everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton<br> welcome to the saving with Steve show when we talked about the ins-and-outs of money pretty much everything on their Central AC you having a happier or healthier relationship with money my name is Steve sex and I want to thank you for joining us our listenership viewership is up over 100,000 in the last 6 months I just want to thank you for sharing it with your friends and family we've expanded across the United States were moving and almost 65 countries now so we very much appreciate you sharing this with us and you know being a loyal viewers and so on by the way<br> there are some special Christmas ideas and gifts with some special discounts all you want to do is go to the resource page they're in the stadium with Steve do.us website again that's a saving with Steve. You as website you know what after we finish talking to our very special guests I'll be talking a little bit about what's going on in the things you might want to pay attention to you could make a difference in your life but this week we're going to be focusing not only other real estate market but the mortgage Market okay we have Jonathan two routes have been causing JJ he's the area manager for Synergy One Lending he you know what where we've got him here to help us walk us through what's going on what we can do how to get prepare for a loan in this environment should we ask a really great stuff and you know what let's just start out with the old monkey in the room we just saw the FED get it done federal government increased<br> to 4.5% and on top of that their guidance says are looking to pop it up to somewhere between 5.1 and 5.5 by the middle or to the third quarter of next year so that makes it's much much more fun with the getting a mortgage credit cards. Thank you thank you feds just that they're the Grinch amongst the Christmas time for sure<br> I think it's right around this time last year and I are having a discussion and we're talking about two and a half percent interest rates<br> yeah it is a it is amazing Steve I mean that the facts you know when we can look back and we don't have to look back that far even to you know February March where rates were still in the threes and to have them double if not more by the end of the year is that is really unfathomable I don't think anybody would wouldn't have imagined that we'd be in the place we are today when it comes to mortgage loan volume I obviously did she'll read it so you know how far is it gone in the last six seven eight months I mean is it gone from how many applications are being put into somewhere last month are obviously significant lower but how much how much is it off about 70% off<br> okay I can see that a drastic number I mean refinancing a home loan today that that business is owned almost all but gone so it really is people buying homes which is happening I mean I know the one thing that it is happening you know what we've had Realtors on in there so you have people are still buying homes it's just I I can understand why people aren't refinancing cuz it doesn't make three make sense to refinance its 7 or 6 when you have a 3 so that's pretty tough to do unless somebody's got some circumstances workers so let's do a little recap<br> on how the years changed and then let's talk a little bit what we're looking at it 2023 as you see it when it comes to the real estate mortgage Market Sparta is as far as the mortgage Market<br> for the year and the change is you know I think the more the mortgage industry is as pivoted quite nicely as as interest rates have increased in and what I mean by that is is not so much additional products but helping consumers get to a better place while rates are high right now so most of the lenders have rolled out something called 10 to 1 or 3 to 1 by towns and in really what that means is it let's say an interest rate is 6 1/2 per cent I'll just use that as an example for today you ask the seller to pay for this by down and it is a temporary by down<br> the money that the seller pays goes into an account and so let's say it's a three to one by down in your interest rate of 6 1/2 % on this Thirty Year War in your payment in your one would actually be based on three and a half percent your three would be based on five and a half percent and the rest of the loan would be based on six and a half percent now the beauty and you can do this on a regular conforming loan FHA loan VA loan so it covers a wide span of what you can do it on<br> and Steve really the beauty of this program is that again the sellers paying for it that money goes into an account and really every month that you make your payment and let say your wine your poem is based on being out for said the difference between the three and a half percent and a six and a half percent payment comes from that account so you're really hanging at six and a half percent on the mortgage but the seller opted to pay that for you and when you go to refinance I mean I don't think there's anybody in this industry that does not believe that interest rates will come down in certain amount of time now what we don't have the crystal ball is that 6 months 12 months 18 months but it offers it offers a buyer today protection down the road a little bit this money sits in his account when you go to refinance that home loan<br> that money will go against the principal pay off of your current loan so it's not lost you don't lose the money and so really is a great program it's not an adjustable rate mortgage so you know exactly what your payments going to be kind of moving along in this timeframe and I'll tell you there's a lot of great opportunities right now for buyers in the market place because it kind of is it has shifted more towards a buyer's market and you can ask the seller to pay these things and help with closing costs so that's that's really been the biggest shift in the mortgage industry and it lasts really somebody's been in the business for over 20 years I mean this was a very big strategy in the early 2000s when there is tons of Home Building going on at Builders were offering these by down left and right cuz they were competing against each other so it's not<br> new it just hasn't been utilized for many many years so they see what they did is they pulled out a new tool bag you know what I I just have some odd experience here one of my clients passed away<br> is we're looking to sell the house and I mean dipping just grinding in somebody came up and said hey I'll buy it providing you do this and they were like oh yeah let's get this thing out of here they were very very very happy with that and I would think if somebody's having some financial trouble were they lost her job and you know what they need to sell the house and move that would help that occurs opposed to having that a house in on the market and going and have them go further and further in the rears or have their accounts go down further and further so that is a wonderful option and a tough time seeing price reductions on the market for homes that have been sitting and staring you know kind of 30 days on the market not selling and instead of doing a price for.