Life as you -- -- with mark McDougal and Craig Miller. Remember you got questions we've got answers you may not take time to 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 the -- you know it's just good old fashion. Yeah. -- -- bits like -- you don't have a great weekend starting off to a little luck. A rough start there is coffin slowly get a little bit choked up because it's another another weekend is upon as another opportunity for us to hang out with you. Our friends and I mean personally my good buddy Craig. I'm Margaret do what he's Craig Miller and if you're checking -- out for the first time now well welcome you're regular listener thanks for catching as. Yet again and we appreciate you joining us from -- -- at 800. 2706425802706425. We wanna hear from him he's got questions we've got answers. To big show this weekend -- it is big that's almost too big for his next hour of your life folks too big for you can't we just -- you how you do enjoy a good week trek. It was a fairly good week I'll say and I am pumped about doing the show because I'm excited to share in some of this information of their listeners if you thought you gonna get away with tuning into about ten or fifteen minutes of life as you know this week you are wrong. -- be here for the full fifty whatever minutes we have left of your time because you need to be here this stuff is going to be invaluable to. That's right okay so why do you consider your home and investment cracked. You know it has to be considered that way yes idea. Of course she do but did you look at this investment like you would any other. In those ways I did from a risk perspective sometimes. Are we got five mistakes you need to avoid been looking at what might be a big part of your net worth your home. Investments. Also see you're buying a new home OK so maybe is not fresh out of the box. But it snooty you and you were told you should get home inspection that well Craig do we think our -- should get home inspection -- do we. Do we ever yet we agree you need to get all inspection is there anything bad inspector might not. Not beat telling you you bet there is we've got eight things we think they might be holding out on new -- -- count on they don't want that -- so you're not the most handsome house on the block that doesn't mean you can't still sell at a fair price. We've got six tips to help you sell your Craig -- duckling ethnic and the kids here. Did you hear about the Internet lenders that provided misleading interest rate quotes from. Narrow now Hala well they have twenty million reasons to clean up their act you'll tell will tell you what to look out for. When applying them on line for a mortgage yet. If your home too Smart for its own good. Minus not when it's down pounced with a little that are nearly -- -- -- that. We'll tell you why it just might be a little too Smart and what you need to do to protect yourself. From. Prowl. Craig you know Alice right how's it computer it was not Hal McRae took a legendary Bonnie Blair -- -- -- royals. -- -- -- boy did I loved each other and watch them play baseball that's right so while folksy you wanna stay tuned for that's and what else Craig according to CNN money there are some states where you can get a much better deal on your mortgage you will share the top five and in it Mythbusters fashion at. Will tell you whether this is -- Or fact. -- -- -- Are you ready and I didn't -- what it's gonna tell you fact I'm an offense you can listen the show on a regular basis -- you have your financial house in order now it's time to get a good night's sleep. You know you need it we've got seven steps to getting you what the good night's rest -- death all compliments of your friends that night that you won't it. And this music -- familiar why would playing music now old because it's they should he stay or should you dose segment. Ready you send is your scenario you said to your question now gives up information that we can give you the goods the yes more than no way. May Craig I'm -- Indian Estes Park Colorado emailed. I own a cop out for unit Condo that eleven. I read the remaining three units to various people throughout the year my rent is pretty consistent and I show a small profit from a tax returns. -- planned to buy another home within the next few months and just retain this Condo as rental property. My radar and it is five and a half percent and I've been told I have enough equity to refinance to a rate in the low fours. So here's my question one lender I spoke to told me to refinance now while I still live here so I get a better rate as it will be considered my primary residence. But in another sense that I have been preapproved and actively looking for a new primary residence. I should treated as a rental because that is a more honest way to approach it. What do you guys today. Should she used. 58. Or should she go and refi and do so I guess it's to park should he stay or should go do -- as a primary or as a not right. I believe she should refinance and as a non owner occupied property. Under the since that she has expressed in the next couple months she's gonna buy next few months and she's already been -- to do so. So she -- the intensity they keep this property retain as a rental properties it to me as someone said what's your future plans -- this property that was a question on the application. And it's to rent an all out then it's a rental property now. You can -- on both sides my opinion is I would like to err on the side of being more ethical and in that. Grainy gray area stuff. There's some people say William bought a house yet we haven't you know you don't have another house humidity just yet so it still is your primary residence technically. To me your you're potentially. -- on some thin ice there with what the verbiage is when you sign that new mortgage notes so -- rental property. Okay folks remember if you've got a question if you've got -- a scenario were happy to answer it might be selected it just like -- these to be read on air and I might mention. You can watch the show remember -- you can catches up YouTube. You can podcast the show. That you can now go to I heart radio and you can go to. Tuned in radio those are some of the resources and what we want you to do is if you're driving through and hearing our show for the first time -- passed through a lovely city. There's all cities or carry like -- at our lovely and it you need to well when he gets home. So wherever it may be call your local radio station the biggest one in town we might add. And demand that life is you own it is picked up to be carried on. We love commentary on the weekends does your little more relaxed she got a little more time some of the information this year