1 00:00:07,710 --> 00:00:12,760 Suze: September 21, 2025. Welcome everybody to the Women and Money 2 00:00:12,760 --> 00:00:17,590 Suze: podcast as well as everybody smart enough to listen, in 3 00:00:17,590 --> 00:00:22,309 Suze: today's Suze School, so simply get out your Suze notebooks. 4 00:00:23,549 --> 00:00:26,180 Suze: I know you're going to be sad. KT's not here 5 00:00:26,180 --> 00:00:31,299 Suze: with me. KT's actually out with Colo wahooing, believe it 6 00:00:31,299 --> 00:00:34,900 Suze: or not. You always do it very first thing in 7 00:00:34,900 --> 00:00:39,220 Suze: the morning. And so anyway, I hear they've already caught three, 8 00:00:39,340 --> 00:00:41,259 Suze: but that is besides the point. 9 00:00:42,200 --> 00:00:45,839 Suze: KT on Thursday said Suzie, do a Suze School on 10 00:00:45,840 --> 00:00:47,909 Suze: real estate, and I was like, really? 11 00:00:48,590 --> 00:00:52,090 Suze: And then I thought, OK, she's always right, so what 12 00:00:52,090 --> 00:00:55,509 Suze: could I tell you about real estate that would make 13 00:00:55,509 --> 00:00:59,419 Suze: sense to you and really help you? And real estate 14 00:00:59,419 --> 00:01:04,940 Suze: obviously in most cases also come with a mortgage, and 15 00:01:04,940 --> 00:01:08,259 Suze: a lot of you are hearing, all right, interest rates 16 00:01:08,260 --> 00:01:10,819 Suze: may go down. You have been waiting for interest rates 17 00:01:10,819 --> 00:01:14,819 Suze: to go down to buy. You've also been waiting for 18 00:01:14,819 --> 00:01:17,580 Suze: interest rates to go down to possibly sell 19 00:01:18,290 --> 00:01:22,019 Suze: what you have because you want to buy another piece 20 00:01:22,019 --> 00:01:24,860 Suze: of real estate, but you don't want to go from 21 00:01:24,860 --> 00:01:28,860 Suze: a 2 or 3% mortgage rate to a 5 or 6%, 22 00:01:28,870 --> 00:01:33,190 Suze: so you're still waiting. Everybody's waiting for interest rates to 23 00:01:33,190 --> 00:01:38,830 Suze: come down, but there's more to buying a home than 24 00:01:38,830 --> 00:01:43,550 Suze: just the interest rate on the mortgage. So I'm gonna 25 00:01:43,550 --> 00:01:46,790 Suze: get to that in one second, however. 26 00:01:47,220 --> 00:01:51,559 Suze: I have to talk about the stock market. Stock market's 27 00:01:51,559 --> 00:01:55,080 Suze: doing exactly what we wanted it to do. We didn't 28 00:01:55,080 --> 00:01:56,760 Suze: know if it was going to go up, was it 29 00:01:56,760 --> 00:01:58,989 Suze: going to go down, what was going to do, but 30 00:01:58,989 --> 00:02:00,430 Suze: we said overall... 31 00:02:01,220 --> 00:02:04,790 Suze: the market will probably be good next year. It should 32 00:02:04,790 --> 00:02:08,910 Suze: be even better. So hopefully you are investing again if 33 00:02:08,910 --> 00:02:12,229 Suze: you don't know what to invest in, just simply dollar 34 00:02:12,229 --> 00:02:17,229 Suze: cost average into the ETF VOO, and that is the 35 00:02:17,229 --> 00:02:21,788 Suze: Standard and Poor's 500 index ETF. And yes, I still 36 00:02:21,788 --> 00:02:26,429 Suze: like VTI and spiders, but right now I'm favoring, 37 00:02:27,059 --> 00:02:30,869 Suze: VOO. It doesn't mean you have to switch to it. 38 00:02:31,038 --> 00:02:35,279 Suze: Just know that. Also, I'm sure many of you are 39 00:02:35,279 --> 00:02:40,360 Suze: incredibly over the top when it comes to two stocks, 40 00:02:40,399 --> 00:02:45,758 Suze: IONQ and Palantir, and you're probably all wondering. 