WEBVTT - Friday Flight - A New Refi Fee & Additional Unemployment Benefits Rolling Out #243 0:00:00.120 --> 0:00:02.640 Welcome to How the Money. I'm Joel and I and 0:00:02.759 --> 0:00:05.400 Matt's and today we're discussing a new reef I fee 0:00:05.600 --> 0:00:28.000 and additional unemployment benefits rolling out. That's right, Joel. This 0:00:28.040 --> 0:00:30.240 is our Friday episode and we have a lot of 0:00:30.800 --> 0:00:32.720 less We want to make sure that we cover different 0:00:32.760 --> 0:00:35.319 stories that we came across. This week, we're gonna talk 0:00:35.360 --> 0:00:38.640 about how they affects our money, our personal finances. But 0:00:38.840 --> 0:00:40.880 I see here, man, you've got a note about Uber. 0:00:41.440 --> 0:00:44.720 You you decided to start driving for Uber again. No, 0:00:44.880 --> 0:00:46.920 although I don't know if I've ever mentioned on the 0:00:46.960 --> 0:00:50.880 podcast that I did one ride, one little promotion deal 0:00:50.920 --> 0:00:53.040 that they're doing, and you scored a ton of money, 0:00:53.080 --> 0:00:56.160 a thousand dollars to do one rider. Lift Lift had 0:00:56.200 --> 0:00:58.720 this crazy promotion one time where if you would sign 0:00:58.720 --> 0:01:01.480 them through a driver and you got approved within a 0:01:01.520 --> 0:01:04.400 week and you gave just one ride, Like they totally 0:01:04.440 --> 0:01:06.880 bungled the promotion and they should not have made a Yeah, 0:01:06.880 --> 0:01:08.360 I think it was a mistake. Was it was this 0:01:08.400 --> 0:01:10.319 sort of like city they like they just paid the 0:01:10.360 --> 0:01:12.679 wire transfer. The wire transfer like somebody hit the wrong 0:01:12.720 --> 0:01:15.200 button and it just forked over. Like hundreds of millions 0:01:15.200 --> 0:01:18.840 of dollars exactly weren't supposed to. They like almost immediately 0:01:18.880 --> 0:01:21.360 changed the terms, like, oh no, you must give at 0:01:21.400 --> 0:01:23.280 least forty rides. But I got in when it was 0:01:23.319 --> 0:01:25.560 just one ride, and so yeah, I gave one ride, 0:01:25.560 --> 0:01:28.080 one lift ride. I made basically a thousand and three 0:01:28.120 --> 0:01:31.760 dollars because the ride was super quick. But um, but yeah, 0:01:31.800 --> 0:01:33.320 so that was that was fun. But I just got 0:01:33.360 --> 0:01:36.440 reminded the other night when I did I never take 0:01:36.560 --> 0:01:39.000 Uber and left rides like it's almost never happens. But 0:01:39.040 --> 0:01:40.720 I mentioned a couple of weeks ago that I came 0:01:40.760 --> 0:01:44.000 back from Memphis on on a Southwest flight and to 0:01:44.080 --> 0:01:47.319 get home, my you know, Uber lift ride cost half 0:01:47.319 --> 0:01:50.200 as much as my freaking flight was crazy. But I 0:01:50.200 --> 0:01:51.320 looked it up on Lift and I was like, man, 0:01:51.320 --> 0:01:53.440 I'm gonna hit Hike instead of this. That's that's ridiculous. 0:01:53.600 --> 0:01:55.560 It was like thirty four bucks to get home. And 0:01:55.560 --> 0:01:58.000 then I was like, man, I need to check out Uber, 0:01:58.080 --> 0:01:59.640 Like I don't. I don't know. I think I just 0:02:00.000 --> 0:02:03.360 had been going to Lift by default, and I end 0:02:03.480 --> 0:02:06.440 up checking out Uber and it was twelve dollars cheaper. 