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May 5, 2021 8:03 am
This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage heading into spring. I've been spending a lot of time pondering, analyzing and debating something extremely important to men and even many women and that's whether a new driver would improve my golf game I would see him somewhere between embarrassing and appalling at golf man do I love it and all my buddies show up with these epic/big maverick Bertha drivers and I can't help but feel like they've got this massive advantage on me and my persimmons. It's right that our family mortgage team were proud to have a pretty special advantage ourselves and one that can be a big deal for you. Our team is an arm of the company who is a direct lender, which means our company uses its own money and make its own decisions within its own walls. There is no middleman in this advantage often allows us to get you a better rate, saving monthly and lifelong money on a refinance or new home purchase were much better in mortgages than I am at golf.
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Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah do not lay up for yourselves treasures other, where moth and rust destroy the treasures in heaven. For where your treasure is, there your heart will be also around West. Jesus makes it pretty clear in Matthew six that we can't serve both God and money. Today we'll talk about a way to make the decision easier treasure of giving that I'll take your calls at 800-525-7000 800-525-7000 graduates today for another edition of moneywise left with Bible's guide to financial.
So today were unpacking treasure principle your treasure is, there follows your heart and why is that so important understand this well because giving generously breaks the power that money has over us.
Those words are mysterious and powerful, and they allow us to experience kingdom life more fully. Jesus tells us that wherever we collect treasures, our heart always follows our treasures go first, and our hearts follow becoming more rooted in the attached where we've chosen to invest our material wealth at the treasure principle is real and it's beautiful. It points the way to an amazing adventure with God. You see, holding money with an open hand allowing God to use it is the only way to get free of the grip of money has on us, especially in America where abundance causes us to tighten their grip on money that Jesus knew the correlation and then told us how to break the connection when he taught that our heart follows her treasure.
We see that in his encounter with the rich young ruler found in three of the four Gospels that man approached Jesus because he wanted to know how to inherit eternal life from a place of love. Christ told the man to give his possessions to the poor, and follow him so that he would have treasure in heaven. Jesus offered him the path to true freedom of the rich young man that was unwilling and walked away sad because he had many possessions. He just couldn't do it now.
Jesus wasn't saying that money is bad and the rich won't go to heaven. He was only showing how money gets in the way of surrendering our hearts fully to God that this story offers the powerful hope that God can break the power of money in our lives through our generosity.
That's because biblical generosity is also powerful and it allows you to discover the freedom it brings to your financial life and the blessing to others in the world around you that when we allow God's grace to loosen the grip we have our stuff. We have the privilege of being an agent of grace in others lives in his book, never in financial author Ron blue tells us how he wants experience this gift of grace through giving it a fast food restaurant. He was at a Chick-fil-A eating breakfast with his oldest son they'd come to know the woman who regularly took their order. Her name was Rachel.
She was friendly always welcoming them with a smile. One day Ron thought I wonder if Rachel takes tips so Ron looked at the 20s in his wallet and thought. Give her a 20.
Just then, he says the Holy Spirit interrupted his thoughts calling him a cheapskate, you have plenty of 20s why not give her five of them. So instead of a single 20 Ron obediently folded five of them over so she couldn't see the amount handed them to her and walked out. He felt good about yielding to the spirits prompting. But that was only half the story. The next week Ron was back for another breakfast when Rachel pulled him aside. She says thank you so much for the money I needed new tires and really thought I would use your gift to buy them.
But that day my daughter came home from school and told me about a classmate who lost everything in an apartment fire the night before. I knew that her family needed the money worse than I did so I gave them the hundred instead. Naturally, Ron was surprised as Rachel went on to share more of her story. She was a mother of five who moved here from Central America to give her children a chance for a better life. Although she certainly could have used that money. Her heart was on the lookout for ways to bless others as you might imagine, Ron was humbled and profoundly reminded of the power of generosity. He says he had given out of his abundance, but Rachel turned around and gave out of her poverty. You see, she had very little really needed those tires, but took action to love your neighbor and sacrificially. Ron says he was stunned by the grace moving a little bit of treasure toward eternity had an impact on his heart. It reminded of again giving breaks the power of money so taking Jesus at face value in becoming more generous will move our hearts as well.
