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You we appreciate feedback you give us and remember -- -- in your questions send us your scenarios or few spots and straightforward candid advice. Give us an email life if you own it dot com questions questions like if you -- dot com or 80270. 64. Too -- Okay Craig. All right so we are we're ready to talk about we're talking about playing hard ball on if you're negotiate contractors seller -- on the downside at mortgage so interest rates he gave the the rates earlier in the show there in the low for their stain in that range what. What an attractive interest rates on if that makes sense for you to purchase. I'm a home now -- to refinance -- you can save a few bucks. 4%. Effectively for most of used in Appalachia and effective rate of probably just under 2% to around 3%. When you consider deductibility of that interest while. When you just under 33%. -- -- -- -- but he great -- seduction 50%. We if you for those of -- that owned homes in Australia if they eventually implement the mortgage interest deductibility you'd be under 2% radio that had to qualify that. So yeah here's the thing folks I mean it's interesting potentially interesting paradigm shift here. Obviously for the past 34 decades if you're tracking interest rates on mortgages you'd notice that in general taking -- as at five every contain year. Average window of time decade over decade mortgage rates have typically. Trended lower lower lower so when moving up and home or. Refinancing your whatever has come along -- been -- the benefit at a lower interest rates usually it's is an additional motivate her for people that are looking at moving like -- you know we're. Seven and a quarter and my first home loan for example was eight and a quarter. And when I bought my is my next home I think I got seven or something so it was a huge. Different generate over just a couple of years period of time was when rates dipped down I was able to buy another home. For not a whole lot more money. Even those more expensive house because my interest was so much -- well. That's typically what we've seen. As a trend and people of enjoyed that now that might be changing so if you look at the Adam average rate of the past few years. Interest rates dip down to a record level on the low threes on a thirty year mortgage November 2012. And it took till about -- a year ago until they popped up over 4% so for a good solid. A year almost we had a rates in and really probably a little longer than that we had rates in the threes on the thirty year mortgage now will we just talked about -- force. People are looking at that they -- themselves well. I'm a three to core -- 332 and three and half of my thirty year mortgage and we really like to move up and how's that. -- have to take a three quarter percent rebate may be a full percent higher interest rates to facilitate them moves that's a huge additional expense on top of the fact the house might cost more. In the taxes are higher. And it's going to be satisfied at what I've gotten content and sit tight I can't justify the additional expense and that makes financial sense I get that -- -- that motivates others. People that. Does that motivate she did not take on maybe something that you normally would maybe inclined to take on to get the same or lower interest rates good good for you. I do you explain though. Then all of this it looks to be the case and it may in fact have the effect of slowing down real estate sales on those who are locked -- at the lower rates and they don't wanna pay a higher rate to move. And they will sit tight I actually think that will happen. But I wanna share with you why it's not as big a deal as you think and maybe mark can counter this argument but what I want you think about folks is that. Especially those of you don't a couple of houses 34 house's may be those of you been homeowners for twenty or thirty years and you've seen. The move in interest rates raise your hand don't take both hands off the -- you're driving your car raise your hand if you had a mortgage for 25 years. Regimes you have a mortgage for twenty years fifteen years have a ten. Most of you. Of course because rates have trended lower have. Refinanced her about a different home and you probably had your mortgage on average for three to five years of the most might be a different mortgage for you you've had some people had some alone on actually leverage unrealistic -- And you will probably continue that trend for as long as you're a homeowner in general I would believe. Here's what I think I think that you can look at it like this sum payment of the percent higher interest -- you take that into account yet figuring attacks efficiencies. But if you're really thinking long term. If you're buying a better home and a better school district better area better suit the needs of your family long term maybe it's an over a better investment in that case and we'll have a greater -- return of appreciation for you. There's some offsetting principles there. And if the economy's doing better interest rates rise Europe obviously going to be make a little bit more money as well usually you should be. But you probably refinance again at some point at a lower interest rates you won't keep that same mortgage you're not gonna keep that same loan. For fifteen years and be -- -- stayed near their house and -- X amount of dollars over this -- there's so many things that mitigate that. Primarily the appreciation factor if we're talking about living up in home you're also gonna gain more on that house over the next ten or fifteen years or whatever. So although -- do you think this is gonna impact you for those of you are trying to battle leader doing battle the psychological decision this this decision financially to to move up and take -- or not. I'll tell you that I firmly believe we will have another inflationary recession -- period between here in times of inflation and rates will be lower than they were. This pastime at the low -- and you believe angels with -- refinance if you kept your finances in order. That's my thoughts in March and give the counter argument is usually that. When we I would like to -- conveniently you ran as yes just out on her close forget Alabama whatever we come back we're gonna talk about whether -- interest rate does make more sense for you and -- buying that new house for all the reasons that Craig said it might make sense like you own it. Keep on hanging out with us. All right folks we -- back slightly unit and mark is a chance to talk night I finally had a whole segment where -- got off. Can hold on these -- -- hold on loosely that if -- straight he'll hold on T tightly