can soak in but we know you can always catch all the shelves remember go to like to -- -- dot com. You can podcast the show you can catch snippets of it. We like snippets right need to get on that -- a did you get a snippet a snap that interest get a task at a tracks get -- I lacked any of those you can catch cover them we evidently yet the website so while we appreciate you helping does -- grow this. Show and dies we spanned across the globe were excited with each -- Philly we had thanks for your assistance okay. -- -- -- -- same thing we do every week bringing the national average on illustrates. Of course this is the general national average that we. Compiled as we pulled -- data from those who are putting it together. It's based on 2000 our loan amount or greater. Not necessarily Jumbo loan however it's also based upon 20% or more equity. So keep in mind that you're scenario could change depending on those exact figures it's -- with perfect credit we're also assuming as well. I'm seeing some strange things happen with these national averages and I'm wondering if -- target Smart not pain as many points as the used to pay. To do a thirty year mortgage I'm not sure but here's what I've got -- yet. Compared to last week folks. Last week thirty year fixed rates the national average was four point 24%. This week it's four point 43 according to the data I disagree. And that's what the data says but every day of my life when I'm not doing the show. And I'm not playing at my kids and whatever else I am doing this job of helping people fear the best mortgage plan for them -- and I am not seen. That over the past week that interest rates increased like that they stayed about the same. So somehow or another what I think's happening is is that may be a national averages skewed by a lot of people -- locked in mortgage loans did not wanna pay the points some lenders charge. And that could be the way it is right now if I was put a number on it I think your average should be somewhere in the fourth quarter -- three -- -- a thirty year fixed rate mortgage. Now fifteen year fixed last week 3.2 zero this week three point one sevenths -- very slight improvement. On a shorter term fifteen year mortgage five year arm 3.3 two vs 3.2 one again slight improvement on five your arms. And FHA fix went from 370 last week to 374. Average and a thirty year fixed FHA about the same again flat. Also Teddy -- regardless what does data says. For the first time in several weeks I'm finding that I disagree over the past couple weeks with the data that I'm seeing. On the thirty year fix alone and I think that rates have been flat so watch that these folks watch the fees and of course always watch the fees we can't preach that enough. You've got to go to our website like visual dot com check out the breakevens formula learn how to tell whether you're saving the most money. Or how to save the most money comparing scenarios not always about the rate folks sometimes the closing costs can interfere with your savings. We always are gonna are funny about that because the biggest mistake we see people make when they refinance or even when they purchase. Pay too much in fees. Try to buy their rate down and necessarily well kmart's. Right when we come back guy that home it's a big investment we tell you the five mistakes she might be making when you look at it just as such you audit. All right prince we are back life as you -- it. Talking about that home investment it hasn't been treated as such in your life did you look at that -- -- body did you look at just as the roof overhead you know what. We hear mixed. Positions on this it's in the fact there are some. Financial gurus out there may be some talk show hosts are different people. Who have I'm a bit of -- public present some might say hey don't ever look at home as an investment it's a roof over your head that's -- treated completely disagree. Believes mark would agree with me on on that it is indeed an investment fact truly anything that you put a large portion of your income into. In some sense or another is an investment you're investing money that you earned it based on your time into that thing. Value maximizing can make all the difference. And whether it's a losing investment are gaining investment whatever the case it is indeed something you're investing your hard earned money and so. Five mistakes need to avoid them looking at what might be the biggest party -- net worth mark what are they are one of the biggest ones we see is -- too much investment risk. You can apply this to any investment you make. But it housing what we're focused on what does that mean. -- spend too much money on the home folks you don't understand the real cost associated with it. Your mind a five bedroom four bath home and there are three of you and household. Andy you do not like your in laws so folks the reality is. One of the biggest components on any investment is argue. Out of your skis too far over your skis are you spend in more than you should it. Is the risk greater than the potential rewards -- -- number one. Number two would be what Craig as a relate too little investment risk and because sometimes when when we talk about the investment risk is relates to home it's not that. Saying you spent too little on the house. In this instance we might be saying that you have chosen to buy a 1151000. Dollar house. Mom and -- in that 1151000. Dollars you chose to put. All of your life savings down on the house -- -- you put all the money you had and you put it down on the house took it out of savings etc. So where you may think you're taking too little. I'm where -- being conservative and you are rock. I'm taking -- you're actually taking the riskier route beyond that you were spending more of that money that could otherwise be. In another risk area that we see considers diversification. Too little diversification so you think you're taking too little risky to put a down payment on the house. Really you're taking greater risk because your -- removing that liquidity that's what we see a big portion of people struggle to put 20% down. And they will do it in the fashion it leaves them no savings to pay you in the event of a life emergency. Credit card debt is set yeah so -- put money in the savings account and -- half percent interest or less. And you think you're being conservative because you just know there's no way your -- is gonna lose values you're protecting yourself in reality you're up against the effects of inflation on year in the -- -- on your money. And now you're actually losing you know couple percentage points or more. On that quote -- investment that you think is safe I mean there is a right way to balance your portfolio. In and a avert