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>Play Welcome to the shaving with Steve show where we talked about the ins-and-outs of money pretty much everything under the sun release you having a happier healthy relationship with money my name is Steve sex and I want to thank you for joining us today you know what we've had a wonderful wonderful run of shows here last week it was all about real estate we had Glenn Anderson local real estate property is running out what happened in the early part of here in 2022 and was changing one of the big issues as changing his mortgage rates and guess what we have an expert as well for that we have Jonathan J Jada Rhodes is the area manager for synergy synergy One Lending you cannot walk us through what he would happen earlier in the year was happening now what we can expect you know what there's a lot of things that are changing your see increase in mortgage rates mixed Harper people refinance all that kind of stuff Jonathan's house going to talk to his how to properly get prepared for this best way to shoot shoot<br>Glee work your refinancing your mortgage purchase so you can make sure you're the ones with the offers that gets accepted so with that I'm also going to talk about hate sad song what happens here in California and many other states how retirement accounts are divided during divorce Jonathan welcome to join us today thank you thanks for having me and always they always a pleasure to talk to you within two experts like yourself so appreciate it he looks could you just take a moment here and walk us through what we went from almost two and a half percent mortgage mortgage rate the five everything everybody knows they got inflation stuff like that but could you come and walk us through hey what transpired like from December on here so maybe July<br>not July but no early part of April and then what's going on with rate increases what you're seeing with the number of people filing applications all that kind of stuff yeah definitely weld say you know it's you talk about that kind of the not-so-good news of splitting Assets in the divorce you know that the interest rate Market has not been a super positive one that kind of talk to people about because we've seen one of the steepest increases in interest rates in in history and I mean really from you mentioned a two and a half percent rate we don't have to go back that far<br>into into Rod 2021 last year or 2022 to kind of realize that we hit the bottom of the bottoms for interest rates and interest rates we talked about long-term long-term interest rates so mortgage rates and so you know more about long-term rates<br> the Federal Reserve is doing a job right now and their job is to increase rates and slow things down and fight this inflation and we've seen let's go back to just December of last year you know we can still get a long-term 30-year fixed-rate conventional regular loan somewhere around 3% and him were talking about somebody buying a house today we're talking about somewhere in the mid-50s about five and a half percent so the national average for a conforming regular 30-year fixed loan is 5.5 / 5.5% today so one of the things that I've kind of looked at it and in some times I kind of chuckled to myself because I have been doing this a long time and you've been doing what you doing a long time is even when we're talking about<br> 5 and a half percent it's still really great right it's just people don't really think it and if you have it on the house if you didn't own a house or when Real Estate you do 15 years ago you don't really realize that it is a good rate and so we've been spoiled I mean Americans have been spoiled with really low financing for a really big chunk of time but ultimately what we really have to look at is the qualifying aspect will what is it going to do I mean and so that the conversation that I've been having recently had been hey I've been looking for a house for a year it's been really difficult to get to be a buyer in this housing market which I'm sure Glenn kind of shared with you in and it's still in inventory levels are still low hopefully they are interested but<br> define perspective if I was looking at a home and I was Paula fight at 3% on a 30-year fixed loan every percent the end that interest rate goes up cost me about $280 a month more in payment on a $500,000 loan so I'm just basing that on a $500,000 loan so if we look at it 2% now has happened in perspective Steve is that positions almost 20% year-over-year the last couple years so now we're talkin about property taxes are higher homeowners insurance is a little bit higher mortgage rates have crept up a little bit and so you know you can look at about $1,000 a month in difference in payment<br> and so when we look at qualifying we're looking at about a $2,000 a month in difference in gross income from a qualifying perspective so you know that's what that's that's what I qualified in the last few months 6 months a year you really have to go back and and Andre qualify yourself make sure that you're qualified to buy what you're looking to buy what are you really saying here is this if you're looking at that same half million dollar home it's now going to cost you $600 more a month just in a payment and if you are buying it you're also going to be paying higher property taxes Insurance because the value of the house is higher so you have to calculate that in and on top of that you need to make sure your qualifying is that your income $5,000 a month now you need to have a $7,000 a month income in order to qualify for that same mortgage you being a mortgage<br> you're the area manager there as soon as you want you know what are you seeing a decrease or are you seeing an increase in