or you for you might lose control to what you are special but you're no longer 38. All right folks on the sellout crowd was talking about the downside of of those low interest rates has a lot of you lump. Staining your home news given some good points as to why you know maybe that just doesn't make sense for you -- ends. I can't argue with those altogether because the reality is each one of your situation is different. Obama and but the true cost that the reason you listen to this show ones is because. We talk about boy and all down. What is the real cost of homeownership what is the real cost of you having a little credit score what is the real cost of of that interest rate that you're getting that sounds so attractive but you may or may not be paying a bunch of -- to get that race so it's all about. You know taken inventory of where you wanna be what what you need to to. Two to meet your needs but making it part of a strategy plan itself that's my long winded way of saying it. I'm gonna err on the side of conservative and safety got a great great you know your Kostis -- the chance of you financing this house and purchasing and and then at a higher rate that might -- percent higher and then there refinancing into lower rate. I think it's a slim chance that you're gonna get lower than a foreign core percent rate on in the next ten years and if you're in that house speaker happen. But I wouldn't count on it as a potential. As is something that will happen in the future because we've seen the historic low trend in rates has had a lot of participating events to include. On fear you know housing debacle. On to include a significant rise in unemployment. I'm all these factors have have -- who brought lending rates and propped up by the government. The ability tough to finance mean these homes these lower rates if they want the existence of that. Of that this that the programs to and Fannie Mae and Freddie Mac -- conservative or ship that's increased Al TVs and all these things to include horror. -- everything else. To finance people these lower rates on the average interest tree it would not be 3.3. Of all homes mortgages mortgage 13 of homes. Average rate is on under frequent these and four present thing yeah so. -- -- I guess something clinical bold prediction make a bold ones. I'm an old -- ice sheet that our government's current policies will be carried over the next time we faced another recession and I think they overshoot it from what they did this time depending on who's in who's in office and who's controlled house and the senate. I think that the next time we hit a major recession. Or even potentially a depression. That the ROC member last time we did this thing with interest rates we bought about your mortgage backed security bonds and it ended up working -- -- -- helped OK you got at least he kind of got -- over the -- ever curious -- let's do that again have. And that will cause interest rates to hit levels we've never seen before that smuggled predict possibility -- -- what you may not be NN house is that ideally will be ten more years out. Before we September of next year -- that's content and yeah. Our our analysts -- it happens I'm all right should he stay or should there it is again. All right so we have let's see we've got trends in that battle of this Arkansas. You -- I would like to sell my home now. That I'm retired but I won't don't want to pay income taxes on the sale right now. I bought my home 25 years ago. For just a 135000 but it looks like now I can sell for over 300000. Is there a way to avoid paying taxes now where did -- taxes I still have good income. And already pay a lot of income tax any advice you would use the word taxes taxes taxes numerous times there is like alert. Now okay Craig -- shares so it should he sell now. He. Or should he apparently stay. You know salad they -- kidneys -- There's a few qualifiers your trip you go ahead sell that -- guess why. Is that your primary residence and you've lived in any two of the last five years. You haven't had enough appreciation to incur tax tax will be -- your single. You might have a small unit 250000. Dollar exemption -- -- -- 530. It's 250 jingle 500 if your file yesterday signed here. If you file single he's not a 165000. Dollar gain him in depend depending on other potential expenses that could be counted as acquisition and get out or -- -- crossover really you have no taxable event there. As long as it is your primary residence now let's say you've been renting because we don't know all the facts and you've been written for a few years and her 56 years and you know lived in in the last five years for at least two -- Then you need to move back in -- -- a couple of years -- if you don't wanna pay taxes on that money and then sell oil at this point it doesn't send me like he attacks -- situation and do the math on it too because you do the. Long term gain income tax calculation air -- moving back into it it probably still not make sense to move back in there idea so. Yeah all right good -- good question folks remember life is you own it's dot com for questions like John dot com if you got a series like has to answer on air. Happy to do it okay so a lot. We soldier if if the house you're in meets your needs some you don't need extra square footage -- need extra storage space. -- live conservative live within your means live within your budget and I believe it's at one time is right thumb and your family is going to grow where you're going to. Make the financial decision to invest in the larger home that it's one that has is is met with a firm understanding of how this is gonna enhance your future financial situation not how it's gonna potentially endangering. Are right Cragg. If he can't catch a break may -- should listen to show every weekend because right now we're going to. Help you understand how you can go broke if that's what you're destined to do and determined him you know it's trying to diss on somebody or get -- break in as they wait to find out this information some some of was go through life and some. Some of those may be think gosh darn it just I'm just not lucky few teams don't bounce my way it just stuff good stuff doesn't happen and I'm here in this -- -- I should do that. What you're not taking action on it then things are gonna bounce your way because only way they only way you can make things go your way is by directing them not. So while when we come back we're going to I share -- yeah. That some things and we say this this is we're gonna say it in jest because we want me none of you to do this but it if you wanna go broke. This is the way you gonna do it when we come back like he won't stay tuned.