Life as you own with mark McDougal and Craig Miller. Remember you 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 group. Roof of your head in real estate we talked about your home financing make investments in real estate we keep the -- -- -- just go back. -- I like Joseph and mark McDougal he is Craig Miller and here we are. It's the weekend -- given that we Craig. I did have a good week it's been -- hot it was nice dig out hot in here it was an amazing cold front that came in some polar vortex from. Alaska arcane and there are some other place reporter little vortex -- come from and -- it was beautiful nice had her what does that couple weeks ago I had the almost a full week of the windows open no -- -- and in this we -- we tell our listeners throughout that that may be chickens out for the first time we're right here in the heart of the midwest -- United States are America we are now. Kansas city international intergalactic headquarters for. The life as you own that show when so. You know you always have little heat wave this week here in the midwest and hopefully where you are you are cool and called clear air conditioning working just fine. Worth euros up north you've got -- probably the one another log on the fire -- be pretty far north and along a brilliant yeah you say I don't they have been in the last year and a Tony laws and any failures could be then he could be made Oregon Alaska may be nice to sleep outside that's right look this there honestly now cyanide is daylight. I don't know they can still sleep outside now announce not sure they'll take a few Janet well folks is that there are other ways and I I don't ask don't we -- life as you -- dates and day each and every weekend we'd like to bring you the the latest information about tell what's probably of the biggest investment you made your life. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Thank them for caring life as you -- because our our job is to educate you or are listening audience and we like to do it in a fund that fashion you can catches. On iTunes you can go to I heart radio. You can not call us -- any any questions you may have and any any information you like to share what does or. The your fellow listeners you can -- -- 802706425. And remember what we'd like to do most now nowadays as we'd like to like to played the camera. Yep we've got to EO -- camera that is our recording all the goings on so why don't worry some of its edited. And the week you know we like to have some fun we like to. Doing -- fashion it's in engages listener so Craig. Without further -- why don't we talk about tell what's going on now on the show today you ready for that idea -- -- -- on the show's Emmy. OK now I have one. All right I will apologists say. You tell what's the first thing and I was really be dead honest with you they think they're paying off your home early well it's a great idea well maybe. Balled up Craig thinks that's just plum crazy. We'll share five reasons why he might might might be right. I'm entered looking to hire an agent to help you buy or sell we got seven and a half questions if you've got to ask them before you decide at. If they are your pro for a day job and Craig -- -- hot HOT it is. Time for -- -- visual on it July home maintenance tips to save you money. Now end to help you protect your investment. Speaking of your investment the roof over your head up might actually need to be replaced. We'll tell you how you can determine if it's time to invest in a new one before you have to use your rainy day fund -- Because or rainy day you were prepared for yet it like that again it did stuff him on the back to school anywhere leave it where it's summer got a well we'll tell you where to go to get to school supplies and a discount. And it might entail a road trip. Finally -- released last those middle and deals are saying you know in oh. To marriage. -- long term impact on housing potentially was gonna talk about that tank also we've got -- We've got where rates are where they're headed Craig is gonna tell you with the breakeven formula is something you implied in any financial transaction that you may endeavor to. Sign on to and we'll have some fun along the way so everyone get buckled and you're in a car definitely -- out and and now. Music is the should you stay or should you go segment. Is that a site just to not let -- do really gonna do it -- -- she Iraq we got the nod okay folks you know the routine as your regular listener first timers what you're about find out. Call us email us questions that might -- dot com with your scenario we'll tell you if he she get out of that relationship get out of that. That's not rental situation or get out of that mortgage and refinance into a new lower rate. Brenda from Myrtle Beach, South Carolina emailed we have a lovely home that we plan to live and as long as possible. We would like to have the home paid off by the time my husband retires in 1011 years our rate is three quarter percent on fifteen year loan with fourteen years left. Received an offer for three and a quarter percent loan on a ten year term. There about 