1 00:00:08,480 --> 00:00:11,639 S1: Many people are wondering whether the housing market is finally 2 00:00:11,640 --> 00:00:15,000 S1: turning a corner, or if uncertainty is here to stay. 3 00:00:15,480 --> 00:00:18,920 S1: I am Rob West. Higher mortgage rates and tight inventory 4 00:00:18,920 --> 00:00:22,240 S1: have kept buyers hesitant, and homeowners who want to refinance 5 00:00:22,239 --> 00:00:25,680 S1: stuck on the sidelines today. Dale Vermillion joins us to 6 00:00:25,720 --> 00:00:29,680 S1: explain what the housing market really looks like in 2026 7 00:00:29,920 --> 00:00:32,960 S1: and to help you make sense of what we're seeing. 8 00:00:33,120 --> 00:00:37,279 S1: Then it's on to your calls at 800 525 7000. 9 00:00:37,320 --> 00:00:42,440 S1: That's 800 525 7000. This is faith and finance. Live. 10 00:00:42,560 --> 00:00:48,280 S1: Biblical wisdom for your financial decisions. Well, when it comes 11 00:00:48,280 --> 00:00:51,479 S1: to mortgages and home financing, few voices are more trusted 12 00:00:51,479 --> 00:00:55,160 S1: than Dale Vermillion. He's the author of Navigating the Mortgage 13 00:00:55,200 --> 00:00:58,640 S1: Maze The Simple Truth About Financing Your Home. He's our 14 00:00:58,640 --> 00:01:01,060 S1: go to guy on this topic. Dale, always great to 15 00:01:01,060 --> 00:01:01,740 S1: have you with us. 16 00:01:01,780 --> 00:01:04,259 S2: Rob, it's always an honor to be here. Happy new year. 17 00:01:04,540 --> 00:01:06,700 S1: Happy New Year to you, my friend. Let's start with 18 00:01:06,700 --> 00:01:12,179 S1: the big picture with headlines about interest rates and affordability concerns. 19 00:01:12,180 --> 00:01:15,860 S1: Many people are wondering what is 2026 and the housing 20 00:01:15,860 --> 00:01:18,300 S1: market going to look like? What are your thoughts? 21 00:01:18,340 --> 00:01:21,340 S2: You know, it's a lot of good news, to be 22 00:01:21,340 --> 00:01:23,819 S2: honest with you. I mean, it isn't the market of 23 00:01:23,819 --> 00:01:27,100 S2: 2020 and 2021 when rates were in the twos and 24 00:01:27,100 --> 00:01:32,100 S2: threes and fours, and it's certainly not 2008 thankfully right 25 00:01:32,140 --> 00:01:35,460 S2: where we had a big crash. This is a very 26 00:01:35,459 --> 00:01:39,780 S2: normal market. This is what we generally expect. And rates, 27 00:01:39,780 --> 00:01:42,020 S2: even though people think of them as still being high, 28 00:01:42,060 --> 00:01:46,619 S2: actually are below normal for the last 30 years. We're 29 00:01:46,620 --> 00:01:49,980 S2: seeing rates improve, which is great news. We're seeing inventory up. 30 00:01:49,980 --> 00:01:54,100 S2: We're seeing sales increase. All of the indicators that we 31 00:01:54,100 --> 00:01:56,740 S2: look at would tell us that this is a getting 32 00:01:56,740 --> 00:01:58,900 S2: to be a much better market. And the fact that 33 00:01:58,900 --> 00:02:02,130 S2: we've got, um, you know, we've got a government that 34 00:02:02,130 --> 00:02:04,890 S2: that that is a lot of the people in government 35 00:02:04,890 --> 00:02:06,890 S2: today come out of the real estate market. So there's 36 00:02:06,890 --> 00:02:08,850 S2: a lot of interest and focus on trying to improve 37 00:02:08,850 --> 00:02:10,810 S2: these things. I think all of those things combined, I 38 00:02:10,810 --> 00:02:13,090 S2: think we're sitting in a position where we're in a 39 00:02:13,090 --> 00:02:16,290 S2: buyer's market, and it's a it's an opportunity for people 40 00:02:16,330 --> 00:02:19,649 S2: to to, again, think about buying a home and improve 41 00:02:19,650 --> 00:02:22,850 S2: their financial situation. It's getting better every day, I'm glad 42 00:02:22,850 --> 00:02:23,290 S2: to say. 43 00:02:23,690 --> 00:02:26,690 S1: Yeah. Well, I'm delighted to hear what you just described 44 00:02:26,690 --> 00:02:30,290 S1: because that's not the environment we've had the last several years. 45 00:02:30,330 --> 00:02:33,010 S1: A lot of listeners, of course, are asking the same thing. 46 00:02:33,010 --> 00:02:37,570 S1: With rates this high, why haven't home prices come down more? 47 00:02:37,570 --> 00:02:40,090 S1: So in your view, what's holding prices up? 48 00:02:40,130 --> 00:02:44,209 S2: Yeah. You know, um, we we have seen the increases 49 00:02:44,210 --> 00:02:46,250 S2: come down. This year was the first year that we 50 00:02:46,250 --> 00:02:50,850 S2: saw basically flat prices. We only had a 0.7 increase 51 00:02:50,850 --> 00:02:54,169 S2: in property values this year. You compare that to three 52 00:02:54,169 --> 00:02:56,490 S2: years ago when it was 23%, a couple of years 53 00:02:56,490 --> 00:02:59,510 S2: ago when it was 12%. Um, you know, we've seen 54 00:02:59,510 --> 00:03:02,550 S2: that really drop and we are seeing declines in some markets, 55 00:03:02,550 --> 00:03:05,510 S2: to be honest with you, it's regional, not national. Um, 56 00:03:05,669 --> 00:03:08,109 S2: but it hasn't been what we expected. And a lot 57 00:03:08,110 --> 00:03:11,310 S2: of the reason for that simply is that, you know, 58 00:03:11,350 --> 00:03:17,590 S2: housing inventory always is dependent on and values are dependent on, um, 59 00:03:17,710 --> 00:03:21,710 S2: what's happening overall in the marketplace. And I think a 60 00:03:21,710 --> 00:03:23,829 S2: lot of what has happened in the past is there 61 00:03:23,830 --> 00:03:25,830 S2: was that lock in effect that you've probably heard about, 62 00:03:25,830 --> 00:03:27,549 S2: where people were locked in a low rate. They didn't 63 00:03:27,550 --> 00:03:29,470 S2: want to do anything to raise the rate. But we've 64 00:03:29,470 --> 00:03:31,589 S2: seen that change that has kind of moved away. There 65 00:03:31,630 --> 00:03:36,030 S2: is there is more loans today above 6% than below 3% 66 00:03:36,030 --> 00:03:38,350 S2: in the marketplace for the first time in a long time. 67 00:03:38,350 --> 00:03:41,310 S2: So these things are starting to change. And with rates improving, 68 00:03:41,310 --> 00:03:42,630 S2: we're starting to see some movement. 69 00:03:42,950 --> 00:03:46,750 S1: Yeah really helpful. The fed of course, has been cutting 70 00:03:46,750 --> 00:03:50,990 S1: rates in quarter point steps. And people are wondering how 71 00:03:50,990 --> 00:03:54,670 S1: come mortgage rates haven't moved much lower. What are your 72 00:03:54,670 --> 00:03:56,550 S1: thoughts on where we sit today and where we might 73 00:03:56,550 --> 00:03:56,990 S1: be headed? 74 00:03:57,030 --> 00:03:59,700 S2: Yeah. Great question. This is the most common question that 75 00:03:59,700 --> 00:04:02,380 S2: loan arrangers get every day. And the answer is that 76 00:04:02,380 --> 00:04:06,260 S2: the fed rate does not directly affect mortgage rates. Mortgage 77 00:04:06,260 --> 00:04:10,180 S2: rates are really based on what the Treasury is doing 78 00:04:10,540 --> 00:04:14,100 S2: on the bond market and what that's doing. And that's 79 00:04:14,100 --> 00:04:17,219 S2: really driven by a couple of things driven by inflation. 80 00:04:17,220 --> 00:04:20,859 S2: It's driven by job reports. Uh, those are the things 81 00:04:20,860 --> 00:04:22,900 S2: that change that. Now, one of the things that is 82 00:04:22,900 --> 00:04:25,580 S2: changing rates right now, and we've seen a recent dip 83 00:04:25,580 --> 00:04:28,380 S2: in rates. And the reason is that we are looking 84 00:04:28,380 --> 00:04:30,620 S2: at going back to buying mortgage backed securities. And that 85 00:04:30,660 --> 00:04:32,659 S2: actually drives rates a whole lot more in the mortgage 86 00:04:32,660 --> 00:04:35,219 S2: side than the fed does. The fed rate is more 87 00:04:35,220 --> 00:04:39,260 S2: for consumer loans and saving and those kinds of things. Uh, 88 00:04:39,260 --> 00:04:41,659 S2: when you see those rates drop, it can be a 89 00:04:41,660 --> 00:04:45,900 S2: leading indicator. But generally mortgage interest rates reduce before fed 90 00:04:45,900 --> 00:04:48,660 S2: rates do because they're always anticipating that's going to happen. 91 00:04:48,900 --> 00:04:51,500 S2: So when you see those rates happening a quarter percent drop, 92 00:04:51,500 --> 00:04:53,460 S2: that doesn't mean your mortgage rates are going to go down. 93 00:04:53,779 --> 00:04:56,140 S2: That means your consumer rates are going to go down. 94 00:04:56,180 --> 00:04:58,839 S2: The mortgages are based on different criteria. You got to 95 00:04:58,839 --> 00:05:00,080 S2: talk to a lender about that. 96 00:05:00,120 --> 00:05:03,719 S1: Excellent. Well, when we come back, we'll continue this conversation 97 00:05:03,720 --> 00:05:07,279 S1: with Dale. What about buyer psychology? Where is that out 98 00:05:07,279 --> 00:05:09,720 S1: right now? If you're looking to sell a home. What 99 00:05:09,720 --> 00:05:12,080 S1: do you need to know and when is the right 100 00:05:12,120 --> 00:05:15,280 S1: time to go ahead and refinance? Dale Vermillion is here today. 