Inflation Declines Again

• January 16, 2023
• realestatelife
• Podcast

Inflation rates are declining! This is a welcome sign for those of us who have been waiting for better days in today’s inflationary environment. But more than this, let us explore what a declining interest rate means in various areas of our real estate journey. In this episode, Michael Harris dissects the recent economic shifts that have significant implications for your real estate endeavors. He explores the steady trajectory of home loan rates, currently at their best levels in months, and delves into the noteworthy decline in inflation. The month-over-month decline is a positive signal, marking the first such decrease since December 2020. Tune in to gain insights into the intricate relationship between inflation and long-term interest rates, closely monitored by the Federal Reserve, and discover how these market dynamics can shape your real estate strategies.

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Listen to the podcast here

Inflation Declines Again

I want to know, what kind of loan do you have? I’m providing solutions and an education. It’s so important to have the information you need to make the right decision for you and your family. You can follow us and go to our website at YourRealEstateLife.com or our company site at United4Loans.com. Take down the number. You’re going to need it. It’s (888) 543-3980. You can call us. You can leave us a message. You could text us at that, but I want to hear from you. I want to know what kind of loan you have. Some of you are saying, “I got a loan that has a 2 in front of it. Others have 3, 4 or even a 5, but interest rates have been coming down. They truly have. We’ll talk about that more in this episode.

I’m here to help you save money now, tomorrow, and in the future. We’re going to be hearing from Marisha Charbonnet from Family Security Law Group in our third segment at the bottom of the hour. You can send your email or text to us. You can email us at Radio@United4Loans.com. I just alluded to it but home loan rates have remained steady. They are at best levels in months. We had a slight decline in inflation. Let’s look what happened.

We had the Consumer Price Index in December headline number. Food and energy prices came in negative 0.1% for the month of December which lowered the annual rate to 6.5%. It’s still higher than our goal but month over month, it was the first decline since December 2020. Inflation is the main driver of long-term interest rates and it’s closely watched by the Fed. Seeing the price decline was a welcome sign for both. The market has truly agreed.

After the CPI report was released, the probability of 0.25% rate hike on February 1st spiked to 87%. Now, you’re saying, “Spiked? That’s bad.” They are looking now at that smaller increase. For a while, everyone was thinking 50 basis points. All along, I was saying it was going to be 0.25%. I was saying it to be 0.25% and then probably another 0.25% six weeks thereafter. I see it idling for the rest of 2023.

The ten-year note which does ebb and flow alongside mortgage rates touched 3.46% after that report. It’s the lowest since early December. Long-term rates are forward-looking. We’re seeing where inflation is headed, which is lower. If inflation continues to decline, we should expect long-term rates like the ten-year note and mortgages to decline as well. We closed at 3.5%. Now, the Fed has been job owing for a long while. They’ve been talking and talking and going and going.

In the last year, home loan rates spiked. With a quick response of the Fed, no one is listening because we’re seeing where we are at the end of the cycle. Mortgage rates are looking at going down. I’ve been talking about that. We’re going to go down. We’ve been utilizing various products and lending whether to 1-0, 2-1, or 3-2-1 buydown. You don’t have to be fluent in that language, but it means your loan is going to go down 1%, 2% or 3% in the first year, depending on how many years we look to do that.

If you talk to your local realtor, they should be well aware of this. What we’re doing is we’re seeing seller credits paying for those buydowns, allowing you to get in with less money as far as monthlies and then looking to refinance sideways down the line. Any unused portion of those funds for that buydown then will go into your payoff, which means you get that money. Your seller potentially is paying for your refinance. How about that?

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I am happy to be here to talk to you about your real estate life. It’s been a little bit tricky of late. Some of your Equity has pushed back a bit but in a lot of areas, we’re still seeing year over year gains. Now, some are saying, “There is a crash coming.” I’m not sure it’s to the level of that but you got to look at where you’re buying, look at the activity, and look what’s going on but when you look at where interest rates are right now if you find what it is you’re looking to buy, you need to look at how you are going to be able to afford that monthly.