0:02:06.960 --> 0:02:09.880 So I guess I just assumed that their way their 0:02:09.880 --> 0:02:13.000 algorithms worked, they were pretty much always consistently priced the same. 0:02:13.200 --> 0:02:16.200 But no, they're not like there's a vast disparity. And 0:02:16.240 --> 0:02:19.000 so before you book a ride, check both apps real 0:02:19.080 --> 0:02:20.960 quick before you press the button to get the car 0:02:21.120 --> 0:02:23.200 coming your way, UM, so that you can make sure 0:02:23.240 --> 0:02:25.720 that you're not spending too much on the ride that's 0:02:25.720 --> 0:02:27.760 gonna take you to wherever you need to get to go. Yeah, 0:02:27.800 --> 0:02:29.680 I mean recently, I feel like Uber they've kind of 0:02:29.680 --> 0:02:31.120 had their name dragged through the mud a little bit. 0:02:31.160 --> 0:02:34.360 You know, they've been involved through their entire company's history basically, 0:02:35.520 --> 0:02:37.440 and because of that, I feel like more folks are 0:02:37.520 --> 0:02:40.160 taking lift Um. It's kind of seem as like maybe 0:02:40.160 --> 0:02:42.760 the slightly higher end view of right sharing. I don't know, 0:02:42.760 --> 0:02:44.919 maybe that's my personal opinion of it. No, I think 0:02:44.919 --> 0:02:46.840 that's probably that's probably true. I think where it is, 0:02:46.880 --> 0:02:50.840 people assume it's better customer service. It's uh, but quality drivers, 0:02:50.880 --> 0:02:52.280 you know. I don't know if that's the case, though. 0:02:52.280 --> 0:02:53.919 I think most drivers, if you're looking to say it 0:02:53.960 --> 0:02:57.600 twelve bucks, yeah, it's certainly worth checking another app. You know, 0:02:57.880 --> 0:02:59.880 most drivers that I've talked to you because I like 0:03:00.000 --> 0:03:01.799 to talk and I talked to drivers when I'm when 0:03:01.800 --> 0:03:05.079 I'm getting somewhere, many of them say that they drive 0:03:05.120 --> 0:03:08.239 for both and they interchange the apps and and so. Yeah, 0:03:08.240 --> 0:03:11.000 a lot of search pricing where the demand is yeah, 0:03:11.000 --> 0:03:13.600 completely so uh, just a little word of the wise 0:03:13.800 --> 0:03:16.080 tip before you book a ride share, check both platforms 0:03:16.080 --> 0:03:18.040 to shop it a little bit, shop around, like it's 0:03:18.040 --> 0:03:19.720 easy for us to fall into ruts. Actually, next week 0:03:19.720 --> 0:03:22.720 we're talking about paying for convenience than just the different 0:03:22.800 --> 0:03:25.920 charges and fees associated with that. But it's easy to 0:03:25.960 --> 0:03:28.440 pay more because we're creatures. Have happened true? All right, 0:03:28.639 --> 0:03:30.400 But before we get to our Friday flag, one final 0:03:30.480 --> 0:03:32.800 question for you on this topic, because I mentioned that 0:03:33.000 --> 0:03:35.720 I thought about hitchhiking. Have you ever hitchhiked? And is 0:03:35.760 --> 0:03:39.400 hitchhiking for ruler cheap? Ah? Man, That's such a difficult 0:03:39.480 --> 0:03:41.760 question because so much of it depends on the context, 0:03:41.840 --> 0:03:43.680 you know, like like who are you with, Like what 0:03:43.800 --> 0:03:46.000 time of day is it, where are you located? Like 0:03:46.080 --> 0:03:48.440 how many cars are driving down the road? Um, So 0:03:48.560 --> 0:03:50.280 have I ever hitchhike? I was about to say no, 0:03:50.880 --> 0:03:53.120 and I was buying myself time by like throwing out 0:03:53.120 --> 0:03:56.880 all those factors saying too. But I just remembered that 0:03:57.000 --> 0:04:00.600 Kate and I, well, I guess technically hitchhiked in Atlanta 0:04:00.640 --> 0:04:03.800 United Game last year. And so we wanted to get 0:04:03.840 --> 0:04:06.640 down to this lower level like in Atlanta, it's called 0:04:06.640 --> 0:04:08.600 the Gulch and it's where all the tail getting happens. 