101 00:05:15,279 --> 00:05:18,840 S1: He's our go to guy on the housing market and mortgages. 102 00:05:18,839 --> 00:05:21,080 S1: Much more to come just around the corner. Stick around. 103 00:05:31,760 --> 00:05:34,520 S1: Thanks for joining us today on Faith and Finance Live. 104 00:05:34,640 --> 00:05:38,080 S1: We're talking the housing market and mortgages today. What might 105 00:05:38,080 --> 00:05:41,679 S1: be ahead in 2026. Our go to guy is here. 106 00:05:41,720 --> 00:05:46,240 S1: Dale Vermilion is our trusted source of insight in this area. 107 00:05:46,240 --> 00:05:49,680 S1: He's also the author of Navigating the Mortgage Maze The 108 00:05:49,680 --> 00:05:53,760 S1: Simple Truth About Financing Your Home. Dale. In the last segment, 109 00:05:53,760 --> 00:05:55,760 S1: you gave us an overview of where we're at with 110 00:05:55,760 --> 00:06:00,589 S1: the housing market and rates. So with many potential buyers 111 00:06:00,589 --> 00:06:04,029 S1: in limbo, maybe sitting on the sideline waiting for that 112 00:06:04,029 --> 00:06:08,350 S1: perfect moment that perhaps won't come. How would you describe 113 00:06:08,390 --> 00:06:11,630 S1: buyer psychology right now, and what counsel would you offer them? 114 00:06:12,390 --> 00:06:15,110 S2: Yeah. You know what we're seeing, what we have seen 115 00:06:15,110 --> 00:06:17,350 S2: for the last couple of years is what we would 116 00:06:17,390 --> 00:06:19,990 S2: call buyer fatigue. You know, when you went through the 117 00:06:19,990 --> 00:06:23,510 S2: 2020 to 2021 low rate market, you know, a lot 118 00:06:23,510 --> 00:06:25,950 S2: of people took advantage of those rates, bought homes. But 119 00:06:25,950 --> 00:06:28,030 S2: a lot of people also tried to buy homes and 120 00:06:28,029 --> 00:06:30,630 S2: couldn't because of the competition that was happening. You know, 121 00:06:31,070 --> 00:06:33,789 S2: they would offer on ten, 12, 15 homes couldn't seem 122 00:06:33,830 --> 00:06:35,990 S2: to win. Then all of a sudden, what happens? The 123 00:06:35,990 --> 00:06:39,029 S2: market rates change dramatically. Now they feel like they can't 124 00:06:39,029 --> 00:06:41,589 S2: afford those. Well, we are now again on that decline 125 00:06:41,589 --> 00:06:44,310 S2: in rates. We're now again in a position where inventory 126 00:06:44,310 --> 00:06:46,270 S2: is coming back. You look at inventory. Early last year 127 00:06:46,270 --> 00:06:49,770 S2: it was around 450,000 units nationwide. We're well over a 128 00:06:49,770 --> 00:06:53,630 S2: million units now. Wow. So from a buyer's standpoint, it 129 00:06:53,630 --> 00:06:56,529 S2: is time to be encouraged again and understand that inventory 130 00:06:56,529 --> 00:06:59,490 S2: has grown and it's much larger than it was. There 131 00:06:59,490 --> 00:07:01,330 S2: is opportunities. If you haven't been in the market, it's 132 00:07:01,370 --> 00:07:03,370 S2: worth looking again. If you think this is a time 133 00:07:03,370 --> 00:07:06,450 S2: that you want to buy because it's a seller motivated 134 00:07:06,450 --> 00:07:09,490 S2: market people, people have been holding off selling just like 135 00:07:09,490 --> 00:07:11,370 S2: they've been holding off buying. And all of that is 136 00:07:11,370 --> 00:07:14,730 S2: starting to change. Consumer confidence is up. Those things are 137 00:07:14,770 --> 00:07:17,090 S2: opening up an opportunity in the purchase market today. 138 00:07:17,370 --> 00:07:21,250 S1: Yeah. You know, one of the byproducts of your home 139 00:07:21,250 --> 00:07:25,570 S1: appreciating especially, uh, with appreciation as rapid as it has 140 00:07:25,570 --> 00:07:29,090 S1: been the last several years, is you don't feel that 141 00:07:29,090 --> 00:07:32,810 S1: appreciation unless you check Zillow. But what you do feel 142 00:07:33,010 --> 00:07:36,210 S1: is your property taxes going up. Now, I just got 143 00:07:36,210 --> 00:07:38,570 S1: my property tax bill and for the first time in 144 00:07:38,570 --> 00:07:41,810 S1: several years it's down slightly. But, you know, that's a 145 00:07:41,810 --> 00:07:45,730 S1: real challenge that's creating, uh, you know, problems in the budget, 146 00:07:45,730 --> 00:07:46,330 S1: isn't it? 147 00:07:46,690 --> 00:07:50,570 S2: It really is. When you look at today's, uh, mortgage situation, 148 00:07:50,570 --> 00:07:52,970 S2: when it comes to buying a home and even owning 149 00:07:52,970 --> 00:07:56,640 S2: a home, the biggest factor that's driving affordability is really 150 00:07:56,640 --> 00:07:59,080 S2: not the rates. I mean, that certainly is a factor. 151 00:07:59,080 --> 00:08:02,760 S2: It's homeowners insurance and it's property taxes. Those are the 152 00:08:02,760 --> 00:08:05,720 S2: two that the homeowner's insurance numbers have been absolutely out 153 00:08:05,760 --> 00:08:09,239 S2: of control too. And we're seeing that increase all over. 154 00:08:09,280 --> 00:08:12,040 S2: Those are the things you really need to look into 155 00:08:12,040 --> 00:08:14,680 S2: when you're considering buying a new home. It's not just 156 00:08:14,880 --> 00:08:16,600 S2: what's the rate on the mortgage going forward, but what 157 00:08:16,600 --> 00:08:18,400 S2: are my taxes going to look like and what kind 158 00:08:18,400 --> 00:08:19,960 S2: of insurance do I have to carry, and what's the 159 00:08:19,960 --> 00:08:22,560 S2: cost going to be for that? That's critically important. 160 00:08:22,760 --> 00:08:25,320 S1: Yeah. So let's take that a step further. What would 161 00:08:25,320 --> 00:08:27,840 S1: you say to a first time home buyer, Dale, who's 162 00:08:27,840 --> 00:08:31,960 S1: listening today who's discouraged by just the the challenge that 163 00:08:31,960 --> 00:08:35,360 S1: is home affordability. What should they do next. 164 00:08:35,400 --> 00:08:37,120 S2: Well, the first thing you want to do is is 165 00:08:37,120 --> 00:08:39,439 S2: you need to start by doing a budget. We talk 166 00:08:39,480 --> 00:08:41,600 S2: about this every time we get together because it's so 167 00:08:41,600 --> 00:08:45,040 S2: vitally important. You need to understand what you can afford. 168 00:08:45,040 --> 00:08:46,959 S2: And the only way to do that is by doing 169 00:08:46,960 --> 00:08:50,000 S2: a budget. Don't just go in and ask a lender, 170 00:08:50,360 --> 00:08:54,100 S2: what do I qualify for? That is the worst Mistake 171 00:08:54,100 --> 00:08:57,540 S2: that a prospective or new homeowner, particularly a first time buyer, 172 00:08:57,580 --> 00:08:59,940 S2: can ever do. Because here's the deal they're going to 173 00:08:59,980 --> 00:09:02,260 S2: approve you based on what's called a debt to income ratio. 174 00:09:02,300 --> 00:09:04,460 S2: That can be as high as 50% of your gross 175 00:09:04,460 --> 00:09:06,460 S2: income that they're going to approve you for. You can't 176 00:09:06,460 --> 00:09:09,900 S2: afford 50% of your gross income. So don't do it 177 00:09:09,900 --> 00:09:12,100 S2: that way. Go in and say, look, I've done a budget. 178 00:09:12,100 --> 00:09:14,620 S2: Here's the payment I can afford. Based on that payment, 179 00:09:14,620 --> 00:09:18,060 S2: what would I qualify for at today's rates from a 180 00:09:18,380 --> 00:09:21,260 S2: amount that I can purchase back into it that way. 181 00:09:21,300 --> 00:09:23,860 S2: So you're starting with what you can afford. You're moving 182 00:09:23,860 --> 00:09:26,060 S2: into what values you can have. And then once you 183 00:09:26,059 --> 00:09:28,980 S2: get there, now start to do your search and start 184 00:09:28,980 --> 00:09:30,819 S2: to look at what is out there that I can 185 00:09:30,820 --> 00:09:33,140 S2: buy today within that. That makes sense for my family. 186 00:09:33,420 --> 00:09:36,860 S1: Mm. Yeah, that's really helpful. What should they say to 187 00:09:36,900 --> 00:09:39,900 S1: a mortgage company? Do they want to go in with 188 00:09:39,900 --> 00:09:43,660 S1: a pre-approval. Is it a pre-qualification. What are they looking for? 189 00:09:43,700 --> 00:09:46,900 S2: Yeah. Great question. You don't want a pre-qualification. You want 190 00:09:46,900 --> 00:09:50,180 S2: a pre-approval. The difference between those two is really very simple. 191 00:09:50,420 --> 00:09:54,610 S2: A pre-approval is where you've not only applied for the loan, completed, 192 00:09:54,610 --> 00:09:57,610 S2: the application had your credit pulled to verify your credit, 193 00:09:57,610 --> 00:10:01,210 S2: but you have provided income verification so they can actually 194 00:10:01,290 --> 00:10:04,050 S2: calculate out the income. Very important you do that. A 195 00:10:04,050 --> 00:10:06,290 S2: lot of borrowers, when they talk to a loan officer, 196 00:10:06,290 --> 00:10:09,770 S2: they don't have their documentation ready. Have all your documentation, 197 00:10:09,770 --> 00:10:13,170 S2: all your income documentation, all your credit card statements, if 198 00:10:13,170 --> 00:10:16,530 S2: you have any credit cards, all of your debt statements, 199 00:10:16,530 --> 00:10:19,010 S2: if you have a current mortgage, have your current mortgage statement. 