41 00:02:46,559 --> 00:02:49,550 Suze: Have they gone too high? Should I continue to dollar 42 00:02:49,550 --> 00:02:54,070 Suze: cost averaging to them? What should I do? Well, I 43 00:02:54,070 --> 00:02:58,710 Suze: went to Mister Keith Fitz-Gerald, and I went, Keith, do 44 00:02:58,710 --> 00:03:01,990 Suze: you think they're too high? Do you think that people 45 00:03:01,990 --> 00:03:06,389 Suze: shouldn't be buying in? And Keith Fitz-Gerald said, No, Suze, 46 00:03:06,470 --> 00:03:11,190 Suze: are you crazy? I really, really think that over the years, 47 00:03:11,309 --> 00:03:15,789 Suze: maybe 5 years from now, could see Palantir at 500. 48 00:03:16,508 --> 00:03:21,949 Suze: Also, you could see IONQ that's right around 70 easily 49 00:03:21,949 --> 00:03:26,550 Suze: at 121 in some period of time, so Keith does 50 00:03:26,550 --> 00:03:31,169 Suze: not think they're at their high and therefore you should, 51 00:03:31,270 --> 00:03:36,220 Suze: in his opinion, continue to dollar cost average into them. 52 00:03:36,589 --> 00:03:40,380 Suze: So I'm sure if you bought them you are really, 53 00:03:40,419 --> 00:03:41,190 Suze: really happy. 54 00:03:41,649 --> 00:03:45,149 Suze: But you're also probably really happy if you bought any 55 00:03:45,149 --> 00:03:47,630 Suze: AI stock. And again, 56 00:03:48,619 --> 00:03:51,350 Suze: take a look at Apple. I know a lot of 57 00:03:51,350 --> 00:03:54,149 Suze: you don't like Apple. A lot of you think, Oh, 58 00:03:54,460 --> 00:03:57,820 Suze: I don't like their iPhones. Just take a look, and 59 00:03:57,820 --> 00:04:00,500 Suze: if it happens to drop, you might want to start 60 00:04:00,500 --> 00:04:05,419 Suze: to add that to your list as well of purchases. 61 00:04:06,550 --> 00:04:11,509 Suze: With that said, Bitcoin is still just fine, gold is 62 00:04:11,509 --> 00:04:16,510 Suze: just fine still, and interest rates on bonds, you are 63 00:04:16,510 --> 00:04:21,429 Suze: starting to see them come down, which is also fine. 64 00:04:21,829 --> 00:04:26,308 Suze: Let's go to Suze School now and talk about real 65 00:04:26,309 --> 00:04:28,670 Suze: estate and refinancing. 66 00:04:29,920 --> 00:04:34,510 Suze: Do you have your notebooks out? OK, cause here we go. 67 00:04:34,750 --> 00:04:38,470 Suze: Just last week, the Feds lowered the Fed funds rate 68 00:04:38,720 --> 00:04:43,640 Suze: 25 basis points from 425 - 450, which is where 69 00:04:43,640 --> 00:04:47,599 Suze: they were, to 4 to 425, and that was their first 70 00:04:47,600 --> 00:04:53,200 Suze: cut since December of 2024, and they expect to do 71 00:04:53,200 --> 00:04:57,209 Suze: two more cuts. So the Fed funds rate will affect 72 00:04:57,559 --> 00:05:01,450 Suze: the interest rate that you're getting paid on money market accounts, 73 00:05:01,619 --> 00:05:05,640 Suze: savings accounts, it will affect what the interest that you're 74 00:05:05,640 --> 00:05:09,769 Suze: paying on credit cards, those should start to come down 75 00:05:10,100 --> 00:05:16,570 Suze: little by little, OK, but when it comes to real estate, 76 00:05:16,859 --> 00:05:20,940 Suze: mortgages are not attached to the Fed funds rate. 77 00:05:21,790 --> 00:05:27,549 Suze: They are attached to the 10 year Treasury. The 10 78 00:05:27,549 --> 00:05:34,750 Suze: year Treasury right now is about 4.133%, let's just say 4.2%, OK. 79 00:05:35,410 --> 00:05:42,839 Suze: And normally what happens is mortgage rates are anywhere from 1.5% 80 00:05:42,839 --> 00:05:47,000 Suze: to 2% above, they can be even more, but on 81 00:05:47,000 --> 00:05:53,959 Suze: average 1.5% to 2% above the 10 year Treasury. 