If you do a buydown as I mentioned about the 1-0, 2-1, or 3-2-1 buydown type of programs, you can do that, whether it’s FHA, high balance, conforming, and all the different types of lending, where you can buy your rate temporarily lower for a year 2 or 3 up front. I talked about that money is yours. It is. When a seller is paying money towards the close or towards your buy down, let’s say you do a 2-1 buydown.

For a couple of years, the rate is lower, but after a year, interest rates are where you want them to be and you move sideways to refinance. The remaining portion of that buy down is yours to keep. It’s not money in your pocket directly, but through the payoff of your loan. When you go to refinance, if the loan is a no cost loan where the lenders picking up fees and all that, it would be a lower loan amount for you.

It’s lower than what you show you owe on your statement because you would have that on a side account that was unused or untapped. It sounds complicated. It’s not so much but we can go over that specifically how it pertains to you. What we’ve been doing over the last quite a few weeks is getting pre-approvals. Pre-approvals are verification of documentation. It’s getting your items in. It starts with the conversation. I’m having a one-way one with you now, but right now, you can write down the number (888) 543-3980. We’ll set up a secure way to gain your documentation after a conversation.

Whether you’re self-employed, salaried, or whether you have bonus and overtime. Maybe you have multiple jobs, incomes, retirement, or maybe disability, or Social Security pension. However, the income is set up, we are going to look at getting you pre-approved. We have a lot of individuals right now making offers on property. They’re either getting their properties or perhaps they’re getting in a backup role and they’re looking still to obtain.

We have pre-approval letters that are out. We stay up-to-date and gather documentation. You have just completed. We gain the new W-2s which you should be getting by the end of this month or even 1099s. We look at businesses with profit and loss statements with expenses to understand where income comes in and we’re getting that loan completed subject to the property. I want to help you with that process.

Before you go out with a realtor or start shopping or following along with a property, you need to make sure you are pre-approved. You understand where the market is, where interest rates are, where they’re going, and what you can do. You also look at the property. We don’t list. We don’t sell. We are a lender. When you go out with that professional realtor, you’re going to be able to find out what the market is allowing in that neighborhood so you can make an offer to get seller credits and you want to be in position to get the job done. I am here to help you with that process.

We can help you in California, Colorado, Montana, Texas, and the State of Washington. There are about 32 different other states where we can help you with certain types of financing when it comes to the investment property. We can talk more about that. There are a lot of loans that are out there. There’s reverse mortgages. Opposite from going forward is a reverse mortgage. A reverse mortgage are for those who are 55 years of age and older where we can help you obtain a loan that pays off your existing liens and that loan does not require a monthly mortgage payment.

That loan will require you to pay taxes and insurance. It will also look to get you in education certificate that you can gain and get. Eight days after obtaining here in California, I can start the loan process like ordering appraisal, getting escrow and title open, and moving through that process. We have to be able to show that you can afford your taxes and insurance so we would gain that history. We would show a 24-month history of you doing that already.

We will then look to close that process still 30 days out to eliminate your mortgage payments or maybe even have some cash available upfront or a line of credit. What I like about a reverse mortgage is it doesn’t require or have the lender that can close that home equity line of credit if values were of issue where that is not a closable loan.

If you remember back in ’08, some of these lenders who had equity lines decided to close your limit. All of a sudden, what you owed is your new limit and that was very disruptive. A reverse mortgage does not have that occur. To gain a reverse mortgage, I need some information. I need your name. I need the property address. How much do you owe on that property? I’m going to get your date of birth and then I can run the numbers for you. It doesn’t cost you anything to get your numbers ran. It just gives you good information. That’s what that’s all about. It’s getting information and education so you can make a solid decision that’s right for you and your family.