3000 and closing costs. But by paying our house off four years earlier fellow officers said. He would save has about 50000 dollars folks that's a lot of information I know but. But Craig -- really concise answer it sounds too good at it sounds good but wanted to get a thumbs up. Or down from market Craig before we signed anything extra help. Brenda Brenda Brenda personal sit tight stay stay stay if I can tell you any firmer than that I would what basically in the same folks if you didn't take up on out with all the detail there. She must her husband and retired ten or eleven years. The got a three quarter interest rates with fourteen years left on the mortgage. Somebody's trying to sell her -- and three and A quarter trip on a ten year -- because the term or shorter Tesla right and charter 3000 dollars in the process to do it. Folks please hear this -- tell all your friends and family. In less you're lowering the interest rates in the -- did enough to overcome those closing costs there's actually zero savings in this whatsoever. They could simply forgo paying 3000 dollars keep the lonely haven't -- a little extra money front the paid off -- ten -- -- that was the goal. You can't save money refinancing -- has nothing to do. But the savings you control determine your -- the amortization schedules the minimum pay -- have to meet but isn't the maximum pain he can make. Pay whatever you want each month and pay -- off as fast you want but don't refinance and -- you would actually be wasting 3000 dollars couple hours of your time. And whoever is trying to sell you on that he's been punched in the throat. Are they should trust you. Daughters shame -- just like you don't have not yet nobody -- -- issue on it I do not now out now though let's be clear that this guy was that he -- saying Canada and I know it's not necessary owner driver as it is up -- -- -- on it right after an -- scalp him seriously this is that this is. Bad deal so anyone it folks this is why we have is one reason why would you show. There are other reasons I wanna educate the public can't always trust the persons and Minnesota -- give you all the facts it to analyze that you can make a well informed decision that's what we're here to help you do. There's no savings in that the -- on trying to make the sale. Move on down the road -- keep your loan and just get someone to help you do and amortization schedule for ten years on your current balance. It'll tell you how much you need to pay each month and you have a thing paid off all right son Craig let's talk about those side and national average on average for interest rates -- out here every Williams shares with you folks either rates which they were they were the past over the past week. In the week before what they were the potentially heading sometimes we opine on that not always. National average based on 200000. Dollar loan amount. 20% or more equity excellent credit. So you gotta be somebody with you know to get the best rates obviously -- great credit you've got to be -- have a loan that. You know is it reasonable size has -- not equity however if you get mediocre creditor average credit or below average credit. The smaller Lama maybe it be Jumbo loan there's still money alone options and claim information treated. Seek out and shop for and look at on the Internet but. Which is dvd general average for you look at so that you have an idea this isn't the exact reached expect to be quoted. And this just in general reference to keep in mind there fees and closing costs and points as mark mentioned at the beginning the show. The break even formula is where it's -- when you refinance a mortgage in particular you're paying closing costs oftentimes you're moving backwards at that point. In although the rate may go down your payment may go down there's a period of time you have not overcome the expense of getting -- -- done with savings the savings is in the interest alone. Not necessarily with the payment is -- may be re amortizing the loan. Which is also gonna cause -- or -- longer term which is gonna -- your aims to drop as well let's not real savings that's cash flow. So thirty year fixed rate to -- the past week four point 30. That's first 426 the prior week to a slight tick up on thirty year. Fifteen year fixed 3.2 91. 3.3 three. So little improvement on the short term stuff five year arms 3.4 five -- three point 69 again that's a shorter term. -- commitment there on the -- so that's that's gonna be a little bit better for it and then FHA thirty years 399 vs 399 no change so bottom line folks. Fees and costs are big factor try to get zero cost or low cost loan to compare it with of course that hasn't fees and costs -- to break -- formula see which ones. We'll save you more money since just remember us he's got to do the math errors in the master console -- you view it. Life as you bonuses they -- exactly yeah. We are back. I think you know it's. Before the break recovered the rates -- -- a great team for really didn't find that it breakeven formula it will show you the math on how to do it. -- should dot com -- we've got the 800 number. Through