Life as you own it 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 -- -- -- you know it's just good old fashion. -- All right Bryant started markets opened here is that Craig Miller and his hands and down to my right is Craig Miller awareness of what's that called baby -- is just everywhere I I just it was royal blue can't -- folks the only reason you would the way you'll be able to find out what he is wearing is if you go to look. Thumb our podcast our video -- -- -- in new installment of our show every week is what is Craig wearing this week like how snow. The letter the F fashion experts stopping acts or laughing out. Folks if you're checking us out for the first time thanks so much. We hope that you enjoy the next hour and don't remember if for any reason you've got to turn that radio down down -- the satellite TV your cash or wherever you are. If you can't catch the entirety the show right now you can podcast the show you can go to like -- you own it's dot com you can catch. Previous installments. Listen to a -- leisure don't forget we are also available on I heart radio and tune into radio. And Craig yesterday for our listeners know that as they're driving to market their heroes for the first time what should they do. They're here and there are going to or from. Sybil from Phoenix drive into when they're going to end in Dallas. Because we're not in Dallas yet only because they're local station that they love their their talk radio format station they enjoy. In -- seeking to keep the show on its right say we got some. Some great information about the biggest investment I'll make in my life investment in the roof over my head we don't care if you're renter -- -- -- care of your landlord or if you are. A homeowner -- -- own one home that that biggest investment your gonna making your life is something you should handle just like. The investment it is it's a business look at it like a business be strategic have a plan make sure optimizing your opportunity. Optimizing that are due to save the most money. Be strategic whether it's your mortgage whether it's insurance whether it's. Whatever it may be -- They need to make sure they listen to the show closely 'cause they're gonna get some new information each and every week at resolutely ready. The good consumer is an informed consumer that's what makes you good consumers so when you can protect yourself from costly mistake you're protecting. Everyone so to speak he helped fuel economy aren't we got a big show this weekend. The market is he dinged up as we know we talk about it. For -- the last three or four months have been talking about. Now it's getting warmer and warmer not just temperaturewise. In Europe. In your locale but also the real estate market. On its time is it time for you to sell. Your first time at home you just purchased you love so much you wanna jump in on the action -- times or maybe you should consider keeping it becoming a landlord. We've got six rookie mistakes you won't want to make also speaking heating up we got twelve markets where real estate is just flying off the shelves. And we got some tips for you whether you're a buyer aura cellar that you're north pay attention to. If you live in one of these also -- It's got some great music we like to listen to every which each and every weekend what does that -- should he stay or should you go now he stayed there will be trouble. You can go it just might be double. And try to see if you send us your scenario you can call is 877301536. Operators are standing by 877301536. Tell us your scenario -- If it's a home that you're thinking about refinancing we -- to know how much you what you think the value the home is where your current terms and interest rates. And at what the term of the -- to fifteen your thirty year we'll tell you whether you should get the heck out of dodge refinance that thing. We should stick with what you got. This also. Can be considered for any. The things that you want advice on. When you become a landlord for the first time what you're thinking of proposing part of the question whatever it is you deserve details will quickly give you an answer. It's or should he stay or should this -- segment you stated throughout they are you get at least. We promised to give at least two of them every show sometimes we get three or four in -- now. Okay Craig so don't let the wonder years with your kids turn into the I wonder years. Down the road when it comes to their financial skills. Give -- your teen started on planning for college now and thinking about not just what they wanted to study or how he magically can you know. -- get some career because they went to college but thinking about the financial implications of college what does it take to pay for it what do those consideration we got five. Five ways to gauge thirteen to start thinking about you don't stop -- that there's some very responsible eleven and twelve Urals. -- where you would in this show little to start teaching -- the financial skills and and there's and there's nothing at some of these things you could start discussing with them also. We is that we had some people laugh and -- -- harsh response eleven and twelve year olds out there their hands full responsible eleven and twelve girls in this room. Obama. Many of our listeners are helping take care of their senior parents we've got some suggestions on how you. Can either help them save money if you're. Senior parents are paying for their own senior living or you may be helping your own pocket they pocketbook by staying tuned to this segment and -- -- last. Little bit we're -- it's summer time it's at a time and time to. Hit the road road trips as -- good times we're gonna share best tips to save some money on at the gas pump if you're gonna get on the road this summer. Right and we get rates for you like we do every week which I'll jump right into not -- of what did you have a good week. Yes for a busy week yeah it was a little rough inning that set somewhere might not cover a show anything you are sure Lester for a jump and interest rates about your week -- will you know. In a future show we will recover with the listeners we talked about the response 1112 girls eleven and twelve girls are going to be as responsibly teach them to be. Most kids absorb things those kids wanna learn and they wanna apply things in and they wanna impress their parents when they're doing. What we teach him to do properly so in future show we'll talk about the basics open your kids start their first maybe savings or checking account how to balance -- but if your kid can do. Addition and subtraction if they're at the level where they can do basic math. They can balance a checkbook and a very small little checking account and can teach them to. You know of their own money so that's something that I believe -- let's start working on