There’s also another loan that we’ve been doing a bit of action on. It’s an ITIN loan, a Taxpayer Identification Number loan. Other than the Social Security, you have an ITIN. Usually, it’s a nine-digit number. It begins with a 9 but that is an identification you’re filing your taxes under here in the United States legally working. We are able to get those done with a little as 11% down. Yes, 11% down in 89% loan to value. Now.

We are looking for credit scores that are above 720. If you’re scores are 700 and above we can go up to then 80%. We can get you down lower scores as well even the no credit score but we have to have more equity in the property. We want to talk to you. Interest rates move to the course of economic news and items that are going on around the world but more noticeably, we are looking at what’s going on a daily basis here in the States.

On the Martin Luther King Monday, we have everything not happening at all as far as the economic side of things. On Wednesday, we have the Producer Price Index coming out. We have retail sales coming out. Building permits on Thursday. The housing starts and the Philadelphia Fed Index. On Friday, existing home sales and the Empire State Index coming out. We’re going to watch what is going on in the markets and we are going to make the right moves at the right time, depending upon your transaction and what is happening.

If you’re just getting started, it’s a little too early to lock in a loan. We’re seeing activity go in our favor and we’re watching interest rates either sideways or perhaps even getting better. For those reasons, we don’t want to pay longer for a lock of your loan. The longer you lock alone the more expensive it is. We have a lot of our consumers that are utilizing their VA with 0% down. We have FHA loans with as little as 3.5% down with the increased in our loan limits.

We’re finding a lot of things that are going on. Those limits went up where you have a $726,200 conforming limit. The high balance and some markets now is $1,089,300. That’s going to vary slightly. That’s for Los Angeles and Orange County. In Riverside County, you have that $726,200 then you go to a jumbo loan. It’s the same thing for San Bernardino County. Those of you who are tuning in to this in Santa Barbara, we have an $805,000. In San Diego, we are at $977, 500. Those here in Ventura, we have $948,750. Anything above that number then is a jumbo loan.

We can go over that specific item with you when you call. We saw the ten-year note down five basis points. We improve just a little bit. We saw the two-year also a little bit better. We still have this inverted yield curve, but the mortgage-backed security is flat one basis point. Not much happened. We saw the Dow up 662 points. NASDAQ was up at 510 and the S&P up 104. We’re seeing some movement. We’re seeing the market’s getting better. Interest rates are not getting worse, but also slightly better.

Where are we going? Do we see that recession? Do we see a light recession here or is it going to get a little bit worse as we go? As some of these Fed moves that have happened, which three quarters or four times, have all those been felt as yet? Have you gotten your gas bill where it gives you a projection of where you’re going to go next month? It says what your current bill is. Based upon your usage, where you’re going to be next month.

I think they’re going up three to four times. Some of those gas bills are going to be more like mortgage payments. Some of the pain might be still coming. We’re going to take a look at that and we’re going to watch the markets carefully. We’re going to make sure your loan is the right loan for you and your family. Some of you’re looking at home equity lines of credit, but those are misbehaving quite a bit. A lot of those are going up after the T’sey’re going up to the nines in some cases.

When you have the prime rate at 7.5%, soon to be 7.75%, soon to be 8%, and all of a sudden, you’re at prime plus one. You got 9%. Some of you aren’t even at prime plus one. Some of you are higher. The only saving grace is on those equity lines is they’re lower than most of your credit cards. The other side of that is it’s a simple interest rather than an amortized interest so it’s a level interest. On your home loan, you pay more interest usually than on the front side than you do on the back side of your loan.

You’re paying more interest up front. We’ve been talking on this very program about ways to reduce your interest obligations and not your principal. You owe what you owe. You owe what you contracted to but if you can owe less interest and decrease the term of time and do that without adding another job or more income or doing anything peculiar or different but doing what is the best course. Doing that financial GPS and moving in the right position at the right time.

If I can show you how you can eliminate interest and debt a third or half the amount of time that you are currently on schedule to pay, would you be interested in allowing me to send you a couple of links to review? I want to know your opinion. We’ve had many of our past clients, some of our current clients, and others who have listened to our program, reach out, gain the information, and their mouth is ajar.

