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Speaker 1: Earners. What's up. You ever walk into a small business

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Speaker 1: This episode is brought to you by P and C Bank,

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Speaker 1: a lot of people think podcasts about work are boring,

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Speaker 1: and sure, they definitely can be, but understanding of professional's

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Speaker 1: routine shows us how they achieve their success little by little,

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Speaker 1: day after day. It's like banking with P and C Bank.

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Speaker 1: It might seem boring to save, plan and make calculated

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Speaker 1: what helps you live or more happily fulfilled life. P

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Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly

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Speaker 1: the PNC Financial Service Group, Inc. P and C Bank

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Speaker 1: National Association Member FDIC.

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Speaker 2: So let's get into it. Okay, So mortgage rake spike,

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Speaker 2: with the thirty year mortgage rates now hovering around seven

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Speaker 2: point five percent, levels unseen in decades, are we seeing

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Speaker 2: in the early ages the early stages of a housing

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Speaker 2: affordability crisis?

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Speaker 3: I don't know we would have to act, Matt, but

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Speaker 3: given the bond crisis that I've been talking about for

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Speaker 3: a while, a couple interesting things. There's three hundred and

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Speaker 3: fifty billion dollars in interest we're going to have to

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Speaker 3: pay if we don't end up refinancing and then when

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Speaker 3: they had to treasury auction last week, not no one,

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Speaker 3: but virtually no one wanted to buy our bonds. So

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Speaker 3: as a result, I think that rate will stay for

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Speaker 3: a while. If I was a fair chair, I would

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Speaker 3: not want to have this job right now. But the

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Speaker 3: Japanese bond market is going through a crisis, so are we.

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Speaker 3: We can talk about the bill or if Doe just

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Speaker 3: being dismantled through this bill now, But there are a

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Speaker 3: couple of things on the table where I'm like, I

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Speaker 3: don't see how we begin to correct this. So over

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Speaker 3: the next I think they said ten years, we're going

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Speaker 3: to be paying five trillion dollars in interest. I don't

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Speaker 3: know how you correct that. AI is partially of a

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Speaker 3: small part of the answer. But we have to get

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Speaker 3: this under control before we lose our lead permanently. What

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Speaker 3: do you guys think.

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Speaker 1: I mean, it's our highest rate since the early two thousands.

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Speaker 1: I remember being in the pandemic and saying, man, two

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Speaker 1: point eight five, that's incredible, and now we're here at

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Speaker 1: seven and a half just a few years later. It's

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Speaker 1: a tough position, right, Like the affordability situation in America

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Speaker 1: is becoming almost unsustainable. Right when we're telling them about

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Speaker 1: who's going to be buying homes, what demographic of the

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Speaker 1: population is going to be coming into home buying. If

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Speaker 1: wages aren't increased in housing prices going up doesn't make

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Speaker 1: for a great formula. On the other end, when you're

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Speaker 1: talking about people who are selling homes when interest rates

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Speaker 1: or even refinance, and when interest rates are this high,

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Speaker 1: you winding that people aren't doing any of those things.

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Speaker 1: So the supply becomes an issue. Affordability becomes an issue

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Speaker 1: because wages are an issue. The only way I see

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Speaker 1: going fit going forward, to be fit with the situation

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Speaker 1: is policy is going to have to be putting in place,

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Speaker 1: whether it's going to be a new declaration on how

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Speaker 1: interest rates are going to be levied over a five

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Speaker 1: ten year span, because if we're looking at that, like

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Speaker 1: you just brought up from an institutional standpoint, but even

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Speaker 1: from an individual standpoint, like the amount of debt that

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Speaker 1: people are curing from college from credit, those numbers are

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Speaker 1: going to start to creep in over the next two

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Speaker 1: or three years. I know it's kind of been hitting

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Speaker 1: back and obviously soon Loan was on deferment for a

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Speaker 1: few years here, but that number is going to be

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Speaker 1: accounted for very shortly, and so when you add that

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Speaker 1: into this problem housing, it's going to be an issue

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Speaker 1: unless new policy is put in place, like what.

