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Is Your House a Money Pit?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 30, 2020 8:03 am

Is Your House a Money Pit?

MoneyWise / Rob West and Steve Moore

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September 30, 2020 8:03 am

When your budget is tight, you often look for ways around the house to cut expenses. But what if it’s your house that’s actually busting your budget? On the next MoneyWise Live, hosts Rob West and Steve Moore share some insights about home efficiency and maintenance tips to help you avoid costly repairs. Let’s make sure your house isn’t a money pit on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio. 

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Our prices rising ahead of your paycheck that happens, you can really put a gripping your budget you have to look for ways around the house. We cut expenses but what if your house itself is a money well you certainly don't want to waste money on energy and tears when you can avoid it. So today will look at some ways to your house from you out of financial planner and teacher Rob West has thoughts on that. Don't take your calls and questions on any financial topic, don't call in this program is actually ported in spite of the name.

I'm Steve Moore and welcome to LifeLock, I think a lot of people might be like me would like to think that we run up pretty tight ship, but where might we be wasting money around the house, but let's break them into two categories, Steve energy and home maintenance and will start with energy costs for heating and cooling your home if you haven't checked with your utility about ways to save energy, you should.

They may be able to help. For example, sometimes they'll install an energy saving device on the outside of your home, usually for free and there are several other low or no cost. Things you can do. Obviously you can lower your thermostat in the winter. If you do that by just 1 for eight hours a day. It'll save you up to 2% on your heating costs. Another freebie is turning off your lights. Of course, but another is unplugging chargers and computers when you're not using them. You see these and other appliances are called vampire energy wasters. Because they still use power if plugged in. The EPA says Americans waste and billion dollars a year and vampire cost and who knew Rob you're one of those guys and please and vampires certainly suppressed you different different cancel credit card every year.

Anyway, I know what else but here are a couple more free ones vacuum your refrigerator coils twice a year.

I know you do this regularly so they look forward to. Yeah Dusty Skiles could cost you up to 50% efficiency, then don't run the dishwasher or close washer unless you have a full load.

Also with today's detergents cold water often works as well as hot that'll cut energy cost for sure and don't pull the fridge out from the wall too far because back behind their coils or to be were more vampires. Thank you, but it is don't cost anything and you have some ideas that will cause something I know but will they be worth it in the long run. Yes, they will also let me die then. For example, switching to LED and CFL light bulbs.

Now they cost more, as you point out, but last longer and use less energy sometimes up to 75% less. Next we get into a little more money installing ceiling fans. They don't cost much to operate but they could allow you to keep the thermostat a few degrees higher in the summer.

Each degree saves you about 1% and cooling costs. You can also replace weatherstripping around doors and windows.

If it's worn out this last one in the energy category will definitely cost you some money. But you'll eventually have to do it anyway. When a major appliance like the fridge or washer breaks down and you have to replace it.

Make sure you get one that's energy star compliant. Most new appliances are compliant but look for a big yellow sticker indicating that when you're shopping around. That's good. I so much for saving energy.

What we have in the home maintenance category right to keep in mind that some of these maintenance items will also reduce energy costs and they can save you huge repair or replacement bills by extending operating life. So first is have your heating and cooling systems serviced. Also, make sure to change the filter regularly at least every three months. Some people say as often as every month. This will keep those units running efficiently. You might also consider getting a maintenance plan with an HVAC company, especially if your system is older, so that's inside on the outside of your house. Periodically inspect your rain gutters and downspouts and the roof clogged gutters and downspouts can cause ice damning in colder climates than that can lead to the roof leaks and they can lead to mold formation.