82 00:05:55,070 --> 00:05:59,359 Suze: So that is how they figure it out. So right now, 83 00:05:59,730 --> 00:06:03,730 Suze: given that you're probably looking at interest rate on a 84 00:06:03,730 --> 00:06:08,730 Suze: 30-year mortgage of about 6.25% right in there. 85 00:06:09,720 --> 00:06:11,950 Suze: Write that down. 86 00:06:12,790 --> 00:06:15,789 Suze: Now, if it is a projection that the Fed funds 87 00:06:15,790 --> 00:06:20,500 Suze: rate is going to be cut two more times this year, 88 00:06:21,350 --> 00:06:24,929 Suze: and let's just say they're 25 basis points or more. 89 00:06:25,839 --> 00:06:30,109 Suze: That may also cause the 10 year Treasury to come down. 90 00:06:30,190 --> 00:06:34,909 Suze: We'll see what happens there. So mortgage rates could very easily, 91 00:06:34,910 --> 00:06:41,660 Suze: as this goes on, land about 5.5%. So you have 92 00:06:41,660 --> 00:06:45,989 Suze: to think really carefully before you refinance. You don't have 93 00:06:45,988 --> 00:06:49,428 Suze: to rush to refinance right now, and you actually don't 94 00:06:49,428 --> 00:06:52,428 Suze: have to rush to buy a home right now. 95 00:06:53,220 --> 00:06:56,890 Suze: So you may be asking, all right, so I don't 96 00:06:56,890 --> 00:07:00,769 Suze: have to rush into buying something, but Suze, why do 97 00:07:00,769 --> 00:07:05,690 Suze: they attach it to the 10 year Treasury? Well, I'll 98 00:07:05,690 --> 00:07:09,890 Suze: tell you why, because most of you, whether you know 99 00:07:09,890 --> 00:07:10,929 Suze: it or not. 100 00:07:11,540 --> 00:07:15,119 Suze: You most likely will only stay in the house that 101 00:07:15,119 --> 00:07:17,559 Suze: you have just bought unless you're a lot older. 102 00:07:18,670 --> 00:07:24,540 Suze: For 7 to 10 years, most likely only 7 years, 103 00:07:24,750 --> 00:07:26,989 Suze: so they base that interest rate. 104 00:07:27,760 --> 00:07:30,809 Suze: On the 10 year Treasury because it's right in there 105 00:07:30,809 --> 00:07:32,970 Suze: for when you're going to turn around and sell that 106 00:07:32,970 --> 00:07:36,049 Suze: house and therefore somebody else is going to buy that 107 00:07:36,049 --> 00:07:40,320 Suze: house and they want to know that when you do 108 00:07:40,320 --> 00:07:45,559 Suze: that they're getting the correct interest rate on the new mortgage. 109 00:07:46,170 --> 00:07:48,170 Suze: Did that make sense to you? 110 00:07:48,989 --> 00:07:53,179 Suze: Therefore, that's why they do the 10 year Treasury. 111 00:07:53,880 --> 00:07:57,600 Suze: So now, however, I just want to give you an example, 112 00:07:58,559 --> 00:08:01,519 Suze: of what that means cause all of you are always 113 00:08:01,519 --> 00:08:05,920 Suze: so excited, Suze. I know I can barely afford the 114 00:08:05,920 --> 00:08:07,000 Suze: mortgage payment. 115 00:08:07,779 --> 00:08:11,359 Suze: But now I can take my principal, my interest, I 116 00:08:11,359 --> 00:08:15,019 Suze: can itemize it. I can be great, and I could 117 00:08:15,019 --> 00:08:18,200 Suze: save money because of how much interest I'm going to 118 00:08:18,200 --> 00:08:21,920 Suze: be paying on that mortgage. So that will make it 119 00:08:21,920 --> 00:08:25,799 Suze: so that I can afford the mortgage payments today, even 120 00:08:25,799 --> 00:08:29,920 Suze: though they're higher than I really want to pay. Is 121 00:08:29,920 --> 00:08:32,679 Suze: that true or is that false? 