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The Refinancing Rush

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 4, 2020 8:03 am

The Refinancing Rush

MoneyWise / Rob West and Steve Moore

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September 4, 2020 8:03 am

Mortgage interest rates may be the lowest they’ve ever been. But if you want to get a new mortgage or refinance, you better take a number.  So, how can you take advantage of these rate offers when the lenders are log-jammed? On the next MoneyWise Live, hosts Rob West and Steve Moore talk with mortgage expert, Dale Vermillion to find out.  It’s the refi-rush on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore
Planning Matters Radio
Peter Richon
Rob West and Steve Moore
Rob West and Steve Moore

Mortgage interest rates are the lowest they've been in. Well, maybe forever think the time is right to refinance or maybe get a mortgage on a new home. Better take those rock-bottom rates and real estate possibly having toward a buyers market are causing logjams with lenders capitalize on current condition today host Rob West talks with mortgage expert, Dale Vermillion to find out that we take some calls from all across the country.

However, today's edition of the program is not my arm.

I'm Steve Moore. The refinancing rushed past next and moneywise line Robert yesterday over million wrote the book on mortgages and back. It's called navigating the mortgage base and if there's one guy who can make sense of today's unusual real estate scene. It's our old buddy Dale so true and downgrade to have you back with us all honor and privilege. We really got a lot of thank you sir when you started your business Dale back in 1983 mortgage rates interestingly were around 17%. Did you ever think we'd see them as they are today. Not in my wildest dreams and frankly, they're just going to continue to keep going down from heaven. We see what we can literally Rob see rates under 2% on the near term oriented before the things over all incredible what what do you think will drive that move below where we are today.I just think we see continued pressure from the crowbars pandemic for continued economic pressures in an election year. No change rates and election year. All of these things combined together admit this is the one thing that doing well in the economy could drive motor rates down interesting. It's a deal.

Given all of that historically low rates in folks that are really looking to take advantage of them describe if you will. What's going on in the industry, and in particular the pressure. This is putting on the mortgage system well. I like to call it controlled chaos, but I'm not sure you've got volumes that are 2 to 3 times the highest we've ever seen in 37 years of been in the business and refinance activity. Plus, you've got a very ripe purchase market you combine those two things. It's utter chaos and companies are literally just trying to balance of much of that can handle a business. I got are there ways to actually expedite the application process to try to shorten the timeline on how it takes to get one of these done, you know, there are because even in a crazy time like this where you're going to see 60 day locks a set of typical 30 day lock, sometimes even 90 days taken close alone. The more prepared you are asked the borrower, the more documentation you have when you start the more you do your budget and you have credit explanations for issues and you make sure you have everything together your income documentation your mortgage statements you your insurance information. The more you do that, the more you can expedite the process and be on the shorter side of those long time frames. That's key you know whenever you're making a major transaction purchasing a home trying to secure mortgage refinance mortgage having that documentation in order is so key it's a great thought Dale Dale is the demand in the backlog of mortgage applications you're talking about affecting the ability to take advantage of these low rates and actually lock them in. Not really affecting the ability to lock command what what is happening right now is most lenders are extending their lock. Much longer and your seeing contracts from realtors better start to extend past the normal 30 day timeframe that we usually see and a lot of the lenders what they're doing because they don't know how long it would take is they are ensuring and they're making sure that if your lock expires there covering the cost extension but that's really important question to ask when you're applying because normally there's a fee that you have to pay if you want to extend your lock you want to make sure going in.

Hey, if this for some reason doesn't get close and the time that we think it is will you extend my lock without charging me and protect my right asked that question that the critical question, ask your lender.

Let's talk about this lot just for a second more. Another something called a float down. Would you expect that as rates continue to come down even during your lock. The folks should be able to see their rates adjusted down after they lock or is that a separate provision float down is a one-time option where let's say that you were locked in it to 1/2% today and rates dropped another quarter percent. You get one option to float down and only some lenders habit and then once you choose that you're done. Here's the bottom line. I think people get really worried about losing a three-quarter reminder so we are in the lowest rate in all three of you get to Hamburg to increase the quarter be so happy you got your two and 3.2 million with us today this moneywise line less than many people adopt an attitude toward marriage and finances.