Very expensive to remove mold. Also, make sure you don't have any torn or curling shingles and that the flashing is in good shape. You may want to have a contractor do these inspections if you're afraid of heights in your based on the summer we've had this year, Rabbi. I'm not sure my air conditioner is ever gone off and and I'm thankful that we have an air-conditioning system that works but it doesn't work on its own and it does need to be checked even if things seem to be running well at the moment grandma that's exactly right now. They have some of these programmable thermostats that will automatically adjust the temperature when you're away from the house you things like that since my right is Rob West, I'm Steve Moore. This is moneywise live for today's program is not live so will speak with some pre-recorded listeners next money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button at moneywise live to work when it comes to investing guidance you want advice, grounded in God's word. That's the approach offered by sound mind investing. SMI has helped tens of thousands of Christians acquire investing wisdom and confidence. Regardless of your investing experience or how much you have to invest, you can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind investing on. I was sitting in my hotel room recently line close my eyes so my wife's face.

I wasn't online anymore hi I'm Benny tonic that you picture someone who loves you just flood your body supposed to let us in with God. Can we actually get now that love good question why he sent his son Jesus. Do you know what God looks like Jesus God. He became man. God is love the unlovable God who suffered and died for me. You in the very beginning. He said life. They belie and the walls. It's the same God who wants to shine the light of 19 in the face of Jesus Christ in a minute. We held line. We feel Google paddle different lives right. Jesus is robbing you of freedom and peace of mind.

Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors not call 800-557-1985 is more and we know you have lots of options to choose from, but the fact that you're listening to this radio station means a lot to us. In fact, don't forget this is the time of year when lots of stations do need your prayer support and your financial support. So if you hear this radio station asking for that right now prayerfully consider it obviously want to be generous with what God has given you. First you want to support your local church, but then if you are being taught and blessed by this radio station give that some thought and prayer and I think you'll be blessed when you do is go back to our phones here. Let's see Idaho. I think it is hi Bob how are you today I sure sure, in light of the rapid expansion of the federal debt trying to prop up US GDP and likely devaluation of the US dollar resulting from what will be extremely hard, wouldn't metal be a reasonable investment for the carnage that is sure to follow some time in the mayor years you know everything you're saying is sound and I agree we have expanded our balance sheet significantly as a result of this pandemic.

The Federal Reserve is basically said that they're willing to put every tool at their disposal in play that printing money supporting the economy even just recently announced that they were to start buying corporate debt which was a first for the United States.

So I would agree this is something we're going to have to deal with in the years ahead were going to have to get the budgets balanced were going to have to start taking this thing the other direction, not just continuing to mount more and more data, especially now that we grown the debt beyond the GDP for the year 22 trillion and working have to get serious about it wasn't necessary. I think in many ways it was. Unfortunately, during the years of the greatest economic expansion we've ever seen.

We didn't take the resources we had and start paying down the debt we just continued to live in a sense beyond their means, and so that just adds to this effect here. Are there inflationary implications to this sure does that mean it could have an effect on the dollar absolutely so you know what you're saying is right.

And gold is in fact an inflation hedge. Your goal is always been a good inflation hedging for listeners basically mean by that is it's an investment that's considered to protect the decreased purchasing power of the currency. In this case the US dollar that comes from the loss of its value because of rising prices either macro economically or because of inflation. So I like the idea of you having allocation to gold. The thing that I wouldn't do though is have a highly concentrated position or abandon your long-term investment strategy and overweight gold.

I would have it as a perhaps a five or 10% max allocation did provide some stabilization in the event we get into a higher inflation or falling dollar or we have some challenges in the US stock market and so with an uncorrelated acid and provide some protection is just historically been more volatile with less performance then you know I would like to see and I don't think were headed toward a major problem here in the United States based on our current debt levels as long as ones were on the other side of this in the coming years were willing to get serious about it and of course that remains to be seen.

So I like and allocation. I agree with what you're saying there are some concerns long-term and then. And gold is an inflation hedge. I just wouldn't go overweight gold because the reasons that I mentioned that make sense. You know, I go back to the picture of the wheelbarrow poet catching them Bob way I think it was that they were in Cooper. I inflation by you know wheelbarrow of their cash to buy a loaf of bread so I don't how I agree with you fully.