122 00:08:33,869 --> 00:08:36,750 Suze: Because a lot of you now are working on an 123 00:08:36,750 --> 00:08:43,049 Suze: assumption in many cases that just isn't true, especially because 124 00:08:43,049 --> 00:08:44,510 Suze: they have increased 125 00:08:45,169 --> 00:08:52,880 Suze: the standard deductions to $15,700 for single people and double 126 00:08:52,880 --> 00:09:00,000 Suze: that for married filing jointly to $31,400. So are you 127 00:09:00,000 --> 00:09:04,439 Suze: just better off taking the standard deductions or itemizing? 128 00:09:05,520 --> 00:09:09,119 Suze: Is your interest that you pay per year more than 129 00:09:09,119 --> 00:09:13,200 Suze: the standard deduction or less? If you add in the 130 00:09:13,200 --> 00:09:16,479 Suze: property taxes that you can take off as well, if 131 00:09:16,479 --> 00:09:19,679 Suze: you do all of that, how much can you really 132 00:09:19,679 --> 00:09:23,189 Suze: save over a seven year period of time? 133 00:09:24,419 --> 00:09:24,989 Suze: If... 134 00:09:25,700 --> 00:09:27,090 Suze: Start writing down now. 135 00:09:28,150 --> 00:09:32,150 Suze: Let's just say you bought a house for $375,000. I 136 00:09:32,150 --> 00:09:34,190 Suze: know a lot of them are a whole lot more, 137 00:09:34,349 --> 00:09:37,059 Suze: a whole lot less, but just let's say that's true 138 00:09:37,059 --> 00:09:42,549 Suze: for now, and you put $75,000 down. 139 00:09:43,510 --> 00:09:48,199 Suze: That means today if you get a 30 year mortgage, 140 00:09:48,729 --> 00:09:58,530 Suze: it's going to be a $300,000 mortgage at 6.25% interest, OK. 141 00:09:59,400 --> 00:10:05,079 Suze: So on this 30 year mortgage at 6.25% interest, your 142 00:10:05,080 --> 00:10:12,599 Suze: monthly mortgage payment will be $1,847 write it down. 143 00:10:14,099 --> 00:10:22,739 Suze: The interest on your loan is going to be $18,650 144 00:10:22,739 --> 00:10:24,289 Suze: that very first year. 145 00:10:25,580 --> 00:10:33,619 Suze: And your property taxes are going to be approximately $4,125 146 00:10:33,830 --> 00:10:43,229 Suze: so your total potential deduction is going to be $22,775. 147 00:10:44,309 --> 00:10:46,630 Suze: That's the very first year. 148 00:10:47,489 --> 00:10:51,229 Suze: So let's look at this as if you are a 149 00:10:51,229 --> 00:10:54,270 Suze: single with $150,000 of income. 150 00:10:55,309 --> 00:11:02,789 Suze: Given that you are going to be itemizing $22,775 you're 151 00:11:02,789 --> 00:11:09,710 Suze: going to have a tax deduction of $7,075 or you're 152 00:11:09,710 --> 00:11:13,099 Suze: going to be able to save in the 24% tax bracket, 153 00:11:13,349 --> 00:11:21,349 Suze: $1,698 in year one in taxes. That's it. Now, obviously 154 00:11:21,349 --> 00:11:23,119 Suze: you're going to itemize. 155 00:11:23,869 --> 00:11:30,510 Suze: Because you are approximately $7,075 above the standard deduction. 156 00:11:31,440 --> 00:11:35,400 Suze: So the very first year you're going to save approximately 157 00:11:35,400 --> 00:11:38,390 Suze: $1,700 in taxes. 158 00:11:39,690 --> 00:11:45,900 Suze: Now that's for the single if you are married filing jointly. 159 00:11:46,890 --> 00:11:54,530 Suze: However, you still would only be itemizing $22,775 which is 160 00:11:54,530 --> 00:12:01,630 Suze: actually less than the $31,400 in your standard deduction, so 161 00:12:01,630 --> 00:12:05,090 Suze: your tax savings are going to be zero. 162 00:12:06,760 --> 00:12:09,429 Suze: If you then project this over. 163 00:12:10,299 --> 00:12:13,969 Suze: A seven year period of time. 164 00:12:15,510 --> 00:12:21,709 Suze: This single filer has saved anywhere between 1,500 to $1,700 165 00:12:21,710 --> 00:12:28,340 Suze: per year in taxes or over seven years, $10,000. 