0:04:08.600 --> 0:04:10.840 It's where all the supporters clubs party. And we had 0:04:10.880 --> 0:04:13.760 ridden our bikes to the bends where Atlanta plays their matches, 0:04:14.240 --> 0:04:16.400 and we were trying to meet some folks down below. 0:04:16.440 --> 0:04:18.720 But the easiest and most direct and fastest way to 0:04:18.760 --> 0:04:20.760 get down there it was to go down this weird, 0:04:20.839 --> 0:04:24.360 crazy ramp that only cars are allowed to go down. Uh, 0:04:24.360 --> 0:04:26.360 and there is an officer there keeping you from walking 0:04:26.400 --> 0:04:28.400 down because there's no sidewalk and it's literally only like 0:04:28.440 --> 0:04:31.000 ten ft wide. It can barely fit cars. And so 0:04:31.040 --> 0:04:32.360 I turned to Kate and I said, I'm not gonna 0:04:32.400 --> 0:04:34.000 walk like a mile to get all the way around 0:04:34.000 --> 0:04:35.719 to go down the steps where you're supposed to go down. 0:04:35.960 --> 0:04:37.360 It's like, let's just see if you can hop in 0:04:37.400 --> 0:04:40.320 someone's car, because cars are pulling down there the park. 0:04:40.560 --> 0:04:42.919 It's like the shortest hitchhike of all time. Yeah, so 0:04:43.040 --> 0:04:45.240 technically it wasn't a hitchhike. I think so, But we 0:04:45.320 --> 0:04:47.559 just kind of knocked on someone's window. They're like, hey, 0:04:47.680 --> 0:04:49.440 can we ride with you to get to get down there, 0:04:49.839 --> 0:04:51.840 And they kind of looked at each other like, yeah, sure, 0:04:52.720 --> 0:04:55.200 this is pre COVID. Maybe definitely pre COVID. We're not 0:04:55.240 --> 0:04:57.159 freaked out by that. But we jumped in the back 0:04:57.200 --> 0:04:59.360 of this little pickup truck had It was a four door, 0:04:59.440 --> 0:05:01.080 so they didn't have to like get out and open 0:05:01.080 --> 0:05:03.479 their doors or anything. There's a small pickup truck, and 0:05:03.520 --> 0:05:04.920 I will say it did kind of freak us out 0:05:04.960 --> 0:05:07.360 because we jumped in and there are knives all over 0:05:07.400 --> 0:05:10.080 the floor, but they're like kitchen knives. And I don't 0:05:10.080 --> 0:05:12.400 know if they like sell those really sharp knives door 0:05:12.400 --> 0:05:16.680 to doors something, but they're chefs kitchen knives on the floorboards. 0:05:17.000 --> 0:05:18.880 And we saw that as we're climbing and can I 0:05:18.920 --> 0:05:20.240 kind of looked at each other. Kind of freaked us 0:05:20.240 --> 0:05:21.960 out a little bit. Maybe think of the beer commercials 0:05:22.000 --> 0:05:23.760 a bud light with the chainsaw guy on the side 0:05:23.800 --> 0:05:25.600 of the road. Yeah, so ye had a case of beer. 0:05:25.800 --> 0:05:28.560 My my hitchhiking eggs. Have he done it? I have? 0:05:28.920 --> 0:05:30.679 I did it? With like two of my buddies, and 0:05:30.920 --> 0:05:33.000 one of my buddies had like really long black hair 0:05:33.040 --> 0:05:34.760 at the time and like a beard. And it was 0:05:34.920 --> 0:05:37.200 right at the time when those Budweiser commercials have come out, 0:05:37.960 --> 0:05:40.760 and so he like out of cardboard, cut a chainsaw 0:05:40.800 --> 0:05:42.719 and a six pack of bud Light. And I think 0:05:42.720 --> 0:05:44.400 that I don't know if that helped or hurt our 0:05:44.440 --> 0:05:45.960 chances are getting ride, but we did get a couple 0:05:45.960 --> 0:05:48.000 of rides. I think we went from Portland to Seattle 0:05:48.040 --> 0:05:50.760 if I remember correctly. So that's like legit hitchhiking. That 0:05:50.800 --> 0:05:52.679 was