We can't know that all the economists I trust Bob really don't see any kind of hyperinflation or massive inflation on the horizon doesn't mean we couldn't have a down the road if if we continue on this track, but not anytime soon again. You know you could find just about any economist to say anything if you look long enough and I'm dissing the people that I trust don't feel like were anywhere close to that in the near term, or even in the medium term so I think you have a reasonable allocation and beyond that you can keep a well diversified portfolio. Bob, thank you very much for calling in today great question.

The question that lots of people have wondered about, and I'm sure will continue to wander about in the years ahead. Greensboro, New York hello and welcome to moneywise and what's on your mind how all retired last year he will retire a year from now only out here so pretty soon he'll have a punch in tires. My question is guaranteed income also have sure two weeks ago so I hear. I have tried where to supplement the income come from the content but that's not near as much working for the guaranteed income annuity or do I will be out gliding back now that you start taking income, next year income nonqualified icy okay so you you obviously can convert this guaranteed income annuity to payment stream for life. And if you were to do that based on the numbers you seen if you were to convert this to a monthly income stream.

Plus your husband's pension. Would that be enough to cover your expenses yeah okay so the reason I liked at Anna's account. It takes all the guesswork out of it and put you in a position where you all know that your bills are covered. You got this guaranteed income stream for life between the annuity the pension and Social Security. You can budget around that you've obviously kept her lifestyle at a minimum you. You will prioritize saving and and and remaining debt free and then it allows you to take this 450,000 that's coming due and just put a well diversified portfolio in place. You know that could perhaps have an allocation to stocks, with perhaps some dividends submit fixed income you know in there as well, which would just throw off additional funds that you could you have available as you need them down the road be a long-term care or additional giving.

You could also look at another type of policy that would get to bring some tax benefits to that, but I like the idea of you will having this base of income that you can count on to know that your bills are covered and whatever is needed is there for your future. Let me just finish by saying I think you could benefit from some planning counsel somebody will look over the entire situation both from a tax standpoint as well as an investment standpoint and a risk standpoint in terms of the potential need for long-term care insurance and any other insurance that you have now that you either may or may not need and for that I would connect with a certified kingdom advisor there. New York discover website moneywise live.org. Click on find the CK interview, up to three final limits investment and God bless you all. Glad that you called today and glad you were able to get through. Thanks so much moneywise live with Rob last time Steve Moore please don't go anywhere because we are not, and will be right back after this. Do you know if you have enough money of house. Do you know how much is enough. If not, one blue can help with his book, master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely create a long-term financial plan and how to get out of debt.

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I think it will be incredible when you see the visual battle that I think we hear voices that would make so much difference in communication. We don't get to hear the tone of voice with language very, very possibly you build my church authority to word Galatians 320, the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in 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.

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So please get heavy with us on this moneywise live time Steve Moore across the table is our host Rob West we begin we going to Iowa city, Iowa. WDL M great folks working hard up there. Diane what's in your mind how I have a problem I can't find car loan and back that the car loan that would be okay. I would say well over two year time I probably gave her more than $6000 to help her because she within halfway house and let coming to church and I pick up people from their country church and probably not that when I cosign for the loan. I said you can't default I've helped you so much and all I will I will well.

She Iowa city area and I had her phone her opponents now been disconnected and I am now because I didn't know that she didn't pay and I got a phone call saying hey you can't find her phone and she hasn't paid itself.

Since that time not been paid, and at the $3000 loan.