166 00:12:29,659 --> 00:12:31,000 Suze: The married couple, 167 00:12:31,929 --> 00:12:37,699 Suze: they have not saved anything more. They did not beat 168 00:12:37,700 --> 00:12:41,868 Suze: the standard deduction, so owning a home gave them no 169 00:12:41,869 --> 00:12:47,789 Suze: tax savings whatsoever. The point of this is you really 170 00:12:47,789 --> 00:12:49,738 Suze: need to figure out, 171 00:12:51,020 --> 00:12:54,159 Suze: is a home going to save you in taxes, or 172 00:12:54,159 --> 00:12:57,880 Suze: is it not? So when you go to buy a home, 173 00:12:58,169 --> 00:13:01,440 Suze: do not, and I repeat, do not think to yourself, 174 00:13:01,729 --> 00:13:06,369 Suze: but the interest is a tax write-off, because let me 175 00:13:06,369 --> 00:13:10,409 Suze: just tell you one other thing here that has always 176 00:13:10,409 --> 00:13:16,840 Suze: driven me crazy. After seven years of paying on this home, 177 00:13:17,799 --> 00:13:29,619 Suze: a $300,000 mortgage. You have actually paid $125,229 of interest. 178 00:13:29,830 --> 00:13:39,348 Suze: You have a mortgage balance of $270,142. You have only 179 00:13:39,349 --> 00:13:45,080 Suze: paid down $30,000 of that mortgage, 180 00:13:46,299 --> 00:13:51,130 Suze: and maybe you saved $10,000 in this example. 181 00:13:52,190 --> 00:13:55,159 Suze: Now, that is why, 182 00:13:55,890 --> 00:14:00,439 Suze: the mortgage companies love when you take out a 30 183 00:14:00,440 --> 00:14:09,400 Suze: year mortgage because essentially they made $125,000 of interest on 184 00:14:09,400 --> 00:14:13,719 Suze: that loan because the big interest payments are all up 185 00:14:13,719 --> 00:14:18,710 Suze: front everybody. They're all up front because they know you 186 00:14:18,710 --> 00:14:22,840 Suze: are going to sell the house and the longer you 187 00:14:22,840 --> 00:14:24,190 Suze: keep the house, 188 00:14:25,030 --> 00:14:29,130 Suze: the interest rate portion of your mortgage goes down and 189 00:14:29,130 --> 00:14:35,289 Suze: down and down. So do you understand, everybody, why banks 190 00:14:35,289 --> 00:14:40,080 Suze: and financial institutions love to give you a long mortgage? 191 00:14:40,289 --> 00:14:43,169 Suze: I just want to give you these numbers as well. 192 00:14:44,440 --> 00:14:48,090 Suze: Do you know that just after 10 years, OK. 193 00:14:49,369 --> 00:14:53,130 Suze: You have paid approximately $174,000 in interest. 194 00:14:53,859 --> 00:15:01,929 Suze: After 20 years you've paid approximately $308,000 in interest. After 195 00:15:01,929 --> 00:15:05,090 Suze: 30 years, the full length of the loan on a 196 00:15:05,090 --> 00:15:15,729 Suze: $300,000 loan you paid $364,975 just in interest. But notice, 197 00:15:16,349 --> 00:15:21,989 Suze: in the first 10 years you have already paid over 198 00:15:21,989 --> 00:15:26,989 Suze: half the total lifetime of that loan in interest, and 199 00:15:26,989 --> 00:15:30,349 Suze: that is most likely when you will sell it between 200 00:15:30,349 --> 00:15:34,989 Suze: seven and 10 years. The last 10 years only, 201 00:15:35,909 --> 00:15:40,859 Suze: you are paying about $57,000 in interest. 