a real one. Yeah, I love it, dude. Well, 0:05:52.839 --> 0:05:54.719 I think in your case, you're you had three friends 0:05:54.720 --> 0:05:57.039 and so there's certainly power in numbers. But yeah, you 0:05:57.080 --> 0:05:58.600 just never know. Man, there's a bunch of weirdos out 0:05:58.640 --> 0:06:00.480 there and you don't that's to say they want to 0:06:00.480 --> 0:06:02.240 get picked up by the wrong person, that's true. I 0:06:02.240 --> 0:06:03.640 guess I was banking on the fact that we were 0:06:03.640 --> 0:06:06.000 the biggest weirdos in that situation. Exactly when you're the 0:06:06.000 --> 0:06:08.640 biggest weirdo, when you are the largest risk, then oh yeah, 0:06:08.680 --> 0:06:11.960 try to hit hitchhike with whoever you can. Exactly if 0:06:12.000 --> 0:06:13.640 he can make it happen. All right, let's get onto 0:06:13.640 --> 0:06:16.560 the Friday flight bit. And uh yeah, I'm interested to 0:06:16.560 --> 0:06:19.080 hear if any of our listeners are into hitchhiking or 0:06:19.279 --> 0:06:21.440 have ever done it. Um, but it's gotta be some 0:06:21.480 --> 0:06:23.400 good stories out there. Got to be some good ones. Um. 0:06:23.400 --> 0:06:25.360 But all right, so let's get onto the stories that 0:06:25.400 --> 0:06:27.920 we found interesting this week. The first one our friend 0:06:28.000 --> 0:06:30.960 Len Penzo. He he has a personal finance blog and 0:06:31.040 --> 0:06:33.560 every year he does this brown bag Lunch survey and 0:06:33.720 --> 0:06:36.520 his twelfth annual survey just came out and and so yeah, 0:06:36.600 --> 0:06:39.240 I love his cost analysis that he runs on the 0:06:39.240 --> 0:06:41.919 ten most popular sandwiches to figure out which is the 0:06:41.920 --> 0:06:45.720 most affordable brown bag lunch. And not surprisingly, Matt the 0:06:45.760 --> 0:06:49.040 Bologny sandwich came in first. It was the most affordable 0:06:49.040 --> 0:06:51.719 sandwich that he tested, at only thirty four cents of sandwich. 0:06:51.760 --> 0:06:53.560 I think he said it's been the most affordable for 0:06:53.600 --> 0:06:57.000 eight years running like only like a couple of times 0:06:57.279 --> 0:06:59.520 the P, B and J kind of you know, surpass 0:06:59.600 --> 0:07:01.920 it's the number one spot. But it's not so worth 0:07:01.960 --> 0:07:03.160 mentioning too that. I mean, this is kind of like 0:07:03.160 --> 0:07:05.480 a fun thing. It's not like he's necessarily like sitting 0:07:05.520 --> 0:07:08.600 down and making like scientifically equal sandwiches. He's just making 0:07:08.680 --> 0:07:10.640 normal sandwiches and figuring out how much it costs just 0:07:10.640 --> 0:07:12.560 to give folks a frame of reference. I appreciate it 0:07:12.560 --> 0:07:13.920 that he's doing this leg work because this is the 0:07:14.000 --> 0:07:16.040 kind of stuff that normal people need to know. Right, 0:07:16.480 --> 0:07:18.320 But I guess the big question is who actually really 0:07:18.360 --> 0:07:21.120 wants to eat a blogny sandwich, right, dude? I hated 0:07:21.160 --> 0:07:23.800 blowny sandwiches as a kid, and I hate them now 0:07:24.120 --> 0:07:25.520 like I would much rather. I mean, I just mentioned 0:07:25.560 --> 0:07:26.840 P B and J. I love P B and J 0:07:27.480 --> 0:07:29.480 in particular, like you toasted and kind of get that 0:07:29.720 --> 0:07:32.200 PP ANDJ on a toasted sandwich, so good dade you 0:07:32.320 --> 0:07:34.240 a little crunch, I love it. And also to one 0:07:34.280 --> 0:07:36.600 of the other ones he had on there was an 0:07:36.600 --> 0:07:39.800 egg salad sandwich like I