We then have additional conversation. I then go ahead and show what I can do and what you can do with your numbers. We will run your numbers, your items, what you got going on currently, and your current obligations, and when you would pay them off and show you under this opportunity what it can do for you and how much money you could save. I utilize the same opportunity. I do this myself. I’ve been very efficient to what I’ve done for many years, but if I do 8 out of 10 items well, I want the other 2.

This program is giving me those other two. Each and every single day, I do it a little bit differently. Every day, I open up the screen and I take a look. “What do I need to do today? It’s going to tell me what bills I pay today because it’s the right day to pay them. It’s not the early day to pay them. It’s the right day to pay them so the money’s with me longer. It’s letting me know if I need to transfer from here to there on accounts that I can do online. It’s telling me 90 days out what’s coming up.

The best thing is if something comes up that’s not on schedule, it will tell me what that does to my schedule and how long then it puts me out further for total payoff of all my debt. This is for your monthly items that recur, as well as those items that you look to pay off. This is a perfect financial GPS program that you will have access to and it’s yours. Nobody else will access. If there’s some problem, all they know is you have an efficient system. There’s no account numbers and no other items identifying that to you.

However, this is something you can consult to. You do need to make your own payments. You do need to handle those items. You need to work and still have income coming in. It’s monitoring and understanding what income you have coming in and what expenses you have going out. Nothing changes. It’s just you are making the right moves.

When you drive in your car or you’re using your phone for navigation and you make a left instead of a right or you miss the churn, it’s going to say recalculate and give you the best direction in the shortest outcome to get there. When I was coming to the studio with the weather going on I was looking at different things. One said it took me this long, one way said it took me that long, and it was up to me to flip a coin because I was looking at the routes for weather.

We look at these items and we want to gain the best results, but why not with your finances? Why do what everyone’s always been doing? Why get in the line and not know what you’re in the line for? Let’s find out. I want to send you a no obligation three links for you to review. I’ll even give you the presentation where you can watch it without me doing it for you. Let me know if you want that. You could watch on your own time.

Let me know what you think and I want to help you pay off your obligations with as little interest as possible. I help you get into one of the largest debt items. That’s your mortgage. You’re leveraging. You’re buying a home. You’re refinancing. You’re paying off current debt and having cheaper interest attached, but I want to help eliminate that interest as soon as possible. Let me help you do that.

It’s so important to make sure you are set up right. It’s having the right insurance. It’s having the right estate plan. Many things occur over different times and you don’t think about it sometimes until l it’s too late. In our next segment, we will have Marisha Charbonnet joining us from Family Security Law Group. She’s going to touch a little bit just on that topic right there. It’s so important to be prepared.

I want to make sure you free up that money so you can do what you need with it. Whether it’s paying for education, children, your family, or setting up your retirement. It’s doing what you need to do. Whether it’s buying more real estate. We’ve had individuals pay off their investment property in four years. I want to help you with a perfect financial navigation plan, a GPS for your finances.

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We’re talking about making the right decisions when it comes to paying the right amount of interest over the right amount of time and eliminating that interest when it’s possible. It’s also about your right estate plan and that brings Marisha Charbonnet to our program. Marisha, what do you have for us in this episode?

It’s wonderful to be joining you. This year has already started off with some startling reminders of why estate planning is so important. For all of us who are watching that football game when Damar Hamlin had a heart attack on the field, it was a shock to see someone so young, fit, and healthy collapse like that. Fortunately, he seems to be on the road to recovery but what might have been the outcome had he not regained consciousness.

While most people in their 20s and 30s who are not renowned athletes with access to professional legal advisors, they’re also not having heart attacks, but they are getting into car accidents. They’re getting hurt at work. They’re getting diagnosed with cancer. All of us run the risk of a medical emergency happening at any time, which means we’re also all at risk of having to rely on others to make medical decisions for us.