202 00:15:41,799 --> 00:15:45,599 Suze: Which is why I always tell you, I want you 203 00:15:45,599 --> 00:15:48,750 Suze: to pay your home outright if you're going to keep 204 00:15:48,750 --> 00:15:52,030 Suze: it forever, especially if it's going to be your forever home. 205 00:15:52,690 --> 00:15:56,609 Suze: By the time you retire, because there is no longer 206 00:15:56,609 --> 00:15:59,710 Suze: really any interest deduction. 207 00:16:01,020 --> 00:16:04,859 Suze: Over the last 10 years it goes like from 5,000 208 00:16:04,859 --> 00:16:09,820 Suze: to 4,000. There's no true interest deduction, and it's obviously 209 00:16:09,820 --> 00:16:13,719 Suze: far below the standard deduction. I just want you to 210 00:16:13,719 --> 00:16:17,380 Suze: think about all that when you're buying a home and 211 00:16:17,380 --> 00:16:21,859 Suze: take that all into consideration and do not use the excuse, 212 00:16:21,900 --> 00:16:22,900 Suze: but Suze, 213 00:16:23,859 --> 00:16:28,890 Suze: my mortgage payment is going to be a tax write-off. Really? 214 00:16:29,219 --> 00:16:33,419 Suze: Do the math, everybody, right, but here we are. We're 215 00:16:33,419 --> 00:16:37,580 Suze: now in a situation where mortgage rates may continue to 216 00:16:37,580 --> 00:16:38,419 Suze: go down. 217 00:16:39,250 --> 00:16:41,260 Suze: And again, I think you might want to wait a 218 00:16:41,260 --> 00:16:44,020 Suze: little bit just before you rush out and buy. 219 00:16:44,950 --> 00:16:49,020 Suze: Or maybe even sell if you know you're going to 220 00:16:49,020 --> 00:16:52,789 Suze: need to buy again with a new mortgage, OK, but 221 00:16:52,789 --> 00:16:56,659 Suze: a lot of you really want to refinance and get 222 00:16:56,659 --> 00:16:59,140 Suze: your mortgage interest rate down. 223 00:17:00,020 --> 00:17:04,819 Suze: Let's just talk therefore about refinancing. I only want you 224 00:17:04,819 --> 00:17:12,020 Suze: to refinance if your new rate is 0.75% to 1% 225 00:17:12,020 --> 00:17:19,589 Suze: or even more, lower than your current mortgage rate, and 226 00:17:20,060 --> 00:17:22,329 Suze: this is a big deal everybody, 227 00:17:22,729 --> 00:17:26,060 Suze: you're going to stay in that home long enough to 228 00:17:26,060 --> 00:17:30,260 Suze: recoup the closing costs. So let me give you an example. 229 00:17:31,099 --> 00:17:35,250 Suze: You have a loan, 300,000, 20 years left. 230 00:17:36,349 --> 00:17:41,660 Suze: And you have a 7.25% mortgage payment for whatever reason, 231 00:17:41,930 --> 00:17:44,650 Suze: maybe at a low FICO score or whatever, and your 232 00:17:44,650 --> 00:17:50,209 Suze: mortgage payment is $2,400 a month. You now decide to 233 00:17:50,209 --> 00:17:55,208 Suze: take out a new loan for 20 years because that 234 00:17:55,209 --> 00:17:56,688 Suze: is how you would do it, 235 00:17:57,699 --> 00:18:04,890 Suze: for 6.25% and your payment would be $2,200 a month. However, 236 00:18:05,020 --> 00:18:11,209 Suze: it's going to cost you $5,500 in closing costs. Your 237 00:18:11,209 --> 00:18:15,540 Suze: savings will be $200 a month, so you need to 238 00:18:15,540 --> 00:18:21,099 Suze: divide the $5,500 or whatever your closing costs are by 239 00:18:21,099 --> 00:18:23,979 Suze: your savings per month of your mortgage, in this case 240 00:18:23,979 --> 00:18:25,458 Suze: $200 a month. 241 00:18:26,030 --> 00:18:30,599 Suze: So your break even would be 27 months. You have 242 00:18:30,599 --> 00:18:33,429 Suze: got to know that you're going to be in this 243 00:18:33,430 --> 00:18:38,160 Suze: home for at least 27 months. Now notice I said, 244 00:18:39,040 --> 00:18:42,859 Suze: that was the smart way to do it with 20 245 00:18:42,859 --> 00:18:47,290 Suze: years left on the mortgage, you refinance for 20 years. 