200 00:10:19,010 --> 00:10:22,449 S2: The more information you can provide to them upfront, the 201 00:10:22,450 --> 00:10:25,290 S2: more they can qualify you for that. So a pre-approval 202 00:10:25,290 --> 00:10:28,209 S2: is where you're going in and you're getting actually approved, 203 00:10:28,210 --> 00:10:32,130 S2: not just qualified, but approved so that you've got a 204 00:10:32,170 --> 00:10:35,610 S2: more sure knowing that you're going to be able to 205 00:10:35,650 --> 00:10:39,130 S2: qualify for that loan, it also becomes a stronger offer 206 00:10:39,130 --> 00:10:42,050 S2: to the realtor, because if you're making your offer, they 207 00:10:42,050 --> 00:10:44,809 S2: verified your income, they verified your credit, they verified your 208 00:10:44,850 --> 00:10:48,610 S2: down payment. You're in a much stronger position than those 209 00:10:48,610 --> 00:10:52,050 S2: buyers who didn't do those things. From a realtor standpoint 210 00:10:52,050 --> 00:10:53,550 S2: and from a seller's standpoint. 211 00:10:53,590 --> 00:10:56,750 S1: Yeah. Just to set expectations, Dale. You know, when I 212 00:10:56,750 --> 00:10:59,590 S1: was a kid and my parents were buying and selling houses, 213 00:10:59,790 --> 00:11:03,070 S1: you know, you'd set the asking price knowing that you'd 214 00:11:03,070 --> 00:11:05,750 S1: never get it. Somebody lowball you, and then you'd kind 215 00:11:05,790 --> 00:11:08,110 S1: of meet in the middle. And then as I started 216 00:11:08,110 --> 00:11:11,030 S1: buying and selling houses, it seems like we priced them 217 00:11:11,030 --> 00:11:14,470 S1: lower to get everybody to the table we possibly can 218 00:11:14,470 --> 00:11:17,670 S1: and show up in more searches on the internet. And 219 00:11:17,670 --> 00:11:22,390 S1: people were regularly paying 20 and 30 and 50,000 above, asking, 220 00:11:22,390 --> 00:11:23,710 S1: is that still true today? 221 00:11:24,030 --> 00:11:26,630 S2: It really isn't. We're not seeing that. We saw that 222 00:11:26,630 --> 00:11:30,829 S2: in 2020 and 2021, in mass, where people were overbidding 223 00:11:30,830 --> 00:11:34,309 S2: on houses and bidding up houses and bidding wars were happening. 224 00:11:34,350 --> 00:11:36,910 S2: We're really not seeing those bidding wars today. What we're 225 00:11:36,910 --> 00:11:41,590 S2: seeing today, property values are what people are asking for. Prices, 226 00:11:41,590 --> 00:11:47,070 S2: listing prices. Homes are selling at about 94 to 97% 227 00:11:47,070 --> 00:11:50,310 S2: of the listing price in most marketplaces. From the last 228 00:11:50,309 --> 00:11:53,179 S2: statistic that I saw, You know, it's not uncommon to 229 00:11:53,220 --> 00:11:56,060 S2: pay the amount that is asked for, but we're not 230 00:11:56,059 --> 00:11:59,620 S2: seeing these 110, 120, 130% of values anymore like we 231 00:11:59,620 --> 00:12:01,179 S2: used to. And that's a good thing, by the way. 232 00:12:01,420 --> 00:12:04,860 S1: Yeah, I think that's right. What about somebody who's looking 233 00:12:04,860 --> 00:12:07,260 S1: to move up, you know, families who own a home 234 00:12:07,260 --> 00:12:09,900 S1: but are wondering if now is really the time to 235 00:12:09,940 --> 00:12:12,420 S1: make a move? Maybe the family's been growing. They need 236 00:12:12,460 --> 00:12:14,579 S1: a little more space, or they're looking to get into 237 00:12:14,580 --> 00:12:17,100 S1: the right school district. What would you share with them? 238 00:12:17,140 --> 00:12:19,380 S2: Well, I would say again, it's really no different than 239 00:12:19,380 --> 00:12:21,300 S2: the advice we gave on the first time buyer when 240 00:12:21,300 --> 00:12:23,339 S2: it comes to do a budget first before you do 241 00:12:23,340 --> 00:12:26,700 S2: anything so you can determine what you can afford. But 242 00:12:26,700 --> 00:12:29,140 S2: here's the key. You know, don't be afraid to look 243 00:12:29,140 --> 00:12:33,020 S2: right now. Um, I think it's a market where sellers 244 00:12:33,020 --> 00:12:35,700 S2: are doing okay. You know, it's not a market where 245 00:12:35,740 --> 00:12:38,340 S2: because it's a buyer's market, sellers aren't getting their price anymore. 246 00:12:38,740 --> 00:12:42,180 S2: Make sure your home is in great shape before you 247 00:12:42,179 --> 00:12:43,939 S2: list it. Do whatever you need to do to get 248 00:12:43,940 --> 00:12:45,620 S2: it looking as modern and as up to date as 249 00:12:45,620 --> 00:12:48,060 S2: you can to get the maximum value you can on that, 250 00:12:48,059 --> 00:12:50,100 S2: because you want to be able to use that equity 251 00:12:50,300 --> 00:12:52,440 S2: to apply to the next home that you buy, and 252 00:12:52,440 --> 00:12:54,880 S2: make sure you're sitting down with somebody to understand, okay, 253 00:12:54,920 --> 00:12:57,200 S2: when I sell, what are my costs going to be 254 00:12:57,200 --> 00:12:59,600 S2: on the sale when I buy? What are my costs 255 00:12:59,640 --> 00:13:01,720 S2: going to be on the loan in order to get that? 256 00:13:01,720 --> 00:13:04,000 S2: So you can start to get a true understanding of 257 00:13:04,000 --> 00:13:06,360 S2: how much money you're able to put down to determine 258 00:13:06,360 --> 00:13:08,839 S2: how much you can buy, and then look for homes 259 00:13:08,840 --> 00:13:12,200 S2: in that price range. Again, don't go beyond what you 260 00:13:12,200 --> 00:13:15,680 S2: can afford. That's always the most important advice. 261 00:13:15,960 --> 00:13:18,640 S1: Yeah. Very good. Dale, just 30s left. Tie a bow 262 00:13:18,640 --> 00:13:21,280 S1: on this for us. Given everything you're seeing, it sounds 263 00:13:21,280 --> 00:13:24,000 S1: like this might be the year to go ahead and 264 00:13:24,000 --> 00:13:25,600 S1: start making some moves here, huh? 265 00:13:25,640 --> 00:13:27,080 S2: I think this is the year to do it. I 266 00:13:27,080 --> 00:13:28,960 S2: don't think the conditions are going to get much better. 267 00:13:28,960 --> 00:13:31,200 S2: Rates are going to go down a little bit this year. 268 00:13:31,240 --> 00:13:34,839 S2: Not probably a ton, um, maybe a little bit next year. 269 00:13:34,840 --> 00:13:36,200 S2: But there's not going to be a ton of movement 270 00:13:36,200 --> 00:13:38,080 S2: in rates that we see. So this is a good 271 00:13:38,080 --> 00:13:40,000 S2: time to buy. This is a good time to look 272 00:13:40,000 --> 00:13:41,040 S2: at it, folks. 273 00:13:41,040 --> 00:13:45,160 S1: Buyers and sellers who plan well, manage expectations and seek 274 00:13:45,160 --> 00:13:48,480 S1: wise counsel can really succeed in this environment. And as 275 00:13:48,480 --> 00:13:51,950 S1: Christ followers, our confidence doesn't come from rates or headlines, 276 00:13:51,950 --> 00:13:55,430 S1: but from trusting the Lord to establish our steps daily. 277 00:13:55,470 --> 00:13:58,030 S1: Great to have you here. As always, thanks for your time. 278 00:13:58,470 --> 00:14:00,790 S2: Thank you Rob. Blessing to be here. Thanks so much. 279 00:14:01,230 --> 00:14:04,150 S1: That's mortgage expert Dale Vermillion. You can learn more in 280 00:14:04,150 --> 00:14:07,230 S1: his book Navigating the Mortgage Maze The Simple Truth About 281 00:14:07,230 --> 00:14:11,110 S1: Financing Your Home, available wherever you buy books. All right, 282 00:14:11,110 --> 00:14:17,670 S1: your calls are next. 800 525 7000. That's 800 525 7000. 283 00:14:17,710 --> 00:14:18,550 S1: We'll be right back. 284 00:14:28,470 --> 00:14:31,710 S3: The opinions offered during this program represent the personal or 285 00:14:31,710 --> 00:14:36,110 S3: professional opinions of the participants, given for informational purposes only. 286 00:14:36,430 --> 00:14:39,870 S3: Any information provided is not intended to replace advice from 287 00:14:39,870 --> 00:14:44,110 S3: a financial, medical, legal, or other professional who understands your 288 00:14:44,110 --> 00:14:45,630 S3: specific situation. 