This truth is beautiful and undeniable.
Giving always breaks the power of money transforming our hearts in the process. And that's where we find true treasure, the kind that lasts for eternity are your calls at 800-525-7000 800-525-7000. This is moneywise live where God's word informs every financial decision right back with us today. Phone lines are open were about to take your calls and questions here in just a moment.
Here's the number 800-525-7000 800-525-7000 will look forward to speaking to you and hearing what's on your mind today. We had the chance to start today by talking about one of my favorite topics, biblical generosity, and as we think about this idea that money, the power of money if you will. The grip that money can have over our lives is broken through generosity. It's a powerful concept. I love what that the author Paul David Tripp says in his book redeeming money here he talks about the gospel being a generosity story for God so loved the world, the gay fright. We are created in the image of the ultimate giver God himself. So were most like him when were giving. And Paul challenges us in this book redeeming money to think about the fact that we often start with the role of money being provision to provide for our families and clearly that's part of it.
But Paul makes the case if we start their work and end up with an endless list of needs and wants that perhaps will never get beyond what if we were to start with the gospel being a generosity story and with our use of God's money that we should give first and then once we address what God would have us do in the generosity area, we can fully address the provision area as well.
Perhaps that's simple change of how you view your money will change everything. Just a moment. As I said will take your calls. We do have several lines open today. Here's a number 800-525-7000 800-525-7000. Looking forward to hearing from you, but we did ask the question today on Facebook.
Can you share a time when you experienced the joy of giving.
We got some great responses that Lorene said I experience the joy every month I give to the homeless shelter in my area. I'll never know the individuals who are helped by my care package, but I feel great. Every time I get it and I think that's what Jesus meant when he said it is more blessed to give than to receive. Here's what Pamela said.
She wrote out when I was in Uganda two years ago I had surplus funds to give as God directed in the blessings I saw and received. I will never forget that Kristi says I love to give my favorite was sending cash in the mail to someone in need with an anonymous card. What a great idea and Angela says it's always great to pay for the car behind me in line at a drive through, or ask the waiter or waitress for the bill of a nearby table in a restaurant. What a great way to share your generosity with somebody just on your path. In the course of your day. Love those ideas.
Thanks for weighing in on Facebook. If you'd like to find us and engage with us. Perhaps like us on Facebook you can do that when you search for moneywise media art. Let's dive into some phone calls today. Again, the number 800-525-7000.
We first go to Binghamton, New York Jean, you're on the broadcast dock and we assisted you, I really appreciate your show this, and I'm frustrated with all male, political, and everything else I already do my church family life network in New York State police and Samaritans purse play operation Christmas Child in memory and Vietnam Memorial in memory of my husband and I also support to children through compassion international and do 529 for my grandkids. 35. Other places listed and I have I got 25 pieces of mail yesterday. I am very frustrated with all of it. How do we know which ones are legit and which ones we should support.
Can you give me any insight you you're not talking about junk mail, specifically credit card and refinancing solicitations you're talking about solicitations for additional giving opportunity specifically on other political thing that sort of thing just everybody get out my name.
I guess when you get to London and all of a sudden you're inundated with many shorts think the thing to recognize Jean and I realize the mail can be overwhelming.
In fact, I did a little exercise a few years ago where I decided I was gonna keep credit card solicitations for six months. I did it in the stack came up to my waist. That was done so it can be overwhelming and clearly those asking for you to support for wonderful things. It is a part of that equation in so many cases.
