Life as you own with mark McDougal and Craig Miller. Remember you got questions we've got answers you may not take it and educate yourself up 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 that in fact -- you know it's just good old fashion. All right mark McDougal and he is Craig Miller. Preston is they are you going hunting today -- no but I get you yeah you're hunter's marine John I knew at the -- minute but this year Don. That I was going to be questioned about the color my sure -- would be I don't know it is -- orange yeah this is an orange colors that were orange post down up a little brand. That is orange in physical style. Sure go do. The ever ready to go to YouTube type in life as you -- it checked out the most recent episode. He can -- what Greg is wearing out our rights so folks if you're checking us out the first timeout we appreciate you what I ticketed in. If you're a regular listener well welcome back we hope that you have enough fun you will check those out again next week and remember. You can always mine is on YouTube you can go to tune in radio IR radio iTunes. Or demand if you're catching -- there or driving to a city and you were local station does not have like these you -- columns say we heard these really handsome fellas. On the radio that gave us some great information about the largest investment that we may -- our lives the roof overhead but the air renter and older. An employee and employee error on the breeding. Not breathing okay maybe if you're not reading -- probably not going to be listening to -- some people actually stimulating when they listened so they do they hold their breath. -- -- did you want to check out the show because we try to give you all kinds of relevant information to your financial life with an emphasis on your home. Yes happily independent state just passed folks right hope you enjoyed your Independence Day OC Independence Day a picky about that. Happy fourth where people say that sorry but a pick on you when you say is that is it's in a -- is that. Anyway -- -- did a -- didn't burn yourself with a sparkle her radiant is dangerous fireworks end a great candidate that's -- a good. Well did you have a Gooden. Independence day of July yeah. Analysts is that it's just indicate is that all it is is real simple. Anyway it was great sorrow we have to clarify if you're -- independence days for other countries also the mighty early stage independence days you're with -- you know how -- it was yeah it was good it was good stuff folks at and we didn't blowing up. No no. All right folks so today's show got a lot of great information free to include a seven things homebuyers love but sellers don't list sellers. These -- some some features that you're home buyers might wanna know about and we think they will help you sell your home faster and for more money potentially. Also seven curb appeal mistakes if you're selling your home -- -- you want to avoid a debt. And we're gonna talk about are you saving per rainy day. Are you practicing for rainy day -- just as the Rangers have been saved her rainy day lately. Well folks you'd be surprised at how many -- you -- may be saving and how many view or in the -- on the box and are not seeking a sufficient amount for your retirement. Or for your rainy day. I'm also we've got five financial corners that -- You should never cuts and find -- wrap up with the a little bit of some update on not bank owned properties. Guess what folks you know what those are there -- base their foreclosures and the bank clinching the money for whatever reason you could not three -- and after going through the legal process they took the home back. Well the number of those properties that are the price at which those properties are selling for might surprise you. On a comparative basis to those homes that are not bank owned track. You've also got interest rates we've got -- should he stay or should you go segments which are my personal favorite. Mayor -- thirty guys you've got three seconds to answer yesterday Allen and in three and it usually do it yet exactly. Rank and do that on purpose to kind of up every -- it it works every time without fail. 60% of the time it's exactly. So folks what's -- about let's give your reminder Craig how how should they reach out to is if they have a question. She should do folks is real simply pick up that mobile phone that cellphones as we know you don't usually have a landline anymore so -- our -- still do. But you should pick up the phone and dial 1802706425. That's 802706425. Call us anytime 24 hours day seven days a week 365. Days a year. And someone can take your call get a -- information on your question. Leader aired on the show or and or will reply will respond back to you an answer and we may -- will aired on the show. You can also email us questions or question whether you wanna go plural. We're singular it's questions at life as you noted dot com. Question are you a couple of questions. -- -- joy dot com to get our website like Asia dot com of course it would 32 -- mentioned earlier as mark mentioned he might have some fun watching the videos. Sometimes like right now. -- some funny faces try to entertain -- little bit. Are this talk about rates. -- let's do it every week we bring these national averages again these are simple general guideline. They're not set in stone as is the exact -- should expect every scenario slightly different. That national average that we share with you is based upon a 200000 dollar loan amount excellent credit scores. 20% or more equity in the home. Some variances are gonna be you know possible for most of you -- a smaller Lama may be a much larger loan amount poor credit new Yorker credit he setters so. That can affect the type of quote you get also the fees and costs. Have a major bearing on what you're gonna be quoted rate wise. Some lenders. In some regions of this country in fact some areas there's -- entire states. In general municipalities where we find that it's common practice. For lenders to quota refinance. In in purchases as well with the pointer to built into the pricing that it's just common people used to paint points. Folks there's better ways to do it oftentimes regardless of what the norm quote on quote is in your area in need to investigate that. -- -- points and you play a part in fact we believe there is important is the interest rates so we know they are upset because of simple math it takes time. To save money if you refinance your home. No matter how much you've lowered the rate if you paid tons of fees and -- rolled into the loan guess what happens and take a long