applications of people trying to get approved so they can get going before the housing prices get you high because we just don't have the inventory in here in California it's a great question entirely has seen a drop of a mortgage application. I mean that's just that's just the reality I mean for people that are looking to refinance a mortgage to get a lower interest rate regretful you probably missed the boat on that depending on where you are on Spotify and you might be on an adjustable rate mortgage that you know is from a long time ago there still an opportunity to Ted to refinance 11 area that we're seeing hiccup in in applications is Cash out refinance has and the reason why Steve is because of the inventory levels being so low<br> and property values increasing so much it is a lot cheaper for cheaper for people to add on to their home address where add square footage maybe building a to you and Cesery dwelling units for rent out for income or or a parent to move into their house without knowing how you keeping them separate and or just doing repairs and Renovations on the home and the construction costs have grown quite a bit people don't want to dip into their savings and again money is still really cheap I mean even if we're talking about five and a half percent 30-year fixed mortgage they can still make a lot of sense it really can't and so Cash out refinance has those applications are sticking up because again people do want your hearing that their rates are climbing big wall that kind of captured while they can purchase applications have been very consistent across the board are still looking to buy homes it's just<br> woman toy that you mention it stopped it's challenging but regular refinances just you know trying to lower your interest rate those application counts our way down in about 30 per cent drop in applications out there are variables are or the negative amps or now already to recast and they're like delaying and delaying delaying and I'm telling you need you need you need to do this right now because you know what if these are playing sick more rate increases even if it's a quarter-point you could be at a six seven or eight and you know what maybe not be able to refinance so you might want to jump in that real quick what you have to say to that 100% I think it's if you have an interest rate that is that is scheduled to it just it's it's time to lock it into something long-term and then especially if you plan on being in that home the other thing that we're seeing two<br> people had a home equity lines of credit kind of open for a. Of time in a home equity lines of credit are tides of that prime rate where the feds are increasing I mean if there are no crime rates at 4% right now most of them are prime plus something and so depending on that that size about line of credit you know it it could make sense to blend those two wrongs together and you really have to look at the Blended rate not the end of the day what is the Blended interest rate between this combination of the two loans that you're you're putting together and I'll tell you Steve I mean from a Cash out refinance perspective let's let's take a look at this for a second and say okay we have $6 gas prices while maybe not everywhere but here in San Diego I mean I do grocery shopping for my house and a normal $200 grocery shopping and now $400<br> people eat it did the wages are not is are not staying with the inflation and so the debt the credit card debt that people are incurring right now is growing 100% it is a fact that it is growing people are are are loading up their credit cards and so some of those calls that I'm getting is like hey I have all this debt I have a ton of back if you're a homeowner you probably are sitting on a lot of equity right now on your home which is great that's great news it's a great time to be a homeowner so how can you utilize that Equity to put you in a better financial position and see if it's in your world is well I'm spending all this money on credit card bills and just try to keep up and if I can combine all those bills inside tax mortgage interest that's a tax write-off lower my taxable income pay less income taxes get rid of the credit card debt even if<br> set a little higher interest rate on my mortgage it's still a tax deduction when it comes to Lori my taxable income everybody stick with this will be right back with more shading with Steve 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 to be talked about the in an ounce of money Hills 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 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<br> oh welcome back to the shaving machine shall we talk about the ins-and-outs of money you know what if you would like to check out all the replays you can go as good as shaving with Steve. You ask and see all the episodes all seventy-eight of them we've been gone for a long time now we've got six hundred thousand plus listeners and viewers across the country in the world and you know I want to send out a shout out to our Affiliates AM FM 247 BBS radio and UK help rated M in wonderful sporting partners and you know what if you can look into solve a problem uplift your spirit live a life of financial personal freedom you definitely want to join us and go check out the show if you'd like more chips you can always go to saving with Steve Sexton at Facebook has sitting with Steve sex in the Facebook if you have a topic we've got a lot of new people are coming in to go to viewers at saving with Steve. Us so right now we're right back here with Jonathan jarosz were talking about mortgage rates John it was just talking about if you go<br> and a lot of people are start taking on debt because the cost of everything