I think the starting point. Jean is for you to realize that you can't do everything you I love what Andy Stanley says he says do for one what you wish you could do for everyone. And the idea there is that you can't help everyone you can't help every ministry or every cause and so you need to first of all, have a plan for yourself before the Lord say Lord you given me your resources you've entrusted them to me and I realize part of that provision is to be a conduit where your provision doesn't stop with me, but I become a pipeline into your activity where you're at work and develop a plan around how much you want to give both systematically so that would be around the principle of the Tiger, you're giving a percentage of your increase starting with your local church, but then beyond that what you want to give even sacrificially how much on an annual basis is the Lord leading you to give in both of those areas.
Systematic and spontaneous, or even sacrificial and you'll realize quickly that as you allocate those resources, then I think you need to go through an exercise of aligning those dollars that the Lord directs you to give which with with what's on your heart so begin to look at, you know what really perks your heart, where is God at work most aligns with how he's wired you and that's going to lead you to certain categories. Maybe it's the ministry of God's justice or the ministry of God's word preaching and teaching and discipleship could be widows of the homeless are prisoners or are proclaiming the gospel to the ends of the earth reaching unreached people groups to be whatever it is you know each of us are going to our hearts and this will change over time to be aligned in certain areas.
Once you figure out where that is. Then you need to do the work of saying who's doing this work in the name of Jesus really effectively and I think there's a couple resources you could avail yourself of to do some due diligence. One would be ministry watch.org where they rate these ministries just based on how effective they are. The percentage of dollars coming in that actually gets into the work that they're doing versus your administrative costs. You can also connect with our friends of the National Christian foundation in CF giving.com they could assist you in aligning where your heart is with those ministries that are doing phenomenal work in the name of Jesus.
Perhaps in your local area or even outside the US and as the Lord makes it clear, and you do your homework and find out where you're going that I don't think you need to feel bad Jean when so solicitation comes in for your support and you decide to pass because it takes all of us working together to fund the places that God is at work and you can't do everything, and that's okay and I think as you get invested both personally with your time as well as with your giving dollars and some of these ministries that really just align with your heart, I heard you light up a little bit when you talk about operation Christmas child and some of the other things that you're supporting that's great. And the fact that you can't support everything that comes in the mail. That's okay, I think you need to recognize. You don't need to feel guilty about that. God's can use you and others to make sure his work is accomplished. Doesn't make sense just so frustrated yesterday that I appreciate your call if you have other questions along the way, don't hesitate to give us a call and thanks for listening to the program led said to Dalton, Georgia Michael, you're next on moneywise live go ahead. Hey Rob, what got one hell I was going to give them to my church, and what the best way to do that yes well the person you're talking about is one of my mentors Ron blue. He wrote that in his book splitting errors ET IRS do your given why you live in so you know, and where it's going and I think it's a great principle to use as you think about your giving Ron goes as far as to say, I'm not sure you get credit when you give a death because you kinda have to will leave that up to the Lord to decide. The bottom line is I think this quickly as we can get God's money into circulation in God's economy. That's always a good thing in terms of the best and most effective way to do that element again mention my friends at the National Christian foundation.
They're incredibly skilled at that.
But tell me what you're considering because you know there's ways to get money into the kingdom out of an IRA that can be effective.
I like non-cash giving appreciated stocks, business interests, real estate art. What are the various options on the table for you. Michael R okay you don't meet with the higher Glenn okay okay yeah and that's good to be just a bit more challenging because you don't tell you're not in that season of life. Yet at 61 where you need to do a required minimum distribution. So you have to realize that income and then transfer it when you get to 72. You can do a qualified charitable distribution which is going to satisfy your RMD and get that money to the ministry without any kind of tax consequences. Right now, I'd be looking for other ways. Keep in mind 90% of giving is done out of cash, but we only have 10% of our wealth in the form of cash or your greatest opportunity to give the most is gonna be out of your balance sheet as opposed to your cash flow so if you have stocks outside of retirement plans that have appreciated that would be a great opportunity to give a stock gift.