would personally much rather enjoy that. 0:07:39.880 --> 0:07:42.200 You know, it does cost more, but even still, it's 0:07:42.240 --> 0:07:45.200 only at seventy one cents per sandwich. Plus I gotta 0:07:45.240 --> 0:07:47.320 think that eggs are gonna be way better for you, 0:07:47.360 --> 0:07:51.000 way more nutritious than bologney. You can even splurge a 0:07:51.040 --> 0:07:53.360 little bit and go for a delicious belt where the 0:07:53.360 --> 0:07:55.640 cost comes in at two dollars and eighty six cents 0:07:55.680 --> 0:07:58.200 per sandwich, which is way expensive. But even still, man, 0:07:58.280 --> 0:08:00.760 you know that's still over a dollar are less in 0:08:00.840 --> 0:08:03.480 the cost of a big mac. Bottom line, you can 0:08:03.560 --> 0:08:06.080 have massive savings if you can avoid going out to 0:08:06.120 --> 0:08:08.200 eat for lunch, which I think fewer folks are doing 0:08:08.200 --> 0:08:10.240 anyway these days because of COVID. More of us are 0:08:10.280 --> 0:08:12.040 working from home, and I think more of us are 0:08:12.200 --> 0:08:14.720 making our own sandwiches too, so for sure, and I 0:08:14.760 --> 0:08:16.880 pretty much still stick to my cheap lunch of carrots, 0:08:17.200 --> 0:08:19.800 apples and almonds almost every day. Man, I still gotta 0:08:19.840 --> 0:08:21.800 jump on that. You gotta jump on the leftover train, dude, 0:08:21.880 --> 0:08:25.440 like leftover times. But it's all leftovers are the best, like, 0:08:25.520 --> 0:08:28.160 especially if you're going into an office environment the left out, 0:08:28.240 --> 0:08:29.680 Like I get that you might offend some of your 0:08:29.680 --> 0:08:32.160 coworkers or something by by heating it up and eating 0:08:32.160 --> 0:08:33.680 and your I don't know, I forget that, man. I'll 0:08:33.679 --> 0:08:36.040 totally show up with a bunch of curry do get 0:08:36.040 --> 0:08:38.240 in the microwave and then after that burned some popcorn 0:08:38.320 --> 0:08:40.160 while on that at Yeah, you would, you're that kind 0:08:40.160 --> 0:08:42.720 of guy. I never did that when I worked in 0:08:42.760 --> 0:08:45.080 the office. All right, let's get onto the next story. 0:08:45.120 --> 0:08:48.720 So there's evidence that traditional one year leases are actually 0:08:48.720 --> 0:08:50.880 on the decline right now. That's because people are looking 0:08:50.880 --> 0:08:53.480 for for shorter term leases and they're looking for more 0:08:53.480 --> 0:08:57.280 flexibility in their living situation, especially because of the economic 0:08:57.320 --> 0:09:00.679 uncertainty and the potential inability for people to be able 0:09:00.720 --> 0:09:03.800 to pay for rent. They're looking for less stringent, least terms, 0:09:03.800 --> 0:09:05.719 which makes a whole lot of sense. And Matt Um, 0:09:05.840 --> 0:09:08.720 we're both landlords, and I've had a couple of instances 0:09:08.760 --> 0:09:12.000 where tenants have had to request greater flexibility in payments, 0:09:12.200 --> 0:09:14.800 and in some cases I've essentially foregone the lease and 0:09:14.800 --> 0:09:18.040 allowed tenants to go month to month. It'll be interesting 0:09:18.040 --> 0:09:20.600 to see too, though, if corporate landlords kind of follow 0:09:20.679 --> 0:09:23.480 the same suit. I think mom and pop landlords have 0:09:23.720 --> 0:09:26.160 a little more flexibility with what they're able to offer people, 0:09:26.400 --> 0:09:28.120 and often to make it in the business as a 0:09:28.120 --> 0:09:30.920 mom and pop landlord, you have to be more flexible. Um. Yeah, 0:09:30.920 --> 0:09:32.840 So it'll be interesting to see if these corporate landlords, 0:09:32.880 --> 0:09:35.079 the bigger apartment complexes are going to offer some of 0:09:35.080 --> 0:09:37.559 those same flexible terms to to tenants. Right now. Yeah, 0:09:37.640 --> 0:09:39.520 I think a good argument could be made that corporate 0:09:39.600 --> 0:09:42.960 landlords might be more able to, but just less willing. 