has gone up so much and yes they're raising interest rates to try to slow that down but it doesn't do you any good if your wages aren't keep it up and Jonathan was just talking about he wouldn't be smart to utilize some of the equity in your home to eliminate some of that debt pressure think about it if you're peeing at 12 15 18 20% on a credit card and you turn around and say hey now I'm going to pay 5% on the dead that I just took out or just got removed that might be a smart thing to do the big thing here is this you really want to make sure you deal with your spending issue okay otherwise you can be right back in the same spot all their pressure you just got a larger payment so now what are the things I wanted Jonathan to talk about which is really important cuz we had a lot of viewers that said Hey how do I get prepared for this we've got Rising interest rates I used to be able to qualify for a whole bunch how do I get prepared to present myself to a<br> mortgage company to refinance maybe refinancing adjustable or just refinance or to purchase something brand new I am looking at it thinking it's a little bit different for each that about right now without a doubt I mean you know the paperwork aspect is is very similar for all of them for any type of mortgage so I think it's really just being prepared up front as far as what is going to be asked of you and what's going to be required and I'll tell you Steve everybody has a different scenario me if you're if you're an employee at a company and you just have a W-2 wage where you just getting a salary you know what we're probably not going to ask for as much information but the things that I would be prepared to present you're going to have your credit run you're going to complete an application you were going to want your pay stubs and your last year's W-2s from your job your last two years tax returns I would just have them prepared and ready to present Maybe<br> do get asked for them maybe you won't and then have your last couple couple months of bank statements now we deal with a lot of self-employed people in Southern California here a little bit if you want to company we're going to ask for your company Tax Returns if it's an escort those 1120s is RK ones a partnership same thing a different type of tax return in a lot of people have been filing extensions on their taxes so when they was kind of past April they're not planning on filing till later in the year which is fine but you will want to be prepared with something called the profit and loss statement for your business and depending on how easy or hard you want to make that process there are some loans out there that are that require very little paperwork plain and simple I mean it really is and all we're looking at is just the<br> debt service coverage so if if if it's a rental property we don't require any income documentation we just want to make sure that that rent for the home is going to cover the payments call the dscr loan debt service coverage ratio<br> so let's go back to the rental properties so if people are still<br> quite frankly there's people who haven't taken care of their house for a long long long time and they're looking just to get the money and run because they don't have the money to fix it up the whole shot but they know they have a large enough house that's going to be give them enough money where they can move to another state and pay cash somewhere which is great if somebody's looking to purchase that property refurbished is it running out all you're telling me is a they want to make sure that there is a reasonable enough rent to cover the debt that is exactly right that is exactly right it makes a lot faster and in frankly there's a lot of investors that are self-employed that have a difficult time qualifying showing their actual tax returns and income and this takes that equation out of the way and we just again we looking at property with bucket hats that the rent that can be protected from it and look at the payment that's going to be being made on the property and as long as those things<br> out and we can even be underwater a little bit and still and still get that deal done so it makes it a lot easier when it comes to people who are self-employed like you said there's a whole many of them and you know I'm usually one of them so it's corporate tax returns personal tax returns bank statements obviously got your credit report report all that kind of stuff and you can go move forward and presenting good picture there now<br> what is a hyper example when somebody's looking to refinance their what percentage of the mortgage will a mortgage company look to refinance if somebody's looking to take money out to pay off credit cards so typically will go to 80% of the value value depends on the type of loan if it's a regular conforming loan versus a jumbo loan which type of property it is but you can fax them in somewhere between 75 and 80% and then we're looking at in, I mean if somebody's trying to calculate their own what we called debt to income ratio which is really kind of all of your monthly deaths into your income that were using we really want to stay around at 45% debt to income ratio now there are there's there's forgiveness on that depending on different types of loan programs you can go higher than that some of them require you to be a little bit lower<br> that's a pretty good range right about 45% that what we call debt to income ratio that's wonderful how can I go about getting contact with you think they're looking at asking questions or just hey I want to refinance I want to let you know I'm a business owner how did it go about doing that on JJ at s the number one elle.com JJ at S1 l.com or you can call or text me at 760-522-2298 