an early age -- -- to pay bills save that for things by things. Allocate there expenses and allowances and whatnot so we'll go and that in future show but. Amid jump into the national average and interest rates mark although how is your week to do and ask you it was good but I didn't know what now wouldn't trying to sit there is special announcement earning their Alec. They don't expect announcements. Craig senator garrido a side -- stats. I know there when I was just making sure sometimes you just -- possibly nuggets that are. They've got an Internet your place and you know Ali is off -- -- pop -- some -- all right folks -- jump in those interest rates to serve and yet every week folks -- gonna share which in national average on interest rates this is based upon a 200000 dollar loan amounts that's the national -- we use 20% more equity settled with excellent credit. If you've got a little variance in there it could affect of course what you would get on a quote and keep in mind these are just general average guidelines. These are not the exact. Rates that you may be quoted the fees and costs or maybe point being taking greatly affect the quote we don't want you. To pay a bunch of fees because we don't -- -- on your English you're doing it for a reason that you know mathematically is mathematically sound so. As we always harp on you about we always preach about it watch those fees please. Don't pay too much and closing cost the national average over the last week. Include about one point being paid one point means 1% 1% of the loan amount since we're using a 200000 dollar national average amount that's 2000 bucks. In addition to some other fees and costs that are typically charge that can add up pretty quick. That is setting you back when you do to refinance transaction. In paid money up front to get it done you didn't start. Saving money day one you may be saving money on interest. In a subsequent days and months ahead it's gonna take some time to catch up from break even. We talk about that breaking formula on life as you -- dot com we want it we'll do that math. Make a wise decision when you choose so -- the rates folks national average over the past week four point 18. Four point 18 on a thirty year fixed rate mortgage vs four point 13 the week before slight tick up word. The week before this past week we saw rates move downward a little bit so. They're about back where they were about two weeks or so ago three point 18 vs three point 15 on a fifteen year fixed rate mortgage. 3.3 three vs 3.3 oh. On 51 arm so that's of adjustable rate mortgage -- -- for five years and then on an FHA thirty your picture -- -- about three point nine overs three point 87 the prior week. So folks like movement not a whole lot although I will tell you that's -- last week gonna say it again. If you're transaction makes sense right now I believe all the technical signs are definitely biased toward locking in your rate your contract and purchase a home. Even if -- couple months out. I don't think I would gamble trying to get that extra eight to the point off the -- or something. I would recommend you get locked now same thing goes for that refinance transactions that make sense you've done the Matthew -- the breakeven for calculations. You know is the right move for you. Did that refi -- get locked in. Hey before we take a break I wanna get a quick savings tip folks that matter if your interest rate is currently the same as what we gave as an apple national averages. You might be paying mortgage insurance so may treat you with a certified mortgage planner look at this situation be educated as you may have a savings -- -- -- hundreds of dollars a month. Even though the race counts the same. Like Joan Bakken field. Our friends we are back likes his own it's. Markets. There are those out there who are thinking. The becoming a landlord they wanna be our. A landlord they say hey you know how many create for myself a real estate empire. Yeah we're gonna tell you how to avoid some there's six rookie mistakes more than six but their sixth primary ones we're gonna share with you today. It can be a great opportunity for you invest for the future. It's an excellent investment if done properly. If you build out of full heartedly you will reap some negative consequences so ego is open so some of your thinking -- a lot. And at the houses -- as we said will say later in the hours there's twelve markets where the flying off the shelves there's many markets. Where literally we're seeing double digit increases in price corporal recorder which means. On that. That you could say that it is a seller's market. Sell some of your same -- that we want it. One of my house -- -- hold on dollars maybe maybe because we bought it in 2006. And no we have equity now because we put a down payment. We'd like -- have a bunch more equity we're still not back to where we thought it well folks just make sure you do the math you -- have these considerations. Before you determine become a landlord Obama become a landlord by design not by default that's a whole set. Don't become a landlord to -- desperate to buy another house and you can't sell your house but come landlord of the strategically done the math. You -- you've done the -- you've done -- I wanna be a landlord. And now -- going to go by house don't go buy a house and go gosh I guess the idea become landlords going get my dream home media makes sense than it does its effects are. Oh there it is the music. Right should she stay or should you gotta -- in a way to Kansas emailed the following I have a 304000. Ballots on my home. I think it's worth 350 to 360000. May be a bit more. My rate is 47 eights and I pay PMI currently. -- it fell right in my. My dad and I swear folks I did not read this before I gave that last bit of advice -- that before the last break. I will probably move in five years and I have great credit my sit tight. -- I sit tight or should I -- Do know which would go for battery I. Since I would be stay with the ideally what -- go into refinance is here's the thing you're real close today 80%. Limit where he immediately remove that he might be even if you can't at that rate he should be able to drop your rate slightly. And get rid of the and you should indeed get after our savings my friend and doubt remember folks if you've got a question if you got your scenario if you get -- interest -- that you think might be too high emailers. Questions at life is you own it dot com. Or call is 8773001536. You can ask from mr. Miller himself he will give you the you know why he probably called you and TVs have been great of a -- a little bit of time. Might take like between one and three minutes from when you leave the message it 3 in the morning from the call you back I think the rest assured he will respond to your questions and if you'd like we -- read it on -- just like so many you've -- your questions answered on -- Our Craig sell well we're talking about the common low and lower yes I designed not by default what's the number one what's the the one of the biggest ones that people miss out no doubt about it biggest one is typically under estimating the costs associated with carrying that property yep just like on your primary residence sure we always consider life. Greg what's the natural thing people can best case scenario -- but also what we and payment wise they they'd they'd. They look at their mortgage activity the payment in the Akron general interest taxes insurance they like again that's about it I could afford it yet they might factor and got a vial lawnmower and maybe occasionally. Fix this or that it's rare that they really sit down do the math. The pieces that you're missing out are going to be the maintenance of the house garbage gardening. That landscape being all of the regular rate is raiders you've got it folks and that can be a significant -- we recommend is that you add. Thirty to 40%. At thirty to 40% of what that's annual cost may be saying your mortgage costs and again this is. This assumes that you've got a mortgage. It is in a certain equity position and home going make it too technical but but figure thirty to 40% or say of your rent that your receding. Add on to that as an expense associated with upkeep and maintenance this right and you know you want to base your work. What you believe you're gonna bring in an annual basis for income on a ten or eleven months where the rent is set up full full -- -- the rent why. Because if you do you have someone vacate you probably and have about a thirty day downtime maybe even longer where you don't have a tenant and there. So on an annual basis figure about -- -- eleven months. You -- movie hairspray I landlord yeah I -- trust if your first time landlord. I had 211 months no you're not mean it is so why I -- at eleven let's get that's. He done this a long time you've got a bunch of properties but it assume I I recommend. You know assuming -- -- nine months. If you've already got a -- on it assuming it -- that way you'd rather be a little bit shy than to -- short on your on your plane because those are real dollars trying to get a thousand dollars a month rent. Don't assume right away when you all make 121000 dollars here now. You make 101000 dollars a year on average because of vacancies can be approximately 45 to sixty days all right so the next one like it. Ari can break -- I tell you why I lost there on state to state even city to city for example in some areas you can require a month to month Tenet. Tune them out within fifteen days while on others you must give them sixty days notice folks. Just make sure you understand. The rules associated with becoming a landlord in your municipality because. Heaven forbid you think you made a little bit of money to any give it all back because you kick out some. Bomb tenant that may not be paying your rent their. Tier three or 45 months behind that you didn't give proper notice. I'm so just just be careful there because that the legal fees associate with you give it back quickly. Our Greg what else number three here's where I was about to -- -- being. On vetting prospective client so. If you look at forget -- it's not enough just trust your instincts or even. The window on and -- -- from a friend her you know September recommendations you've got to do some due diligence here so. Mark which run their credit to a background check on their planning is sort services online where you can get this information now one of them is there's. Or my Smart Move.com. But make sure that you do the background research before you get them in there. I'm checked that there are employed do an employment verification. The servers he paid print up to fifty bucks round fifty bucks you can get most of this done don't skimp on folks don't anyone in the gut instinct got anymore and there's enough services out there that you can subscribe to. If you're gonna have enough properties if you're gonna be moving tenants and frequently and that may save you money. Have a monthly subscription to some of these background check services anymore because of the information that's available through the Internet. It's kind of a business that's kind of grown a little EC more and more offers for checked the -- checked you know people's background type stuff. I think that's only the -- it was 1995 a month. You could run he was tanner when he background checks a month or something so it may make sense for to subscribe to service that provides this type stuff you want it you're gonna wanna know. Of course Samir -- are gonna have excellent credit but you're gonna -- -- no good reason why they may be you know having some some rough stuff in the past that they've got a background check them back with some. You know maybe there had a meth lab the last house there and you might not -- when your -- so. I listened to split profits for -- like hey come up your country here so it's a -- just kidding we wouldn't endorse that's -- and we don't endorse that. Are a number four is ignoring renters insurance policies to make sure that you're you not only the you understand. That the policy you have on that dwelling. Covers it. In a rental situation because it's different than a -- primary residence gonna cost you more to make sure you change your policy. To that it's a -- policy and make sure your Tenet require them. To have renters insurance. That protects you in the event something happens in the property manager liability on so make sure you've got the insurance piece of it covered. On the don't skimp on the spokes they must have renters insurance you must make sure your policy covers you. On number five -- Failing to check out the property regularly folks if you don't make those visits occasionally pop and in making sure things are. Being kept been maintained per agreement. And also of course not being blatantly abused -- agreement you're going to be in trouble later on on the -- swing by folks you've got in the least he should avenue released the provision by which you can combine inspect the property is the landlord. Make sure that you do so. And then number six is going to be the thing I just mentioned is make sure you've got your lease you take your time understand what is says. -- -- Haven't -- a well written well -- now at least that protects you left. I'm so so make you don't skimp on the least part of it get a police in place get it signed before you let them move in. Future security deposit and you'll be good to go on that. All right folks when we come back we're going to jump in to probably another should he stay or should he goes segment and we're to talk about those wonder years are they the wonder years for the the wonder years I think -- on it. We.