some of those risks and balance out and hedge against inflation so that speaks or number 32 little diversification and then we go to work too much diversification. Craig sometimes we like to make things little more complex than they should be. Often times we may consider we own a home maybe it's our first home it's a Condo and report thinking that we're going to. Common now rented because we can cover the mortgage payments and we're going to buy me a larger home we've got -- restore family etc. Our recommendation is keep it simple unless you've got to a good track record to them or really the spare time in the understanding of the business plan that you can now. Can can really make money on the ads keep it simple and I don't over diversified. In the other parts on over -- -- peace so that makes sense of -- sister medalist and all right and the fifth one Craig what's the fifth one with a number six in front of you using past performance as your -- this can. Ninety in the tiny folks try to discuss -- went up 7% to 15% over a three to five year period does not mean. That you're willing to put your life savings into becoming yeah. Are a real estate magnate. I'm -- it also means that you shouldn't count on that same continued performance I think. Safety folks real state is a long term investment some of -- we've always told you. And if you if you use inflation is a guy did your your pretty safe and you can see it's historically run -- -- two to 3% as the rate of return there can be. Multiple instances where you can do better than that where you get some sweat equity and house where ultimately you've been there and the market's gotten hot all those things but when you're considering it is an investment. Look at it a conservative numbers conservative you'll always come out ahead that's right okay so -- what's next what's next on the agenda -- Com let's jump into your -- a new home. Not fresh out of the box or is not it's not necessary pressure out of the box IE its new do you look but it's not one that was just built. And down we think there are eight things your home inspector -- hold back on. Let's talk -- get a home inspection before he died just absolutely even a brand new house I've actually bought two homes or brand spanking new that I watched. Be built and I still. Had them inspected partially through the process and then at the period I think it's recommended always have someone with a good set of eyes. That's got some experience and they're doing to look over any structure that's been built OK so we do this just a little bit tongue in cheek but we say these are some things that. May not be telling you we know that the home inspectors listening to the show -- of the utmost professionalism. -- they've got their certifications and they are do it at all by the book going above and beyond that there's a handful of yet. You gotta be -- got to understand there's a handful of of them out there that might just might. Hold back some of this information number one is the house is fine but I could make it look bad. This is these are things the home inspector might not be telling you and well they could bomb lead they can you you look at a house of its more than. Two years olds and Tom are five or ten years old. I'm there's a lot of little detailed information they can put that to the average consumer looking to buy a house they go oh my gosh. This is terrible. Whether it's reverse polarity or if improperly grounded. Electrical outlet at several minor details to fix bullets cannot add to a long list of items. Numbers does not know the thing that they may not it's meant that tell you home inspectors could top one over few Beers which you know we'd like to do some time. On the get the house not the inspection. What does that mean well he had -- you need to look at the big picture you need look at the house and say okay this house. It is what I need what I want that's it fits the bill there may be some things we need to do that it is the right dealer transactions not him. Focusing so much on every little bit -- thing about the inspection expecting it to be perfect nor be -- you should be buying it. Right where's the inspector believes that if you utilize their inspection that they think it should be pretty much everything you get done not necessarily that's what that's that. My number three is qualifications I may not have any. So only just a little over half of the states require. On people's lips go out to -- home inspections to actually have some some form of certification. We recommend you always use a certified home inspector AS HI what's that the American society of -- home inspectors. Something like that's is is a Bay Area a reputable organization that we. We'd strongly encourage -- haven't -- that accreditation if you can use a home inspector. On the end you know my credentials are pretty easy to obtain even if they have on the certain credentials it's not. There's a certain number of inspection -- they can get to be an associate there's a higher number of hours and accreditation they get to be a full fledged. Certified -- giant or an AH -- member and again that these organizations that if they're not a part of do you not utilized. But but 'cause they have these. That in and of itself book this one has an MBA because they have it there's CFP. I'm or they have there CPA does not make them the very best accountant the very best financial professional. Or the very best -- -- an MBA the very best business guru number five I'll cut corners to keep the agents happy. You won't hear you -- NN gas unfortunately folks there's a small. Small number that do it clicked yeah they can make report look a little bit better than it should to because they. Are generally referred by a real horse and real estate agents your best -- ball real estate agents. They're knocking out for the people that do that anyway. But folks it does happen. Number six feel free to watch. They may not tell you this you need to be their for the home inspection be their during the entirety -- it. But see all the they're going through you wanna get to know that house well before you end up making you worse. Number seven to find a series. Problem you mean it may need someone else. Yet they may not mention it but yes you were we'll need to bring in a structural engineer need to bring it -- is that all -- -- DC I actually big problem yet Obama and -- to number eight is I can make money from the problems I find you won't hear him say that but some of them. It's not it's they're not supposed to do but some of them that are a SHI certified or members etc. -- offer to do the work on the problems they found. Not a good thing -- visual and it's. Back and if you -- there and it's pretty easy. Here.