289 00:14:51,970 --> 00:14:56,250 S1: Did you know over 70,000 believers are using the Faith 290 00:14:56,250 --> 00:15:00,170 S1: fi app to integrate their faith, their finances, and their 291 00:15:00,170 --> 00:15:04,290 S1: everyday money decisions. That's right, the brand new Faith 55.0 292 00:15:04,330 --> 00:15:06,650 S1: is out. And I'll tell you, I know I'm biased, 293 00:15:06,650 --> 00:15:10,450 S1: but it's incredible. I think it's the best money management 294 00:15:10,450 --> 00:15:13,690 S1: budget app on the market anywhere. You put them all 295 00:15:13,690 --> 00:15:17,170 S1: next to each other, it's incredible. But then you integrate 296 00:15:17,170 --> 00:15:20,090 S1: all of the biblical content and then with new Faith 297 00:15:20,090 --> 00:15:24,250 S1: 55.0 the daily, weekly and monthly rhythms to help you 298 00:15:24,250 --> 00:15:27,290 S1: get into a rhythm to, yes, review your transactions and 299 00:15:27,290 --> 00:15:30,970 S1: make sure you have clarity around where you're spending God's money, 300 00:15:30,970 --> 00:15:33,930 S1: but also to integrate the heart side and through our 301 00:15:33,930 --> 00:15:36,450 S1: daily rhythm. You have a quick two minute check in 302 00:15:36,450 --> 00:15:39,530 S1: where you can see yesterday's transactions. You can also get 303 00:15:39,530 --> 00:15:43,210 S1: a quick devotional thought on biblical stewardship. A verse of 304 00:15:43,210 --> 00:15:46,130 S1: the day and you're off. And if you were to 305 00:15:46,130 --> 00:15:48,210 S1: get into that rhythm, I think it's going to be 306 00:15:48,210 --> 00:15:51,000 S1: a game changer in not only how you manage money, 307 00:15:51,000 --> 00:15:54,160 S1: but also how you think about money, and really a 308 00:15:54,160 --> 00:15:57,920 S1: biblical worldview of financial decision making, which starts with the 309 00:15:57,920 --> 00:16:00,600 S1: idea that God owns it all and we are stewards. 310 00:16:00,600 --> 00:16:02,040 S1: So if you want to check out the new Faith 311 00:16:02,040 --> 00:16:04,200 S1: V app, you can download it today. Just go to Faith. 312 00:16:06,280 --> 00:16:11,040 S1: That's faith. All right. We're going to dive into your 313 00:16:11,040 --> 00:16:13,200 S1: questions here in just a moment. So if you've got 314 00:16:13,200 --> 00:16:17,080 S1: a financial question something you're wrestling with in your financial life, 315 00:16:17,080 --> 00:16:21,960 S1: call right now 800 525 7000. We can tackle any 316 00:16:21,960 --> 00:16:26,560 S1: topic spending plans, debt repayment, giving wisely. Maybe you're wrestling 317 00:16:26,560 --> 00:16:29,400 S1: with when to take Social Security or how to prepare 318 00:16:29,400 --> 00:16:32,120 S1: the next steward. Whatever you're thinking about, call right now 319 00:16:32,360 --> 00:16:37,320 S1: 805 25 7000. We'll dive in here in just a moment. 320 00:16:37,480 --> 00:16:41,200 S1: In the news today, older workers and retirees who've lost 321 00:16:41,200 --> 00:16:45,760 S1: track of retirement savings from past employers may find help 322 00:16:45,760 --> 00:16:50,700 S1: through the Labor Department's Retirement savings lost and Found database 323 00:16:50,700 --> 00:16:54,780 S1: launched in late 2024. From its debut through the end 324 00:16:54,780 --> 00:17:00,860 S1: of 2025, more than 236,000 people used the tool and 325 00:17:00,900 --> 00:17:05,740 S1: nearly 30% found a match to an old 401 pension 326 00:17:05,740 --> 00:17:10,780 S1: or other workplace plan tied to their Social Security number. Now, 327 00:17:10,780 --> 00:17:14,820 S1: the database currently includes information only for people age 65 328 00:17:14,820 --> 00:17:18,980 S1: and older, but experts say many users likely recovered at 329 00:17:19,020 --> 00:17:23,820 S1: least some of their forgotten savings. Job changes, company closures, 330 00:17:23,859 --> 00:17:29,020 S1: outdated contact details these all result in orphaned accounts, making 331 00:17:29,020 --> 00:17:33,460 S1: retirement planning difficult without a complete picture. Now, those who 332 00:17:33,460 --> 00:17:38,140 S1: aren't eligible yet can search for missing retirement funds through 333 00:17:38,140 --> 00:17:45,179 S1: other avenues, including the Pension Guaranty Corporation. They're missing participants 334 00:17:45,220 --> 00:17:52,250 S1: program or your state's unclaimed property database at missing money.com. 335 00:17:52,250 --> 00:17:54,889 S1: But in either case, never a bad idea to see 336 00:17:54,890 --> 00:17:57,650 S1: if there's something out there that you could reclaim and 337 00:17:57,650 --> 00:18:00,850 S1: put to use. So check it out today. All right, 338 00:18:00,850 --> 00:18:03,090 S1: the calls are coming in, but let's dive in. Again 339 00:18:03,090 --> 00:18:04,850 S1: that number if you'd like to get in on the 340 00:18:04,850 --> 00:18:10,369 S1: conversation 800 525 7000. Let's begin in Alabama today. Cindy 341 00:18:10,410 --> 00:18:14,930 S1: go ahead. Oh, we lost Cindy. Well, maybe not. Let's 342 00:18:14,930 --> 00:18:16,810 S1: try again. Cindy, are you with us? 343 00:18:16,850 --> 00:18:17,690 S4: Yep. Can you hear me? 344 00:18:17,930 --> 00:18:19,890 S1: Yes, ma'am. We sure can. Go right ahead. 345 00:18:20,369 --> 00:18:23,530 S4: Good, good, good. Thank you so much for having me. Um, yes. 346 00:18:23,530 --> 00:18:25,609 S4: So I'm going on a mission trip that's going to 347 00:18:25,609 --> 00:18:29,409 S4: cost about $10,000, and I have some money available. But 348 00:18:29,410 --> 00:18:32,209 S4: I want to know ways to increase the funds that 349 00:18:32,210 --> 00:18:35,370 S4: I have, maybe to supplement what I do spend. Um, 350 00:18:35,410 --> 00:18:38,090 S4: any ideas on what I should do with that remaining money? 351 00:18:38,090 --> 00:18:41,810 S4: Whether money market, high yield, mutual funds. It's all new 352 00:18:41,810 --> 00:18:43,530 S4: to me, but I want to see how I can 353 00:18:43,570 --> 00:18:44,810 S4: get some of that money back. 354 00:18:45,369 --> 00:18:47,430 S1: Yeah. Got it. I mean, I think that's a great 355 00:18:47,430 --> 00:18:49,670 S1: way to think about it. You know, the key when 356 00:18:49,670 --> 00:18:54,030 S1: it comes to the time horizon you're talking about is 357 00:18:54,030 --> 00:18:57,990 S1: to make sure that the level of risk and the liquidity, 358 00:18:58,030 --> 00:19:01,189 S1: which means, you know, how much risk are we taking, 359 00:19:01,190 --> 00:19:04,629 S1: but also making sure you have ready access to the 360 00:19:04,630 --> 00:19:07,190 S1: money when you need it, which your time horizon is 361 00:19:07,190 --> 00:19:10,350 S1: six months. That's really paramount. So it's more about the 362 00:19:10,350 --> 00:19:12,469 S1: return of your money. You need to be able to 363 00:19:12,470 --> 00:19:15,830 S1: get it back when that trip comes versus the return 364 00:19:15,830 --> 00:19:18,510 S1: on your money. But that doesn't mean you shouldn't try 365 00:19:18,510 --> 00:19:21,630 S1: to find a way to at least earn some interest, 366 00:19:21,630 --> 00:19:24,550 S1: and you might as well dig around and see you 367 00:19:24,550 --> 00:19:27,189 S1: know where you can get the best rate of return. Um, 368 00:19:27,190 --> 00:19:30,590 S1: so since we're talking about just a six month time horizon, 369 00:19:30,590 --> 00:19:33,510 S1: really the only categories you would want to look at 370 00:19:33,550 --> 00:19:36,270 S1: would be the ones that you named either a high 371 00:19:36,310 --> 00:19:40,710 S1: yield savings account and that's going to have FDIC or 372 00:19:40,750 --> 00:19:44,990 S1: private insurance. But essentially it's it's almost as low risk 373 00:19:44,990 --> 00:19:48,300 S1: as you can have, or a money market, which would 374 00:19:48,300 --> 00:19:52,020 S1: be very much the same thing. And right now, about 375 00:19:52,020 --> 00:19:55,940 S1: the best you're going to find is about 4%. So 376 00:19:55,980 --> 00:19:58,380 S1: as a Christ follower, a lot of our listeners are saying, 377 00:19:58,380 --> 00:20:01,260 S1: where can I get a great yield, but also with 378 00:20:01,260 --> 00:20:06,220 S1: an institution that reflects my values. So I'll throw out one. 379 00:20:06,220 --> 00:20:09,220 S1: There's plenty more. You could look around locally. You could 380 00:20:09,220 --> 00:20:12,260 S1: do some searches online. One is going to be Christian 381 00:20:12,260 --> 00:20:15,460 S1: Community Credit Union. They're actually in the process of merging 382 00:20:15,460 --> 00:20:19,940 S1: with Adelphi. Cscu and Adelphi were the two largest Christian 383 00:20:19,940 --> 00:20:23,180 S1: banking solutions in the country. They're now merging, so they're 384 00:20:23,180 --> 00:20:25,820 S1: going to be by far the biggest, but they have 385 00:20:25,820 --> 00:20:31,699 S1: just great, uh, offerings for believers, competitive rates. But you 386 00:20:31,700 --> 00:20:34,860 S1: can also know that you're with an organization that's going 387 00:20:34,900 --> 00:20:37,140 S1: to align with your Christian values, and they're not going 388 00:20:37,180 --> 00:20:39,380 S1: to use, you know, the money to lend out to 389 00:20:39,420 --> 00:20:42,020 S1: things that, you know, don't line up with who you 390 00:20:42,020 --> 00:20:44,659 S1: are and what you believe in. So, for instance, their 391 00:20:44,720 --> 00:20:49,800 S1: money market right now is paying 4% up to $100,000. 