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Time to Refinance?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
May 14, 2020 8:03 am

Time to Refinance?

MoneyWise / Rob West and Steve Moore

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May 14, 2020 8:03 am

There’s been a wave of refinancing activity spurred on by the COVID-19 crisis. With interest rates down and the need for lower payments and increased cash flow, some homeowners are choosing to refinance their mortgage. On the next MoneyWise Live, hosts Rob West and Steve Moore welcome mortgage expert Dale Vermillion who offers mortgage advice for homeowners. Refinancing your home on MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

Rob West and Steve Moore
Rob West and Steve Moore
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Rob West and Steve Moore
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Rice's third major policy decisions to probably economy in general and the financial industry and one result is that mortgage rates will solicit time to refinance just a five dollars worth of mortgage-backed reserve. No systems that mean refinancing Wescott mortgage expert to find out that your calls on this or anything financially hundred 525 7805 7000 times more great to have you along moneywise Rob Dale Vermillion is the author of navigating the mortgage maze and with more than three decades of experience in the industry. He really is our go to guy when it comes to mortgage advice that he certainly is Stephen Dale. Great to have you with us again on moneywise live. What an honor to be back with Lord and have some fun today were going to cover a lot of ground on the mortgages and also take some calls.

I'm sure there are many out there that have questions that are mortgage related. Dale of course were in some unprecedented times right now and you really think the mortgage industry might be one of the bright spots in the economy.

Tell us about it. I really do Robin because when you look at the economy what the stock market know how to protect what happened. Working a lot of losses with people you look at the mortgage industry you think about what you can do today with the lowlight bandage is out there refinance better position to get out of debt faster, lower monthly payment you need to capture some cash reserve to protect your families a great time for that being in a home is much more stable than being in a rental position because you don't have a landlord who can change your rent money supply demand changes you've got a fixed payment be found on the budget that's really important is no question about it.

As you reflect on the current environment that were in right now as it relates to the mortgage industry and rates and everything going on in the housing market. One of the primary mortgage challenges but also the opportunities you're seeing right now so dark that answer because the time to remind you to be very careful and I live not as unwise but why make the most of the days are evil.

We are in times of great you like to talk about the top of the show today.

The challenges are that products and programs in the mortgages we have tightened up quite a bit in the current market and that means that you have a low fight so hard to find financing under six, 20 there are still programs out there, but it can be harder to find those on qualifying is going to take longer in the process take longer because a lot of things that used to be done. No are now being put into a technological environment and things like notarization and loan closings are becoming more difficult to do if you're buying a home being homes in the process of doing homes a lot done now digitally or through visual conferencing.

So there's just a lot of changes in the marketplace today where there's less popular programs, but good news is that mansion rates are at all-time lows right now equities have not equine much all national scale. So there's there's still plenty of opportunities out there and there is inventory starting to open up now and purchase rockstar and increase a little bit some folks are surprised at mortgage rates even though their low and you look back over the decades. They're very low but folks might have expected them to fall even more than they have given with their hearing in the news headlines about essentially Fed funds rates being at zero. Talk about the difference between the two great questions so a lot of times consumers think that the Fed rate are directly corresponded to consumer rights but they're not the Fed rate going down does not have direct impact. In fact, when the Fed first went to 0% interest could generate section 1 what what you got understand is that which are controlled by the government and have been for a while now to try to sting like the economy rate have been at Lowe's for a long time, but they recently gone down to historic lows and they're not going to go to zero anytime soon. I would so I would take it manage of the great right now you start looking at today I think was 2.91% with 15 along 3.56 greatly as the voice of Dale Vermillion and were happy and blessed to have them with us today on moneywise?

Mortgages things along those lines, now's the time to call 800-525-7000 will be back with more in your calls.