If I continue to pay on the phone tonight take the session of that car lease a couple of things here. Diane and I can certainly appreciate the challenging situation that you ran especially given that your desire. From the very beginning was to be of help because she's obviously in a difficult spot regardless of the circumstances you wanted to be of help and you obviously have demonstrated that in the giving of resources and then also in cosigning. I think one of the challenges here is that when it comes to cosigning out. First of all, if we start with God's word, we see that clearly the Bible and discourages us. I would even go further than say the Bible tells us not to cosign. Proverbs 2226 do not be one who shakes hands in pledgor puts up security for debts if you lack the means to pay your very bad will be snatched from under you will what God's word is saying here has approves out every day when we see that the FTC, the Federal Trade Commission tells us that 50% of those whose cosign end up having to participate in payment and so we realize that you know God's word obviously brings a very important point to light. If we ever cosign we need to be willing and able to step in and make the payments and almost assume that they won't now. Regardless of how you got here you're in the situation. So what legal recourse do you have wealth.

I'm not an attorney and so you could get some legal counsel here, but in general, if you are both got cosigners on this loan. Again, you're really your two options are to ask that the assets be turned over to you because you're the one now making the payment and my understanding would be that that other party would have to do that voluntarily you could then sell the asset and use at least the sale proceeds to recoup.

Perhaps a portion of what you know has been put up here or what will be owed over the balance of the loan at the second option is you allowed to be repossessed, but you have to recognize the impact to your credit for that decision. Given the you are an equal party to this as a cosigner.

So the third option would be exactly what you're doing right now and that is to continue to make the payments. I think moving forward. What you have to recognize is that you are a steward of what God has entrusted to you. I love the idea of giving. In fact, we affirm giving just about every episode here because it's on the heart of God. We see giving throughout the old and New Testament. We will create an image of God and he's the ultimate giver and so we should be generous, we should live with an open hand and look how we look out for opportunities to meet the needs of others, especially those in difficult circumstances or situations, but I think that has a limit and it's a part of a plan that you put together saying of what God has entrusted to me how do I want to live according to his principles.

Living well within my needs, providing for myself and my family, but also being generous but I think we don't need to do anything out of guilt or compulsion.

We should do it joyfully because we feel like we want to want to participate in God's activity in someone else's life but never because somebody that makes us feel like we need to or because we're we feel guilty about it. So I think moving forward. Beyond this situation. I think you just need to prayerfully consider the support your giving and heed the counsel of Scripture as it relates to principles like the principle of staying out of a cosigning situation. I think guy in this situation you're just have to pray that the Lord would give you wisdom.

If you have the ability to keep the keep paying on this loan.

I would do that to protect your own credit and see if perhaps this car could be turned over to you to be sold to satisfy the rest of the debt, where would whose name is on the title.

Where would that come into play. Any idea Rob is probably titled in both of their names, but regardless, that there is a loan that they have both cosigned on their both responsible for and the collateral for that loan is the car and so that loan is going to need to be paid or the lender is going to repossess it and they're going to be implications from credit standpoint and Diane I think you mentioned that her number is no longer working. So you're probably having difficulty even contacting at this point, is that correct problem had properly painted contactor module in a situation like this, especially since you're continuing to pay the bills and she's continuing to drive the car and will not get me were able to connect to a different number and left a message. Of course they said they can't give it to me because of privacy and leave the only thing you could do at this point Diane is strange as it may sound, and yet you know if you hired a private detective.

They could probably track her down in that regard, but obviously that would cost you money and not to mention stomach acid may be some more sleepless nights, not that you haven't already had some but we will pray that God opens up the way we appreciate your compassionate and generous heart. Nonetheless, the Bible does discourage cosigning so I know you will and but if any of our listeners are pondering it, considering. Typically, not Diane. We appreciate very much your listening to moneywise live with Rob less times more brief break will be back with more moneywise. 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 available@investeventide.com 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 space in the communications media, and many families that week is founding 667. These commandments today are to be on your heart to walk along the road, when you lay down that Deuteronomy 6 6790 radium first are online to let you be among the first to know about all things radio sign up to receive the radio free monthly newsletter uplift delivered straight to your in box exclusive stories, helpful articles and updates on what's happening at Moody radio we just really energized uplift. Now there's even more to discover each month.

