us on Twitter all of those. Options to stay in touch with -- as we want to be your resource you need is number handy so get -- the little plastic magnetic. Number thing easy kids used to play with -- still do put on your triggered this. But the number out there dry erase borders have been given the number slowly Wilma are embarking right -- and now. Stop talking while giving an -- right that you're -- in rosneft and 78. Jam and advocates Evan. Or we just know we're gonna get paid 77300. 1536. That's 8773001536. If a -- you got a question we're here for you. -- -- So announced we do all week -- writes tax rates you got to be rates stay with had no mortgage rates where they've been. Where they may be headed. Talk but that he went -- -- at that now argue with the other thing let's jump in the interest rates that was you -- -- first -- how you don't. I'm doing well now have a little it's a little warm in the -- galactic. Studios have like -- you own it today tonight's. Warm date sunny and open a window we were prepared for the heat in here had a little T. Hot then they obviously -- -- and yet the -- where rates mark because well they're fairly flat over the last week but people need to be on their toes. -- some. Series swings in the stock market of the past week we had the three to 400 points shaved off and then. Closed out with couple hundred points pulled back in their but it did affect interest rates very slightly up and down. Got worse earlier in the week last week. -- recovered by the end of the week thirty year fixed rates came in at four point 51 vs four point 53 week before and remember folks I didn't give my little preemptive. We're just in the rates what this is all about we bring you the national average every single week unlikely -- kind of know the general trend -- rates has been in May be where they might be headed. So it's a 200000 -- average loan amount basically that's what the national average is. That's 20% or more equity excellent credit so somebody great credit. Couple cartels are alone 20% or more equity purchase or refinance its all compiled his data there are points and fees involved. Remember that the average points over the last week for just over a point yet. Numerous different types of closing costs and fees it maybe being imposed upon you by a particular lender. So do you due diligence and I'll touch more on that doesn't get done with these rates again thirty year fixed 451 -- 453. So pretty flat to fifteen years 3.3 five. First 3.4 oh very slight movement to the better not much what you'd notice if you're getting a quarter alone five year arms. 3.3 seven vs 3.4 three. Reasonable permit there in an FHA four point 27 vs four point 29 so across the board we salaries were pretty flat what do we think they're going in the weeks ahead. I think the state in net flat zone but what can happen to you is if you are kind of sit back on the sidelines and you're not getting it done. You can have a couple days where the rates move to the worst like we saw last week in the new panic and think oh great. Now rates are going to be worse they're gonna keep it were -- better luck in when you could just locked in the date you got a quote that made sense so. We know what -- be in a rush to to do other method be diligent about getting the job done. Residents sitting around and put him off had been procrastinators. Watch the -- watch the season of course always always mark. Watchdogs the luxury until I think you go to dot com. Chicken to breakeven for publicity you know how to do the math this team win you'll actually break even if you're paying any grief meets these new got to the -- you receive just as important as the -- -- -- -- some folks. He educated okay that music means it's time where should you stay or should go scenario OK we have her role in Wales this Kansas. Thanks for all the great info each week here are my questions. My wife and I filed for bankruptcy in 2009 to a number of situations but primarily. A sub prime balloon mortgage that we didn't understand. We were falling at Dave Ramsey planet paying down our mortgage and didn't think our home whatever drop in value. Well I lost my job for several months and the blue note -- do. We had paid dinner alone by 38000 of extra principal payments but all that was wiped out with a value dropped. We have now saved over 25000. The last five years and are told we qualified by another home. Should -- be afraid of an FHA loan should be -- more or less money down we know you guys always. Say to have reserves so we know that's important. We have no credit debt at this time thanks for the help. Well we appreciate. -- your question in the detail and the fact that we get to select these folks normal -- elect the -- that this was such a good one and very detailed we wanted to get girls on air. On and so that some of you that are possibly in a similar situation can learn from frank should he stay or should he go what should Earl do. I don't know the rest this -- they go back into looking at homeownership as a potential for him. However he -- on a few important things and that is reserves he definitely needs to keep hold of some solid reserves should be afraid of an FHA loan mark. No no not necessarily. FHA loans -- come with some higher cost than some other loan options at times. But it can still be -- an option for the main thing is it sounds like he's back on track with his job they've been able to save some money. He should be able to keep reserves on the side even after putting is down payment down depending on the pressuring she's looking that the couple key points we're gonna use this. Scenario to help our listeners with is this he mentioned following a plan that was laid out for him by another almost as popular radio host has us. -- and out of visor so much laughter in the studio where he said that. Oh my -- these days he'll reach market -- level but in the meantime let's give a little credit. The thing -- Lasik suffices to be hard for us -- -- he won't you as a reaching the same level of here though. So what when -- just give Kraft is that. Did the whole thing about paying down that mortgage so fast look what happened with with Earl. He paid at a much extra principal payments and he didn't. Retain any of that because is going to dropping valley -- -- money lost the Amish get short sailor for closure whatever so now he's. You know without all that money that he equal local investigation kept it liquid. Folks we've seen is that housing -- is -- to come back to the stock market has reached record levels. So in a recovery after a downturn don't expect your money to do as well and housing is it will in the premarket trading system that's been around for a long time as well so -- Think it through predicts. All right folks when we come back we've got five lessons that we hope we all learn from the housing bubble stay -- -- joining. Our friends we are back -- as you are on life Mark Buehrle said before we get away just got to wait ten -- I didn't I had said three times QA -- I was even good by my I'm population lives in the other bits and in Braveheart. And what million rather write a movie does hold hold hold the -- I think the word it. Is used bad I see a Scottish and scanner was it to Brutus. Okay commitment anyway it's full -- anyway as you know mark me waiting ten sentences. China but defeat our folks will welcome back we have but action packed show for you lots of great information and data we did the should you -- did he should he stay or should -- scenario just before the break. Remember if you -- a segment of the show you can go to like usual and it dot com you can click on the link and you complete the entire show you can also watch us on YouTube. And iTunes so many other resources for you to catch up with what's going on in the -- highlights of the show. All this great content is for at your disposal like to -- -- dot com -- -- -- -- ready. We are ready okay let's talk about us not talk about the second homes first pretty wanna jump into the five things watching housing 2014 with your golf let's watch some things and housing are right here there -- -- that aired an inning of. After watching him about it -- OK not let's do so suck but that. Are so. To 2013 interesting year because there was quite a bit of movement we had amazing movement in the market stock market to a two halves in 2013 as far as housing went. The first half there is low supplies of homes low rates buying frenzy kind of picked up there -- some bidding wars prices jumped up pretty quick coming it was a fairly quick ramp up what we -- But the second quarter of 2013 a lot of commentary team to us from. Realtors and buyers alike was I can't believe it but I've looked at five houses and everyone I'm have been interest in I -- put a bid on it it's our yet have been sold. And we had -- heard talk like that for years and years and years so we saw some of that happening -- -- second half a cool little bit the rates kind of popped up after spring. Let's slow people down low but they still may be a pull back and wait and see what happens. In the course because of some of -- of the buying frenzy in the first quarter first half of the year. We saw people so the number analyst my home now maybe I can do my neighbor didn't someone who went two days in -- course that create a little bit more supply. So between rates raising a little bit in more supplied there's a perception that maybe wasn't quite as -- market well. Going to 2014 folks who want you to keep an eye on a couple different things. Now if you wanted to go along with the camp that says that it's going to be another year were more home prices go up in. In the you know the buying -- continues. There's a few things you can take a look at there's still going to be lower inventories and what we've seen in normal. Market is stable market. There's going to be reasonably low interest rates if rates stay low and they stay at the levels even where they're at right now you know higher by about a point or so than they were at their lows. And supplies and check it probably see some home price increases and in buying continued. Now on the other flip side of that if rates do ramp up in there is you know -- scaling back of some of the stimulus has been going on. That more people may be look at sell their home. -- supply. It gets it you know there's more supply higher rates we're gonna see things cool off a little bit well we don't know for sure which way to go so let's take a look at some of the factors. That might affect this and we want you to pay attention the first quarter of the year is. Long gone and so far the first quarter of the year what we've seen some of what. Continue -- two dozen thirteen and a lot of change spring is in the year people are looking at more homes I personally am seeing more people. In the market to buy a home. They still -- a bye before rates go up in it seems like a pretty steady market right now which would indicate that the global case for 2014. Is the is for housing. Is obviously I'm in train gene itself cracked the trademark so here's the five things that we want you to keep an eye on. Into the rest of 2014 would I would say is just observe this over the next quarter if you think you're going to be in the market. Later in the summer may be going in the fall or the end of the year. This this'll be most helpful for you beat it still be paying attention to these things week over week going forward from here. So -- inventory rise part of the reason why prices have risen is because of the shortages in homes for sale. So while there's growing evidence that in the inventories are hitting bottom or the -- least hit bottom last year so markets