Life as you own with mark McDougal and Craig Miller. Remember you've got questions we've got answers you may not take time to educate yourself about the single worst investment and opportunity you have. That investment in the roof of your head in real estate we talked about your home financing make investments real estate we keep de -- you know it's just. Good old fashion. All right we are correct we are here -- our hair tests we are. Or is my -- for -- -- saying we are -- -- We are -- we are -- All right this is life as you quoted a mark McDougal he's Craig Miller is hoping had a fantastic weekend thanks for joining is out we hope that the next -- you are engaged enthralled and at the end of the day. Educated and threatened perhaps were educated slightly more -- you hated. Some one of those three or he's gonna lie -- Yeah 03 Highbury. And do some reason and some right. All right folks well if you're joining us for the first time welcome we appreciate you checking out like this -- we hope the you'd make as your habit. You're weekly habit and you know why you don't only have to tune -- on the radio protect that you can go to iTunes you can go to I heart rate hearing go to tune in net. I'm radio and catch as they -- if you go to life as you want -- dot com you can play. Previously recorded episodes in go to YouTube because you can book you can see the action that's going around wave into the camera. How -- did time all right so we appreciate you checking -- out you're in for we hope we treat we're gonna cover everything under the roof. We might not in a typical show might be how to do your best deal on home insurance. Auto insurance how to improve your credit score on how to -- make the decision as to whether you should rent or you should own any if you choose to own. How to get your best deal on a mortgage on here with the expert the man the legendary Craig Miller. Could not only covers all these things with me but day in and day out he rolls up his sleeves and gives people -- fantastic advice. At -- at on how to look at their investment in real estate is an opportunity to work on financial plan. Get the best deal on your mortgage listen to the show and check out the website and if you don't laugh during this show at least once. Then we guarantee we will refund. All of your money all the -- 100% money back guarantee. All right we'll let you wanted in the first six -- would be seventh minute for you as a write and remember if you wanna call us please the money we want here for an 877300. 1536877300. 153624. Hours day seven days a week you've got a question. You need some advice she needed anything we've got people standing by and you know what they can direct that they may be -- answer the questions yourselves or they can directed to Craig myself. Anyone of our friendly team members say hey you want. I wanna talk to Craig they won't ease on 24 our standby ultimately guilty you know Jacobs got. A little -- mincing -- Sound when he drinks is anyway it's a document and -- and it just like weeks doctor Miller an economic Rite -- this is the fact. Folks if -- if I don't care if you live in Alaska Puerto Rico Florida New York where anywhere in those other. Of those form anywhere Washington DC which -- now warned that. Location you can call if you have a question about your mortgage if you're trying to refinance a home for trying to purchase a home we do and remodeling work -- do an easing involves borrowing money you wanna make sure that you are not didn't. The shaft you wanna make sure you're getting the feared you'll save the most -- the most important in their right advice. Go -- calling 87731536. Number. You say I wanna talk to Craig about this transaction before -- pull the trigger because I want to make sure I'm doing -- right let us do that for you don't. Pass on the opportunity let us console -- that you're not. Making a foolish decision differences Jim good week. -- did have a good week in that busy week goes a lot going on mark good thing we could be busier we can be dead that's I'd prefer to be busy. All right folks of today's show we got first time home buyers aren't pulling their weight in the house from housing recovery is that -- They're just not congress not training will share for reasons the millennia olds are hampering the recovery she came on new millennial. I'm also of course those listening to show and thinking is they want to be a part of the solution that the problem will let you know what you need to do 36 in twelve months. How so your first home purchase is a success. And out lie for does it matter if you're real estate agent uses proper grammar. You can hand relative to the punch line our jurors there for a little selling if you're selling high and don't trust does it doesn't we've got the data to prove it. In Craig did you know that half of all home sales are all cash deals. I was a lot of they market so that you brought that up I -- no way you complete me. Obama will tell you why that is no it's not because every other person on the street has a rich uncle. Would