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Sound mind investing the SMI website also includes articles, and money manager is investing sound mind perfect way we can witness no. Since Jesus in the middle said to be no doubt that we believe they should be a nice anyway because it seems like ever since we put nothing to this is just the cross we have to bear right now. Colossians 4, five and six is lies in the way you act toward outsiders make the most of every opportunity. Let your conversation be always full of grace and season with salt, so that you may know how to answer everyone. Broadcasting that 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 info to learn how Christian credit counselors can help you visit Christian credit Christian credit counselors not call 800-557-1985 five choices and decisions and one of the decisions your pondering is whether or not to get a mortgage whether or not to buy a house set that decision on the shelf for a while mean good time. Bedtime.

Crazy time, that's for sure. Dale Vermillion with us today, author of navigating the mortgage maze Dale, so glad to have you here today and we were talking about some of the opportunities in the mortgage space and clearly these low rates present a great opportunity, especially folks can save at least a point and they shorten the radar release don't extend skews me to shorten the term and and they're planning to stay put for a while, but there's also some challenges. I guess one of those challenges would be these lenders are going to be scrutinizing income verification. Perhaps even more than they had previously. Would that be true and correct. In fact, they are going to do a check of closing to make sure that you are so gainfully employed so important that you know what the condition of your employment is going in check to the day closing property 27.3, so be sure you know the condition your pocket bike all your documentation online for a long today and also recognize that there are still ample programs out there today for purchasing a home. You know, even though the pico scores are little bit tighter, there still programs out there that you can get in and get Holter FHA and VA and all program so mortgage interest alive and well. Very good. What about strategies for creating financial security and even what you call Dale safe harbors with thoughts together. Well I little bit earlier you. When you think about an economy will make you don't know what the hold and how this pandemic is worked out.

What we do know is a couple of things about homeownership and wanted to provide much greater's ability and security financially then being in a rental position because again the assurance of your payment but also the fact that no even if property bows go down, we have seen almost 40 years in the business now, and I've seen for major market shifts and every time probably combat in 2010 lost about 32% and values nationwide. We came back and doubled back since that time, so it's a safe investment from that standpoint.historically, not to mention the tax benefit homeownership which a lot of people are not taken advantage of and actually should be.

You want to call it very closely at your tax benefits on multiple and when you hear about things like forbearance when you refinance a mortgage.

Remember, by paying off that mortgage and cannot that you actually can create up to a 60 day quote" forbearance. We called it the fall on a mortgage and that creates a great financial opportunity for consumers to to be some added savings where you can go to cash in that time.

Okay, that's the voice of Dale Vermillion and if you'd like to chat with Dale today about anything regarding mortgages and where you might stand right now whether it's getting to that first home or refinancing things along those lines give us a call. We have open lines at 800-525-7000 Boca Raton hello Barbara, how can we help you today about the rehab place. The question I got my credit card. You know how to send your FICA score and I had a 8.18 1010 score refinance. I applied for refinance and they came back and said that my score was 709. Now I don't understand how that's possible. I question it and they said that they some place that they used to give you the score and they don't know but not not a sufficient explanation as to why more than 100 points different well Barbara, this is a very common question folks get very confused by this still talk about the different scoring companies but also the models within those companies and how those can vary so you got three different major credit scoring agencies or companies that you can be scored by those will vary between them so that one of the challenges. The second thing is when you FICA score on your credit card. That is a totally different one than the one you will see when you're applying for a mortgage or for an auto loan. For example, each different type of transaction. The larger the transaction because the more screwed if it goes into that and it changes the score you see a lower score on a mortgage old and see for example on a credit card also know when you see those losing Dale there for second.

Let's try to improve that line see if we can get that squared away.

You know what I would also say Barbara is even though there is a difference between the score you're going to see that you can access yourself and a lender score which is Dale said is going to use a different algorithm because it's for a different purpose. The good news is within a 10 year almost elite 50s. The most you can possibly have 810 Is Way up there.

But even that in 0709M and you're basically going to have access to the most competitive programs out there with the top-tier lenders so you haven't done anything wrong. By all accounts you're doing everything right and conducting your financial affairs, exactly the way you should. Don't be concerned about the difference between the two.