246 00:18:47,579 --> 00:18:52,520 Suze: You never ever, ever want to make the mistake of 247 00:18:52,520 --> 00:18:54,300 Suze: restarting the clock. 248 00:18:55,060 --> 00:18:58,270 Suze: If let's just say you had 20 years left on 249 00:18:58,270 --> 00:19:03,660 Suze: your mortgage and you refied into a 30 year mortgage, 250 00:19:03,670 --> 00:19:05,660 Suze: even at a lower payment. 251 00:19:06,790 --> 00:19:11,050 Suze: You may end up paying tens of thousands of dollars 252 00:19:11,050 --> 00:19:16,119 Suze: more in interest if you keep the house all 30 years, 253 00:19:16,449 --> 00:19:21,930 Suze: so you want to always remember, match or shorten your 254 00:19:21,930 --> 00:19:27,209 Suze: term of your refinanced mortgage from the current mortgage that 255 00:19:27,209 --> 00:19:28,959 Suze: you already have. 256 00:19:30,010 --> 00:19:32,959 Suze: Many of you are writing me and telling me that 257 00:19:32,959 --> 00:19:35,369 Suze: you plan on cashing out, 258 00:19:36,300 --> 00:19:40,319 Suze: some of the equity in your home in order to 259 00:19:40,319 --> 00:19:44,790 Suze: pay off or remodel or do certain things. What you 260 00:19:44,790 --> 00:19:47,839 Suze: have to get is that if you're going to cash 261 00:19:47,839 --> 00:19:52,319 Suze: out with a refinance, you are never to take that 262 00:19:52,319 --> 00:19:55,520 Suze: money and do what with it? Use it to pay 263 00:19:55,520 --> 00:20:00,599 Suze: off credit card debt, a car loan debt, and possibly 264 00:20:00,599 --> 00:20:02,329 Suze: even student loan debt. 265 00:20:03,189 --> 00:20:06,270 Suze: You never want to go, especially with credit card debt 266 00:20:06,270 --> 00:20:07,780 Suze: if it's at a high interest rate. 267 00:20:08,729 --> 00:20:13,649 Suze: You never want to go from unsecured debt, which credit 268 00:20:13,650 --> 00:20:16,609 Suze: card debt is, think about it, you can't pay that 269 00:20:16,609 --> 00:20:20,119 Suze: credit card off. All right, there's nothing securing it. 270 00:20:21,260 --> 00:20:25,880 Suze: You never want to trade unsecured debt for secured debt 271 00:20:25,880 --> 00:20:31,869 Suze: when cashing out a mortgage where it is secured by what? 272 00:20:32,479 --> 00:20:38,510 Suze: The house you live in, do not make that mistake. Also, 273 00:20:38,760 --> 00:20:43,560 Suze: you really can't ignore all the hidden terms of when 274 00:20:43,560 --> 00:20:45,189 Suze: you are refinancing. 275 00:20:45,560 --> 00:20:49,099 Suze: Is it a 5 in 1 ARM? Is it an adjustable? 276 00:20:49,390 --> 00:20:53,829 Suze: What type of mortgage are you refinancing to. As interest 277 00:20:53,829 --> 00:20:58,109 Suze: rates are going down, I would tell you to absolutely 278 00:20:58,109 --> 00:21:04,630 Suze: do a fixed rate mortgage if, however, you know that 279 00:21:04,630 --> 00:21:07,270 Suze: you're only going to be in the house for three 280 00:21:07,270 --> 00:21:11,020 Suze: years or five years and you are taking out a mortgage, 281 00:21:11,229 --> 00:21:14,219 Suze: maybe you want to look at an adjustable rate mortgage. 282 00:21:14,810 --> 00:21:17,479 Suze: Like a 5 in 1, it's fixed for 5 years, 283 00:21:17,530 --> 00:21:20,050 Suze: but you're gonna sell in three or four, OK. 284 00:21:20,849 --> 00:21:25,449 Suze: Right, but after that it adjusts annually. And also, don't 285 00:21:25,449 --> 00:21:28,800 Suze: make the mistake of not shopping around. 