<br> it would be much much better and more economical to to get buyer's involved than into the home by offering something like this by down strategy and end the reality is it so it's truly about payment and affordability and see that's what we kind of lost this year with the interest rate environment going up so much is just the affordability factor of a home when you're talking about you know buying a $900,000 home in your payments going to be $4,500 it's it's a it's a big number to kind of swallow and so people are a little bit more reluctant to jump into that homeowner shit all be at all the benefits of home ownership date they are a little bit reluctant because the payment so this strategy is is very effective in his very helpful what I'd like to do is just take a quick break and<br> I'll be right back with some more shaving with Steven Johnson's road so you really want to be here for this next segment cuz he's going to talk about how to get repaired if you're going to be looking at a mortgage in the market with the look at all those had a good thing so stick with us we're going to be right back<br> more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending less your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with<br> DOT us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton<br> hey welcome back to the same thing with Steve sure we're talking about the ins-and-outs of money you know what I get I want to thank you for joining us if you're looking to get to those replay gives our holiday gift list where they all the discounts are you just want to go to skating with Steve. Us and I encourage you to describe to her YouTube channel our Google play our Spotify Channel and just check out a few of our fuel It's a UK Health radio CBS radio talk really New York 60247 you know what they're all here to uplift your spirit and power to solve problems and help you live a life of Financial and personal freedom so with that we got Jonathan two roads back we're glad he's here were fighting all about the mortgage market so let's start talking about one thing you know what<br> it was interesting and the latter part of 2021 you know I was talking with a few people and they had a variable rate mortgage that was back to recap so you know what you know what I mean by recasting but for anybody's listening what that really means is that at the end of their seven years the rates going to go to the actual market rate<br> and you know what we had some discussions with him about getting that done cuz things might change and they just didn't and now they're in a situation where it's recasting in a month but it's recasting to almost 7%<br> what makes sense for people like that is it just one of those things were hate your year did it should they look for another variable rate mortgage so they get another 56 years maybe it'll Oriental recast<br> what would be the best advice for somebody like that with their head in the sand and not really deal with it and then sometimes we find ourselves in a situation like this that what what the better thing to do is to definitely looking to refinance because what happens is when that rate recast it doesn't just recast The Raid and now turns that 30 year mortgage and 23 year amortization let's say it was a 7 year adjustable rate mortgage payments based on 23 years cuz you got to pay it off in 30 and and and if it was a it was a 10 year adjustable rate mortgage recast into a 20 year amortization so that's where that payment shock kind of gets into play to even if they were a real<br> Sandalwood normal conforming 30-year fixed mortgage and today's rates that might be a six and a half 47 per cent their payments probably going to be better off than that recasting situation now I will say the last 6 months have been a big push on the adjustable-rate mortgages the variable rates like your kind of talking about so what do those kind of look like and are the rate that much better and one of the things in this is a bigger Financial conversation but if you look at the treasury market we have what's called an inverted yield curve right now where the short-term of that that the treasury's like the two-year bond is paying over 4%, 10-year treasuries paying around three and a half percent 3.6% is done up a little bit in the last couple days and so those short-term arms are actually not priced well at all<br> because of that inverted yield curve so you can look at a 7-year arm or a 10-year arm will qualifying for those arms is another storage partner to qualify for a variable rate mortgage than it is the 30-year fixed-rate mortgage so why is it harder to qualify for a variable rate mortgage is it because the they have to qualify you for a potentially increasing payment<br> that is exactly right so so let's say I'm going to throw out an example of not realistic potential rates but let's say it's a 78 mortgage that you're looking at and that interest rate might be five and a half percent you don't qualify based on that five and a half percent you qualify based on the index in what the margin is so the factors that make up the adjustability down the road and many lenders will add 2% on to that and they will look at the amortization after the the the time frame where that that locked and rate is so if it's a 5-year arm we're going to qualify you on maybe eight or nine and a half percent based on a 25 year mortgage because that will be how much time is left after that adjustment happens<br> and entered the what we write letters will look at his debt to income ratio there are caps on those debt to income ratios on adjustable-rate mortgages because Banks do find them riskier and so your debt to income ratio needs to be lower than a standard 30-year fixed loan okay so that's really interesting so now I'm going to throw a little wrench into the pie hear many people during covid they got forbearance and maybe they started it right at the beginning maybe they started it 6 months ago okay if they're coming out of forbearance in this type of marketplace what's some good advice for somebody like that besides hey you just need to make your payment what's what's what's some good advice<br> yeah that's it that's a great question and we've seen it obviously over over the last couple years with Wood Cove in so number one depending on the scenario every every servicer of the more treats that forbearance differently so some had just taken that big chunk of money that you didn't pay and just back loaded it onto the mortgage and we don't have to kind of worried about it today but you got to worry about it and at some point in time others have had it you had to do a ketchup and some people just can't catch up and and you can run into some issues that way my my my biggest recommendation for the number one if let's say that loan happens to be a variable rate mortgage or let's say you need to really do something with the payment and maybe they're charging you for some of that for Baron's you can refinance that long I don't want you to think that you can't read Finance it<br> very basic rules are you make your