Then it will all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money and marriage God's way by Howard Dayton will help you discover God's approach to growing your finances and strengthening your relationship with your main and cultivating godly joy, money, and marriage God's way is available and moneywise you have money in a retirement account for just a general investing. You know, the stock market sometimes possible to enjoy both profit and peace of mind and investing no matter what's happening. You can see a short video webinar on sound mind since 1990 sound mind investing his thoughts offer financial wisdom for living well sound mind investing.RG this is not as a receiver. God's wonderful grace kind of attitude. Should we express listen to the Bible from Philippians 2 attitude should be the same as that of Christ Jesus, who, being in very nature God, did not consider equality with God something to be grasped, but made himself nothing, taking the very nature of a servant, being made in human likeness. And being found in appearance as a man be humbled himself and became obedient to death, even death on a cross. Therefore God exalted him to the highest place and gave him the name that is above every name, that at the name of Jesus every knee will bow, in heaven and on Philippians 2, listen to the bottom right or more radio Do you feel like your hands are tied with deck preventing you from serving God. If you have credit card debt. Christian credit counselors can help through our debt management program we can get out of credit card debt. About 80% faster while doing your debt info. For more information on how Christian credit counselors can help visit Christian credit Christian credit or call 800-557-1985, 800-557-1985 is never to talk about mortgages interest rate one this guy right here Dale Dale were talking about the incredible demand because of the historically low interest rate environment that were in brought on by the coronavirus pandemic and the Federal Reserve is basically said were not even thinking about thinking about Rick using rates so it's not going up anytime soon and as you said in our previous segment is putting a real strain on the mortgage industry right and really writable the issues that lenders you're dealing with right now because the volumes are just so high so you really have to go with the mindset of being very patient understanding that, and the more prepared you are, again, the faster that loan transactions get a move else is looking at the traditional 30 year mortgage and they're seeing and hearing rates of 2 3/4 maybe a little bit higher a little bit lower. Is that a rate that they're going to have to expect to pay points to get or should they be able to get that without points and just paying the traditional closing costs. It really depends.

You can use points to buy down your interest rate at any time of transactions that when you see the two and three-quarter percent rates typically there showing the interest rate not the APR, the APR is typically higher than that because the points are added to it. So if you see it or you might be paying actually close to 3% when all is said and done, but you can buy those rates down here if you're going to be in that home, and you want to make the lowest rates connection with for a long time. It's really good about almost points because you make that money back tenfold over time and let's go over the rules of refinancing just to make sure folks understand even in the slow rate environments they can make some mistakes by extending the term paying too much in closing costs. What would you have people to know if there considering whether a refinance is right for them. Here's the deal. Rates are at historic lot we've never seen them at this rate so you can get anywhere from 1/4 to 1/2% reduction usually half a percent of the number that I look at as the minimum that you need to work. You can look at reducing your term and your payment both at the same time we talk about this every time you never want to re-extend your term on your mortgage that's just that's just wrong use of your font. It's not good stewardship you want to get out of debt as quick as you can. The Bible is clear about that. So when you go and if you see 1/2 a percent less. We are right now. Start looking and start digging.

Talk to multiple companies remember our 24 37 by wisdom a house is built through understanding it establish you want to talk to multiple different lenders, your bank, your your current mortgage lender and then go online in places like bank rate and look at what's out there and make a couple calls.

Just don't apply for different place to start with one given offer and then start to compare from there to drag you into something that you're not. But I have to tell you, there are more houses for sale in my neighborhood that I've ever seen and I've been there for almost 35 years.

I'm starting to wonder whether it's us, but I'm I'm going to blame it on the market conditions instead.

But two people that I know of have actually gotten more money for their house than they were asking what's going on there. Very strange market right now because were actually start seeing a lot of parts of the country were to move into a buyers market and people are selling for less than the ruling to do that because of the 40 million+ unemployed people that are starting to be concerned about their expenses, but you do have hot markets like Atlanta and other places where the demand has been so pent up for so long and now houses are available, people are just snatching up as quick as I can. I think that's can be for a short period of time, but because of the low rate people figure you know what I meant to make it back on the other side with a lower rate. So were seeing some of that in certain parts of the country. You mentioned that these are the lowest rates you've ever seen rules that have been in place for decades actually being change now you have to look at the market totally in a totally different way. No II think that fundamentals are always fundamental you want to reduce your term to the shorter term.

He could possibly get you want to make sure you do a budget before you ever do anything in a more transaction and and follow the rules of savings make sure that when you go into that more transaction.