you say was that DK you talked about the show forecasting a mean I have become a habit yeah per listener I kind of ironic that he ended march. -- -- Remember they opportunity in Detroit by house from the city for a thousand dollars we talked about a couple weeks ago or that Greg we did the first -- all last week will let you know what the (%expletive) if you should consider jumping in on the action and being an investor real estate so -- that Hillary writing will give you the goods on it. Our Greg inning just wanna cover today -- don't forget to talk about the Lola first. Program. Yeah first yeah that's right get an NI RE ST first that's and we'll talk about friends inspiring real service today. -- helps lead up because there and if you wanted to despite a great cause we're collecting. Care -- were put together care kits for heart to heart international. And we've got a list of things that you can donate we'd love hate dentists out there you know we get the free toothpaste and toothbrushes you could help us out -- 'cause up. Just remember it's all going to great organization heart to heart international and -- care kits they go to people that have been. Victims of natural disasters that might be earth -- quakes tornadoes. Cakes which. If you don't -- care careful about it about that when you're -- an orderly shifts -- Internet show only. If go to like joining dot com what the link to heart to heart and Nash and learn more about the organization and the specific items that were collecting put together care kits to thanks so much for being -- apart with. Why -- on this and we're gonna go out there and -- in Carrick gets together in person ourselves. And takes the kid goes with me -- it makes you care to strike OK let's do it so -- Interest rates a saga rates every week folks you can count on us like -- you have to bring you the national average on interest. So if your regular listener you know we bring to you we tell you where they were last week. The week before where they may be headed if your first time listeners this is something most who went to into because you -- know me kind of that standard. Measurement of where rates are or have been Sino from a right traction having blocked an irate should be holding off. So let's talk about national average finish rates over the past week folks again the national average it's always based opponent 200000 dollar loan amount 20% or more equity. Some with excellent. Credit if -- credits a little weak and not put as much money down you have less equity in your home after refinancing. Due name at various scenarios. Obviously can affect the -- you get anything just guidelines folks but times you can get as good of a -- this -- better. Or maybe get a little bit higher rate we have no closing costs were seeing on average people pay about one point and fees at 1% of the loan amount. 2000 dollars -- means 2000 dollar fee plus other closing costs of the fees can be high when you refinance or purchase a home. We tell you every week watch those fees. Pay attention go to elect as your dot com read the break even calculations. So that you know how to calculate what -- makes the most sense comparing loan options we always want you to compare it very low cost or truly zero cost. Loan to one with normal or would they would consider normal standard fees compare those two quotes. Yeah I mean it rates a little higher on on the low cost but. It may be the better deal for many many years for that time period you have that loan. So here they are folks thirty year fixed over the past week four point 29. That's vs four point 34 the prior weeks we've seen a slight ever so slight improvement on thirty year extreme mortgages fifteen your 3.2 four. Vs 3.3 four so again. That's a little bit more significant movement. That's probably -- affect the rate you get quoted about 82% better. Five year arm 3.2 five vs 3.2 five no movement and only adjustable rate mortgages. What is a 51 -- -- remind you five years it's fixed after that it can adjusting go up or down. Just one time per year end there -- caps on those things make sure you're considering an arm. The person you're dealing with has explained all the features and how it works and arm can be a great way to save some money. On interest but -- have to have it as party planned out. Deal it's got to be mortgage plan akin to be because QG lower payment might not be the best option for FHA thirty year fixed. Three point 89 vs four point 06. So a nice little bit of a movement in FHA where you would see about an 8% lower rate if -- got quoted this past week vs the week before. Folks I think rates are still staying fairly flat there's still a lot of volatility in the market we've seen the stock market reach record highs. Over the past week we've also seen some unusual mixed bag of news internationally. It's just anybody's the guessing game here no one has a crystal ball -- transaction makes sense if you're saving money on a refi and you've done all the -- he paid attention to fees and costs are really thought about it. Get it