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Do you know if you have enough 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.

Learn how to save and invest and give 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 live to work from John Scott, House Speaker Nancy Pelosi and Treasury Secretary Stephen Nugent making a last effort to seal a tentative accord on an additional round of covert, 19 really rhyming born agreement that would permit another round of $1200 in direct stimulus payments restore bonus pandemic jobless benefits speeding to schools and extend assistance to airlines, restaurants and other struggling businesses. A man arrested in connection with the shooting up to Los Angeles County Sheriff's deputies as they sat in the squad car. A Kentucky judge has delayed until Friday.

The release of secret grand jury proceedings and grandma Taylor's killing by police audio recordings of the proceedings were originally supposed to be made public today on Wall Street stocks up and is tired of about 329 points.

The NASDAQ ahead 82. This is SRN news with her son moneywise live go right back to where we were Westfield high Donna question today for unblessed identity with us already, go right ahead. I our daughter and husband had just voiced a couple days ago. Nothing effective but not new life and been able to find out how we're going to mortgage payment marketing the house because she has no steady income and no background.

It is all connected to Mike so trying to find out though we know what to be doing shall be on the title and then change it over the marketers will do that. But meanwhile, when we do about how should she do you see that the help sharing plan, but is that a good idea and how do I help her how to proceed or how I phone calls that I have the time.

Sure, well, I'm sure she appreciates that help and I'm sorry to hear about her recent divorce, but you know this area of having the cost of health covered can really weigh heavily in its is significant risk that you want to try to offset and we love health cost-sharing because it's a biblical model based on the body of Christ, sharing one another's medical bills and this wonderful organization after the do this we happen to talk regularly on this program about Christian healthcare ministries.

You'll find them on the web@chministries.org and again there one many great ones. We actually have at least one team member on moneywise's team that is used CH ministries for years and has had a wonderful experience but basically Don of the way it works is it's not insurance you have to know that up front what you you have you pay the cost of your medical expenses upfront and then those costs are shared by all the members and last year CH ministries shared among its members. Over half $1 billion, so it allow any this rescued me $5 billion. This is actually the number that was shared half 1,000,000,005 billion and you would tend not to use it for the small stuff because they reimburse you $500. It's gonna be a minimum of $500 per incident that you have covered okay essentially as your deductible, but the great part about it is that the cost of it is for a family just over $500 a month, whereas with insurance, health insurance, you would pay obviously much more than that and so I would definitely check it out.

I think it could be a great option for your daughter to keep costs down, but to no that she has coverage will not coverage but she has the ability for Christians to share beyond $500 per incident and with the singing she would enjoy from traditional insurance she can put that money aside and essentially build up countable a warchest if you will, where she could draw those funds for the typical office visit that happens often with small kids. The other great thing about being a cash payer which is essentially what you are with CH ministries. As you can negotiate a lower fee upfront and work with your providers to get those costs down and see him let you take the savings off of your $500 deductible. So it's a great option. Head over to CH ministries.org and learn more. Okay okay okay 4211 15 about very physically healthy people eating well and physically strong. So on so either either wait, the character has less than $500 a month yes of the per unit basis, and so the unit would be an individual and the cost that I was talking about is for a family so the cost would be. I believe around 325 a month, but I would get all the information it CH ministries.org, you could do a deeper dive there. It could be as high as 1050, but it's definitely less than 500 if it's just your daughter and her child okay taking care of catastrophic things that I can accept the things that are going to be more expensive than land. Yeah it is based on an incident so all of the bills related to that particular incident are combined in the moment they go over $500 in total. That's when it gets shared among the members and again that CH ministries.org great website you find a lot of good information there. That's easy to understand. We wish you and your daughter the best.