It's very common and that you shouldn't have any trouble getting the program you need. So should she just go back to the same lender and asked him to rerun or ask them to be and to give a better explanation or should she move along to someone else when you think well yeah rerunning it's not can help. Again it's it's just the difference between the score that's published on your credit card statement or through your credit card company is different than a lender score for a mortgage. It's very typical for that score to be lower, but even at a 709. She shouldn't have any trouble qualifying for the very best programs are right. We appreciate that.

Call Barbara, thanks very much Dale, do we have you back again buddy. You're having a dead great a signal to call Fairbanks, Alaska hello Kathy neuron with Rob Weston, Dale Vermillion what your question, so I am really my head and I are hoping here looking at purchasing a recreational use property land and have been off the grid and leave it. The price purchasing price we've agreed on at the hundred and 95,000 and we had hoped to take the money out of my retirement funds to do to pay for it lately wouldn't have a penalty because were over that age, but we already got earned income and another pension income this year of a fair amount so we were told that if we just took that straight out we have to pay $10,000 in additional pack for this year. So trying to figure out okay what can we do that, you know that's mentioned in Roth IRA that wouldn't but it's not that much 30,000 we could borrow against an annuity but that is, that looks like it's not that 50,000 and the payments would be really high to pay for it. You know, like to stretch it out over like three years so tax thing wouldn't be so big and that's what I was going to suggest Kathy, I'm sorry, go ahead and send us your question. Fiscal plant. Let's just pay the $17,000.

It pains me to do that so I am trying to figure out if there's an alternative. Well, I think the having all the information and possibly you arty do, but I want to make sure you have all of the details. Do you have a tax preparer this run this analysis for you. Have a friend who is a CPA, I I called her up and gave her you know what we had paid last year and what earned so far this year we hadn't been fattened down with anyone. I recommend that because I think that would give you and your husband. Peace of mind and arm you with the information you need to make a really good decision. Here's the key is going to be.

You're going to have to pay the tax.

Either way and by the way I'm assuming you have enough in the way of cash reserves so that you can fund your lifestyle, based on the income sources you have in the money of God that this makes sense for you to pull this money out and make this purchase blitz that let's set that aside for a second and assume all of those pieces are in place, then really at the end of the day. The question is how can you be most cost-effective with God's money and do this in a way that makes sense and also doesn't violate your convictions and by that I mean if you both, or one of you had a conviction that we absolutely don't want to take on any debt as a part of this, even though we could always sell the property and pay it off if you had that conviction, I'd say then then let's just set that one aside and not put that in play. But if you and your husband together were comfortable taking a small mortgage and spreading this out over two or three years to minimize the tax burden because then you wouldn't be adding all of this money is taxable income in one year. On top of the income Yorty have been that seems to make some sense to me on paper and allows you to kinda spread this out over three tax years. Assuming you and your husband are comfortable with that.

So I would pay this tax preparer. The CPA friend of for her time to sit down and just do an analysis for you. Take a look at what you're trying to accomplish the various sources various assets that you have and what the tax implications would be if you did it all in one year. If you did over two years, or even over three years and then just look at whether taking a small mortgage to float those three years would make some sense and reduce that tax liability and then your husband have all the information you need to stop you, pray about it and you make a good decision that would be the direction I'm going to think with that information, it will become plain and obvious where you need to go from here Dale we have just a few seconds before the break. Any additional thoughts to add to that. No interest on that loan 17,003% already be today, so it may be better beneficial to do exactly what Rob all right great that's the voice of Dale Vermillion. You can find this book forever. Good books are sold. It's titled navigating the mortgage maze. The simple truth about financing your home.

What simple is the way that it's all laid out for you in this book.