done. If you're buying a home. You didn't contract on the house don't wait around and played a game to see if rates are gonna get better free might regret it a lot worse than what you save. It locked in that's my position over this past week. Hey mark our -- we come back millennial Generation Y. Why are you hampering the real estate recovery we'll talk about it when we return life you won't it. Our friends we are back like that you own it don't know her little don't hurt me no Latino you know if you watch the videos see those heads are -- dividend -- the Roxbury baby. -- That's not over by now. Back it is necessary -- -- let's say I. I now organized so -- is okay this is so I enjoy it was -- we're very serious show covering dreary serious subject matters who pay close attention. We don't do little we didn't hit any should you stay or should he goes in last segment and in our first time -- -- -- -- about LC will see it happen all right -- heels they're just not participating they're not -- the -- let's let's define a -- okay -- -- -- Generation -- those of you born from the so why or results aren't really -- seventies. As that there are like 79 it was right with 779. Okay we'll all -- ago with the early eighties you guys go with every whenever one so also known as the entitlement generation just kidding for those -- -- -- but not really that was our there. So I just always it is younger generation -- a white American bases -- not a millennial. Oh we are trying to say it's the seventies late it is that when reborn 78. So sure for for the purposes of our show today. -- wanted to millennial -- will begin in meet the of them late seventies. Early I'll I'll wait was I correct -- well posting mark you're right -- -- -- -- -- hope folks there for reasons why young Americans are staying out of the housing market and it might. Not be what you think it's not that age they've they've wised up and they've seen some of the mistakes that those in the early two thousands participate in which is assuming that real estate. Is like the stock market where it always goes up when you put money in. And you can always sell at the top and make a bunch of money yeah folks as you know that's not really like the stock market. I'm just like the stock market the purchase -- that you're exit strategy that the price that you sellout is really more important. The price that you purchase that on the so folks. Those the view that have children and family members that setter that all the generation. We're gonna talk to some of the speak about some of the reasons may be that they're sitting on the sideline which means less first time homebuyers right number one is that. The employment rate for eighteen to 29 year old was nine point 1% in April. Which rises to fifteen point 5% if you include those who have given up looking for work. So pimp and nothing has -- that but -- employment rate unemployment rate is based on those actually trying to get a job. Move off the charts if you just sit at home not even attempting and and here's an -- thinks forget forget that it's without without it. Forget the without a job it's just about him possibly the mortgage it's also hard to get a mortgage on just. Period because of the savings rate it's little more challenging so. It's more challenging your mortgage if you don't have savings but it's even now more difficult if you don't have -- -- a job to start accumulating those savings. -- yes -- some other reasons. And medium bunch. Well here's the biggest thing the use of consumer debt in general is a problem not because well it's not a problem because it -- the existence of it but this generation. Was raised. In the sense that don't talk down to this -- generation it's not yet you wish. Martin and accept it on anyway he raised you know assuming they keep taking a student loans using credit -- purchasing barring money for whatever it is that you want today. Is normal and and you just it paid off later well the higher debt ratios we see of this generation on a typically. It which is very common at a higher debt to income ratio so a lot of times they don't qualify because they're your credit score or -- -- -- because -- and its oppression it and they carry. You know there are more credit card balances -- -- auto loan balances. Stretch out those car loans. I would I don't know ever researched him and about the average length of a car alone for this generation is probably a year two years longer than the generation before it. So you just see this you know combined effect of lower credit scores because of that and more debt higher debt ratio makes it much harder and -- home. So as I mentioned unemployment was nine point 1% from O'Neill's at six point 3% for all of the rages. One other little interest instead statistic is 29% of adults younger than 35. Live with their parents according to a Gallup poll results released earlier this year. Shocking to me via 29%. Thanks and I mean right you know I would make the case that the 29% have you. That are living at home and working you've got an opting to