This is why having a medical directive no matter how young or healthy you are is an absolute necessity. Without a medical directive or court order, physicians are limited in the action they can take. This means that a patient’s wishes about issues such as organ donation or artificial feeding or even life support maybe delayed or entirely disregarded.

Family members including spouses do not have any automatic authority to make those decisions, which means they may have to hire a lawyers and go to court before they can act on your behalf. Often, family members have different views about life support which can lead to legal battles over who gets to make the decision. Even then, there’s no guarantee the decision is something you would have wanted.

Unless you take the time to indicate who you want in charge of making medical decisions and provide guidance for those decisions, you run the risk of a court appointing someone who doesn’t know or may not respect your wishes having control over whether you literally live or die. For more information on simple steps to create a healthcare directive, I can be reached at 805-496-4681 or at FamilySecurityLawGroup.com.

Thank you, Marisha. There is so much topical information and very visible for many to see on that football game but again, it gives you a breath of thought in order to take care of what you need to do. On past programs, Marisha covered also those of you who have children who reach the age of eighteen and even go off to college. Having their healthcare directive and other items put in place. You definitely need to reach out to Marisha.

You can do that through our program. You can email me at Radio@United4Loans.com. I can get you out for information very quickly so you can get in touch with her. She reviewed our state plan here for me my family. An update to that. Originally I did that in 2001 and then it was updated as life changes. Kids get older. You have to check on your beneficiaries and other items and make sure it’s properly put in place with what’s going on with laws and changes. You have to make sure it’s all topically right.

I talked about interest rates. It has been going down a bit. On the rate sheet, I see a 4% on the rate sheet again, which is astonishing as it was going up. We were seeing them disappear. Now, they’re back. We’re watching no point loans again somewhere in the mid to higher 5%, depending upon where you are as far as your equity position and credit score.

Your credit score is very important. What I like to always try to do is gain the information as soon as possible to figure out what we can do to elevate you at least 1, 2, or even 3 rungs pending upon where your score starts. There is a consumer score, a car score, and a mortgage score. Generally, in that order they’re going to be a little lower. You could have a mortgage score lower than a car score and a car score lower than that of the consumer score.

When you gain your consumer score, you have a range of thought of where your score may be but it may actually be slightly lower. We’d like to see 740 and above than 720, 700, or 680, and as we go down. For a conforming Fannie Mae and Freddie Mac-type loan for high balance as well in certain markets, I like to see that over 620 score. However, pending on that equity position, you may be better served on an FHA loan.

An FHA loan is not just for first-time homebuyers. It’s for anyone. With the increase of our limits, we’re seeing that happen. With low down payments even higher down payments, gaining an FHA loan because of the score and then based upon then a higher score with better history of 6 months and 12 months down the line then getting a new conventional loan as interest rates may decline. You then also eliminate that mortgage insurance premium that comes with an FHA loan.

Sometimes it’s not one step, sometimes it’s two steps. Sometimes it’s three steps, but we want to make sure we gain the best financial position for you and your family. I mentioned interest rates. There are 30-year loans, 15, and 20. There’s even ten-year loans. Some of these ten-year loans now at no points breaking into the high 4s. That fifteen-year loan also at no points breaking into the high 4s. We’re able to help you on a straight loan or we’re able to look at those buydown loans I talked about. Buying it down for 1, 2 or 3 years at a time.

If you’re doing a purchase, it’s finding out where the property is going to appraise. What kind of offer is going to be accepted and then looking at a seller concession. A seller concession and keep the price where it is. Keep the sales price, get a concession, buydown the rates, and save on your monthly payments. If you refinance or sell prior to the buydown being used to lower your price on a monthly basis, that money is yours to keep. It is a deduction then from the payoff of your loan.