If you have no other assets that you want to give prior to the sale where they would be taxable.
That's another opportunity apart from that, I think right now it's just a matter of maximizing the, the flow of income to your church and other ministries, whether that's an IRA distribution but just keep in mind your to create a taxable event there so you just need to recognize that and plan for it. And again when you get to 72.Q CD will be a great option for you but connect with our friends again it in CF giving.com and they can look at your situation help you develop a giving strategy and plan that makes sense for you folks exiting along with us today much more to come right around the corner. Stay with us back to moneywise live around West for biblical budget friendly answer. The medical bills will Christian healthcare ministries Springs community together to write help cost sharing. You can find out email@example.com and were grateful that CH ministries Christian healthcare ministries as an underwriter of moneywise live.
So glad to have you along with us today. Looking forward to taking more of your calls and questions as we apply God's truth to your financial situation. We have lines open. Here's the number 800-525-7000. That's 800-525-7000.
Let's head to Pennsylvania's next up, Jackie. You're on moneywise live go ahead and get all going to be retiring and I will be able to be taking Social Security. I really don't know anything about investing would like to know more. But my question is because I don't know anything. Should I take the whole amount of that I can retire. I think I can bring all rollover I've heard you mention 6040 4060 I guess not sure because I'm not really knowledgeable about investing and I little frightened and thinking your night.
Very good. Jackie Wells excited about this next season of life and what the Lord might have in store for you and you look at the two options are.
You given the option to either rollover a lump sum or take a monthly check is that what's been presented in monthly check out that I can rollover or I can find that if I didn't want all that I could specify like to take him out whatever they're offering yes. Do you know those offhand the monthly check or the lump the lump sum amount 20, 1990. Let it get me like I all okay. It would give you 4500 on top of the hundred 90,000 rolling over correct. Well that's tremendous but I think you need to get into those specifics and get an update on what options are available to you. If you take the full amounts of the full lump sum rollover versus only the check and whether their survivors benefits. If you're married, you want to make sure that you doesn't just stop with you perhaps and then the second option is if you take a partial rollover and then you know a partial monthly check that the key is and this is where a financial professional can help you both with the plan in that decision as well as ultimately the investment strategy for what ever you were to be rolling over into probably an IRA because you don't want to look at what's called the internal rate of return on what's possible with that lump sum rollover versus what they're guaranteeing for you on that monthly pension payout to see which one makes the most sense. So there's the financial calculation as to which one you prefer. And then there's the risk side of it, you know, are you looking for greater peace of mind to know that you've got a check for life no matter what happens you you're not in the market.
Even though you be hiring somebody to make those decisions ultimately that principal would be at risk and so you have to be comfortable with that. If you are willing to assume again a modest amount of rest based on a conservative investment strategy. I like the lump sum option. Assuming that the you confirm that it said your good payout based on the calculations that would be done because you have the ability to generate an income stream at the same time you have access to the funds.
If you needed them and that season of life are major medical event you needed long-term healthcare or something like that. You have access to the funds, not just the monthly income stream or the hybrid of the two, so I never our website moneywise live.org click find the CK and try to connect with two or three certified kingdom advisors there in Pennsylvania. Find the one that's the best fit for both the planning and the investments steno I will talk a little bit more off the air. This is moneywise live for God's word intersect your finances like a back to moneywise live around West glad to have you along with us today we have some lines open. Looking forward to taking your calls and questions on anything financial is it giving your saving. Perhaps your retirement investments or your credit score getting out of that would love to hear from you is the number 800-525-7000 80 want to take a moneywise live on the go with you what you can do that through the new moneywise app. It's available in your app store today just had their whether it's the Apple App Store the Google play store.