392 00:20:50,040 --> 00:20:53,840 S1: And if you use the code faithfully as a listener, 393 00:20:53,840 --> 00:20:57,200 S1: you can get up to $400 bonus when you open 394 00:20:57,200 --> 00:20:59,760 S1: a new account. So that would be the kind of 395 00:20:59,800 --> 00:21:01,880 S1: thing that I would be looking for, which fits into 396 00:21:01,880 --> 00:21:05,479 S1: that money market or high yield savings category. And if 397 00:21:05,480 --> 00:21:09,800 S1: you want to learn more, just go to faith by faith. 398 00:21:12,160 --> 00:21:13,440 S1: Does that make sense, Sandy? 399 00:21:14,320 --> 00:21:16,480 S4: It does. Thank you so much. I really appreciate it. 400 00:21:16,520 --> 00:21:18,040 S4: We're looking forward to our trip. 401 00:21:18,240 --> 00:21:19,320 S1: Yeah. Where are you going? 402 00:21:20,080 --> 00:21:21,320 S4: We're going to go to Israel. 403 00:21:22,119 --> 00:21:25,600 S1: Oh, cool. Man, I've always wanted to go, and we 404 00:21:25,600 --> 00:21:28,960 S1: were planning a trip, and then it, uh, it wasn't, uh, 405 00:21:28,960 --> 00:21:31,280 S1: safe to go there for a while, but I know 406 00:21:31,280 --> 00:21:34,560 S1: people are returning to Israel. I can't wait to walk 407 00:21:34,560 --> 00:21:37,760 S1: there myself. So I'm really excited for you. All right, well, 408 00:21:37,760 --> 00:21:40,120 S1: it sounds like you've got a plan here. You need 409 00:21:40,119 --> 00:21:43,040 S1: to find a high yield savings or a money market. And, uh, 410 00:21:43,040 --> 00:21:45,950 S1: we appreciate your call today. Call anytime. We'll be right 411 00:21:45,950 --> 00:21:58,550 S1: back on Faith and finance live. Stay with us. Helping 412 00:21:58,550 --> 00:22:00,910 S1: you live is a wise and faithful steward. This is 413 00:22:00,910 --> 00:22:03,750 S1: faith and finance. Live. I'm Rob West. We're taking your 414 00:22:03,750 --> 00:22:07,350 S1: calls and questions today. A call right now, 805 two 415 00:22:07,390 --> 00:22:13,629 S1: five 7000. With any financial question, that's 800 525 7000. 416 00:22:13,670 --> 00:22:16,190 S1: We have some lines open at the moment. You should 417 00:22:16,190 --> 00:22:18,189 S1: be able to get right through. Let's go back to 418 00:22:18,190 --> 00:22:20,390 S1: the phones. North Carolina. Hi, Joe. Go ahead. 419 00:22:20,470 --> 00:22:22,910 S5: Hi. Thanks for taking my call. I have a quick question. 420 00:22:23,150 --> 00:22:26,150 S5: I'm trying to retire because I'm getting that age, and 421 00:22:26,150 --> 00:22:28,830 S5: I'm trying to decide if I'm smarter to pay off 422 00:22:28,990 --> 00:22:31,510 S5: my home mortgage, which I've been paying extra each month. 423 00:22:31,510 --> 00:22:34,070 S5: So six payments extra a year on top of what's 424 00:22:34,109 --> 00:22:36,670 S5: owed and or to pay off a credit card with 425 00:22:36,670 --> 00:22:39,030 S5: a balance. I think the credit card is going to 426 00:22:39,030 --> 00:22:40,669 S5: be the way you advise me, but I'm trying to 427 00:22:40,710 --> 00:22:42,430 S5: make sure I'm making the right decisions. 428 00:22:42,630 --> 00:22:45,690 S1: Yeah. Great question. What is the balance on the credit card? 429 00:22:46,530 --> 00:22:47,450 S5: 19. 430 00:22:47,490 --> 00:22:48,530 S1: 19,000. 431 00:22:49,250 --> 00:22:49,730 S5: Yes. 432 00:22:49,770 --> 00:22:52,370 S1: Okay. Yeah. Well, first of all, I'm thrilled you've been 433 00:22:52,369 --> 00:22:54,770 S1: paying extra toward the house. That's great. But, yeah, I 434 00:22:54,770 --> 00:22:59,130 S1: would shift that surplus first to make sure you have 435 00:22:59,130 --> 00:23:01,290 S1: an emergency fund in place. Because I want to make 436 00:23:01,330 --> 00:23:06,210 S1: sure we break the cycle of the credit card debt. Now, 437 00:23:06,210 --> 00:23:08,530 S1: that may be due to a one time event, or 438 00:23:08,530 --> 00:23:10,690 S1: it may just be that it's crept up over time 439 00:23:10,690 --> 00:23:14,090 S1: because you've been living beyond your means. But in either case, 440 00:23:14,090 --> 00:23:16,730 S1: we want to make sure we've got an emergency fund 441 00:23:16,890 --> 00:23:19,210 S1: so that, you know, you've got something to fall back 442 00:23:19,210 --> 00:23:21,250 S1: on when the unexpected comes and when you get out 443 00:23:21,250 --> 00:23:24,050 S1: from under the credit card debt that, you know, you 444 00:23:24,050 --> 00:23:26,610 S1: don't ever go back there and that you only use 445 00:23:26,609 --> 00:23:29,450 S1: it for budgeted items and pay it off. Now, with 446 00:23:29,450 --> 00:23:32,770 S1: regard to where you go after the emergency fund is 447 00:23:32,770 --> 00:23:37,290 S1: in place, your intuition was correct. I would absolutely pay 448 00:23:37,290 --> 00:23:40,650 S1: off that credit card debt first. The math is undeniable. 449 00:23:40,690 --> 00:23:43,680 S1: You know your mortgage. Is that, uh, my notes say 450 00:23:43,680 --> 00:23:49,399 S1: here 5.99%. So, you know, that's manageable. It's slightly under 451 00:23:49,400 --> 00:23:54,160 S1: where rates are today. Credit cards are typically charging 22 452 00:23:54,200 --> 00:23:58,280 S1: plus percent on average. So that means every dollar you 453 00:23:58,320 --> 00:24:01,530 S1: use to pay down the cards saves you 3 to 454 00:24:01,530 --> 00:24:04,600 S1: 4 times more money than if you put it toward 455 00:24:04,600 --> 00:24:08,560 S1: the house. And so, you know, carrying that into retirement 456 00:24:08,560 --> 00:24:12,080 S1: is going to be dangerous because it's going to rapidly 457 00:24:12,119 --> 00:24:14,720 S1: eat away at your fixed income. So I would go 458 00:24:14,760 --> 00:24:18,200 S1: there after the emergency fund. Um, and if you have 459 00:24:18,240 --> 00:24:20,800 S1: at least one month's expenses, I'd say let's take all 460 00:24:20,800 --> 00:24:23,800 S1: of your surplus and really attack that credit card debt. 461 00:24:24,040 --> 00:24:26,760 S1: Get out from under that once it's gone. Now we've 462 00:24:26,760 --> 00:24:30,360 S1: got even more to either build up your emergency savings 463 00:24:30,359 --> 00:24:34,760 S1: even more, or go back and start attacking that that mortgage. 464 00:24:34,760 --> 00:24:38,200 S1: Because obviously, the sooner you can pay that off, the 465 00:24:38,200 --> 00:24:40,840 S1: sooner you'll free up that payment, which is really going 466 00:24:40,880 --> 00:24:43,220 S1: to give you, you know, quite a bit extra that 467 00:24:43,220 --> 00:24:45,979 S1: you could either give more or maybe you use it 468 00:24:45,980 --> 00:24:49,340 S1: to beef up your long term nest egg so you've 469 00:24:49,340 --> 00:24:51,660 S1: got something to fall back on down the road if 470 00:24:51,660 --> 00:24:54,179 S1: you needed it. But I think long story short, the 471 00:24:54,180 --> 00:24:55,940 S1: priority should be those credit cards. 472 00:24:56,100 --> 00:24:59,619 S5: One other question would I be better to reach out 473 00:24:59,619 --> 00:25:01,500 S5: to the credit card company to see if they'd be 474 00:25:01,500 --> 00:25:03,780 S5: willing to change my rates, since I've been such a 475 00:25:03,780 --> 00:25:06,379 S5: proficient payer? And if they would drop the rate? Or 476 00:25:06,380 --> 00:25:09,020 S5: should I go through Christian counseling and let them help 477 00:25:09,020 --> 00:25:11,020 S5: me do so? Which way would you go with that? 478 00:25:11,060 --> 00:25:14,540 S1: Yeah, I would go over 4000 is kind of my number. 479 00:25:14,540 --> 00:25:18,180 S1: I would go to Christian credit counselors and here's why. 480 00:25:18,460 --> 00:25:22,100 S1: Although they may be willing to help you slightly with 481 00:25:22,100 --> 00:25:24,900 S1: an interest rate reduction because as you said, you've been 482 00:25:24,940 --> 00:25:27,619 S1: a good customer and you've got a, you know, a 483 00:25:27,619 --> 00:25:31,060 S1: strong credit rating. They don't want to lose your business. Uh, 484 00:25:31,260 --> 00:25:33,980 S1: they only have so much room that they can go. 485 00:25:34,180 --> 00:25:35,940 S1: And so that you may get, you know, one or 486 00:25:35,940 --> 00:25:37,980 S1: 2 or 3 percentage points, but you're not going to 487 00:25:37,980 --> 00:25:41,250 S1: get anywhere close to the credit counseling rate, which is 488 00:25:41,250 --> 00:25:43,530 S1: going to be somewhere between zero. There are some that 489 00:25:43,530 --> 00:25:46,449 S1: go all the way down to zero and about 10%, 490 00:25:46,450 --> 00:25:48,810 S1: so you're going to probably more than cut it in half, 491 00:25:48,810 --> 00:25:52,570 S1: if not significantly more than that. Um, now the account 492 00:25:52,570 --> 00:25:55,370 S1: will be closed or at least suspended while you're in 493 00:25:55,369 --> 00:25:58,530 S1: the program. But the fact that you're in credit counseling 494 00:25:58,530 --> 00:26:01,490 S1: is not a part of the credit scoring algorithm. So 495 00:26:01,490 --> 00:26:04,010 S1: the only thing that could affect you is just by 496 00:26:04,010 --> 00:26:07,090 S1: virtue of the fact that this account is now closed. 