If you borrowed $500,000 and you still had $8,000 remaining on your buydown, then your payoff would be $492,000 at that time if that was the math of your loan. Also, pending upon where interest rates are yes loans could be written right at that $492,000 balance and you can get a new loan and maybe even have all your costs picked up. You may also look at that $500,000 balance you’re at and go, “I’m at 492,000. I can use that $8,000 to buydown my refinance or pay closing costs to not raise the rate up higher than where the market is.”

There are a lot of things that could be done. It’s a seller paying for your buydown and potential even refinance. Let’s get together. Let’s talk about it. Let’s understand where your options lie when you’re looking to purchase. We’ve had many individuals who have been purchasing and they’d be getting interesting advice, but not the perfect advice. We’ve had people overpaying on rates and costs and looking to close.

It’s like, “Oh well.” No, it’s not, “Oh well.” That’s your money. You work hard each and every day. I want that to stay with you. We’ve had individuals who have saved up to $8,000 in closing costs upfront. We’ve had individuals with saved three quarters in the interest rate. Multiple individuals who are overpaying based on market decline. Loans that were locked in that then had a lower outcome and people not necessarily giving that break. Why? Where is your loyalty? That’s your checkbook?

If you’re going to open it up and share, I’ll give you my name and information. You can sign that check over to me. I’m only joking but that’s what you’re doing. I want to make sure you are saving the most money possible with your current obligations and future obligations as well. Check in with us. We’re going take a look at where you are today and see what we can do to move to tomorrow. Saving you money on your loan and with your current payoffs is the name of the game.

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We’ve got an exciting weekend of football. Who’s your favorite team? Who’s your favorite team that’s left? Sometimes, you got a favorite team that’s already gone but they’re getting ready for next year. We’re looking at the other sports. We’re looking at what’s going on with hockey. The local teams are doing fairly well this year. They’re doing good. We’ll see how that goes. Let’s see if they squeak into the playoffs or they actually move up the ladder a little bit this year.

We’re going to see what’s going on in basketball. It’s another story. We’ll see what happens there but we got the preseason. It’s another month away for baseball. We’re watching a few different trades going on the Dodger side. We’re watching what’s going on the Angels side. Things going up at North and the Bay Area. We’re seeing what’s going on and how things are shaping up. We’re seeing various things with salary arbitration deadlines, trades, and pickups.

The Dodgers letting go Trevor Bauer and where he’s going to maybe end up. There are all these things going on. You could see I digress. I’m looking at sports, but a lot of times when you look at sports and you look at what goes on with your finances, I always like having options and choices. Your finances should always be something you’re looking at. Just like your favorite team is always looking to improve or looking to position themselves where sometimes you look at the payroll. You look at various things where they leverage different things this year to make sure next year, and then they got to have a backup.

We’ve seen this in football. One person gets hurt and the team is in trouble. Whether it’s the center or others, but every person isn’t your quarterback. You got to have your center, your guard, your tackle, your wide receiver, or you running back. You got to have a team. I want to be part of that team for you. However, part of that is where you’re ending up. What is your goal? Is it just to get by and do what everyone else has always done or is it to gain a better result? It’s not getting a new job, higher pay, a second job, or a third job and trying to do all these things.

It’s not changing your lifestyle. It’s doing things a little bit differently to gain a better result. That’s what I want to show you that is possible. We had a young lady who does not have a current mortgage. She does not own a home but she had everything from student loans to credit cards and other obligations like cars and various things to the tune of $85,000. Some of you are going, “Oh my gosh.” Some of you are going, “That’s not bad.”

Her $85,000 was going to be paid off in fifteen-plus years based on recurring contracts and terms, meeting the monthly payments, and doing what she’s supposed to be doing. Utilizing the same income with the same account she has now, doing something a little bit different, up to eight different principles to be specific, where she’s utilizing half of those currently without having a home, we were going to take her debt and paid off in full in 3.4 years.