You remember that the benefit is you can lower payments you can lower costs. You can make sure that your reducing term, you can potentially gain tax benefits in the process and you also remember when you refinance many times you get an escrow refund of your current escrow because it included in the new loan to come afterwards that can build a reserve for your family to really protect them for this crazy market rent today great information deal going back to refinancing for a moment, let's talk about the process of where folks should go, how they should begin to explore these rates.

Obviously not all lenders are created equal.

Not all charge the same closing costs, not all have the same rates. So if you were the average consumer wanting to pursue this. They haven't thrown the common sense rules out the window. They are gonna be there for five years. They are committed to making sure they don't extend the term, they're not. You pull a bunch of cash out unnecessarily and they can get at least 1/2 a point to a point reduction in an interest rate they're ready to start shopping where they go next person you want to educate yourself on the marketplace bank rate is a great place to do that will show you what the national averages. It will show you what rates are running with different lenders always check with your local bank that you normally work with. Always check with your existing mortgage lender to currently have a mortgage loan because many times they can do it will be cheaper for you because you're not enough space in closing costs in my with others, but what I always do it once I checked those and I checked online. Try one or two online lenders that you can contact see what kind of records to give you. Make sure that you understand that your not know what your rate is on till you have had your credible you have verified your income. Those two things are critical lot. As we get a rate quote and we think it's good but we haven't verified anything and that changes. Later, remember.

No lender can give you an accurate quote until you provided those two primary things okay so you want to have all your ducks in a row. Let's talk about the person you're working with. This is not just putting in an online application and everything happens in the background you're actually going to have to work with a real human being, it's going to take you all the way through the process toward closing. How should you factor in who you're doing business with you great? We work with mortgage company today and the individual that you're working with is the representation of that mortgage company to be due, so it's really important to not only check out the credentials of the lender and make sure that they know they're there. They have great credentials, great online reviews all those kind of things, but you really want to know about your loan officer you will make sure your work with somebody who's experience who's knowledgeable and who is my integrity. That's the key.

Somebody you feel, what that is giving you a straight shoot on everything there. Talk about that is really really important, no question about its daily covered a lot of ground today. This is an incredibly historic environment that were in right now were so thankful that you were here to help us navigate that I know your book is a great resource to get that information in just a moment, but just a few seconds left. What would you like to leave our listeners with today 515 to 16 is perfect right now. Be very careful in how you live not as unwise but as wise, making the most of every opportunity because the days are evil. I mean that we are in a lot of turmoil right now. There's a lot going on. Make a good sound decision for your family and make sure that you back yourself up and build security in what you do. We always learn so much when Dale Vermillion joins us in the program.

You can sign his book is the simple truth about financing your home when you go online wherever books are sold.

As they say you'll find this book. Navigating the mortgage, amazed by her good friend listening to moneywise live Weston's brief break more. Many people adopt an attitude toward marriage and finances. Then it will all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money and marriage God's way by Howard Tate will help you discover God's approach to growing your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and moneywise click click away. 33 Scripture to God receiving the long course it was not to praise and worship false worship God, beginning 33, to keep my promise to get some promised land protection you think you on your way every promise You might not tell you I'm not going with you. I may kill you.

My experience do you know if you have enough money house. Do you know how much is enough. If not, one blue can help with this book.

Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise Thanks for staying with this is live your hostess Rob last time Steve Moore and we have a bunch of calls. So let's dive right in Devon or Iowa hi Jeff, what you question for Rob West hi Rob were promoting fixed annuities with life insurance companies. I believe you and you shall grab swear it's guaranteed that you would not lose any of your investment and that would only go out that it would only go up 3 to 6% a year, unless the market did extremely well in which case you would get a higher return than you 3 to 6%, but generally 3 to 6%. What It should never lose any money. And then there will be no fees associated with this Psalm on the level you said no fees associated with this, you know, one of the challenges of these is they usually come with high fees.

Their complex, so most people don't understand them and you can end up generating some significant taxes. Now what's the benefit. Well, they don't have contribution limits, he can put a bunch of money in they often will grow tax-deferred and it can have these floors if you will, where you're not losing money but you get a percent of the upside, my preference, though, Jeff, for most people who are just trying to save is to eliminate all of those fees and commissions keep things very simple and invest in a diversified matter where you capture 100% of the upside and the downside but you're counting on a proper allocation based on your age and risk tolerance and time horizon to really work in your favor and you know, unless there's some other purpose.