0:09:43.360 --> 0:09:46.360 You know, the mom and Bob landlords might be just 0:09:46.440 --> 0:09:49.040 as able to, or maybe honestly even less able, because 0:09:49.200 --> 0:09:51.360 a lot of individual landlords kind of count on that 0:09:51.440 --> 0:09:54.920 income to provide for their families to pay for their mortgage. Yeah, exactly, 0:09:54.920 --> 0:09:56.439 I mean that's me. And so a large part of 0:09:56.480 --> 0:09:57.760 it is that I think a lot of times we're 0:09:57.800 --> 0:10:00.000 just more willing to. We don't have like that corporate 0:10:00.040 --> 0:10:02.560 shield where we're focused on profits and you know, sticking 0:10:02.559 --> 0:10:05.600 it to our renters. There's an actual relationship there too, exactly. Yeah, 0:10:05.600 --> 0:10:07.280 and you know, and so you know. The good news here, though, 0:10:07.320 --> 0:10:09.719 is that from a renter or a possible tendants point 0:10:09.760 --> 0:10:11.559 of view, is that you might be able to score 0:10:11.600 --> 0:10:14.240 at least renewal at an amount that's lower than what 0:10:14.320 --> 0:10:17.040 you are currently paying. I think this is especially true 0:10:17.080 --> 0:10:19.600 if you live in an apartment with a corporate landlord, 0:10:19.640 --> 0:10:22.000 you know, and you're seeing your same unit may be 0:10:22.120 --> 0:10:24.599 listed for less. You know, if your least renewal is 0:10:24.640 --> 0:10:26.800 coming up soon, you have a pretty good argument to 0:10:26.840 --> 0:10:29.520 negotiate down what you pay, you know, or maybe even 0:10:29.520 --> 0:10:31.800 get a month for free if you are going to resign, 0:10:32.240 --> 0:10:33.680 or maybe you might even be able to go months 0:10:33.679 --> 0:10:35.679 a month. Just know that if you don't have a 0:10:35.800 --> 0:10:37.959 lease in place, though, that your rent can go up 0:10:38.280 --> 0:10:40.480 with very little notice. So just know the market, and 0:10:40.480 --> 0:10:42.600 we would encourage you to to ask for better terms 0:10:42.880 --> 0:10:45.760 if you are in a position like that. Yeah, alright, Matt. 0:10:45.760 --> 0:10:47.719 So since we're on the note of housing, let's get 0:10:47.760 --> 0:10:50.920 to something else. This one is specifically for people who 0:10:50.920 --> 0:10:52.760 own a home and are looking to refinance right now. 0:10:53.040 --> 0:10:54.920 If you've been planning on refinancing your home like so 0:10:54.960 --> 0:10:57.240 many people have recently, and so many people are thinking 0:10:57.280 --> 0:11:00.280 about doing as rates have ticked down to to just 0:11:00.360 --> 0:11:03.520 insanely low levels. We'll make sure you do it before September, 0:11:03.559 --> 0:11:06.000 because Fannie May and Freddie Mack are charging a new 0:11:06.080 --> 0:11:09.760 fee for anybody doing a refinance starting next month. A 0:11:09.920 --> 0:11:12.839 half percent fee will be added to refis as Fanny 0:11:12.880 --> 0:11:14.520 and Freddie are looking to make up for for some 0:11:14.559 --> 0:11:17.280 of the increased risk of defaults and foreclosures due to 0:11:17.320 --> 0:11:19.800 the pandemic, and since Fannie and Freddie back about half 0:11:19.840 --> 0:11:22.559 