Life as you own it with mark McDougal and Craig Miller. Remember you got questions we've got answers you may not take time to educate yourself about single worst investment and opportunity you have. That investment in the roof of your head in real estate we talked about your home financing making investments in real estate we keep the fact you know it's just good old fashion. -- All right yeah mark McDougal is. -- them there arrogantly gonna do it as big a couple paws on purpose. Craig Miller's name that strikes and Belgium the game that's right Jeff thanks for join as we hope that. You're gonna tune in for the entire because we got a lot of great information for you with your first time -- welcome aboard if you were our regular. Welcome back we appreciate you we're -- -- here's a bagel. Hard to all of you eighth that's right and I would say that we know. That's like ladies and good food and good barbecue so -- -- and everything we're gonna cover. Pretty much everything under the roof over your head -- In typical show OK not everything in every shell but if you listen and Utley shows which he can if you go to podcast. Or if you go to our website life as you own it dot com you can -- catch archive. Com and do what we covers going to be everything from a personal finance to how -- -- best deal on insurance how to improve your credit score how to pick the house this right -- -- -- great realtor how to find great insurance agent. Ike hit the list goes on -- look better at creating suit we we covered how we did last I think last show we did some my -- -- Stanley. You -- the only innocent we got to actually we -- Joseph Louis coal we will go. Though cattle industry on the show and we will. We will look at what they folks where it was that top five extravaganza. Last -- so I didn't check it out yet we got to a lot of important. Top fives. And decimal from reason destined to be -- which would be the the workout tips what's the end with the toll free number if they need to work -- tips. As a good question I believe it is 87731536. That's the 124 hours a day seven days a week 365. Or even give. Give the people off for Christmas do we really got someone to lead here doesn't throw us off now now. Call us if you've got a question we've got an answer one of our team members will make sure he gets directed to the right people. And we will help you we're here for you try to stop us that matter questions feedback you name -- we wanna hear from yet. Our -- -- good week. It was a great week good it's. Isn't until it's over yet -- -- now -- against it is this weekend yeah so hopefully you you accomplish all he did in the week and hopefully our listeners are going to wanna leave at this hour with just a little bit more knowledge yet. And help them make their next week the great went so folks. Today we're gonna be covering -- well it's not February but love is definitely -- -- Craig and I have a longstanding love affair with real estate and it appears that once again. The American public is falling in -- For what has long been considered the American dream argue that -- it set of it exciting end to people not real -- that's right folks it appears that a love affair is back on that and we're gonna talk about a little bit more later in the hour also what do you millions. Millions of renters have in common Craig you know. -- -- -- -- That's right -- a -- -- now let's and it's those are. Oh well maybe while you're gonna find out later in the hour also if you're looking to go upscale now might be the time according to CNN money that outlook is sunny. Housing and high -- neighborhoods and Cragg. It's number four. The age old question does Atlantis really exists -- do you think it does I know you've been there actually. 20000 leagues under the seat than Ecstasy that's what I that was. And the other question should I rent or buy that either age old questions there is anyway we would get the data on after the ten biggest US cities to help you with fewer decision. If you're not quite crying well they're not quite perfect Craig you my friend prime. Prime steak maybe that's right but that doesn't mean you can't be on the comeback trail. Were talking about yes sub prime mortgages. In the eternal words of whomever it is on -- guys or whatever movie that his -- -- -- Don't hold regular -- have to do that'll do it -- do -- what I do that they're back I visit the young girl can't do that now -- an old lady did as another little girls like you and why does -- I don't going to light that -- the -- sub prime yes sub. Prime mortgages they are on the comeback we're gonna give you are. We're receiving information in our opinion on that and it looks like the latest trend in green building. A deal with Wilbur brown. Or maybe it's rust colored will tell you why. They are using to build offices in Venezuela which don't let your imagination get away from you just yet you ought to stay tuned later in the -- corporate. Mark find out what in the heck they're using these -- type of Adobe home just getting hot -- all right all right it is now while we've got great rates were gonna give you Craig skinny with the trends. Where they are now and where he believes there -- headed and do you the past what we like to you most each and every weekend are read and answer you were real life -- the should you stay or should you go scenarios we've got at least two or three of those sprinkled throughout the RC on the -- stage to themselves. -- So volatile as the red zero M rating get out of there are good showed the week we get some good contact united about it via bit not a good sign for the first time ever heard all these teachers now. Pretty good about this stuff for the first time. Yes -- in his I. -- -- -- Did mention that if you just saw Craig reached out to hold my hand did that nomination not him he didn't just see it because you're listening through -- your newfangled radio. That has Spectra vision you can see it if you went to YouTube this entire show is being. Video recorded. Now we will make sure that we edit some of the funny missing -- penis that happens it during the between the breaks -- maybe during the elderly lady do it by talented and Reza what did you say. I hope he subscribed to or can't you can't you know if you own it's like if you own it dot com she'll like it you -- it. And subscriber YouTube channel then you will get each the fresh contact in fact when they receive it big in advance of when the show airs. -- to a second -- Friday that they were about a spokesman -- we will want. You had a good chance that you'll get the show