Just search for moneywise biblical finance. You can download it free in all the episodes are there, you can search by topic. We also have in our Discover tab the best content in Christian finance from folks like the National Christian foundation encompassing the Christian stewardship network and generous giving and gospel patrons. It's all there in one place. You can read, listen to some great podcasts I can watch some wonderful videos again. It's all in the moneywise app. Go get it today. Just search for moneywise biblical finance in your app store are I back to the phones to Indiana Jean and so glad to have you with us today. How can I assist you on my and I am working on my I am finalizing my well and a few years.
I've already checked with my wake you on my mortgage. My mortgage rate, 389 389 3.89 and my monthly payment of 369 and you said that was okay but I needed to have some repairs done on this house and I like these who are in charge. Our local bank and manager talked me into truly simple or and then later it was called flex line loan. They change the numbers on every human minds and on about all the paperwork that I just left the paperwork and files and am trying to sort them out now and the amount that I paid each month has now for quite a few months come to 180 151 month to $700 from December of last year to the present, and so when I called her I would rate requested that she do a printout of everything that I had charged to a minimum minimum percentage on each time that when it came to that amount per my mind and I looked at the 700 and some dollars. I thought for my executor. I should have this all printed out very specific as to whom the money went to that date and so I called her and discuss this with her. She said no way way don't do that she's here and I told her I wanted to start making payments on this loan that has become number 3156 and so she said they percentage that monthly percentage would be 7.52% is legal. Well, you know, as long as they disclose it in the paperwork they can charge whatever they want. What bank are you with Gina. I did not want to mention the name I like people working there national bank or local bank do not know where okay no worries, you know it there's a credit card that's offered by one of the big banks with that name truly simple and the interest rates can be a lot higher than what you're describing.
That's my concern is that that what this that's what this might be.
We need to get into the details and and we can't do that on the air here, but I want to make sure you get proper assistance. So what to do Jean and as I'd like for you to hold the line I'm can ask Amy my producer to grab your information and I'm gonna have one of our coaches call you or email you and set up a time to talk by phone where you can walk through the details together in our coach can help you with the game plan on where you need to go from here so that you get all the information you need.
You understand what you have and there's no longer any confusion. We gotta do a little bit of legwork there. So you hold the line. I will get your information will get somebody to give you a call and will sort all of this out your super sweet and we appreciate your calling today and listening.
God bless you Jean and let's go to Youngstown, Ohio, Lisa, you're next on the broadcast I think you're taking my call around a quick question. My son and I my adult son, I should say and I recently have been talking about investing opportunities to enhance researching that claim might hurt other financial experts recommend against it going. I just wondered what your take on yeah as an investment. I'm not a stand is just too much volatility. These are unregulated securities. There's no central bank. That to governing these ill bit coin than the other crypto currencies because of you know the various things related to them.
They're just going to continue to be a lot I think of volatility. Yes, they've gotten a lot of press lately, and they've many of them have had huge run ups and I recognize that, but I would put this Lisa in the more speculative investment category which I don't think is a prudent place for your long-term investment dollars as we manage God's money and anything that's more short-term in nature that has the kind of volatility that we would see with the crypto currency I think is just not the best place for you to be investing so I would stay away. I take a more kind of vanilla flavored approach if you will wear your investing in a diversified basis without taking a lot of speculation little bit more tried-and-true and steady with the Bible calls steady plotting I think is good to serve you quite well, so I'd probably just say you know what I'm gonna respectfully pass and the do your vesting another way. We appreciate your call today to Akron, Ohio, Ron, your next on the program glad my call telling Tom. We met them I will talk to them just enjoying retirement. But he sure is so in 2020, and they took the penalty off of withdrawn from your 401(k) and I pulled a bunch of money out to pay off bills not know what the future holds for jobs and stuff and I guess by doing that, I went over the hundred and $60,000 limit for getting the bed this last check from the government is that I mean this was just like a savings if I pulled it out of savings, but they counted as income. Is there any way that yeah that's a great question.