of the mortgages in the US, this fee is likely 0:11:22.600 --> 0:11:25.120 to affect a lot of individuals, and especially when we're 0:11:25.120 --> 0:11:27.400 in the midst of a refi boom. You know, this 0:11:27.480 --> 0:11:29.520 extra half a percent cost could had just a major 0:11:29.559 --> 0:11:33.080 barrier to people, uh in regards to refinancing and whether 0:11:33.080 --> 0:11:35.160 it still makes sense or not. Yeah, that's true, man, 0:11:35.200 --> 0:11:36.720 And you know it's worth noting too that the way 0:11:36.760 --> 0:11:40.360 that this additional fee works is that Fannie and Freddy 0:11:40.400 --> 0:11:42.800 that they are charging the banks this fee, not us 0:11:43.040 --> 0:11:45.760 as homeowners directly, and also it only applies to refis, 0:11:45.800 --> 0:11:48.720 not purchases, so home buyers don't have to worry about this. However, 0:11:48.920 --> 0:11:51.080 given the huge demand like you just mentioned, Jill in 0:11:51.120 --> 0:11:54.280 refinancing lately, you know, due to these super low rates 0:11:54.320 --> 0:11:56.400 like those banks are likely going to pass that fee 0:11:56.400 --> 0:11:59.560 allowing to consumers. There's no reason for them necessarily to 0:11:59.559 --> 0:12:02.079 just absor of that cost when they have way more 0:12:02.120 --> 0:12:04.680 refinances than they can even currently process. I see it 0:12:04.720 --> 0:12:07.839 as a simple illustration of supply and demand. But even still, 0:12:07.920 --> 0:12:10.880 even with the fee, a refight these days is likely 0:12:11.160 --> 0:12:13.400 to still be a great move for a lot of folks, 0:12:13.480 --> 0:12:15.960 especially if they have an interest rate that it might 0:12:16.000 --> 0:12:18.080 be like a point higher than what they can currently 0:12:18.120 --> 0:12:20.000 get now. In my mind, that's a good time to 0:12:20.040 --> 0:12:23.360 seriously consider it. Yeah, for sure, but fees suck. I 0:12:23.400 --> 0:12:26.120 hate paying fees. And when I see headlines at a 0:12:26.120 --> 0:12:28.719 new fees being instituted, I'm like, man, is there is 0:12:28.720 --> 0:12:30.520 there a way around that? Can we like not have 0:12:30.559 --> 0:12:34.079 that fee? Because because fees are just the worst. And yeah, 0:12:34.120 --> 0:12:35.640 and I understand that Fannie and Ferdy are trying to 0:12:35.760 --> 0:12:39.280 essentially protect themselves againsto potential future losses, but I don't know, 0:12:39.320 --> 0:12:40.760 it's a crumbing way to do it. It's just poor 0:12:40.800 --> 0:12:42.679 timing too. You know, Like a lot of folks are 0:12:42.720 --> 0:12:43.960 just going through a lot right now, and a lot 0:12:43.960 --> 0:12:46.800 of folks are are looking to refine to bolster their 0:12:46.840 --> 0:12:49.560 financial position save money every month on their mortgage, and 0:12:49.600 --> 0:12:51.600 so for them to then get stuck with this additional 0:12:51.600 --> 0:12:53.000 fee in the midst of all that, it's it's just 0:12:53.120 --> 0:12:55.400 kind of poor timing, Yeah, for sure, all right, And 0:12:55.440 --> 0:12:57.960 regardless of when you're looking to refine, like you always 0:12:57.960 --> 0:12:59.680 want to make sure you shop with a few lenders 0:12:59.800 --> 0:13:01.800 to make sure that you're getting the best rate possible. 