before your first there's a possibility of our show and runs look as we're so blessed to have -- now 39 affiliates on the to include up. Our new friends WP IC a NN Youngstown Ohio lot to down. -- Youngstown and WP IC worse so excited this is their opening weekend. So cred what we think -- we gotta make this a real good show we did. We are all right what has been on we do I I hope you're not disappointed that we know you'll be disappointed. And welcome aboard Youngstown Ohio on WP IC AM you are now at number 39 on the list not to mention not an order of the solution mind you. Just -- order of coming home -- for this weekend you're number one in our hearts on and that we also he catches that I heart radio you can -- -- iTunes upload any any other sources. I think we have. Also tune in tune in radio so we've got all those of resources for you to be able to catch like -- you when it or just go to the website. Our Craig we're gonna talk but national -- -- for interest rates over the past week we bring this -- every week folks if your first time listener. Every week when he treated to show you can find it where it rates land through the week last week in where were they the week before. And sometimes opine on where we think you'll be in the week ahead. The national average is always based on -- at 200000 dollar loan amount someone with excellent credit. In 20% or more equity -- 80% loan to value scenario purchase or refinance. These are the national average for rates keep in mind they're closing costlier fees they're more fees and junk fees and all kinds of stuff and oftentimes even points what -- points. Points -- fees used to buy your rate down even lower one point equals 1% of your loan amount on 2000 alone that's 2000 dollars -- let's talk about thirty year fixed. Four point 30 vs a four point 28 average the week the forcibly closed up just slightly higher on the week. In the week before but for all practical purposes that's flat folks 153 point 36 or -- 3.3 -- little warm room but again we would consider that flat. Five your arms it's a 51 -- 3.2 September's 3.3 five so there's an improvement. In adjustable rate mortgages and FHA thirty year fixed four point six vs four point 02. So those rose just slightly as well. I don't think you would see a difference in the quote you would receive from the lender you're working with what we want you to pay most attention to those folks is those fees those. The fees and closing costs are that would buy -- You could compare with a lower cost -- or even a zero cost loan and oftentimes when you do the math you'll find it's a better deal. Check it out like that unit dot com we've got the break even formula on the so you can be educated and do your math and what's the right way to go in your transaction. All right mark what do we have coming up all right as we talked about earlier the American public is falling in love. We have the real estate and also what do millions of renters have been common fat. So much more when we return. Stay tuned to life as you own it. All right friends we are back like -- you own it back and it market. For the break he said we -- gonna talk but the spring love that's emerging that's right. So well you know we've got a long standing no love affair with real estate -- I would guess it's because of not just the industry were in but probably we were. We I was not a homeowner until I was actually in this industry. Have a -- now was homeowner before it was in the sun tanning that was a homeowner in a fairly young age for the young American well I was I've been in the industry since I was six or did you buy hour or six mr. Bennett not actually can your five a but little could build on that wagon closed -- -- presidents -- all right so on night you know. We the Craig are passionate about real estate mortgage finance opportunity to well. To be investors and real estate and look at it just like what is the biggest investment probably making your life when the -- Whether you've got. Multifamily properties by the you've got to a portfolio of single family residences in and you rent them now that the key thing -- or you just have the roof over your head. It's a big investment if you do numbers you can make it successful investment. And is as we see them over the last several years from now that the the boom in the bust of we'll -- 2006 whenever that. Real estate market appreciation ran up and up and up and it was a nice piggy bank for everybody to have. On and then when it started to go down. Suddenly it became not as good an investment as it was before. So according to a Gallup Americans think real estate as the best long term investment. But unfortunately. I'm here to tell Clements so is I'm so is that mr. Schiller from the case Shiller indexes. That doesn't necessarily bear itself out statistically. So it depends on what you define as an investment in an investment is something that you look at strictly a rate of return which from the business end of things you should. It would not be the best long term investment is Craig and they're here to tell you the Dow has had a higher rate of return the average return on real estate. However when you look at investment is investing in the roof over your head to. The rate of return. Has a whole different meaning. But let let's talk about the dating yourself a lot as the real estate market goes recovers so does America's faith in housing and as investment -- Gallup poll released. Thursday. The majority of Americans now think of real estate as the best. Long term investment -- gold stocks and mutual funds savings accounts CDs. And bonds. So what let's talk about a little bit this Sunday if one assumes bests to mean the investment that offers the highest rate of return. And Americans have -- backwards real estate on average actually returns very little when adjusted. For inflation Robert Shiller Case Shiller Index you guys so will we hear that. Frequently given on the economists famous for helping to create that such index puts it like this home prices look remarkably stable. When corrected for inflation over a hundred years ending in 1990. Before the recent housing boom. Real home prices rose only point 2% a year on average the smallness of that increase seems to. Seems best explained by rising productivity and construction. Which offset increasing costs of land and labor and since 1990 housing has continued to be a middling investment when you take into account the the bursting of the real estate bubble so what we take that time so. From 1990 -- in the middle of 2006. You would say oh my gosh