You know, and now it does become taxable income when you take a withdrawn that very well could have pushed you above that of that income threshold for receiving it. I'd probably check with your tax preparer if you don't have one, you could connect with one who's got a CK there in Akron and just ask if there is anything you can do. Obviously could file an amended return, but bottom line is if it's taxable income.
It's gonna be calculated as taxable income and that absolutely could push you right above the threshold and put you in a situation where you don't qualify for say it's probably one of those unintended consequences. We appreciate your call today. The Ron, thanks for your kind remarks about Steve Howard to take a quick break and then much more money wisely back to moneywise live with us today would you like to connect with somebody who's been trained to assist you with your spending plan. Plan, plan, or perhaps you're giving plan bar moneywise. Coaches would be happy to help you their train ready to go that love to teach you these principles we talk about here moneywise live and walk with you as you address whatever your financial concerns are the only cost is a small amount $25 one time for the digital workbook that they'll use but beyond that the coaching is free. It's a ministry of moneywise media that walk with you for 6 to 8 weeks meeting each week virtually and addressing whatever concerns you have just had over our website moneywise live.org click connect with the coach and will see if we can get you connected to someone today were looking forward to taking more of your calls just to have an equity loan on a rental property how to improve that in the difference between the will of the trust.
That's from Claudio.
But first, we could head to Alabama John, what's on your mind today is a few years and I just retired and my question is about life insurance credit put out a small policyholder when we were young and it's just another place to bury her fluently and noble amount of interest policy is more than man, but there's about $23,000 in the policy now and it decreases every year of the cash value not get out. My question is what Abe was just a trick that I because there's going to be gone and aloha was actually insurance itself and really don't know that we would actually be there or she was actually very pompous 21st yes and I think that's the key is understanding whether that's life insurance. It's actually necessary when you get to this season of life.
Ideally you don't have any insurance, life insurance, that is because you've saved throughout your working years and if something happened to you there be no additional hardship placed on her. She'd still have the same income sources, be it Social Security either her own, or spousal benefits you have any other retirement assets you all have accumulated and she just carry on with whatever God had in store for her and the opposite would be true for you… That the Lord called her home and so you know, as you acknowledged here John you know it's getting more and more expensive every year as you age, just as it is with everyone for them to cover the mortality expense of caring that death benefit and that's gonna chew up your cash value. What is the death benefit on that policy with the cash value 23,000 200,000. Okay. All right. And you know like I say, if something were to happen. This is on your life, payable to her. Is that right okay and if something were to happen to you. She has what she needs to carry on and and I cover her lifestyle is Sheila.1st folio we don't know anything. Maybe even done preneed funerals and barrel whole thing for we have no dance, home is paid for and know we got pretty good amount. In the end, savings, plus we have some property in and she'll get half of my retirement and then she would get on supposed national security because it is more than hers. I don't know how that but yet you think a higher I'm sorry Glenn retirement sure she would have her retirement.
Half of my retirement and then not Social Security because it's more than hers, and with what we've got in savings because you never know hello anybody's alleles but I just believe that would be wise to think that 23,000 but I just really wanted to get somebody's opinion. It was much smarter.
Well, I appreciate your call and thinking of us.
Yeah, I would concur with that, John. It sounds like she has everything in line where you've provided for her and you. She may have contributed to these assets as well. The Lord calls you home. She has what she needs and so you taking this money and deploying it now by investing it or using it for additional money to do some more giving would put it, you know, to good use and you're not going to continue to eat away paying for a death benefit that's can get more more costly as you age. The really is not even necessary in your overall plan. So I like the idea.
You just need understand the tax implications when you cash it in and pull that cash value out whether there is any tax due on that I'd check with your CPA or account to be sure you set that aside, if there is something there but apart from that II don't see the reason why you want to continue to hang on to this policy. I like the idea of you pulling the cash value out. We appreciate your call today to Chicago, Illinois. Claudio, how can we assist hi all, I had difficult discussion with my parents right at 70 and he said that he would like to either write a will or trust, and I was talking with my brother and me to get this going to have anything I've done some research and it seems that trust cost more to do and will I don't really understand the difference between them if you can kinda clarify that. Yeah, absolutely.