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Speaker 3: Affordable big cities are there for people to live in.

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Speaker 3: When the cost of housing, like he said, it's going

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Speaker 3: up so high and everything that needs to be refinanced

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Speaker 3: at scale, it's very scary. One more note, the Japanese

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Speaker 3: bond auction was the worst since nineteen eighty seven, which

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Speaker 3: is that Black Friday crash. There's a lot of things

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Speaker 3: on the board right now that are just incredibly scary,

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Speaker 3: and I don't know if anyone has planned correctly on

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Speaker 3: how to fix it.

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Speaker 2: Yeah, for sure. And I will say this when it

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Speaker 2: comes to mortgages, shout out to Matt Matt, because Yeah,

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Speaker 2: he's definitely a talented mortgage broker, and he's one of

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Speaker 2: these people that actually does the business like he's not

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Speaker 2: just a social media influencer. So like even me, like

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Speaker 2: he's helping me out. I think I might have mentioned

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Speaker 2: this before, but I actually have a property that I

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Speaker 2: purchased in cash and I'm doing a cash out refly.

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Speaker 2: So this is information for anybody that's interested. If you're

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Speaker 2: own a property, you can still refi a property that

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Speaker 2: you don't have a mortgage on, and the benefit with

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Speaker 2: that is that you so it's like I got this proper,

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Speaker 2: but he had auction. Well kind of it's a long story,

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Speaker 2: but it was way under market value.

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Speaker 3: Well, you invested in another piece of real estate after

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Speaker 3: telling people not to invest in real estate, the.

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Speaker 2: Jamie Diamond play. So I was able to get a

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Speaker 2: property way under market value, but with the cash out refit. Thanks.

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Speaker 2: When they do an appraisal, they appraise it at what

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Speaker 2: the current price is. So, long story short, if everything

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Speaker 2: goes according to plan, I'm not done you. I'll update

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Speaker 2: you when it's over. But it looks like I could

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Speaker 2: potentially maybe get more, slightly more or at the very

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Speaker 2: least like around the scene that actually paid for the property. Yeah,

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Speaker 2: so that's helpful because that's like, you know, if you

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Speaker 2: buy a property for to eighty and then it's worth

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Speaker 2: four hundred, then you actually can get to eighty back

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Speaker 2: or three hundred thousand. Right, That's that's beneficial because now

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Speaker 2: I mean, of course you now you actually have a

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Speaker 2: mortgage on it, so you got to pay monthly. But

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Speaker 2: if you have a tenant then they could pay that

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Speaker 2: via their rent. But even if you don't, you're able

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Speaker 2: to have capital that you can do other things with

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Speaker 2: deploying to the market, reinvest, buy more relitated if you're interested,

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Speaker 2: So cash your refin I don't think we I don't

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Speaker 2: think we spoke about that before, but that was something

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Speaker 2: that I wasn't fully aware of and he actually educated

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Speaker 2: me on it. Once again, shout out to Matt. But

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Speaker 2: that's a pretty powerful tool in the disposal when it

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Speaker 2: comes to real estate. So you always have options when

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Speaker 2: it comes to real estate.

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Speaker 1: Just does the indust rate become higher because of the

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Speaker 1: cash youll refle.

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Speaker 2: Well, remember I don't have an interest rate right now,

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Speaker 2: because when you do it, it's whatever the interest rate is.

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Speaker 2: It's not it's not it's like it's like buying a

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Speaker 2: new home.

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Speaker 1: Okay, So like if it's seven and a half is

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Speaker 1: the rate right now, then seven and a half is

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Speaker 1: the rate that you're getting.