Thanks, Cleveland, Ohio. Nicholas, thanks for your holding our thanks for your patience and for holding what's on your mind yet I know I love you. Thanks and I have about $12,000 saved up and we want to put it towards debt so that when looking at a car, car note, which is $20,000 and that we have low student loans wanted 13,000 had an interest rate about 4% and you wanted. About 1E over $20,000 that has about 6% interest rate on so just trying to see what we should do during this time. With that Yeah very good and what is the rate on the car loan 3.8%, 20%, and you mentioned you have 12,000 C.Nicholas, if you were to use all of that for debt reduction would you have an emergency fund. In addition to that, or would that deplete all of your letters. We what we would have gone on about $2000. Okay. All right.

I'd like for you to hang on the three months living expenses. So if you have a budget you should really calculate that quickly. If you don't that be step one is let's get a budget. This really is an accurate picture of what it takes to cover your family's expenses for a single month, including those things that are nonrecurring and might happen, quarterly or semiannually, and then take the total of those expenses times three and that's what I'd really like for you to hang onto as much as you'd like to eradicate this debt. I don't want you to be in a position where an unexpected expense or a job loss or something comes out of left field and you don't have the reserves and then beyond that, I'd probably go after, unless you're trying to reduce your overall outgo which would require that you pay off one of these in full so that would be probably the smaller student loan which is then going to eliminate that payment if that's part of your objective, then you gotta go there. If not, you just overall trying to get rid of the debt then I would probably go toward the one with the highest interest rate which would be anything left over after you build up your three months.

Emergency funds go after that 6% student loan debt with credit cards. We try to snowball it. But in this case appeared in a Michael lump sum payment here to see the most impact by trying to eradicate the loan with the highest interest rate and I think that's where I go next. All right Nicholas thanks for calling Sir.

Thanks Nicholas. We do appreciate that thank you buddy before we go to the break we talked about the new money wise E magazine quite a bit, but it's because I will pretty excited about it tells about.

I'd be delighted to see you moneywise live.org you can sign up for just look for a green band there. We can give us your email address will only use that to send you a periodically helpful information and quarterly. This new E magazine.

It's chock-full of great articles and resources Steve to help you live out God's best. As it relates to your money. This current edition is all around financial hope, and I think you'll find some practical and biblical articles there again moneywise live.org site. Thanks for your listening to moneywise live less times and here's a great deal 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 Elmer breaks it all down in a simple, easy to follow format that makes it the perfect reference to look you are interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available in the store moneywise live.org hi I'm very glad I'm here to help you understand how urgent it is a sugar for every opportunity to the eyes of a layman as a layman, you got gave people expect pastors are talking about God. They don't expect people like us to do that.

I'm known for being a businessman. So when you are I insert God in your conversations gets people's attention. We have credibility because were not being paid to promote God becomes all the fullness of our hearts were not silver God were representatives forgot the Bible causes ambassadors represent God's like this the best of our abilities to everyone we meet Jesus in the know are his disciples by her love and that's what were called to do, no matter how no matter what people say to you God loves them as much he loves you and he wants to see his love through you that we got at your heart. There is nothing more exciting than knowing God is using you to move people closer to join is not America.com sales for grandparents matter when we talk about heritage. People often think about material assets. We will one day pass on to our children and our grandchildren.

That is all of our heritage, or even the most important part, but it is significant, we should carefully consider wills and trusts and dividing our assets.

We can spare our families a lot of potential conflict by having those documents in order. Along with that.

Think about keepsakes and items of significance that could be part of your heritage, did you receive anything physical from your grandparents that holds rate meaning for you projecting ahead what similar items. Do you want to pass on to your grandchildren. Start making plans to leave our rich heritage every way. Thank you for listening today.