Navigating the mortgage banks and that will be right. Many people adopt an attitude toward marriage and finances that 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 rolling your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way and moneywise you know the seven things not to do with your money and uncertain times, and would you like to know the ways to trim your budget amid the current pandemic get those answers and much more. When you subscribe to the new moneywise magazine will receive valuable expert articles followed by get access to exclusive podcast episodes and your subscription is free access to the moneywise magazine to actually 1314 first Corinthians 213 and 14. Listen to this terminology don't don't turn here for second time we speak words taught by human wisdom and words taught by the Spirit expressing spiritual truths with spirit and spiritual words, in the spirit does not accept the things that come from the Spirit of God understand because they are spiritually discerned down to what you talk today is spiritual discernment discern what the Holy Spirit is prompting you to do in areas that are not just black and white in Scripture.

There's some things we don't have to pray that there there. We know that is not the will of God. There are some things that went well. Relationship is this person's rank. You really sure later call all been listening like only says you were working not standing for experiment when I think of Mansfield's work can't leave Dale Vermillion out of that package because he knows his stuff is been doing for over 30 years.

He teaches other people in the mortgage industry. He's a plenary speaker and just an all-around good guy and brother in Christ, if you have a mortgage question today for Dale or Rob West. Call 800-525-7000 that I say all the things about you. You asked me to do anything anytime brother anytime St. Louis, St. Louis, Missouri hello Tom, how can we help thank you all for your program. I really do it, followed by 62 years old.

I like to retire my full-time job as a welder now and I got a mortgage of 500,000 got and calming and Viscount on box 7000 a month which is more than I'm making right now will be comfortable. My wife would like to work and all you can help my daughter more with the $50,000. All went up about doing chicken 50,000 now the 401(k) doing what they call you amateurs. They got a 4 1/2% loan on the hundred thousand dollars loan. I could actually get a little bit more than 1.2 what about $7000 call on thinking about what mortgage got my payment down now give us a little more than one yes if I understand what you're trying to do is get your expenses down during these next 4 1/2 years before you retire, because at that point is you said you could have even more income than you have now, but that would allow your wife to go ahead and retire now spend more time with the grandkids and reduce your overall spending is that right yeah Dale, what are your thoughts on re-amortization versus refinance well you know you can really accomplish your losing at a rate similar to that 3.2%, but he was talking about and banishes Don and there's not a whole lot of fees if you really shop well the $7000 in costs.

You may not be damn near that much for that side of the mortgage balance so that may be a better route to go. You're guaranteed need to get a short term if you want to get out of debt as quickly as you want and accelerate. I love the way they think about it that did not also reducing his expenses.

Beriberi why, but I would look at both of those options and just compare which one ultimately net you the most saving. That's the one you want to go and what you want to actually get the term equal to the payoff. Or could he just get a longer term but then make the payments in accordance with the schedule. One of the thing to find out that, that you called today thank you very much, Christine, Lydia, Bob coming in your direction. Don't go anywhere.

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At the same time is reducing his term in getting that payment down to write out the next 4 1/2 years until retirement time. We appreciate your call today.

Hope that was helpful next colors Christine, she's calling from my neck of the woods north Georgia. Christine, I understand your husband got laid off from his job were sorry to hear that but what's the rest of the story here should I found my little beat up on our part that get free so we can start our home loan mortgage application and thinking happy I got laid off, have a job, not not.

I don't get paid as much as he got so my question is do you think it's a good idea if I will continue with that application.

You know it's it's probably going to be challenging will get Dale the way just because if you are requiring the income from your husband be able to qualify for that loan. Obviously that's no longer there and will be factored in to the loan underwriting the let's talk first thing before we get into that just about where you're at financially.