You know, the main difference between a will and a trust is that a will goes into effect only after you die. Well, the trust takes effect as soon as you created a once assets are retitled in the name of the trust will is a document that directs who will receive your property at your death and appoints a legal representative to carry out your wishes. But everything goes through probate through the probate court in the will is the document that really governs that process.
By contrast, the trust can be used to begin distributing property both at death but also prior to death or afterwards you a name that person or an institution or bank called the trustee that and then the trust holds legal title to the property for the beneficiary and then the others to types of beneficiaries, one that receives income from the trust during their lives or another that receives whatever is left over, and perhaps based on stated criteria. You're right, a trust is getting more expensive because it's a little bit more complement complicated to draw up, but it does allow you some benefits. You're bypassing the probate court. You can do things anonymously and again, there can be triggering events that put a trust in place prior to death.
So if you're incapacitated or your dad is. It could allow the trustee to begin to handle his assets. According to the provisions in the trust itself. So I think it's worth Claudio talking to an estate planning attorney just understand you're a bit more about your dad's estate. What his desires are, and whether a trust is necessary because it could be that simple. Will is all he needs based on you know what he has and you're right you're going to save a good bit of money. Average trust is probably to run you around $1500 maybe 2000 words. Will you three to $500 maybe a little bit more, so you can save $1000, and again it may not be necessary, so hopefully that clears it up buddy that I would recommend. Talk to an attorney sure yeah let me give you two options. One is if you go to our website moneywise live.org click find the CK anyone of the CK's there in Chicago could refer you to a godly estate planning attorney. These financial advisors all have estate planning attorneys that they work with and they'll get you connected with one the other options you could call your local church and to say I need somebody in the church who is an estate planning attorney, they would likely be able to refer you, but I CK could take care of that for you and hopefully that helps appreciate you walking alongside your dad in these issues. Let's head to Indiana and you're next on the program. How can we help user my call other. I bought looking to get out of that and I went got an opportunity to get a deal on rental property and I have to close out quickly so I took out a home equity loan and bought the rental property. So now I would like to put that that off my home on the rental property will go to the bank. They tell me that this is a cash out loan interest rate and I don't know how to get a home equity loan is against your primary residence that you currently live in and use the money to buy the rental property okay and you're looking to get a mortgage on the rental property directly or you looking to refinance your primary residence mortgage on the property directly okay and and when you do that or you just get the pay off the equity loan and keep the existing mortgage. Are you looking to refinance your existing homes mortgage money from the mortgage that I got up off my balm on my yeah and you keep the primary loan on your primary residence in place right for you. Okay you free and clear. I got it I got it make sense. I thought it was a second mortgage and home equity loan, but I'm I'm tracking with you now.
Yeah, you're right. That means you got couple of things working against you add number one is that this is not your primary residence, it's a rental property which is automatically gonna push the rates up slightly and then the second thing you're doing is because you're not trying to buy the property you're taking cash out even though it's to pay off the other debt that was used to buy this property in the first place it still considered a cash out, which is going to be just a little bit higher in terms of the interest rate so those are the factors I still like the idea of you getting this off of your primary residence, moving it over to the rental property and to keep in that separate from your main finances and keeping your current home unencumbered, so I just continue to shop around CV to find the very best rate. If you haven't already, go to bank rate.com there to offer the lenders with the best programs right now, even those for rental property mortgages. I think you're headed in the right direction. No, and I'm not surprised by what you folks think you belong with us today moneywise live is a partnership between Moody radio moneywise media say thanks to my team producing today. Deb Solomon engineering Amy Rios providing research and all the great work he does. Jim Henry and her call screeners Gabby team today. Hey, thanks for being with us, come back and join us tomorrow.
You got bless you will see that