286 00:21:29,810 --> 00:21:33,290 Suze: Because you never ever know like there was somebody who 287 00:21:33,290 --> 00:21:33,969 Suze: wrote in. 288 00:21:34,839 --> 00:21:42,489 Suze: And they had a mortgage with $4,000 of fees for 6.6% 289 00:21:42,489 --> 00:21:46,040 Suze: interest at their current mortgage rate and then they wrote 290 00:21:46,040 --> 00:21:50,160 Suze: me so upset because they found another lender. 291 00:21:50,800 --> 00:21:56,510 Suze: at 6.4% with $1,000 less in fees, so I want 292 00:21:56,510 --> 00:22:01,919 Suze: you to get at least three quotes, compare APRs, not 293 00:22:01,920 --> 00:22:06,030 Suze: just the interest rate, the APRs, the annual percentage rate, 294 00:22:06,250 --> 00:22:10,520 Suze: because that includes all closing costs and everything, and then 295 00:22:10,520 --> 00:22:14,880 Suze: see if you can negotiate costs. One last thing that 296 00:22:14,880 --> 00:22:17,119 Suze: I just want to say when it comes to buying 297 00:22:17,119 --> 00:22:18,639 Suze: a piece of real estate. 298 00:22:19,750 --> 00:22:25,938 Suze: Buying real estate today is not like buying real estate five, 10, 299 00:22:25,949 --> 00:22:30,949 Suze: or 15 years ago. Real estate today isn't about just 300 00:22:30,949 --> 00:22:33,510 Suze: the interest rate and what you're going to pay on 301 00:22:33,510 --> 00:22:37,139 Suze: the mortgage, and I've said this to you over and 302 00:22:37,140 --> 00:22:42,280 Suze: over again. Buying real estate today or keeping real estate 303 00:22:42,280 --> 00:22:48,709 Suze: today is all about what is your property insurance going 304 00:22:48,709 --> 00:22:49,380 Suze: to be. 305 00:22:50,180 --> 00:22:55,130 Suze: And don't be shocked if your property insurance payments are 306 00:22:55,130 --> 00:23:01,280 Suze: actually higher than your mortgage payments just depending on where 307 00:23:01,280 --> 00:23:04,958 Suze: you live. Are you in a flood area, earthquake area, 308 00:23:05,290 --> 00:23:08,729 Suze: fire area? Are you buying somewhere where they have had 309 00:23:08,729 --> 00:23:12,489 Suze: natural disasters and the insurance companies don't even want to 310 00:23:12,489 --> 00:23:13,969 Suze: insure there anymore? 311 00:23:14,729 --> 00:23:19,060 Suze: Can you just look at that before you decide the 312 00:23:19,060 --> 00:23:22,438 Suze: only way to make money is by owning a home. 313 00:23:22,770 --> 00:23:28,250 Suze: Maybe yes, maybe no. It is mandatory that you have 314 00:23:28,250 --> 00:23:29,770 Suze: property insurance 315 00:23:30,819 --> 00:23:35,290 Suze: if you have a mortgage. So you just have to know, 316 00:23:36,040 --> 00:23:41,000 Suze: that you can afford a tremendous increase, a doubling, possibly 317 00:23:41,000 --> 00:23:44,640 Suze: a tripling in your property insurance, 318 00:23:45,560 --> 00:23:49,959 Suze: before you buy a home, so you need to do 319 00:23:49,959 --> 00:23:54,959 Suze: that possibility. All right, that's your Suze School today and 320 00:23:54,959 --> 00:23:58,718 Suze: until Thursday, when Miss Travis joins us again for Ask 321 00:23:58,719 --> 00:24:01,479 Suze: KT and Suze Anything, there's only one thing I want 322 00:24:01,479 --> 00:24:03,479 Suze: you to remember when it comes to your money and 323 00:24:03,479 --> 00:24:09,030 Suze: is this people first, then money, then things. Now you 324 00:24:09,349 --> 00:24:11,219 Suze: stay safe. Bye bye.