Do you have a spending plan and Christine how are you feel paying the bills, and are you able to stay current with just your income right now right now having to deal you are revolving find so I think we are good that turned so you're able to cover your monthly expenses by your income alone. If you really tighten the budget up yet okay what were you looking at spending for this home purchase. How much you mean… How are you have the purchase price okay by what you think about how trading right now it might not get $810,000 okay and how much were you able to put together for a down payment. We will be qualified for. I find yeah probably not the Dale weigh in on that in terms of what she needs to be thinking about their well enough that they you certainly couldn't bore the question I would ask what you right now to the quick calculation on a 15 year loan at that hundred and 10,000 alone about 786 payment European thousand $1200 lower on a 15 year term mortgage right now to prove your position applications that may be a wise decision but it all goes back to make sure that you got enough more than enough to pay the expenses and to cover that mortgage commissioned position so that when your husband comes back to additive income on top of that. Does that make sense Christine that it that now so I think the key is you were never thrilled about you going into a home purchase, with no down payment so I'd like for y'all to have some sort of down payments because in the event you were already in a recession right now. Hopefully it's short-lived. But we could see the housing market pullback question is are you buying it at market or under market. Given that this is a little bit of a different situation and or you can have any equity going into it. We don't want you to get upside down so I'd love for you to be able to save you've Artie demonstrated. You can keep your lifestyle to minimum because you've eradicated all of your other debt and so if your husband starts working again. Perhaps that's the time to go ahead and complete the purchase, but I think Dale's right, you probably can end up saving money in terms of what you're putting out every month. We just don't want to get you in a position where your upside down in the house is worth less than the total mortgage that you have. Even though you're probably going to qualify just based on what we said today. So if you can put it off. I'd probably delay it for a period of time, will you let him get back working and start to put a little aside and then perhaps take another look at it, Christine.

We wish you and your husband the very best. Thank you very much. Let's go south again to Kissimmee, Florida Lydia, thanks for your patience and what's on your mind. Hi how are you great. Thank you all where and with childlike will letter for all home 45,000 years is about 45,000 here. Monthly payment for 16 Lot $480 monthly payment 539 35 well I just want to get the monthly payment 539 480 how much more should we send the ball that will be can have pain before. How quickly are trying to pin down what would be your goal. Will my husband retired and probably another like eight years OKC want to try to sync up the payoff with his retirement dates go about that. Well you take a loan out and you know what you're taking out a 15 or 20 year loan you can literally take whatever interest is recalculate in any kind of a payment calculator online to whatever term you want your five year establish what that payment is simply make the payment difference between those two and directed to your principal and it will drop you a quick very good. Thank you for your call today Lydia. We appreciated and still were about out of time. We appreciate you stopping by today. I always love your perspective you give such practical advice, but it's always infused with biblical wisdom leave us today with some thoughts from God's word on how we should think about using his money and even the role of data and how that intersects with well versus the ritual wars of the borrower, lender, remember we want to be out of debt.

Not in that 10 nothing anybody Obligation love one another. So always work toward that freedom. One more thing on the corner called about the position you always want to avoid going into a purchase.

When you're unstable unless you're going to dramatically your situation that the very very aware that that happened so you God's wisdom in all of these things pray before you make any and you will be making the right one to follow.

Godly that's exactly right.

Will Dale thanks for stopping by. Listen, you stay safe. Tell the family we said hello and look forward to having you back Wilson thanks Dale, you have less to begin the title of Dale's book. If you'd like to check it out and we urge you to do so, especially if you're thinking of buying a refinancing or maybe have a family member or friend was thinking about that navigating the mortgage maze. The simple truth about financing your home. I will become back will take some more calls from Bob and Gary and stick around here to help you understand God's purpose for your life to the eyes of a layman back in the 70s it was," recalled Jesus was an amazing time during the hip year when we enjoy the harvest are you coming to the Lord.

I'm ashamed of the gospel, how far we've fallen from that moment in time.

Today no one wants to be known to Jesus. Especially not our young people to the other extreme, Christians got into the closet just everyone else's come out to our world is falling apart and most of this shop. So what are we to do drop the term army of Jesus free from all segments of our culture, saturating America for the love of God would change everything.

Your job is to guide revival outside the walls of the church by moving everyone's ear with today closer to Jesus. If you want to know how easy that is no tomorrow. hi Rob last year.