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Would you like to interject in Col. dimension into even the most ordinary day, author Randy L says you can you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan to finding the immediate pleasure and eternal rewards of the treasure principle what you discover. Life will never look the same treasure principle is available when you click the store, but moneywise live.org moneywise refers to hang your hat for where your treasure is, there let's continue by going to Chicago and Mary nice to have you with us today would you question for Rob West show and have learned so much. Thank you that in 2010 we are mortgage free and can hit a bump in the road and we took out a home equity loan at Wally world into a 30 year mortgage and it Died in 1/4%. Right now we have about 150,000 lack Japan and in the meantime think of gotten back on her feet again where that good credit rating.

Now about 800 and wondering whether it is good idea to refinance the loan. Mary your prime candidate for refinance in this environment you got a great credit score. Assuming you have the right income and you don't have a lot of other dead you know it's 5 1/4 you could get a rate right now. Well 15 year probably some around 2 3/4 may be a little less, even a 30 year and under three although I'd I don't recommend it in the sense that I don't want you to increase the term so what you have left on this mortgage.

Do you have 20 years remaining crankcase, so I'd like for you to go look for a new 20 year or 15 year if you can do it, but that may push the payment up higher than what you're comfortable so certainly a 20 year mortgage. You should be able to get a great rates beer somewhere around 2 3/4%. Right now, which is gonna save you a bundle down from 5 1/4 you'd want to shop it around.

I go to bank rate.com look for who has the best rates right now in that 20 year space. You could check with somebody local, but I think you're probably going to do better online with one of the online banks or mortgage companies, and the I think the key is to make sure that again you're not increasing the term you plan to stay in the home you're going to save a significant amount of the interest which means that payments probably can still be fairly reasonable even at a 20 year mortgage. But given the savings in interest that you'll have even though there be some cost associated with it. You'll make that back. If you plan on staying in this home for I would say a minimum of five years. You probably pay that back even quicker than that because of how drastic the interest rate reduction will be. I think the other key is make sure you understand the costs associated with the don't just focus on that rate because of their charging discount points of their you know doing something origination costs, things like that you want to really compare the good faith estimate on that truth in lending statement so you know what the costs are and try to keep those as low as possible, but there's a lot of competition out there right now it's gonna take some time could be 60 days or more, just because of the demand right now with these low low interest rates, but you will love this would be a great decision for you guys moving forward think that you would need to stay in the home for five years yeah less than that, that the key is here you're gonna want to look at what is the total cost of the refinance could be one person could be as much as 2% to somewhere between 1500 and $3000 just the cost of the refinance and then you want to look at how much interest are you saving every month between now and let's say when you were to sell it and at some point you, you're gonna reach a place where you've covered the cost of the refinance and in the saved interest and then your quote, in the money and you enjoy that savings for the rest of the loan. Obviously if you stay there over the 20 years it's your golden year to save a boatload, but if you were to sell it early. I don't want you to go through all of this and pay a bunch of money and then turn around and try to sell it and you have any really made it back so that's why we say five years, although given how high your current interest rate is you probably save that before the five-year market you can want to look at that in the mortgage company can help you analyze that conquering is at summary. I understand thank you very much and again thank you so much okay God bless you. Things are going and if you happen to be thinking about refinancing as Mary is. Or maybe even buying your first home. This is a great time to make those considerations. Something to do before you maybe sign on the dotted line is pick up a copy of our good friend Dale Vermillion's book navigating the mortgage maze that Dale is a regular guest here and we find his information so valuable. Not only does he know his stuff, technically, but he's a follower of Christ, and I really helps us see things from God's perspective, not just the market perspective. Other chapters on applying for a mortgage.

Various types of mortgage financing top 10 mortgage traps to avoid what to do if you don't qualify for a mortgage, and much much more. Again the book by Dale Vermillion navigating the mortgage maze. You'll find it available for purchase. When you visit our website moneywise live.O RG let's go to Tampa, Florida hey Eric, how can we help you see what's on your mind and almost 40 years old. I've been working intact now for a little over 10 years.