You don't have a retirement plan available to you or you know you need some other component in here or you're just completely risk-averse and in.

You want an insurance company to handle this for you then I would rather you go a more traditional route. Just be a distant, disciplined, systematic investor investing for the long haul and you know that's where most people build their wealth over time as opposed to getting into these complex products with all the fees and commissions associated with them. That's just me Jeff or me. There's a lot of people that would probably take issue with that and could show you all kinds of graphs and charts and illustrations as to why this is in your best interest is just for me. I like to keep things simple and I don't like to pay a lot in the way fees and commissions. I agree and yell my my dad was the same way. Vern was just under 25,000 teaching school and yet when he died at age 95.

It is almost up to the second million. Just by investing yeah he'd read the prospectuses all the way through college broker broker adapt date amount figure out what he was asking you very well.

Now I can imagine then I think that's really the way I like to see most people invest because it's not complicated plays on this idea from God's word unsteady plotting were you just steady plodding over time and you know were not worried about all the complexities inside one of these products, you know, often times when they say no fees it's because they're basically built into the.

The policy in such a way that they reduce the amount you could have earned but at the end of the day, everybody has to get paid. And that's how these things are built, so I'd probably go a different direction. If you don't have an advisor.

Jeff, you could find one in your area there in Iowa by going to our website moneywise just click on find a CK-ite interview at least two or three before you make a decision. Jeff, we appreciate your call buddy. Thanks very much. Greenwood Greenwood, Indiana and Karen.

How can we help you.

I know I are coming to a close retirement years and he got he 65. Can I turn 66 later this year where we have been contributing to a traditional IRA and were wondering if we should continue to do that. This last period of time, predominantly for that tax deferment kind of thing but the stomach's interest to do that in this kind of a market which could change yeah I think the key is that you can take advantage of the tax benefit. It gives you the way to continue to put away money that you have available down the road and you know it at the end of the day. Although the tax environment could change if you don't need this money right now.

It's a place where you can park it. Unless you have some other plans for additional giving their lifestyle related or something like that at some point, though, you'll likely reach what you all might deem as a financial finish line just to say you know what we have saved enough and you know at this point we don't have a need to continue to save and therefore can increase our giving or or you may decide to continue to save and use this as part of your inheritance that would certainly be up to you all, but I don't think there's anything wrong with you all. Continuing to contribute as long as you're able to and you don't have a need for the money I want. Work were not able to contribute to our well that's right, you do have to have earned income, but you used to be that once you got to 70 1/2 for you, could no longer contribute to an IRA. Even if you had earned income with the new secure act that rule no longer applies. But you do have to have the earned income will run into having to pay taxes on Sharon and his Social Security slowly have to pay taxes on the way we start taking money trying running out. Yeah, I did just depends upon if you have any other income or what you have, you can visit to the Social Security's website. Get a good bit of information on this but if you're drawing out the traditional IRA. Obviously, that would be taxable. And then, depending on any income you earn a portion of your Social Security may be taxable as well. Should be a good idea to do some planning around that perhaps set aside a time to visit with the Social Security Administration do some planning with them will be very helpful. Karen will have to let you know that we appreciate your phone call wish you and your husband the very best. Thanks so much for listening to moneywise live reminder that today's program is recorded. Don't try to call Lynn but also please don't go anywhere we have lots of interesting questions coming up in one of just maybe you how should we as Christians think about investing.

What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially. CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested.

Learn more by calling 800-791-6225 or online at CH ministries.more hi my name is Lyle radio verse of the week is found in Psalm 127 versus 1 to 2, unless the Lord builds the house, those who build it labor in vain unless the Lord wants this watchman stays awake in vain in vain that you rise up early and go lay to rest for he gives his beloved and that is Psalm 127 verse one through to the radio verse of the week okay raisins one cracker single almond. We sometimes Christians themselves virtually the same one wanted to give something of the word and application. Briefly, all word's agreement to you more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money.

Author Randy L breaks it all down in a simple, easy to follow format that makes it the perfect reference to if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you store moneywise live police union leaders as the officers involved in the supplication death of Daniel Pruden, Rochester, New York were just following their training Buddhahood over his head and penned the ground for two minutes before noticing it wasn't breathing. Says the officers were in a difficult position, trying to help someone who appeared wet mental illness. He says they didn't intend to harm the US unemployment rate fell sharply in August from 8.4 to 10.2%.