Needless to say, she was a static. She calls regularly to me and explains how much money because the opportunity is showing her how much interest she’s already saved, when her payoff is, and consistently, she keeps it at the same number and she’s on target. When she has something come up, it shows that it changes it by 0.1% or 0.2% and then how she can gain that target back. She’s getting more savvy. Now, she’s opened up a savings account online. She’s earning 3.7%. She’s doing this with that money and then that’s shaving even more off.

It’s gaining those results and getting more knowledgeable because you have those in front of you. It’s having a financial partner, a perfect financial GPS at your disposal. It does not cost you anything to explore what can be done and how it may improve what you do now. You can try to do this with all the algorithms and all the stuff and all the computations and all this on your own but you’re not going to be perfect.

Some individuals say, “Why do I need this? I can probably compute this and take care of it.” Why did you buy that first calculator? You could probably do all the math too and can do the computation. You can do the full thing there, the quadratic and have fun with it all but you got a calculator because it’s more efficient. It’s giving you the answer. To use a calculator, you need to know how to input the right number.

The system, program, and opportunity, you need to have the right numbers. I need the current numbers that you have so we can get the right stuff in to get the right items out. You will have support. You will have information. You will have all this at your fingertips. You’re not getting a new degree in finance in order to do this. We have individuals. All you do is you follow what the steps are and you will even get a program or an opportunity guarantee.

We are seeing results for our audience, clients, and our past clients. We’re taking down debt much faster. It’s because I refinanced my mortgage, it has 28 years remaining. I’m going to be debt-free in single digits in under ten years. That’s not just the mortgage. That’s everything. Let me share what it is I’m doing so you can see what you can do going forward. Gain control, eliminate debt, needless interest, and increase your wealth. Now is the time to do that.

I talked about these gas bills. I was on a forum for my neighborhood and someone was saying his projected gas bill was going up to $270. First of all, shut down the heat. That’s a lot but again, mine which is fairly good this past month was $70 some odd, but there’s still forecasting $170. I’ll find out next time if that is the case, but it makes you wonder. You start layering the clothes. You start coming up with other options.

With all this fun going on like the gas bill and no more gas. We’re not going to get into that. I don’t want to touch any of that. It’s about keeping your bills and your numbers good for you and affordable. I want you to take home your check. I want you to keep your check. I want you to use the monies as you need to and not somebody picking your pocket and taking it from you. Let’s eliminate these obligations and interest payments as swiftly as possible.

By refinancing and consolidating debt, that’s one method but a lot of people then will make that minimum payment and start the cycle again. If you do that, I would implore you to take that extra savings and dump it down towards various items that have the perfect financial GPS telling you how to officially do that in the best way possible. Not going, “I’m going to do this and I’m going to do that,” because you may not be as efficient as you may think. I want to give you the best information that’s humanly and technologically possible. Let’s do this together.

We talked about the Consumer Price Index. We talked about inflation. Seeing a down number from the first time since 2020. We’re still at 6.5%. The Feds target is 2%. We’re thinking it to be 0.25% each time raising the Prime from 7.5% to 7.75% and potentially then 8%. That’s going to affect you on consumer loans, but also your savings rate goes up. Utilizing some good savings on some of your monies will allow you to officially handle your obligations, even that much more efficiently.

I talked about how my loan was getting paid off so much earlier, utilizing this opportunity. My interest rate now is a 2.75% but it’s taking my effective interest rate below 1%. If I were to tell you that I can give you a new loan and give you a rate of 1%, I’m sure you would make a call. I said that last time. I had people telling, “I’m calling you for my new loan at 1%.” I’m not offering alone at 1%. I’m offering the ability to take down your interest that you owe on your existing loan to bring your effective interest rate down to that level. That’s not a refinance. It’s a reconfigurement of your obligations and doing it more effectively.

Let me show you how that’s done. For some, a refinance is making sense. We’re doing some home improvement. For other individuals, we’re handling items with an equity line of credit or an equity loan. We’re showing simple interest versus amortized interest and looking what’s best on that particular situation. We’re looking at individuals who are doing a loan and six months a year down the line, when we see interest rates lower, we will then come in and gain a better rate, but also, be on this opportunity to effectively then take down the amount of years that are owed on interest for the current obligations.