the best investment we could ever make and that would make sense because our context is that most. People there homeowners today. -- have witnessed or participated in. -- the horizon gloom of realistic from ninety to 2006. So the bottom line is. We know you're in we know right now it's hot but all we tell -- the same thing as we've always told you. Real estate is a great long term investment. If you don't expect it to the a your only investment. And create your retirement for you. Or if you don't think you have to be diversified. And look at it just like investment it is with a specific potential rate returns. And the roof over your head providing shelter etc. And -- hedge against inflation vs. Well you're living expenses would be otherwise you gotta you gotta have a roof over your head so that's that's the part will elaborate a little after the should he stay or should you -- segment -- just didn't you are right. Yes our folks. Hopefully you know the drill if not if you're gonna learn real quickly we get aired in Albany, New York emailed to a gentlemen I have a 406000. Dollar loan with a value of 500000 plus. I don't expect to move for a long time I rate is four point 99%. On a thirty year loan but I'm thinking of going to a fifteen or twenty year loan. Should I stay or should -- ago. Go go go -- meaning to refinance that mortgage there is not -- to save money in to watch this -- and cost Michigan comparison. Between zero cost loan are very very very low cost loan in alone listens it will most who consider average standard closing cost -- -- rate down. Take a look at compares in -- -- the time you think and live their. Reported in the fifth year twenty year -- consider what you can begin with the additional monthly amount of money to UB plugin and that mortgage or won't be liquid. He might have other investments that will get a better rate of return. Then what you would -- an interest payments. But handling them faster so make sure you compare this with your financial advisor prefer we were with -- certified mortgage planner. To understand these concerts -- can help you make a sound financial decision. All right. OK so before we did your should he stay or should you go we're kind of we're -- -- -- put a bow on this this part of that the show which is really I was just saying. -- real estate yes we think it's great that there is so there's a growing amount of attraction for people to. To purchase homes that there's not there's an irrational fear. That the purchasing a home was not a good long term investment. And we're here to tell you and make sure you understand that. The roof over your head if you do the math and we're gonna have some some rental vs bison areas later in the hour if you do the math. It he can be a great long term investment. But it's not the investment it's gonna find your retirement that you can get into the numbers crunched numbers -- with a mortgage planner make sure you understand the real cost of homeownership and you may find because the one thing we know is an investment. Bet you have a point 2% rate of return say it's over it's point 2%. Well what's the rate of return. On Iran until after renting. It's zero what is the cost associated with it so we turn determined the return on investment. It's going to be generally do you go to what is the after the expenses associated with gas investment what is -- net return. So there really is a big difference between apples and orange been examining and and so word just acknowledging yes it is popular people are getting back in people are making. Ideally rational decisions about purchasing but don't get carried away. Make sure you do the math work with a certified mortgage planner listened to like these you -- it do the numbers does that make more sense you be a renter or shoot you jump in and buy an if you do you jump in and by we want to be conservative. We already have a little snug quarters of your house but -- -- running around trying to you what keep up. With the maintenance of struggling to make make ends meet because you got more house -- you need. Are accredited -- my -- to my friend well the renters are saying they wanna buy a home they aren't they want so that's right I guess that's what they haven't come yet. According to zillow. There are a significant. Increase in all but twenty metro areas those surveyed. 5% or more of the residents said they wanted to buy home over the next twelve months. The desire is particularly strong for -- 10% of them want to buy that would translate into a four point 2000001. Time homebuyers. Double the number who purchased in 2013. Unfortunately that likely won't happen why. It's because inventories are home of of homes or may be up slightly but for that amount of people to come into the market there's not enough houses in the now what does that say for appreciation. Good for appreciation home prices will continue to rise steadily and if these people really do start it back into the market. Will see at eight -- more quick and robust increase in appreciation of housing so. It's good to see that it's the pendulum is swinging and then it's people that are currently renting -- considering jumping and that's a good thing first time homebuyers. Well you've if you listen Michelle we've told you what to look for to make that. Home with the right home for you you wanna go back two weeks ago and we said what are the five things to create the best first time home. For you so listen that show when you hear us talk about what it is that you need to know and understand and look for in house it's going to be a great investment Korea. So -- what else jumping on. Well I will say this we cover this all the time McKee said bit. There there is The -- a good reason why these these folks wanna buy if you're someone. Who is listen this data and you have a home you -- settle take -- a Q. You might have and after you sell -- lot quicker in for a better price than you're thinking if that's what's keeping the market. When I talked to many people who do you wanna move was there when upsides or downsides that they'd like to. To do something with their current home but I hear often is the British -- -- you don't feel like the markets ready for us to cellular guess what it probably had actually is a well crime free to sell and now. So it helps some of these first time homebuyers up folks beach house listed. In the -- they'll find something else maybe build one. All right maybe you can find a house and an upscale neighborhood we're gonna talk about the outlook for higher rent housing return life -- you own it.