The labor market says employees added 1.4 million jobs, stock market, ending a second day of turbulent trading with more losses but managed to recoup some lost ground by the end of the day, but now it actually moved into positive territory in the last hour before the closing bell down to drop 159 points.

The NASDAQ was off 144 Mrs. SRN use by now you guys that music, yes this is moneywise live your hostess around last times more phone number mentioned today. Please ignore that phone number. Today's broadcast is a reprise edition of the program. If you don't mind somewhere not in the studio taking calls coming information will help less wise steward of what God's given Waynesville, Missouri hey Jim what's on your mind in the Army and my wife and children to watch one of the lower housing. And I'm just wondering about for years. We should rent or buy compost that he could have left you are very blessed. I'm sorry to me to catch up. The last part of what yeah yeah well it's the 2 to 4 years. Jim that that would cause me to say immediately. You need to rent that's just not enough time. Given the cost to purchase a home. The cost of the transaction to be able to recoup that. Especially given that the housing market doesn't always go up and were in a very hot market right now, which means we could see in many parts of the country or cooling of home values meaning certainly level off, if not a slight dip depending on what happens over the next four years. With regard to the economy and when you add on top of that the cost of the transaction, you're likely going to be underwater on that. So unless you are just going into an area that was very difficult where rents were up very high. I think you would be much better off. At this point renting. Given the short timeframe that you've got my producers tell me that there is one group that you want to check out cold. That It's run by a group of realtors who are themselves veterans and they would be able to share any specific financial situations or opportunities that might be specific to veterans. So that's that but other than that the short timeline is what's got me concerned about you by Jim. You probably with a children.

This doesn't happen overnight so you probably struggled a bit over the years we have having a large family. As far as housing is concerned, but I would urge you to check with local churches in the area they would have. I trust may be an open heart for someone like yourself moving into the area, perhaps looking for a home church and they would you again, I think would feel some some compassion for you and that maybe someone in the church that has a house that's a little larger that could handle a family. The size of yours so you might want to call or contact a couple of churches. Once you get to Tacoma but we wish you the very best with that we will keep you in our prayers Jim and his family as they move from a military post in Waynesville, Missouri all the way to Tacoma, Washington. Continuing on Ashland Ohio West that you question for Rob my records for my retirement and I noticed that almost every time I've sold off on reinvested in another fund, even if it's within the same font family or company sale shows up at much lower price per share than what was quoted at the time I decided to sell and happen with several different companies that sneaky way to invite folks who want to stop their share by other shares as well. Not necessarily West use of the word fun so I'm taking that it's a mutual fund is it inside a 401(k) or just at a brokerage firm brokerage firm.

Okay okay so basically what's likely happening here. Remember, mutual funds are sold at what's called net asset value and so they don't trade like a stock where you can see every tick up and down when the markets open during the day and where you can set a limit order to say I want to sell at a very specific price and get out when you decide to liquidate your shares in a mutual fund, you get the net asset value at the close of business that day.

They calculate all the total outstanding shares and factor in the price of each share and then you give you your pro rata portion which, if you sell on the day the markets headed down you're looking perhaps at the day before's closing price, and perhaps the slower the next day. The other thing that could be going on is there's two types of mutual fund you have what are called no transaction fee funds and then you have others that which is the majority of them that are subject to a transaction fee, so there could be a transaction fee that's being imposed on these.

It's likely the case where every time you sell or buy that transaction fee is kicking yeah and that's being deducted from the proceeds of the sale, so it's probably one or 21 or both of those issues that are going on the last one could be a load. So these are not no-load mutual funds.

There could be a load of some kind that's imposed on the backend, that's less likely, but any one of those three could be going on okay a little light on the wrong day, but I would check your statement and just see what's going on in every transaction fee, or any loads that are being imposed.

I should be there in the details, and so take a look at that and then you should be able to figure it out.

Assuming it's not just the result of the net asset fee. Thanks Wes. We appreciate your call today very much. Robert you say we try to do a couple of emails here are that sounds good. I this begin with a one from Skip pieces dear Rob and Steve, I have $125,000 in cash. How can I invest it in the CD a bank or Vanguard is probably been listening to the program. Skip, you can invest this in the CD very easily. In fact, over 25,000 going into CD to get the very best rates I would start by going to bank bank and put in the amount of the CD.