Stories can be a powerful way to motivate if you been helped by listening to moneywise live sharing your story will encourage others to follow God's financial principles and help serve the Lord more fully ask you to consider leaving a testimony after the program by calling 800-525-7000 800-525-7000 thanks and God bless you money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal in 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 out of work.

GK Chesterton was alive ready to combine humor with sharp insights on culture. The Bible tells us to love our neighbors and also to love our enemies, probably because they are generally the same people.

So what you get along well with your neighbors or not Christians response they might have demonstrated Christ as God's love.

66. Life life and were happy to your radio today lender throughout their listening and calling. So let's continue calls Wheaton, Illinois hello Bob, thanks for holding can we help I take my call for all you do one time with her terrific to me and I'm sure on what my question today. Yet my question is the wisdom of paying off my health, my 41K finer standard apartment: 19 legislation that will allow people to take up $200,000 penalty free and then you're allowed three years to pay the taxes on that. That's about the balance my mortgage. 56 and Jeff would like I am making less than I did a few years ago. Not nearly the current overtime available and although I do have a reserve account from time to time II think that that you have to tap into that. I want to get out of that situation. I want a piece of mind of just having a house paid off kinda well on it.

Sure you're right Bob, in the sense that the cares and acts does affect withdrawals from retirement accounts. If you're affected by COBIT. 19. And that's even though there's a broad definition. There, we need to keep in line with the spirit of what the intention here is, so it says if it's related to the coronavirus and you'd probably want to just do a little bit more research as to what qualifies for that. But if that's the case then you can withdraw up to 100,000 from an employer-sponsored retirement account like you have and that will be penalty free. If the distribution is made. This year 2020.

There's no mandatory withholdings and you can spread the tax out in terms of spreading that is income out over three tax years. This year, next year in 2022. Now you can pay it back over the three years and then claim a refund on those taxes. So you've got a look at the nuances just to make sure you qualify. But I think the key is that that would give you an opportunity there now should you do it well you know I'm not crazy about the fact that you would take this money out. That is, in a tax-deferred environment that could grow over the next however many years. Let's say 10 years between now and your retirement to be there as a meaningful source of your income in retirement. Even though I love the fact that you would be debt free. I'd rather you limit lifestyle and send more every month to the mortgage payment out of cash flow out of your margin so that you sync up your payoff with your retirement date, which thereby drops your lifestyle needs in retirement but still gives you the full value of this 401(k) that's growing over the next 10 years properly invested properly diversified, especially given the declines we seen in the stock market, which we think will you know see a recovery over the next six, 12, 24 months.

You know, to where we were pre-COBIT and higher levels.

Beyond that, over the next 5 to 10 years so that's the only reason was she just had a real conviction.

I just absolutely want to be out of debt. I think from a financial standpoint. Given the low interest rate that you have. I'd rather see you fund that accelerated payoff out of margin as opposed to the 401(k) just given that it is still taxable and that money is not to be there working for you between now and retirement you follow yeah I do sound like you're thrilled without a protest. Your boy I want to do it and and and I do when I get it and I might find it in 34 years America sheet she acted in a strong way of my my content and typically listening to her and so yeah well started called today by saying how much you appreciate the program and now that I come down on her side. I hope you still feel this I'm just now, I do not think I thank you for that and I cannot leave me in the direction that I was thinking I needed needed just to kind of pick by what and keep keep plotting and and what we do pay extra for the mortgage will continue to do that. Thank you both so much. Okay Douglas the way Bob might look at that is when he goes on vacation just to go this way for the Siegel with you, Rob West and let maybe that'll help like exact walking out on her side. So says Lexi and I are on the same that's right. I was thinking something outside Lewistown, Lewistown, Pennsylvania hey Gary, how can we help you and strengthen your marriage. At the same time. All very good. Thanks for taking my call.

My wife listens to your program every chance she had been to interpret for me but last week she heard the comment about a $300 contribution to a 501(c)(3) organization that it is tax deductible.