save money for your. Down payment yeah now -- I don't know the dynamics I don't know how those numbers breakdown of how many of the 29% are actually working but I tell you strategically. I have no problem with that. However if it's your work live and at home you don't have a job and you -- aren't actively looking in shame for shame shame on you and shame on your -- Some real quick before we is that sound mark before we did he should he stay or should you -- scenario folks your bet that bringing on T understated it say. Problem continues to perpetuate itself because I think you're renting your rate goes up every year. He is having that much harder time getting ahead with the homeownership and often do that is hedge against inflation in your your expenses and get your little head and your network so. It's kind of -- we got a couple other reasons that the more deals are are aren't yet. On their way to on the housing recovery. Come whenever we after the should he stay or should go segment -- folks you know the deal you give us your scenario we tell you if you should stay or should you go in that relationship in that rental scenario in that home purchase where that refinanced will be -- good. OK so Craig we have. Chats she -- -- ahead in the next again -- writes hi guys loved the show my question is about auctioning my home. I need to sell my home fast and thankfully I've got a lot of equity check list with a real -- just price it aggressively or should I sell at auction. I could set my auction reserve low and maybe get sold and closed on faster spots. OK it's. Day as meaning. Don't be -- thing go with the the auction so. This state not doing the auction facility to realtor here's an auto -- know it sounds like you get ideas sometimes and it's anyway isn't. It takes a little while to get your home sold by auction longer than you think you get a get the auction set up that get sent out notices. It takes awhile to get enough people aware of the auction so that you have an audience that to by the hope. By the time you price at home fairly aggressively today's market with a top notch realtor that home will sell. It usually will close than thirty days if somebody's gotta give lenders are working with and their rate by now. I would not think the auctions -- a net any much faster result but I bet she would net less gain unsold homes so. My suggestion find that best -- that top notch professional out there you're community. Get that home listed. And put it on the market ASAP. All right -- you can go to auction dot com as a resource and I'll tell you I agree with Craig. Unless it's a common phenomena that houses are selling by action in your community some markets might be little different but it mostly in the midwest -- -- caught on yet until it does don't try to set the trends start -- trend. -- go with the safe bet -- you're the best realistic professional. OK other last two reasons why the more manuals are yet to. Are yet helping with mania with any gusto I'm Mara student debt Craig he kind of touched on at saint Haiti and -- this is an average student loan. In 20121 point three million students who graduated from four year colleges. Or 71% had student loan debt. Up from one point one million in 2008. And 900002004. She can see these numbers keep. Going up graduating seniors with student loans had average debt levels of 29400. Dollars in 2012. Up 25%. From just four years ago in 2008 it was 23000 dollars. That is a big increases student at one of the reasons I'll say is the average increase in -- tuition. Is between foreign 5% so interesting that we in a four year period 225%. So it's. -- -- I think it's combination of too because of the soft economy people had to borrow more. And also we still had the twitch and increases. So lot and finally delaying marriage and her family median age of the first marriage is about 27 for women and 29 for men according to US Census Bureau. Guess what was in 1950 -- Early twenties and it began when he -- for women -- 24 for a man that so the bottom line there is that most people are going you know what I don't need to buy that first home and we commend them for that I I'm I'm single I can I can live and a 700 square foot apartment I don't need. You know three bedrooms two bats that -- and that responsibility to them focused on my career so many of the reasons that small annuals are. Are kind of stand on the sidelines some of whom I'd say the third one. Is possibly a prudent one but the first three -- things that -- economic conditions on the lower credit score because of those for economic conditions and increased student loan debt. Because of economic conditions and increasing cost of education and we've talked about this on the show formal do it again but guys make sure that you're student loan yours -- your education is focused decision. And -- consuming student loans and are taking your education wisely aren't and when you got -- when we come back we're gonna tell you how to get ready to buy your first home. Over the next twelve months life is -- stay tuned.