The duration you're looking for looking for 18 months two years three years five years and then see which banks with FDIC insurance are offering the most attractive rate you find a number of them and I shouldn't be any problem linking that new bank probably an online bank to your checking account.

You'll be able to just ACH transfer the money in initiate the CD set up your online account and you are off to the races.

He has an interesting follow-up. He says won't depositing $125,000 and in cash. Create homeland security?

Well, there are some new rules that came out several years ago accident number of years ago now related to know your client where when you're making certain deposits if to ask questions, but it's not. These questions are going to be a voluminous that it won't create any problems, you'll just have normal questions that any financial institution would ask when you're opening an account okay. I next emails from Kim. She says we just sold her house and paid off all our debt when we tied the profit from the sale does it all go to our church or can we quote spread it around yeah Kim, great question.

The key is here. The profit from the sale will were talking about house. Make sure you're looking at the true profit after the expenses of course subtract out the initial purchase price, and any improvements but then I would see this is your increase so I treated just like any other income you get and ties 10% to your local church sounds good to me always sounds good to me because Rob West really knows his stuff is the president of kingdom advisors joins you each day. At this time. Taking your questions and 800-525-7000. That's something I'll forget thanking those behind Judy and particularly Rich for his assistance.

Today will be right.

Do you know if you have enough money of house. Do you know how much is enough.

If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment and how to save, invest, and give wisely create a long-term financial plan and how to get out of debt.

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If you answer the final question. Within minutes the check was in your hands for $1 million what would you do, odds are you've already got an idea how you go about spending your whole world is going to change.

You'll soon discover that the opportunities for spending that money are endless, but the change might bring type of change, change that you need can only come from one source. Sure, you can change your address and how you get around. That's not change. Change can only come from beginning to save you've heard his name celebrated his saving relationship if you like to experience the change only call 1888 somebody is there, ready to tell you how you can begin a saving relationship with Jesus Christ. Call 1888 need to learn more. The financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst, and splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later. Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise one tall glass times more with just that you keep going no but and Nancy were giving you a stick around. Please, but next Chicago, Illinois Cynthia, how can we help you revise my question. In a nut shell I'm trying to determine whether or not I should fix all or just sell it needs about $30,000 worth of work. Major work will you know you know Cynthia when you revise your question, there is an extra charge for that. So this happens to be exactly $30,000 so tell me about this home in terms of I see here in my notes that the home is paid off. Is that right okay congratulations for that. Are you retired yet okay and what are your plans do you plan to stay in this home for the foreseeable future. I would like all they just say why bother about get rid of it don't put that money yeah yeah especially if you're not planning on staying in you if you said to me Rob I'm retired I want to downsize. Want less maintenance and upkeep. I want to perhaps get rid of the yardwork. I just don't need this much space you then it's a matter of okay we got home it's paid for. We just want to maximize the value of the home when you sell and you're gonna want to get some advice from a professional on what things you should put money into and what things you shouldn't because 30,000 is not an insignificant amount of money that's a lot of money to be putting into this home and it could be that many of those things are not the best things to put money into right before a sale.

So give me an idea as this one major repair or improvement, or is it a lot of little things one is to be replaced. The other thing is the garage is falling apart and it needs to be torn down and or replay the task garage is that right right issues not issues but repair okay what I think the first question is do you really see yourself staying put for the foreseeable future or do you really have a sense that you'd like to go ahead and sell and perhaps downsize or relocate. Did you have real clarity on that now. If I didn't know don't know where I want to 02 is not what I want to buy on moving forward and don't know you now where if I want to stay in Chicago. It is really concerned about my stability move in all effect salad that don't do the repairs.

Am I going to be able to find something nice for a couple sure or going to happen pay our mortgage not make sense. This is your income stable in the sense that you got enough to meet your bills with perhaps a little bit left over every month and then secondly, how would you pay for whatever renovations or repairs you do want to come out of savings or are you planning on getting a small loan with a long time and tell me about your income every month. Okay well the good news is it sounds like you have a good bit of flexibility because you follow biblical principles you living within your means you've obviously been very careful and wise in your use of debt. Given that you own your home completely and it sounds like you have a lot of flexibility which is what happens when we live by God's principal. So I think at this point I would do a couple of things number one in earnest. Be praying and asking the Lord for wisdom on this decision to sell and relocate, or perhaps downsize number two as you start to get an idea of where you might like to go I go ahead and start looking at the various options for housing and considering what you could get out of your place with perhaps limited improvements those things that are critical and perhaps things like the garage that the buyer may want to do themselves the way they want to do it. Perhaps you give a credit for that.