time to breakeven on the monthly interest savings and we've recouped. What are we suggest he do about that. Go to like -- dot com check out the break even formula calculation and put together for yet so that you can do to match you can compare. Option a option B does this make sense where this -- make more sense depending on fees and costs we recommend you compare. Is zero cost option where the lender pays all the fees he did not rule in your loan. 21 -- may be you have some costs and fees in the rate may vary slightly where you get a lower rate if you pace and -- slightly Harry perhaps if you don't. The oftentimes the slightly hiring without the -- is the better deal for you. You've got have -- medical reasons for doing what you're doing as we always say. If you cannot explain this to someone else what you're dealing he can't go to your friend or coworker at the water cooler your neighbor and explain why he did -- needed. Why you took the rate the -- at the turn that you chose and all SF if you consistently -- -- you have no business sign the paperwork yourself. You need to be educated about what you're doing and making a sound decision before and we always recommend you were with a certified mortgage planner. Certified mortgage lenders typically have a higher level of expertise when it comes to setting up an actual plan. And ask their questions make sure that they've qualified. You based on your needs are so here's the rates folks here they are thirty year fixed averaging four point 18 over this past week. That's for -- four point two the week before we saw slight improvement fifteen year 3.2 three vs 3.2 five again minor improvement there. Five your arms were the rate fixed for five years and can go and an adjustment period based on the thirty year amortization those are three point 70. Purse is 3.5 five which by the way we've been seeing these armored slowly but surely creeping up. In fact it anymore they're not so far off from a fixed rate -- that they're gonna make a whole lot of sense for most people. FHA thirty year fixed three point 76 or is three point 85 pretty good improvement there on FHA. Thirty year fixed remember it's not just all about -- folks what's the fees and cost even comparing conventional FHA. -- as a lower rate and more fees wouldn't be in your best. Interest taken FHA loan just because the rates lower. What is that music -- alright folks it's -- should he stay or should he go he gives your question we will give you an answer it will be quick. If I give it to -- Craig you'd be potentially in the roundabout fashion race. Passes the Andrea from Belmont university in Nashville writes. Hello I'm graduating from college this year and already have a contract and a great company. My father bought an investment property when I was born is now signing over to me when I get my diploma. It is mind to deal with the what I wish and it has no mortgage it's worth about a 104000 present. 140000 presently my question is should I sell this property and buy my first house right away or hold the property and save up more money for a down payment. I wanna take advantage of low rates and great home prices sit tight for now or sell and buy a home. While Andrea to congratulations on your college graduation and you receiving such -- fantastic generous gift. Whenever we come back we're gonna tell you what injury should do stay tuned in light did you -- it. And it's. It's. All right -- we are back light as you know when it's cabinet you're right here. Mark we -- Craig Miller that's -- we have the should he stay or should you go hope in everybody that. This -- of the show regularly if you haven't check out YouTube videos. My heart beating really fester and on the mile. An -- Anyways what we want you guys to do is check out the easiest is they are goofy you wouldn't know it by just listen you think we're just talking to rescind your kind of in our monotone. Review voices bring you soothing sounds of financial advice but in reality we're doing all kinds of one -- is not a lot of time on the camera. So before the break mark we head injury from Belmont university in Nashville she was gas props that are in maybe she lives there so mean -- on the universe can't just asked about. -- OK so why she's graduate from college this year has a already has job lined up and her father gave her property she thinks is worth -- and 40000 dollars. She's wanna know should she sell it. And -- first home. Or should she keep a little bit longer and I say sit tight as she could sit tight or sell and buy -- she sits tight hold on that mr. property couple reasons why. You could certainly do what you said sell that thing off 240000 dollars in cash you can take that and pay some taxes on -- first of all because. It is an investment property your your father can be -- and over do you. He's gonna have a short term you have -- is regular taxes on this thing it's not even going to be a long term capital gain because you're gonna be flipping it. Quickly let tax consequences and that decision. Also just start a new job I'm sure going to be ultra successful your super Smart went to get school. All they -- stuff but guess what you are ready for what's coming and like just a 100% yet you're going to be. Is experiencing. The new job in in in getting used to Wear your living and -- ten things it may be happening and I think getting more. Suggested the new year other parts of your financial plan. Material property keep work in for yet. Keep it on your balance sheet for a full year so that if you do decide to sell you'll pay long term capital gains tax verses on the gained. Vs regular earned income tax. And and then to take an approach there if you build appear reserves at least six months worth of your expenses you're expected expenses. We recommend you longer meaning Imus two years' worth. Save some down payment and then go buy that house I wouldn't worry too much about missing out on something vs taking on huge tax consequence that's the -- when IC yeah and I see the opportunity cost Andrea didn't say her any. But -- if and when she sells it let's diversify let's get some of that money in real estate let's get some of that money in the market working for you. What I mean whenever you per put a down payment on on a home you're investing in real estate. And got -- the state has an historic rate of return of around 3% so it's all right in line with two to 3%. In -- inflation while the S&P is gonna give your rate of return of approximately. We're gonna say it's in between eight plus percent range so diversification diversification diversification. And don't miss out on