497 00:26:07,130 --> 00:26:09,810 S1: You could see a modest decline in your credit score, 498 00:26:10,010 --> 00:26:12,810 S1: but it'll bounce back. And I think, you know, the 499 00:26:12,810 --> 00:26:15,570 S1: ability to get this paid off sooner through the dramatic 500 00:26:15,570 --> 00:26:19,930 S1: reduction in interest is far more important than anything else. 501 00:26:20,210 --> 00:26:22,210 S5: I thank you very much. That's how I thought you 502 00:26:22,210 --> 00:26:23,530 S5: would go with it, but I wanted to be sure 503 00:26:23,530 --> 00:26:24,369 S5: I was correct. 504 00:26:24,530 --> 00:26:27,490 S1: Excellent, Joe. Well, thanks for calling today. You too. And 505 00:26:27,490 --> 00:26:31,450 S1: by the way, that website is Christian credit counselors. All right. 506 00:26:31,490 --> 00:26:33,850 S1: To Texas. Uh, Minerva. Go ahead. 507 00:26:34,130 --> 00:26:38,770 S6: Hi. Good afternoon. My question is, I I'm on, um, 508 00:26:38,810 --> 00:26:43,070 S6: disability with Social Security. And I'm going to sell my home. 509 00:26:43,109 --> 00:26:46,630 S6: And so when I sell my home and I buy 510 00:26:46,630 --> 00:26:50,389 S6: a new home, will that affect my disability? 511 00:26:51,150 --> 00:26:54,629 S1: Yeah, it's a great question. So you're selling the house. 512 00:26:54,630 --> 00:26:57,310 S1: What kind of are you on SSDI? 513 00:26:58,869 --> 00:27:01,710 S6: I don't know. It's a disability. It's disability. I just 514 00:27:01,710 --> 00:27:04,910 S6: know that Social Security disability and I barely got on it. 515 00:27:05,590 --> 00:27:08,510 S1: Okay. Got it. Yeah. And so, you know, the good 516 00:27:08,510 --> 00:27:10,710 S1: news is, when you sell this house and I assume 517 00:27:10,710 --> 00:27:13,310 S1: this has been your primary residence. Is that right? 518 00:27:13,310 --> 00:27:14,389 S6: Yes, sir. That is correct. 519 00:27:14,390 --> 00:27:18,270 S1: Okay. Okay. Yeah. So the good news is that, you know, 520 00:27:18,310 --> 00:27:21,430 S1: you shouldn't owe any tax on it because, you know, 521 00:27:21,470 --> 00:27:24,550 S1: this is not taxable as income. And if it was 522 00:27:24,550 --> 00:27:28,070 S1: your primary residence for two out of the last five years, um, 523 00:27:28,070 --> 00:27:30,669 S1: you're not going to have any capital gains so long 524 00:27:30,670 --> 00:27:34,629 S1: as your gain, not the selling price, but your gain 525 00:27:34,630 --> 00:27:39,620 S1: is less than 250,000. Now, in terms of your SSDI, 526 00:27:39,660 --> 00:27:44,740 S1: there will be no impact. SSDI Social Security disability is 527 00:27:44,740 --> 00:27:49,980 S1: not means tested. So a home sale proceeds do not 528 00:27:49,980 --> 00:27:54,100 S1: reduce benefits in any way. And that would. The same 529 00:27:54,100 --> 00:27:57,740 S1: would be true with Social Security as well. Um, if 530 00:27:57,740 --> 00:28:00,820 S1: you're on SSI, which I didn't hear you say, that 531 00:28:01,140 --> 00:28:04,820 S1: Supplemental Security income that is means tested. But if it's 532 00:28:04,820 --> 00:28:09,380 S1: Social Security disability that will have no impact on it whatsoever. 533 00:28:09,420 --> 00:28:11,260 S6: Okay. And then you said as long as it's not 534 00:28:11,260 --> 00:28:15,700 S6: more than because my home is on this on acreage 535 00:28:15,700 --> 00:28:20,260 S6: and I, the home is not finished. And I invested 536 00:28:20,260 --> 00:28:23,619 S6: into it myself and I, I think it's going to 537 00:28:23,619 --> 00:28:27,100 S6: be a lot more than what I invested. Um, may 538 00:28:27,220 --> 00:28:30,220 S6: what I, uh, put into it to make the house. 539 00:28:30,220 --> 00:28:33,340 S6: It's not even finished yet. I live semi-rural, and it's 540 00:28:33,340 --> 00:28:37,180 S6: a long story, but anyways, so if I make how much, uh, 541 00:28:37,220 --> 00:28:40,440 S6: more than 200,000, then it will be taxed. 542 00:28:41,280 --> 00:28:43,200 S1: Yeah. Are you talking about what you're going to do 543 00:28:43,200 --> 00:28:44,680 S1: with the money, or are you talking about the place 544 00:28:44,680 --> 00:28:45,480 S1: you're selling? 545 00:28:46,680 --> 00:28:49,200 S6: The place that I'm selling? I live on 33 acres, 546 00:28:49,200 --> 00:28:52,000 S6: and I have a home that I've never finished, and I. 547 00:28:52,200 --> 00:28:54,440 S6: And I want to just sell the property so that 548 00:28:54,440 --> 00:28:58,320 S6: I can buy a regular home that's already finished. And brick. 549 00:28:58,320 --> 00:28:59,320 S6: And you know what I mean? 550 00:28:59,320 --> 00:29:03,200 S1: Yes, yes. So, um, what is the what did you 551 00:29:03,200 --> 00:29:04,480 S1: pay for it? Initially. 552 00:29:05,560 --> 00:29:08,920 S6: I think I put nothing. I mean, originally the, the 553 00:29:08,960 --> 00:29:12,840 S6: land was like 75,000 and I put, let's say 25, 554 00:29:12,880 --> 00:29:14,080 S6: 30,000 into it. 555 00:29:14,520 --> 00:29:16,160 S1: Okay. And what are you selling it for? 556 00:29:17,120 --> 00:29:20,800 S6: Uh, I'll make, God willing, about 600. 557 00:29:20,840 --> 00:29:24,680 S1: About 600,000. Yeah. Okay. Yeah. This is something you're going 558 00:29:24,680 --> 00:29:25,840 S1: to need to look at. You're going to need to 559 00:29:25,840 --> 00:29:28,800 S1: get with a CPA on this. Um, are you married? 560 00:29:28,800 --> 00:29:30,880 S1: Filing jointly or filing single? 561 00:29:31,200 --> 00:29:31,720 S6: Single. 562 00:29:31,720 --> 00:29:35,280 S1: Okay, yeah. So you have up to 250,000. But here's 563 00:29:35,280 --> 00:29:39,350 S1: how the IRS looks at the acreage. Um, what's normally 564 00:29:39,350 --> 00:29:41,790 S1: covered is the house itself. And I realize that's a 565 00:29:41,790 --> 00:29:44,070 S1: little challenging because you've you've been working on it, but 566 00:29:44,070 --> 00:29:46,510 S1: it's not quite there yet. And, and so that's going 567 00:29:46,510 --> 00:29:49,150 S1: to play into this. But they normally look at the 568 00:29:49,150 --> 00:29:52,790 S1: house and then about up to an acre of land 569 00:29:52,790 --> 00:29:59,030 S1: surrounding it for residential purposes. So you know, anything beyond that, 570 00:29:59,030 --> 00:30:03,230 S1: the excess acreage beyond what's typical for a residence would 571 00:30:03,230 --> 00:30:08,470 S1: probably be excluded and be seen as an investment. Um, 572 00:30:08,790 --> 00:30:13,229 S1: and so that would be excluded from that 250,000, uh, 573 00:30:13,230 --> 00:30:15,670 S1: that you have as far as gain goes. So I 574 00:30:15,670 --> 00:30:18,630 S1: suspect anything above that and perhaps even a little bit 575 00:30:18,630 --> 00:30:22,270 S1: more may be taxable. Uh, let's do this. I'm going 576 00:30:22,310 --> 00:30:25,030 S1: to break down kind of what those long term capital 577 00:30:25,030 --> 00:30:28,550 S1: gains rates are. So you understand kind of what you 578 00:30:28,550 --> 00:30:31,190 S1: might be on the hook for here just to give 579 00:30:31,190 --> 00:30:34,590 S1: you a ballpark. So Minerva, stay right there. Uh, Raphael, 580 00:30:34,590 --> 00:30:36,350 S1: come your way after the break as well. We'll be 581 00:30:36,350 --> 00:30:44,650 S1: right back. Great to have you with us today on 582 00:30:44,650 --> 00:30:47,570 S1: Faith and finance live. I'm Rob West. We're taking your 583 00:30:47,570 --> 00:30:51,930 S1: calls and questions. 800 525 7000 is the number to call. 584 00:30:51,930 --> 00:30:56,650 S1: It's 800 525 7000. Uh, before the break, we were 585 00:30:56,650 --> 00:31:01,050 S1: talking to Minerva in Texas. She is on disability. This 586 00:31:01,050 --> 00:31:04,090 S1: is going to sell her home. She's wondering, uh, when 587 00:31:04,090 --> 00:31:06,730 S1: she buys that new home, what will be the impact 588 00:31:06,730 --> 00:31:10,930 S1: of the sale in terms of capital gains? The property 589 00:31:11,090 --> 00:31:14,690 S1: has a residence, although it's never been completely finished. But 590 00:31:14,690 --> 00:31:19,410 S1: then it's got acreage around it, about 33 acres. And 591 00:31:19,450 --> 00:31:23,930 S1: was she was wondering, as a person filing single tax status, 592 00:31:23,930 --> 00:31:26,490 S1: but having lived there as her primary residence, how may 593 00:31:26,530 --> 00:31:29,370 S1: that affect her? Uh, so, Minerva, essentially, if we were 594 00:31:29,370 --> 00:31:32,290 S1: to walk through this, we start with the raw gain. Okay. 595 00:31:32,330 --> 00:31:35,650 S1: So if you're selling this property for around 600,000, let's 596 00:31:35,650 --> 00:31:38,880 S1: just say for round numbers, because I know you basically, 597 00:31:39,040 --> 00:31:41,200 S1: you know, put very little into it. Let's say you 598 00:31:41,200 --> 00:31:44,760 S1: put 50,000 into it. So your gain in my example 599 00:31:44,760 --> 00:31:48,920 S1: is 550,000. Then as a single filer, you get up 600 00:31:48,920 --> 00:31:52,680 S1: to 250,000 worth of an exclusion. If you've lived there 601 00:31:52,680 --> 00:31:55,680 S1: two out of the last five years as your primary residence. 