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Speaker 2: Yeah, okay, So yeah, yeah, Matt definitely is somebody that's

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Speaker 2: extremely knowledgeable when it comes to real estate home buying,

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Speaker 2: and there's so many different things, right, Like, there's some

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Speaker 2: different stuff that we're not educated on. That's why the

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Speaker 2: home Boy blueprint is vitally important Eyo University. But that

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Speaker 2: when I found that out, I was like, damn, that's

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Speaker 2: kind of crazy, like because imagine if you could just

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Speaker 2: go around buying auction properties at low prices, then doing

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Speaker 2: some quick or even like fix her up right, then

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Speaker 2: increasing their value very very quickly, and then doing cash

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Speaker 2: out refiles and then getting more money than you actually

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Speaker 2: paid for it. Put a tenant in there, have the

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Speaker 2: tenant pay the rent, which is covering the cost of

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Speaker 2: the actual new mortgage that you actually have. But now

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Speaker 2: you have new money that you can buy new property with. Right,

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Speaker 2: Like you can scale a relative in my mind, you

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Speaker 2: can scale a real estate portfolio relative relatively quickly in

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Speaker 2: that type of scenario.

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Speaker 3: Yeah, especially if you have cash or you're a high

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Speaker 3: network individual.

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Speaker 2: M Yeah, it's good.

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Speaker 3: It's a good way to scale.

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Speaker 1: Yeah, and solid credit too, because if your credit, oh yeah,

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Speaker 1: you gotta have credits in shambles, seven and a half's

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Speaker 1: gonna look a lot higher than that.

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Speaker 2: Well you're I mean, at this point in time, nobody's

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Speaker 2: credit should be in shambles. You would be surprised. No, No,

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Speaker 2: I'm saying as far as the information like we have

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Speaker 2: enough information out there to clean your credit, right, Like

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Speaker 2: the bad credit epidemic should be coming to an end.

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Speaker 1: Oh so for some I got I got a few

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Speaker 1: calls over the past couple of weeks from entrepreneurs.

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Speaker 3: Yeah, I was gonna say, you would be surprised at

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Speaker 3: the entrepreneur class. Yeah.

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Speaker 1: And but even the other part of it is this

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Speaker 1: this student loan, these people who are now just graduate.

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Speaker 1: I know we spoke about graduating last year, but I

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Speaker 1: mean last episode. But think about it now, like the

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Speaker 1: kids who have come out of college over the past

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Speaker 1: two or three years, who have been in deferment, who

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Speaker 1: had their suit of loan suspended and now are having

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Speaker 1: to pay what that effect will be on their credit

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Speaker 1: going forward, right if they default on So yeah, I

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Speaker 1: mean in addition to credit card that, Yeah, the education

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Speaker 1: process never stops.

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Speaker 3: Man card no, yep. And that's a great point no

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Speaker 3: matter how, because you may have a plan now, but

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Speaker 3: as you scale and that lifestyle creep seeps in. It's

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Speaker 3: a lot of people that are owing thirty and forty

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Speaker 3: thousand dollars a month. You'll be surprised.

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Speaker 4: An illegal alien from Guatemala charged with raping a child

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Speaker 4: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 4: accused of murdering a Texas man of Venezuelan charged with

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Speaker 4: filming and selling child pornography in Michigan. These are just

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Speaker 4: some of the heinous migrant criminals caught because of President

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Speaker 4: Donald J. Trump's leadership. I'm Christy Noman, the United States

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Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 4: crossings are at the lowest levels ever recorded, and over

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Speaker 4: one hundred thousand illegal aliens have been arrested. If you

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Speaker 4: were here illegally, your next you will You'll be fine

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Speaker 4: nearly one thousand dollars a day. Imprisoned and deported, you

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Speaker 4: will never return. But if you register using our CBP

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Speaker 4: home app and leave now, you could be allowed to

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Speaker 4: return legally. Do what's right. Leave now. Under President Trump,

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Speaker 4: America's laws, border and families will be protected.

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Speaker 1: Sponsored by the United States Department of Homeland Security,