But you be able with the help of a realtor, a professional in your area to get a good idea which things you do now which things you wouldn't do and what you could get in terms of the selling price. You'll take that information really begin to explore what options you have and where you might like to go so I would do those things is my two next steps. One. Begin praying that the Lord would give you wisdom into contact a realtor a professional who's well-versed in your area to come out and evaluate your property. Tell you what they could think you could get in the comparative market analysis and which repairs or improvements to make. Prior to that sale. And then you'll take that information and begin exploring this further and call us back along the way, Cynthia. I know this is a big decision for you. Would love to help you process it.

But I think those are the two next steps and Cynthia would be the worst thing in the world. If you actually asked to realtors to give you their thoughts.

That's kind of what they do and you will hurt your feelings. If you decide to go with one over the other. Further on down the road you have to let you go but we hope that helps.

Think so much Claremont Florida Nancy.

How can we help you not believe all and down by my concern.

One of my children and I got my concern with my very reluctant and with high premium to quickly. We got and down a lot wondering about it Grand Junction to die life insurance and I think the company called big Luca can get you like insurance that is cheaper talking quite a bit like yes well Nancy. I appreciate that you know I think you mean our general rule is insurance is very important part of the wise stewards investment strategy you know if we go back to first Timothy, we see very clearly clearly were to provide for our families and I believe part of that provision is offsetting risk. Our trust is squarely in the Lord when I try to take that away from anything.

But beyond that, we said okay. As a steward and being wise. What we need to do to manage God's money and part of managing God's money is offsetting the risk of risk of the home. Having a major problem and not being able to afford its repair a car accident. And yes, in the event one of you, you or your husband is called home before the other is there a hardship placed on that person because they're dependent upon your income or there's going to be an increase in expense as a result of that person's death, and if so, that's where life insurance, I think, and provide a very appropriate level of five offsetting that risk but I think we need to have a reason for it. I actually prefer saving outside of insurance policies in other more traditional means were not paying the high cost of the mortality expense and the other fees associated with whole life policies so I think the first question is, to the extent you have life insurance at age 70. Why if it's on yourself, what's the purpose of it, and let's just make sure that's unneeded expense at this point given your season of life and then for grandkids.

It's really important to determine the purpose of it again because you a lot of grandparents will buy as a means of giving a financial start to grandchildren, but I'd rather them. Instead of building cash value in a policy like that. I'd rather them start a 529 plan that's going to grow in a tax-deferred environment and mutual funds and set them up for college or some other type of investment as opposed to a whole life policy which again typically have high fees if the purpose is to pay for a funeral.

In the event that that were to happen with the child.

A term life policy would be a better more inexpensive approach and often as a rider to another.

Policy makes it more cost-effective. So those are just generally my thoughts on insurance why you have it, and then for grandkids.

I like other options for helping them get a good financial start versus a whole life policy. That's just my general approach that son Nancy about my right now.

We had a very long life insurance beneficiary to beneficiary, but I got another life insurance Co. I died a little bit of something to live on the audit page and I couldn't believe how terribly is what it's very expensive because again it's all based on actuarial tables and oh what the death benefit is based on your age and that's the cost. Obviously, the older you get, the more expensive it is. So that takes us back to this question of what is the purpose of it, you know, is it just there to know that that death benefit will be paid but is the money really necessary or because of your other savings and income you could take that money that you're putting into those high premiums at this point in your life and redirect them to additional savings. Additional giving or perhaps buying a long-term term care insurance policy. For example, that would cover that risk as opposed to a death benefit that's really unnecessary at this point. So those are all things to think about it, perhaps visiting with your financial planner to ask those questions would be good if you don't have one, you could find one of our website moneywise just click on find a CK Nancy, thank you very much and thank you again. As I mentioned for tuning in listening and being a part of the program moneywise live as a partnership between Moody radio and moneywise media and you are listeners around West. I'm Steve Moore hoping you and yours have a wonderful remainder of the day, then join us again next

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