602 00:31:55,680 --> 00:31:59,520 S1: But the 33 acres means not all of the property 603 00:31:59,520 --> 00:32:03,240 S1: qualifies as your home. So with that much land, the 604 00:32:03,240 --> 00:32:06,520 S1: IRS almost always requires the sale to be split. The 605 00:32:06,520 --> 00:32:10,360 S1: residence portion, which would be the house, plus the reasonable 606 00:32:10,360 --> 00:32:15,200 S1: surrounding land that's eligible for the 250,000. And then the 607 00:32:15,200 --> 00:32:20,920 S1: excess acreage is fully taxable. And so, you know, a 608 00:32:21,040 --> 00:32:25,360 S1: realistic allocation might be, you know, let's say the residence 609 00:32:25,360 --> 00:32:30,920 S1: portion is 350,000 and the excess land is 250,000. Then 610 00:32:30,960 --> 00:32:35,400 S1: you'd allocate your your basis accordingly. Um, so you'd take 611 00:32:35,780 --> 00:32:39,460 S1: your 50,000 bases and you'd apply some part of it. 612 00:32:39,500 --> 00:32:42,500 S1: Part of it to the residents. If it was mainly for, 613 00:32:42,700 --> 00:32:45,900 S1: you know, construction and improvements and not buying the property, 614 00:32:45,900 --> 00:32:49,220 S1: then you could allocate the majority of it to the 615 00:32:49,220 --> 00:32:52,940 S1: the home. And so let's say you put all 50,000 there. 616 00:32:53,180 --> 00:32:56,660 S1: And in my example, if the portion allocated to the 617 00:32:56,660 --> 00:33:00,780 S1: home was 350,000 out of the 600, then you'd have 618 00:33:00,780 --> 00:33:05,140 S1: a gain of of 300,000, and you could set aside 619 00:33:05,500 --> 00:33:09,420 S1: 250 of that. And then the rest would be taxable 620 00:33:09,420 --> 00:33:13,140 S1: as a long term capital gain. And the, you know, 621 00:33:13,180 --> 00:33:16,300 S1: the full amount of the portion that was considered just 622 00:33:16,340 --> 00:33:20,740 S1: excess acreage that would be fully long term capital gain 623 00:33:20,740 --> 00:33:22,460 S1: as well. Does that make sense? 624 00:33:22,620 --> 00:33:24,860 S6: Yes, sir. Thank you. Okay. Absolutely. 625 00:33:25,300 --> 00:33:28,660 S1: And and in terms of the amount of that, it's 626 00:33:28,660 --> 00:33:32,180 S1: either going to be 15 or 20%. Um, and that's 627 00:33:32,180 --> 00:33:34,260 S1: going to have to do with, you know, what your 628 00:33:34,410 --> 00:33:40,130 S1: total gain is, um, plus, uh, your other taxable income. 629 00:33:40,130 --> 00:33:41,690 S1: But it doesn't sound like you have a whole lot 630 00:33:41,690 --> 00:33:42,650 S1: of income, right? 631 00:33:42,690 --> 00:33:43,770 S6: No. Nothing at all. 632 00:33:44,170 --> 00:33:46,810 S1: Okay. Yeah. So, you know, if we just look at 633 00:33:46,810 --> 00:33:50,610 S1: the straight, long term capital gains rates, you know, filing 634 00:33:50,610 --> 00:33:56,730 S1: single status, you would have up to 545,000 in taxable income. 635 00:33:56,890 --> 00:34:00,330 S1: That includes the gain itself, which again we're going to 636 00:34:00,330 --> 00:34:03,250 S1: have to calculate out of the 600,000 to figure out 637 00:34:03,250 --> 00:34:05,450 S1: how much of that is gain and how much can 638 00:34:05,450 --> 00:34:08,450 S1: be offset by the home exclusion. But it sounds like 639 00:34:08,450 --> 00:34:10,290 S1: when you put it all together, you're still going to 640 00:34:10,290 --> 00:34:14,290 S1: be in the 15% rate. So whatever your CPA determines 641 00:34:14,330 --> 00:34:18,530 S1: is actually a long term capital gain, multiply that by 15%. 642 00:34:18,530 --> 00:34:20,009 S1: And that's how much you'd have to send to the 643 00:34:20,010 --> 00:34:22,130 S1: IRS or excuse me. Yeah the IRS. 644 00:34:23,170 --> 00:34:25,770 S6: Okay. Perfect. And then I don't have to send it 645 00:34:25,770 --> 00:34:29,330 S6: to SSI. I send it to the IRS. 646 00:34:29,690 --> 00:34:32,170 S1: Yeah. When you file your taxes, that's when you'll pay 647 00:34:32,170 --> 00:34:36,149 S1: the capital gain. And again because SSDI, if that's what 648 00:34:36,150 --> 00:34:39,270 S1: you're on Social Security disability is not means tested. It 649 00:34:39,270 --> 00:34:40,950 S1: should have no bearing on that. 650 00:34:42,270 --> 00:34:44,669 S6: You've got it. Okay. Thank you so much. I love. 651 00:34:44,670 --> 00:34:44,830 S1: Your. 652 00:34:45,230 --> 00:34:45,950 S6: Program. Thank you. 653 00:34:45,950 --> 00:34:48,230 S1: God bless. Well thank you and Lord bless you as well. 654 00:34:48,230 --> 00:34:52,150 S1: Thanks for being on the program today. 800 525 7000. 655 00:34:52,270 --> 00:34:55,830 S1: Raphael is a, uh, a business owner in Florida. Raphael. 656 00:34:55,870 --> 00:34:56,470 S1: Go ahead. 657 00:34:57,150 --> 00:34:58,029 S7: Hello? Can you hear me? 658 00:34:58,070 --> 00:34:59,190 S1: I sure can. Yeah. 659 00:34:59,469 --> 00:35:01,710 S7: Thank you so much for taking my call. All right, 660 00:35:01,710 --> 00:35:04,790 S7: so I got, uh, I got two questions. Um, I 661 00:35:04,830 --> 00:35:08,629 S7: am small business owner. I, I own a business where 662 00:35:08,630 --> 00:35:12,190 S7: I clean pools, and I'm finally getting the resources now 663 00:35:12,230 --> 00:35:14,830 S7: where I can start getting more and more business in 664 00:35:14,830 --> 00:35:18,270 S7: my city. And, um, and so I just have a 665 00:35:18,270 --> 00:35:22,989 S7: question where I'm really wanting to start moving forward, um, 666 00:35:23,390 --> 00:35:27,670 S7: taking all the accounts of the profits, um, the right way. 667 00:35:27,670 --> 00:35:30,550 S7: And I just wanted to ask for some advice on 668 00:35:30,550 --> 00:35:33,979 S7: some practical ways to start doing that. and you start 669 00:35:33,980 --> 00:35:37,299 S7: using Excel or spreadsheets. But I don't have no experience 670 00:35:37,300 --> 00:35:39,420 S7: with that. And I just wanted to know, kind of 671 00:35:39,460 --> 00:35:42,500 S7: like the next step forward into taking all the accounts 672 00:35:42,500 --> 00:35:47,100 S7: of the finances, uh, the flow of the business itself. Like, 673 00:35:47,100 --> 00:35:50,500 S7: I've never owned a business yet. And yeah. 674 00:35:50,820 --> 00:35:54,940 S1: I love this question because getting this set up now, Raphael, 675 00:35:54,980 --> 00:35:58,060 S1: the right way is critical because if the Lord continues 676 00:35:58,060 --> 00:35:59,940 S1: to bless this and you stick with it and you 677 00:35:59,940 --> 00:36:03,380 S1: grow the business, you really want to have your book 678 00:36:03,380 --> 00:36:05,020 S1: set up the right way. You want to have your 679 00:36:05,020 --> 00:36:08,259 S1: accounting procedures. You want to have clear separation between your 680 00:36:08,260 --> 00:36:11,739 S1: business and your personal finances. And this is going to 681 00:36:11,780 --> 00:36:14,219 S1: help you, you know, make sure that you can document 682 00:36:14,219 --> 00:36:18,500 S1: truly all of the business expenses before the IRS and 683 00:36:18,500 --> 00:36:21,180 S1: not ever be challenged on that. So I think, you know, 684 00:36:21,219 --> 00:36:23,820 S1: part one, in terms of the best way to approach 685 00:36:23,820 --> 00:36:28,780 S1: the accounting is really to, first of all, separate everything immediately. 686 00:36:28,780 --> 00:36:32,800 S1: That's non-negotiable. So I'd have a separate business checking account 687 00:36:32,800 --> 00:36:36,560 S1: and a separate business savings account for taxes, and then 688 00:36:36,560 --> 00:36:40,000 S1: a business credit or debit card and don't mix personal 689 00:36:40,000 --> 00:36:44,080 S1: and business whatsoever. Second, you want to choose a simple 690 00:36:44,080 --> 00:36:48,360 S1: accounting system early, so even a small business needs structure. 