three payments in a row and then truly you're eligible for a refinance if that is not something that is appealing or beneficial to you because maybe we're interest rates are today your rate is far better in your payments better you just got to get in a better financial position I would highly urge that they just reach out to who they make their payments to the servicer of their mortgage and there are still ways to get something call the loan modification completed so hey you raising your hand I'm struggling with my my loan I've been in forbearance but I wanted to keep the loan how can we work on a loan modification and make this payment work for both sides<br> that's great advice that's dead that you know a lot of people are going to need to take us and take they take the company's up on that so if somebody's looking to finance a loan for a new purchase right now what's the best way I mean it you know it's different when everything's rock and roll in and all that stuff and rates are low what's the big thing that people need to be aware of right now what are the steps I need to take to be prepared for coming to sit with somebody like you JJ to be as prepared as possible so they have the best opportunity to get a loan expecially Beach higher rates in the industry in the last few months is really people that were prequalified and pre-approved six months ago at lower interest rates and now they're like excited to buy a house and they find one and they're not qualified anymore because of the interest rates so as we get through the end of the year<br> know what our income is for 2021 if you're self-employed it gives you an opportunity to look at how you're going to file those taxes for 2021 qualifying 2022 out of those taxes are filed and so sitting down with him or he's professional to say hey here's my income here's my expenses what do I need to do some sort of have to get pre-approved for that $900,000 poem that I want to buy with 20% down so it's a really good opportunity to sit down with your mortgage professional that you're working with lay out your financials in today's teenage in the industry we've kind of moved to using stock credit pools instead of your traditional real hard credit inquiries so you don't have to worry about getting a real credit pulled on to just kind of go through a pre-approval process you can get a soft credit pull doesn't affect your score<br> see what's going on and somebody can really walk you through to say okay your goal is to buy this much house and you have this much money to put into it let's back into these numbers based on interest rates today maybe they'll go down a little bit in the new year but here they are today we don't really see them going up to much further from where they are today and and you can really put together a game plan and I'm telling you especially for the self-employed now is the time to work on this and get your taxes set so you can file them that's wonderful that's great he looked you know what we're coming to the to the end of our time you know what are people are reaching out you know whether would regardless what situation if they're looking to refinance weather to be a variable rate or something that came out forbearance or just buying a new place how can you get ahold of you how can I get some good information from you Jay Jay<br> no just go to ask JJ now.com ask JJ now.com all my contact information is there okay if you heard everybody ask Jade if you want to go check that out you know what JJ I hope you have a wonderful holiday season are Merry Christmas with you and the kids and I hopefully you have a wonderful 2023 thanks for being with this leg will look forward to seeing you next time thank you be right back more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending less your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton play welcome back to the same thing with Steve show where we talked about the ins-and-outs of money you know what today's big topic it's a big one and that big topic here we have today is this what's really going on in their economy now we saw earlier last week on the 14th of December the FED says Hey inflation is nowhere near where we thought I was going to be in here's the interesting piece December 2021 the FED said by this time we're going to have an event inflation rate of anywhere for 1.8 1.9 to 3 years at seven point one. She was 8.7 so think about that that means if you had a hundred<br> thousand dollars just sitting in a savings account earning nothing that you can only buy basically $92,000 worth of stuff and this year that $92,000 worth of stuff if you still had it sitting in a savings account you know what would barely be able to pay $87,000 worth of good so we've got some inflation around here they said hey we're going to have to get a little bit more aggressive here were increased our interest rates to 4.5 we're going to probably push it up to 5.125% 5 next year then what this does is it creates a constriction of credit K cost of things are getting more inflation is still up in fact inflation report basically said hey used cars and truck sales are down so is oil and gas but everything else is up<br> all right so we're not containing that hopefully the FED gets it right to bring some pressure off people cuz a lot of people are going to be looking at hate and I travel I'm not buying as much we're seeing that and Retail already so it it it that's caring are you know it was really interesting about this is we have a money manager by the name of James Eureka Who provided me this report and it was the put call report can you put call premiums and basically what it showed is that for every 4.2 dollars that the Traders were buying puts on which is betting that the market is going down for me $1 that people are betting on markets going up so it's like 4 to 1<br> that hasn't existed in over 22 years even through all the Panic since we've been through the market Corrections the put meaning the trim number of Traders purchasing put sing the markets going to crash is larger than it's ever been in history so that means we've got a little bit of a roller coaster we're going to see some more volatility what that means to you is what are you going to do to protect that s nest egg that you worked all of your life for especially if you're in retirement about to retire you know what those things can be devastating for seeing another twenty 25% go down so you know what to think about this have the discussions with your financial professionals to make sure you're on the right track and you know what's going to happen to you to your environment so was that one last thing<br> make sure we got a few days left to do a required minimum distribution make sure you get that done cuz you don't want to get hit with the largest penalty for not taking it on time which is a 50% penalty from the IRS up with that I want to thank you all for joining us here on saving which D I hope you have a wonderful rest of 2022 and an outstanding 2023 newest stay stay stay stay healthy and we'll see you next week this time, thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>