I have a salary about 2000, and a full range of benefits that go with that. I've been starting my own business where I have a store on eBay. I have a small present on Amazon like well last year I did a little over $40,000 in sales growth not take all the growth and I've got to a point with the business where I feel like I need to spend more time developing the because I have a full-time job impact that a 24 seven job so how will I know when the right time to quit my full time job making $70,000 a year plus benefit and switch over to working for myself with the unknown will I make that much money and and what about health insurance and prior minute and now I completely understand where you're going with this, Eric, and I'm delighted to hear you have some that's working for you.

It sounds like you're somewhat passionate about it. But you're right. Knowing what the right time is to make that appear that if that time comes, is key because you don't want to put yourself in a difficult spot financially. In doing this prematurely. Let me ask you, are you married Eric do you have a family okay and do you have some saving some money you put aside that has been building okay great and will you pull are you able to take that 40,000 minus expenses and taxes and giving and put 100% of that away or you live in on part of that it will end on my part time job for everything else okay well I think that's the key is you know you're going to have to determine how long is it going to take for you to prove this out and you got some history, but obviously you're looking to make a jump by moving into this full-time from the roughly 40,000 gross and with recognize that's gross to the roughly you know let's say hundred thousand that you're going to need to know net 70 and you know what is it gonna take to get there second to take six months as it can take a year or what point would you know if it's not possible let's assume it is, but we would want to prepare for the worst and so I think that's the runway of time you need to have in the bank to be able to weather. That's if you had a years worth of salary and obviously you not get a start out at zero because you already, even in a very part-time fashion. Your grossing 40 K that 12 months worth of expenses in the bank would give me a lot of peace of mind that you you've got a runway where if it doesn't work out obviously you know you've got some marketable skills in technology that you could jump back into you know if you needed to. And you left your job, but it seems like you be worth the inner taking an opportunity to explore this further.

I think you're right. In terms of figuring out what are the other things that you need to solve for retirement plan is going to be key you know there are some great options for a sole proprietor, you can look at tax advantage plans like the sap IRA or the individual 401(k).

The other easy to administer. The sap is probably the easiest. You know they with the individual K though there's more generous limits on the annual contributions and others a little bit more flexibility in terms of how you do those salary deferrals the ability to borrow from the plan, and so forth with the individual K but but both options are available to you and you could look at those and they're fairly easy to set up. With regard to health insurance. You know I can be very expensive out there in the open market so you can want to know what that is an factor that into the budget because when you're on your own pain your own funeral expenses.

I would look at incorporating making sure you're not paying the self-employment taxes, which is know if you are for a period of time you got a factor that in as well. But then look at what it's really gonna cost you to get the proper health insurance on the open market. I would put alongside that. An alternative to health insurance for you to consider which is the Christian cost-sharing ministries.

I encourage you to check out Christian healthcare ministries@chministries.org it's not insurance but it's a great way to have your medical bills covered through the Christian sharing that's taken place there with tens of thousands of members and out literally tens of millions of dollars paid out, you'd probably be looking at covering yourself up to $500 per incident. But then it would step in at that point and you'd save a bundle on a monthly basis versus traditional insurance so I want you to start putting all those pieces in place. You know exactly what your monthly spend is going to be which is going to tell you what you need to generate gross to be able to net that and then let's try to get a years worth of that in the bank so you got plenty a runway make sure you pray through it and talk to others who have gone before you. But I think if you can check all those boxes then.

Now this might be worth checking out. Eric just a couple seconds here. How long is it taking you to get to the 40,000 figure that you're at today.

Now, okay. My gut and run the time, Eric, but my gut is telling me that I give it another year before I jump if I were you, but that's just me that's not coming from the Lord. I am factor having consulted with Rob, but my gut tells me I'd hang in one more year before pulling the trigger and without were going to have to put a bow on it. Thank you so much for calling in today.

Hope you all, but having a great day, learn something more about God's wisdom when it comes to money, finances for Rob last time Steve Moore moneywise my shift between the radio and moneywise you and we hope you will join us again next

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