the middle of the transaction of any kind if you're in a situation you feel great about you don't feel great about the you're just ensure. Call 800 number that has to -- some advice 1802706425. Does matter where you live anywhere in the United States. Will be happy to take the information get back to -- healthy I think we we can't if you get questions. US to cover on the air or just covered with you personally. Please call the number or you can email us questions life -- life as you own it dot com. All right mark so why should someone may be potentially pay off that mortgage may be people are thinking hey let's get this mortgage payoff and make our terminally easier. More sandy shouldn't as we're talking about today is why I should not so okay so. I'd number one is well you do not have six months. Liquid reserves you don't have a minimum of six months of reserves and we say pay off early we mean putting any amount of extra principal towards. It's either refinancing from a thirtieth 25 or to a shorter Chama. Or. Prepaying now mortgage putting 517525. I don't care who dollars extra. To pay an offer that's what we mean. I think he'd be to refinance to a shorter term or just adding extra principal to your monthly payment number one is. An obvious when we talk about each every weekend you don't have. Liquid reserves you have a minimum minimum six months. Cash in the bank or somewhere where you can just tap into it if you need we recommend before you shorten the term. You should have twelve months but it minimum we all need six months sitting there are -- number two is sound I'm I'd say it's you're not contributing. The the Max to your qualified retirement plan. And so you're not -- number -- if if you're not putting money. In your qualified retirement plan which will be your 401K or could be an irony. Or rock -- traditional and Roth IRA. I'm etc. Then you. You you need to. Not put money into real estate which is what you're doing whenever you paid down the principle when you paid down. That mortgage your investing in real estate BF 0% rate of return on those funds that you're prepaying the mortgage on you just have to do the math. What's the rate of return you can receive on that investment to anything other than prepaying -- mortgage is it greater than the the two and a half or 3% or three now for 4% that is the effective rate that it's cost you Brothers funds. On the and number three. Is -- you have too much month at the end of your paycheck so obviously folks if you're already struck. Dirty struggle that you don't have that he. You don't have the six months put aside -- already just -- -- don't let anyone convince you moved it to get a quarter 38 slow her grades. That you're saving money your your -- and back birds because what -- do if you can't make ends meet you can't make the mortgage payment. Well you're gonna start using credit cards those credit -- -- an -- and higher interest rates and for four and a half 5% of the court your saving in interest. In his savings if you're moving backwards on your financial plan. -- number four is you are not investing in your retirement. In a diversified fashion so I understand it's one thing that you're gonna put money into your qualified plan. It's the next thing you're -- diversified you have investment assets that are driving you towards your retirement goals. Better not specifically. That retirement plan you have through work so before she got her retirement plan. And number five is if you've got children the supplies to you know refined is. -- not saved four or not actively saving for your child's education so these are five reasons Craig any opinion on need these. Five reasons not to get convinced not to wrestle a cellular liberator. Or just the freedom. Of having. Credit card debt and no retirement but no mortgage yeah it's not freedom that now -- -- you only live. Yeah what we find with this a lot folks is it becomes a mental block for a lot of people and I've talked to young folks. Who don't have a lot of money liquid they don't have any investments at any other type of investment yet their purchasing a home they wanna put 50% down or the putting 20% down. And they and they get a bonus comment or they come into some money anyone put that big -- toward the merge against this idea in their mind that this mortgage things -- bad debt and got to get it paid down. Just remember. But he got a thousand dollar mortgage payment. 