are moving back in favor of buyers so the number of homes is going to be. Obviously a big indicator of what's gonna happen with price so we want the answers here's your reading these results -- you know. But Damon Torre won't rise cracked yes and you can get you apply -- -- so you don't annually I know what I'm saying and it -- our. Consensus view that is that price growth continues its somewhat a slower pace for two dozen fortune that's what most people think. And I would say that Markey probably correct I don't even toward rising. And I'm going to get to determine if you're right -- -- by the way when you open all right so number two where is home construction recovery -- are we seeing home construction recovery. Prices have recovered strongly somewhat depending on the market for the most part but construction activity really has now. I am seeing people more and more often saying you know we've looked -- electoral we want there's not enough out there at least what we have in mind and we're just gonna build something. They're gonna do so at a greater expense mind you but some people are saying hey we're gonna -- we wanna buy this is going to be the last time we purchase or at least for a long time we're gonna build something so we're seeing more of it. By far. And what would have been three or four years ago. But what may have to do with who are missing a complete big building to. Is affected home prices are still too -- just like construction particularly get in the way in the labor cost material costs and so forth a -- still gonna make a decent margin. There's still competing with -- what motivated buyers in some markets are many markets it is just too hard to ramp up those margins I think once people who decide they want to build a home. It into the cost factor compared to what may be available in a resale even with a little bit of remodeling costs they're still fighting a recent has pretty significant advantages. To keep an eye on that. If we see more construction activity picking up. That's a good indicator of a strong housing market although many continues stay at a slow. What's your opinion on that -- -- you think instructions are gonna pick up more and more throughout 2004 Carty is picking up I we will not have a new left. Home inventory issue for the foreseeable future a lot of pent up demand for. New construction and yes but you've you've hit it spot on is that the cost to build. Still is going to exceed -- The value worth what you'll pay to get a house that's already built -- at the materials are not going to honey pot seller but -- ground to break it permits being pulled. New home subdivisions that had stalled three to five years ago are now reinvigorated. Spec homes being -- it is an active markets in nine new construction so him. Here's a speculation for something that some believe is possible. Number three analyst is what happens with mortgage credit at Ameritrade it's getting a little easier will condemn you for housing well. Lenders could begin to ease some of the overlay is just a little bit or additional credit in documentation checks are -- record could be reduced. Has negative -- for their ideally you give your opinion on this market -- what we're seeing is some people thinking to pay its about time that maybe we loosen up the belt a little bit that kind of tight there. He got a little bit conservative. May -- we're gonna reduce Humana down payment requirement -- there gives credit score requirements -- we were gonna make some of the guidelines -- -- the documentation required to prove your income a little easier like it was many years ago. So if that happens it does -- easier in if you get. The ability just to get a mortgage at a little bit easier at your current -- is not such a strenuous activity for yet you may be more inclined to go and buy a home like Taguchi at saint. Network it's happening. It is definitely happening and whether it's I can opine as to whether it's good or bad but it is a free market concept that if people want to. If it's not taxpayer backed in other words for non agency loans not Cheney may not Freddie Mac night. FH AETC so what's happened is they've tightened the belt on what was the real the only liquidity in the market which were. In essence government back to opportunities which are. Conventional loans and and while government loans. Now. Private money private capital is. Anxious and is getting back into the market which means you'll see higher debt to income ratios you'll see interest only -- there a common interest only loans. On the you're gonna see second mortgages were seeing those already go back up to ninety and 95%. He locks. It's all not all but most of it is coming back and the good news is it's coming back without the taxpayer writing the check in large part. Two to bail out if it doesn't perform -- so yes folks there's going to be more and more opportunities to purchase but if you want the lowest rates. You and a half to up play by the rules of all the documentation. Everything verified. Great credit good income all of that good stuff so -- yet it is gonna cost you more money if you get a little bit more create with the type of financing you need to get that home purchased and add one thing that and that is this. The cost of barring the cost of getting your mortgage loan done. As we continue to see unintended and maybe some of the intended content consequences of Dodd-Frank. They arched just you know most lenders are are pretty will saddled with regulations and compliance rules that are still making -- more visit to -- to get there for you to consumer. So don't expect that to slip by without affecting your bottom line you will -- a little more for mortgage. All right so we've got more. Numbers four and five what to watch for housing she doesn't fourteen return of light as you own it. It's -- team.