Jonathan I want to thank you for coming on the show I think the information you provided invaluable especially in the world we live in today and are probably even more valuable as rate increases continue to show and it was just reflecting on this my very first mortgage rate was 8%<br> for the previous time the debris of mortgage rates worked for was in 1960 and quite frankly I don't think we're going to see mortgage rates in the two-and-a-half or three for the rest of our lives so you know it's just a word to the wise the people out there that I want to thank you for joining us again hey tell people how they can get ahold of you how the hell they can text you or call you or 0 5 2 2 2 2 9 8 and thank you Steve I appreciate it give me right back with more shaving with Steve 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 to be talking about the in an ounce of money does 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 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 sex and out of 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<br> hey welcome back to the shaving with Steve show where we talked about the ins-and-outs of money hit you if you'd like to join us and check us out you go to Spotify Google play Apple play we're all day or just call the saving with Steve so just check us out you might be able to get some gas gift you can see all the episodes all 78 episode through their big question that we got is how our retirement assets divided in divorce okay he look especially when you're a little bit older you know I've divorced can be a little bit different okay obviously you're not worrying about child support or custody but when you're splitting things typically have larger accounts people my pension 401K stand things like that okay the rules for retirement differ depending on the type of account like an IRA and a 401k a pension and you could be compensated<br> transferring to a former spouse can of unintended consequences if you're not doing it properly so Stakes are high for getting it right for one thing you need a qualified Domestic Relations order actually called a Quadro to transfer a 401k account or a pension rights in a divorce for few divorcing couples you know they may know this the order which is issued by a court or state agency recognize a divorcing spouse right to receive all or a portion of the account holder is defined contribution plan repetitive there's two ways of doing a Quadro the first towards a separate interest in the account balance the second allows a divorcing spouse is sharing the payment of a benefit so that means that allow somebody to share the in the payment of your pension or your account balance on your 457 401k and sell it okay so if one spouse has a 401K with two<br> $3,000 to pay the divorcing couple green and a Quadro to spit the account Heatley and that case of 401k will be set up for the spouse and each one will receive $100,000 free no taxes involved with that which is wonderful okay if you do take it out before 59 and a half guess what you will be taxed on Tax Plus a text and only 10% no pensions are even more complicated to divvy up not only does each employer have a different rule for how and whether a pension can be split but you also have to hire to actually calculate the present value of the future benefits it's easier to split a pension with pension or spouse has already started receiving a benefit then you could use a Quadro to split the payment by either a dollar or percentage amount<br> I want to make sure y'all clear cuadros a qualified domestic retirement order okay relations order<br> does it apply to an IRA to divide it between spouses the terms must be specified in the divorce or legal separation agreement which account owners give to the IR IR a sponsor which is like a b a l swab do the money to be split free of taxes and penalties the agreement should be specify that direct trustee the trustee transfer if they're receiving spouse takes cash out in the transit he or she will owe taxes on the withdraw and if younger than 59 the hair it'll be 10% penalty okay so it's really very very important that you look at what's going on okay again cuadros do not apply to an IRA that is part of a legal separation agreement signed by your terms and prevented to the IRA sponsor a 401k a pension are split by a Quadro if you have a<br> tension that's being split and you haven't quite we started receiving it you have to pay for an actuary to do a benefit analysis on the present value of the future benefit to accurately split it so it's really very very important to understand those things before you move forward with the divorce so again I want to thank you for joining us right here on saving with Steve you know what we had Jonathan's roach talk about the ins-and-outs of mortgages last week we had John a Glenn Henderson talk about what's going on with the real estate you know what we've got those wildfires Hitler we just had some here in California there in other states as well we have Steve Severn he is a claims specialist and he's in the talks about hate you know what you've had the national disaster what do you do next he's here to talk about it next week right here on saving the Steep I want to thank you for joining us serious with your friends family and Associates again I want to send out some<br> special thanks to UK Health radio BBS radio named fm247 all these networks are dedicated to empowering you to solve problems uplift your spirit and live a life of personal financial Freedom they will look forward to seeing you next week right here on saving Steve stay safe stay healthy see you then bye bye 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's 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>