We’re all about being inclusive. We’re here to put you in a loan to obtain a property or to gain your desired results but we’re here after to make sure that you’re handling it the most effective way and you have all the information you need. It’s not to get a loan, the door closes, and the deadbolt goes and you can’t get out. I want to make sure you understand what’s going to happen now, tomorrow, and in the future and make sure you have the best results when that occurs.

The markets move in cycles. We’re running out of this current cycle. We’re going to get to that panic cycle. We’re going see where things go but I am here to let you know I am here on that journey. Whether it’s getting you then pre-qualified and pre-approved. Getting you a letter for that purchase because if you’re renting, your landlord loves you and you don’t need that kind of love in your life. If you’re paying too much to your current obligations, as far as your mortgage, your creditors, on your credit cards or other items, they love you and you don’t need that kind of love in your life either.

Some of you are sending payments in early. You have no interest obligation to certain charges, but you’re sending in your money early. Some of you are getting your W-2. You’re looking to get your tax returns put together already and you’re excited. “I’m getting a refund,” you say. “Thank you so much for lending the money to the United States government with 0% interest for the full year.” That was your money and you’re getting it back now but you didn’t earn anything on it.

You need to talk to your professional about setting up the right deductions on your check to make sure maybe you owe just a little bit. That’s your goal. The refund means you were not able to budget the money yourself during the course of the year. I would like you to have more discipline. I want you to come up with a better result and I want you to save money.

Sometimes you don’t want to hear it. I understand but if you want to continue to pay more money, that’s your own business. We had individuals in the past where I can say, “I can lower your interest rate and I could do it at no cost to you. You can save this amount money per month. You can pay it towards other items and handle things more effectively.” “It’s just not enough.” How much is enough? If you only have $100 a month of discretionary monies after your current income and obligations, I would like to shave years off your debt effectively increasing your credit scores.

We’ve had a very exciting program. We’ve talked about so many things we’ve talked about ITIN loans. We talked about getting a loan for those who don’t have a Social Security Number but they’re effectively working here legally in the United States. They can gain a loan with as little as 11% down. Higher scores are needed for the lower down payment, but we are getting these loans closed. We talked about 3-2-1, 2-1, 1-0 and 1-1 buydowns. These are buying rates down for 1, 2or 3. Getting a seller concession and you’re money is yours on that concession. Depending on when you refinance or sell, it can lower your payoff demand to how much you owe on the property.

We can go into those details specifically for you. We talked about interest rates with 5% as the front number on a 30-year fixed. We talked about the conforming loan limits being higher and some markets a little bit higher and lower and others. We talked about the $726, 200 number. The $1,089,300 high balance number. We talked about how it’s lower in Ventura at $948,750 as the high balance. We also talked about in Riverside and San Bernardino. It’s $726,200 and then it’s jumbo after that.

We talked about various things like FHA and VA. Various things going on in the marketplace. We talked about inflation and possible recession still in the horizon. Seeing how these rate hikes of the past are still going to be coming forward and seeing how it affects day to day and statistics going forward. We’re going to be looking at jobs numbers again.

We keep in mind everything and you can follow all of this at YourRealEstateLife.com. You can go to United4Loans.com. You can stay up to date and gain access and look to apply. You can upload items securely. I can send you out various invites and various ways. Whether you communicate via text or email or in person or by phone, we are here to provide a service for you and gain effective results in a timely manner.

We will refer professionals where it’s necessary. We don’t list. We don’t sell. We are a lender. We want to help you with your money when it comes to borrowing but when it comes to paying it off effectively in the most efficient way possible. It’s been an honor to be with you. Each and every week, I’m amazed of the listenership and the people who call. My day will not stop today until I reach and I get back to each and every single one of you. That’s my commitment to you.

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