the opportunity at a higher rate of return and you would keep just. Put all your money into that -- home purchase. Our guys are good on track seven things homebuyers -- sellers else talks about his. Is this as Marvin. He would make sure that's a key part because people like to accumulate -- don't think initiative -- also is going to be you've got a specific you've got systems that help organize stuff whether Richard cabinet systems whatever it may be he gets some seat some unique again. People like to -- Collect all that stuff even more importantly do you organization systems built in your home that would make it a unique selling feature of it also proximity. What are some of the cool things -- house are you if you live if if you're in a market -- got like shopping district or close to. -- restaurants or if it's definitely we know a no brainer it's close to schools. And it's a good school -- you say close to. XYZ school be specific but give some cool details of -- some unique stuff may be its parks maybe there's things you know walking distance to. Beautiful park whatever may be put it in the -- I'm also well if there any features that would make it to -- -- friendly to our largest purchasing population. The baby boomers there's any senior friendly features whether it's one story whether it's got an elevator or whatever it may be. That makes it friendly for the older set. It next on -- you gonna go energy efficiency. A -- times people will talk about all the cool and and he's only got the fact that maybe gets major. Green upgrades he got energy efficient appliances means energy efficient windows and insulation things of that nature. You made an investment those things for yourself because neither important and so the potential biennial thing the same and the potential -- want that stuff -- also -- Green and any more call light green. Features that you may have which you obviously the house is in the holy green. I'm publisher gonna build it from from scratch but there -- things what do you compost what do you not the -- in the service that you want to advertise but any of the things that this kind of how the neighborhood now whether it's via the systems that your house is on the bombs that are more energy efficient. -- whatever it is you've done to make it more -- energy efficient and or. More green and then lastly Craig is -- it natural or chemical free and -- -- Nicole maintenance items that you've upgraded the I budget HVC's system. You get other chemical free features may -- its type carpeting and other types of things in your home. Even the construction materials themselves there's differences in the chemicals used to produce thick plywood particle board things like that. Some people are very in tune is things are looking for those features so don't overlook mentioning those are hey Craig you say and her rainy day. You know in some ways AM some ways I'm not a typically just kind of it cozy on the couch on a rainy day and -- spend money wolf thanks for our friends at Bankrate -- today financial survey index security index for June and found that about a quarter. Quarter will say twenty. 6%. Of consumers don't have an emergency cash reserve. Nearly a quarter don't have enough savings to cover three months of expenses. These percentage is not budged much since 2011 when Bankrate began asking consumers about the emergency savings of folks. We tell you I'm after listening to show then obviously. You have some desire to be able to get ahead of the game com or read it or stay ahead save as much money she can. On whatever it is you're investing and be Smart consumer. It starts with just spending less money and saving more money. Not having a three month emergency fund that we tell you should have at least six months in the bank at all times twelve months is optimal. I'm so it is unfortunate victim most of our most of Europe pierce. Actually 50% have less than three months so just over 25% have none and then another 25% have less than three months. Another 17%. A half three to five months. And -- 23%. Have enough to cover six months expenses and then there's a 9% they didn't know were the stakes question. So folks as you can see a more than now almost two thirds if you. How about less than it. Six months less than five months expenses on in cash for. So. That's why we're here folks it's a big deal and you know before we get -- should -- -- to go just to add to that you know what. If you don't have it is part of what your financial goals you know -- have -- mutual goals they say well I amended to contribute my for a one K -- to Soria. If it's not on the list right now in your lacking that an easy number one livid at the top of the list its emergency -- thing is the first thing you accomplish before you tackle the rest. But your financial goals New Year's resolutions or whatever else that uses your means and mode being yourself good -- Should he stay or should you go and who's up Greg Craig who was terrible wonderful listeners this OK we have a -- in Seattle Washington emailed the following my husband and I have very close friends drenched in buying a home. Just as we are. The home prices in our area seem a little out of reach for what we think would be a good investment. Our friends discussed buying a big home what does and cheering the home and expenses. Their homes in our area that would fit our needs and -- create long term investment -- what are you guys think. Well. To get me that's first -- we've got that if staying is we don't do it and -- is doing it for this is a tough one answer is I don't know there is the back story. -- say stay by not investing with another person in another home. But I don't know the base of the relationship I don't know how I mean this is common in some areas where realistic prices are super -- California. A lot of areas they're people -- -- three -- including one dwelling you know what I'm -- it it -- to -- in the old days we didn't all need 4000 square feet for four people right and I'm gonna say as long as contractually. You've done the paperwork see you know what's gonna happen if and when you guys decide to part ways because you're not married just it's the same reasons we tell yet. Don't. Purchase a home with someone you're not married to a must by law that state -- married. Without having a very specific. Plan and contract written in the events you guys. Part ways same thing if you're gonna live with another group -- it save the money. And to write a contract so you know exactly legally what's gonna happen if you guys part ways. Why did you on it. Back -- if you. And from sun moon there. Yeah.