Even in if you do not itemize on your income tax is true that it is. Yes, you number two though is that applicable to we got a little bit of extra money and if we could.

Can we donate another $300 to a different 501(c)(3) organization's total of $300 in charitable contributions that essentially are deductible above the line meaning or you consider your deductions.

Now, you could obviously give much more than that and deduct much more than that, assuming you itemize but if you take the standard deduction you would be limited to a total of $300 in charitable contributions where you could deduct that even with the standard deduction in place okay my question yes they come in a generous heart. We appreciate you called. Thank you Gary, I think we can squeeze in one more. Let's go to Miami Miami, Florida hello John, welcome to the program what's in your mind and my in-laws blown up about 100 hundred and $30,000 you that money to purchase a home in our name. So now I want to know what options are available to to repeat a loan to my in-laws. We have 100% equity on the house. Yeah, so do you have the ability to pay them a portion of that out of savings or other assets or not we been making monthly payment okay and what you owe them today roughly the same amount you borrowed no hundred and 10 okay, great. And how long ago was this you purchase the home three years ago. Okay when you think the value of the home is today at about 151 for picnic. I do you have any other debt. No doubt that Jack carload yeah well the most cost-effective way to go about this John would be.

This is to take out a first mortgage on this property equal to the amount that you owe your in-laws and that's going to be at the lowest rate possible hosts. You've got to know 40,000 equity.

That's a good number. We are well beyond the 20%, we would say at a minimum, you should have, and assuming you have a good credit score and good income that's verifiable you know you'll be able to get a very attractive interest rate right now. I try to keep that term as low as possible.

Most people to fall to 30 years.

If you can get away with a 20 year mortgage and it still fits in your budget.

Meaning the payment principal, interest, taxes and insurance is not more than 25% of your take-home pay like to keep the term as low as you can, but that would give you a sense. Essentially, the cash then to pay your parents back or your in-laws back and then then you'd just work on paying off that mortgage in the coming years. That's gotta be the most cost-effective way to go about it. Mortgage and home equity right. I know I would get the money I would get a fixed rate first mortgage and it's going to be essentially cash out because your you need the cash you're not placing an existing mortgage and it's not for a purchase but that would that would give you a rate that's consistent it's not to move. Over time, and then you could take the cash in and pay your in-laws back. John, you are welcome.

Go to bank and check that out. You can also check with your local bank and give a mortgage broker. Perhaps in your local church.

You could check there as well John, thank you very much we appreciate that Rob just a little bit of time left. This is unfair of me. But it's the money was sore and I know it.

I know it and throw caution to the COBIT winds here the money wisely magazine tells quickly about it and where listeners can go find it. Yeah. So go to our website moneywise, you'll see a green band there near the top. Or you can sign up for moneywise is brand-new E Magazine, volume 1 is out with the theme of embracing financial hope you'll find some great articles there on trusting in God the ultimate source of our hope. Seven things not to do with your money in uncertain times. It was a podcast. Even I recorded with financial veterans Ron blue and Howard Deighton as well as some great articles 10 weight 10 ways to trim your budget well self isolating and even are made a budget article plus much more. So check that out, sign up for. You'll get that quarterly. There's no cost to it and I think that should fit anyone's budget moneywise live is a partnership between Moody radio and moneywise media. Thanks so much for being there today. Have a great remainder of your day. Join us again next time and I think we got a little more time. Steve so we can hang out no more medicine you have a little more time.

You know what Mike my clock has apparently caught the virus as well is it it's not doing what would clock sought to do all speak to it after the program today so they will and in addition to that, there is the Bible study the financial whole Bible study that I didn't think we have a chance to squeeze in but we do have a Bible study called financial hope find freedom in your finances through God's word and this information about that when you visit the same site correct that's exactly right.

Forget the $25 or more will send you this great devotion called financial hope, and that's our prayer for you. You have hope in these uncertain times.

Okay should I say goodbye now all good now attempted moneywise live.

As I said is a part of the radio and us.


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