691 00:36:48,400 --> 00:36:51,000 S1: You know, I think QuickBooks is just as good as 692 00:36:51,000 --> 00:36:53,480 S1: any other. But you're going to want to track your income, 693 00:36:53,680 --> 00:36:59,440 S1: your expenses, every dollar spent, your owner contributions, your owner draws. Um, 694 00:36:59,520 --> 00:37:02,239 S1: you know, this is going to be really important because 695 00:37:02,560 --> 00:37:04,719 S1: you want to get this in place now before the 696 00:37:04,719 --> 00:37:08,000 S1: volume increases. And then I think third is really to 697 00:37:08,040 --> 00:37:11,360 S1: treat taxes as a bill that you don't get to skip. 698 00:37:11,719 --> 00:37:14,080 S1: So you want to set aside money as you earn it. 699 00:37:14,080 --> 00:37:16,719 S1: Not later. I mean, maybe 20 to 30% of net 700 00:37:16,719 --> 00:37:19,680 S1: income goes into a tax savings account. You want to 701 00:37:19,680 --> 00:37:23,520 S1: pay those estimated quarterly taxes, and you don't spend the 702 00:37:23,520 --> 00:37:26,120 S1: money that belongs to the IRS because that's going to, 703 00:37:26,280 --> 00:37:28,439 S1: you know, get you into trouble. And then you want 704 00:37:28,440 --> 00:37:31,240 S1: to pay yourself intentionally. You don't want to just grab 705 00:37:31,350 --> 00:37:34,830 S1: money when needed. So, you know, depending on the structure, 706 00:37:34,870 --> 00:37:36,870 S1: you know, if you're an S Corp, a lot of 707 00:37:36,870 --> 00:37:39,469 S1: times what you'll do is you'll especially when you get 708 00:37:39,469 --> 00:37:41,989 S1: to this place where you can do this consistently, set 709 00:37:41,989 --> 00:37:45,910 S1: yourself up on a reasonable salary and then, you know, 710 00:37:45,950 --> 00:37:49,589 S1: take distributions along the way as you're able. And you'll 711 00:37:49,590 --> 00:37:51,549 S1: save some taxes on that, because you won't have to 712 00:37:51,590 --> 00:37:54,950 S1: pay both sides of the FICA tax, you know, on 713 00:37:54,950 --> 00:37:58,870 S1: the distribution portion. Um, I think it's also important that 714 00:37:58,870 --> 00:38:03,589 S1: you get with a CPA or accountant who specializes in 715 00:38:03,590 --> 00:38:06,950 S1: working with small businesses, because they can help you set 716 00:38:06,989 --> 00:38:10,150 S1: up all of the processes and the structure that I 717 00:38:10,150 --> 00:38:13,350 S1: just described, even help you set up, you know, just 718 00:38:13,350 --> 00:38:16,510 S1: some of your routines in QuickBooks and help you know 719 00:38:16,550 --> 00:38:18,630 S1: what it is you need to watch in terms of 720 00:38:18,630 --> 00:38:22,109 S1: monthly reports and just all the things that you need 721 00:38:22,110 --> 00:38:25,310 S1: to be doing to, again, make sure there's clear separation 722 00:38:25,310 --> 00:38:28,670 S1: personally and professionally, but also that you've got a good 723 00:38:28,710 --> 00:38:32,170 S1: set of books so you know genuinely how the business 724 00:38:32,170 --> 00:38:36,050 S1: is doing. Um, and you can evaluate that over time 725 00:38:36,050 --> 00:38:38,370 S1: and paying somebody to help you get all that set 726 00:38:38,410 --> 00:38:41,609 S1: up and then walk with you in that process, I 727 00:38:41,610 --> 00:38:44,210 S1: think is really critical. And, you know, even though it's 728 00:38:44,210 --> 00:38:46,890 S1: an extra expense, um, you know, I think it's one 729 00:38:46,890 --> 00:38:49,049 S1: that's well worth it. Does that all make sense, though? 730 00:38:49,090 --> 00:38:53,450 S7: Yes, absolutely. Thank you so much. That was really sound advice. I, 731 00:38:53,810 --> 00:38:59,690 S7: I have one more small question, and I, I'm so, um, 732 00:38:59,730 --> 00:39:02,450 S7: this is one thing that was explained by a spiritual 733 00:39:02,450 --> 00:39:04,850 S7: mentor of mine a while ago, but I it didn't 734 00:39:04,850 --> 00:39:07,570 S7: click for me in that time. But in this moment 735 00:39:07,570 --> 00:39:10,730 S7: I felt like I did click for me just personally. 736 00:39:10,890 --> 00:39:13,330 S7: And it's the fact that God owns all my money 737 00:39:13,330 --> 00:39:15,770 S7: and all of my property and my business. And so 738 00:39:15,770 --> 00:39:18,530 S7: once that once I really understood that in my heart, um, 739 00:39:18,570 --> 00:39:20,930 S7: I kind of shook a little bit. And I know 740 00:39:20,930 --> 00:39:23,569 S7: that his word says all of what I need to 741 00:39:23,610 --> 00:39:27,250 S7: know about that and how I need to address that 742 00:39:27,250 --> 00:39:29,370 S7: and flow with that. But I just wanted to ask 743 00:39:29,410 --> 00:39:32,040 S7: and and how can I honor God with with all 744 00:39:32,080 --> 00:39:34,920 S7: of my profits and all of my money? And how 745 00:39:34,920 --> 00:39:38,240 S7: can I continue to walk with him in the terms of. 746 00:39:38,280 --> 00:39:42,080 S7: Because sometimes I spend my personal money and I feel 747 00:39:42,080 --> 00:39:45,480 S7: like I don't necessarily know if God is approving of, 748 00:39:45,520 --> 00:39:48,359 S7: you know, just these small spends and whatnot to I mean, 749 00:39:48,400 --> 00:39:53,520 S7: I know it's good to just have financial wisdom regardless, but, um, 750 00:39:53,680 --> 00:39:56,400 S7: but in terms of, you know, yeah. 751 00:39:56,640 --> 00:39:58,799 S1: I think you're I mean, it's a great question. I 752 00:39:58,800 --> 00:40:01,919 S1: love the heart behind this, Raphael. And God will honor this. 753 00:40:01,960 --> 00:40:05,400 S1: You know, the posture matters as much as the process. 754 00:40:05,400 --> 00:40:09,120 S1: So since all the provision and your business belong to 755 00:40:09,160 --> 00:40:11,239 S1: God and not you. And that's true of all of us, 756 00:40:11,239 --> 00:40:14,080 S1: everything we have, including the breath in our lungs, is 757 00:40:14,080 --> 00:40:17,320 S1: a gift from the Lord entrusted to us for our care. 758 00:40:17,320 --> 00:40:20,479 S1: And that includes your business. That means we we view 759 00:40:20,480 --> 00:40:23,319 S1: ourselves as a steward, not an owner. And so when 760 00:40:23,320 --> 00:40:25,719 S1: you walk into that business every day, you're saying, not, 761 00:40:25,760 --> 00:40:27,759 S1: what should I do with my business? But Lord, what 762 00:40:27,760 --> 00:40:30,219 S1: would you have me to do with your business. And 763 00:40:30,219 --> 00:40:33,700 S1: then at that point, it's about faithfulness. And we operate 764 00:40:33,700 --> 00:40:37,020 S1: the business with honesty, and we pay people fairly and 765 00:40:37,060 --> 00:40:40,779 S1: on time, and we avoid debt or risk that compromises 766 00:40:40,780 --> 00:40:44,500 S1: our integrity. And we make decisions that reflect love of neighbor, 767 00:40:44,500 --> 00:40:47,419 S1: not just bottom line growth. And I think one other 768 00:40:47,420 --> 00:40:51,060 S1: thing you can do is build generosity into the structure 769 00:40:51,060 --> 00:40:54,060 S1: of your business from the beginning, whether it's through giving 770 00:40:54,060 --> 00:40:58,260 S1: or serving clients with excellence or creating value that genuinely 771 00:40:58,260 --> 00:41:01,620 S1: helps others. I would say invite God prayerfully into those 772 00:41:01,620 --> 00:41:05,620 S1: financial decisions. Trust him as your provider while you manage 773 00:41:05,620 --> 00:41:09,660 S1: his resources and make, you know, prayer a key part 774 00:41:09,700 --> 00:41:13,340 S1: of this entire process. But I think it's also important 775 00:41:13,340 --> 00:41:16,420 S1: to understand that, you know, when you do and operate 776 00:41:16,420 --> 00:41:19,339 S1: this business, understanding your role as steward and you do 777 00:41:19,340 --> 00:41:22,660 S1: it as unto the Lord, playing to an audience of one, 778 00:41:23,060 --> 00:41:26,020 S1: it brings him incredible glory. And this is a part 779 00:41:26,020 --> 00:41:28,420 S1: of the way he's created us. He created us to 780 00:41:28,570 --> 00:41:32,130 S1: be workers were to take, you know, the latent potential 781 00:41:32,130 --> 00:41:34,969 S1: of his creation and to turn it into something that's 782 00:41:34,969 --> 00:41:38,930 S1: productive for the, you know, for human flourishing and to 783 00:41:38,969 --> 00:41:43,930 S1: bless mankind. You're providing products and services that bring beauty 784 00:41:43,930 --> 00:41:47,049 S1: and order to people's homes, and you can do that 785 00:41:47,050 --> 00:41:50,250 S1: in a way that that honors the Lord. And you're 786 00:41:50,290 --> 00:41:54,489 S1: living into God's purpose and unique design and thumbprint on 787 00:41:54,489 --> 00:41:57,009 S1: your life every day when you go to work. And 788 00:41:57,010 --> 00:41:59,610 S1: I think when you bring that posture and that mentality 789 00:41:59,610 --> 00:42:02,969 S1: to it, it's a game changer because it really changes 790 00:42:02,969 --> 00:42:06,370 S1: the why of everything that you do. So I hope 791 00:42:06,530 --> 00:42:09,250 S1: I hope that's an encouragement to you today. Raphael. I'm 792 00:42:09,250 --> 00:42:12,210 S1: confident the Lord's going to honor your desire to honor 793 00:42:12,210 --> 00:42:16,049 S1: him with everything in your life, including your business. Hey, 794 00:42:16,050 --> 00:42:18,210 S1: call anytime if I can help you further. Lord bless 795 00:42:18,210 --> 00:42:21,050 S1: you my friend. Faith in finance is a partnership between 796 00:42:21,050 --> 00:42:24,090 S1: Moody Radio and Faith five. My team. They're amazing. Josh 797 00:42:24,090 --> 00:42:27,009 S1: Taylor to Hira, Omar and everybody here at Faith five. 798 00:42:27,010 --> 00:42:27,810 S1: We'll see you tomorrow.