15100 dollar 4500. Whatever. Most people's mortgage payment is comprised of principal and interest taxes and insurance and only about 25 to 30% year payment is actually an expense. By the time you factor in attacks efficiencies the rest of it. Is going to exist. Regardless worthy of a mortgage or not the Sunni pain real estate taxes your tsunami pain insurance. And remember right now -- -- mortgage payment you're making a principal contribution when you make that payment each month that's your money that you're just putting back in your pocket. When you make the monthly payment so that's not savings when you're no longer writing that check -- just to check you're not moving from. One side of your balance sheet to the other or from your left pocket your right pocket as I like to say so. Having to pay off mortgages usually pay -- pan out as well as people think from a financial perspective. You're definitely certainly not liquid in your trapped with a bunch of equity in a -- -- realistic that may or may not increase or decrease in value of and you certainly would have to go out and take pay some kind of fees probably or -- some type of process to access any of that equity outside of liquidating and selling the home. It's always very diversified liquid in our opinion specialist rates as low as they are keep this in mind so. Let's -- little piece mark. Do we want to jump into what we didn't cover last week we talked about it we wanna move on to the next. Item the ten questions asked -- realtors. All right so that the persona we can't cover last weekend we posted to the website we have time to -- today I can go through fairly quickly all right go for Craig. We have we mentioned last week at the beginning to show we're gonna go -- -- -- five home purchase missteps that your -- real -- won't tell you not meaning that they won't take is that what you know but they may forget to mention it's it's slipped past them sometimes -- cover all the bases so we wanna share those with you really quick a lot of you're not out looking for homer in the process of purchased. We see these little. Gaffes or missteps mistakes made and then everybody's gone all -- -- told juror. You should do that and they say oh why did you tell me this to their realtor there lender so -- share with you some of those number one. Using the wrong legal names. Or legal name name or name is figure if you're married. On the purchase contract or the loan application bottom line is we see this a lot you go buyer -- your real name's Richard are you go by Bubba. Like mark in the -- real name's mark. But there's a lot people who you'd give a shortened version of their name or they leave out -- middle initial -- they've gathered spouses you know. Shortening or whatever on the air and then it becomes a problem. Doesn't match up with some other legal documentation so make sure you always do things that we when -- titled in the way you would hold something and legally. Number two. Writing your -- deposit check from a business account or another account that isn't a usual source of funds. This is a big one and happens all the time let's say your self employed or your wife has a Mary -- -- cosmetic side business sir you've got some little side business you guys -- keep the balance any -- decide that since there's money sitting in there and and it's been sitting there you you're gonna write your earnest deposit check out of it. Don't write an -- deposit check out of any non personal banking account that you're not willing to document where the funds came from. So if he just came -- some money to you just deposit you don't have a paper trail for it don't write a check Kennedy county but that in if it's in your brother's name or your cousins named her. It is somebody else your boss or some as you don't read earnest deposit check. As your earnest deposit to in good faith you know. That's what that is as good faith money as as as a sign that you're gonna hold to the contract to write -- at an account that's not tied to you. A number three rejecting information in your tax return to maintain its peso to other documents we see this often to where people will build a marked out some of the digits. On their Social Security number their bank account numbers. Something to do with a side business they've got they don't want include those pages. You can't remove any information so if you're sending over your checking account statements -- your savings accounts they missed a document your source of funds for your down payment. And you blot out the the -- account number or some other aspect of it it's not can be settled documentation so be prepared to provide all the details. The reform failing to disclose additional realistic that you don't even if it's just raw land. Another big what you've got some piece of farmland out somewhere far far away it's not worth a whole lot of money. You pay minimal taxes I don't have ensured that you failed to mention that you own an additional piece of real state it typically will come up. In a title search and show you have additional real estate and then we've got a document that get docked with taxes on if there's any -- night after proves there's no -- on it. If you own any peace -- real estate whatsoever property or anything that has adapted -- a showing your credit disclose it up front. Lastly moving money around about disclosing -- -- your lender hey if you're gonna move money from savings account or an investment account into the checking account is any use for your down payments. Any transfers of funds whatever. Make sure he talked about this guzzle your lender figure the best strategy in doing so so that's documented properly this is another big hit that slows things down -- mark. We come back right folks. Hang in their way back in if you like you -- it.