0:13:02.280 --> 0:13:04.400 Another way to get the best rate is to make 0:13:04.440 --> 0:13:06.600 sure that your credit score is in tip top shape 0:13:06.760 --> 0:13:08.360 and credit scores we've talked about them from time to 0:13:08.400 --> 0:13:10.200 time on the show. They're shrouded in a little bit 0:13:10.200 --> 0:13:13.120 of mystery. So remember, the thirty of your score is 0:13:13.160 --> 0:13:16.080 based on your payment history, So that's why making payments 0:13:16.320 --> 0:13:18.880 on time or early is crucial to you getting the 0:13:18.960 --> 0:13:21.160 best rate, to you having the best credit score. Another 0:13:21.240 --> 0:13:25.200 thirty percent of that credit score is based on credit utilization, 0:13:25.440 --> 0:13:27.640 which is a fancy way of saying the amount of 0:13:27.640 --> 0:13:29.880 credit that you're using compared to what you have available. 0:13:30.080 --> 0:13:31.640 So for example, if you've got a credit card with 0:13:31.640 --> 0:13:33.439 the limit of ten thousand dollars, you want to keep 0:13:33.440 --> 0:13:37.360 your balance low, ideally around two thousand dollars or less. 0:13:37.679 --> 0:13:40.160 If you do well on both of those factors, chances 0:13:40.160 --> 0:13:41.880 are your credit score is gonna be rock solid and 0:13:41.920 --> 0:13:44.480 you will qualify for the best rates. Yeah, so that's 0:13:44.480 --> 0:13:45.920 what makes up the bulk of your credit score. The 0:13:45.920 --> 0:13:49.120 remaining is determined by a few atoms like your credit history. 0:13:49.360 --> 0:13:50.839 So you know, that's why we want you to keep 0:13:50.880 --> 0:13:53.720 old accounts open if possible. I feel like we actually 0:13:53.720 --> 0:13:55.840 recently answer that question on a on a recent Ask 0:13:55.960 --> 0:13:58.400 htm episode, So you know, don't close those credit cards 0:13:58.400 --> 0:14:00.640 from college if you can, and afford to keep this 0:14:00.760 --> 0:14:03.360 around in your credit mix. That's another factor. So it 0:14:03.400 --> 0:14:07.440 actually helps some if you have installment loans like student loans, 0:14:07.679 --> 0:14:10.640 as well as revolving credit like credit cards. And then finally, 0:14:10.679 --> 0:14:13.319 what's last year is new credit accounts, So don't open 0:14:13.360 --> 0:14:15.600 a new credit card if you're looking to refi or 0:14:15.679 --> 0:14:18.160 apply for a mortgage anytime soon, if you're wanting to 0:14:18.160 --> 0:14:19.720 get the best rate. All right, Matt, We've got more 0:14:19.720 --> 0:14:22.760 to get to, including how the rollout of kind of 0:14:22.800 --> 0:14:26.440 the newest wave of unemployment benefits, federal unemployment benefits is 0:14:26.480 --> 0:14:29.520 working for people. We'll get to that right after this break, 0:14:29.760 --> 0:14:32.000 during which I'm gonna eat a thirty four cent bologny sandwich. 0:14:42.200 --> 0:14:43.640 All right, Joel, we're back from the break, and you 0:14:43.640 --> 0:14:45.440 know what, you probably could have actually eaten the blowny 0:14:45.480 --> 0:14:47.440 sandwich in a minute that I don't have a tummy. 0:14:47.440 --> 0:14:49.720 E Yeah, we'll be like there's no substance there, Like 0:14:49.720 --> 0:14:51.880 that's the thing with bologney. It's just processed meat, just 0:14:52.000 --> 0:14:54.320 full of just who knows what. I really don't like bologney. 0:14:54.320 --> 0:14:55.960 I can't believe you're all about it. I wonder if 0:14:56.040 --> 0:14:59.840 Land was getting the organic malogney too. Yeah, no way 0:15:00.040 --> 0:15:03.280 to away. So before we talk about the unemployment benefit news, 0:15:03.360 --> 0:15:05.520 let's talk about cars too. Man. I recently saw that 0:15:05.560 --> 0:15:09.240 the average price of a new car is exploding. Dude, 0:15:09.320 --> 0:15:11.080 you know we just talked about ditching a car earlier 0:15:11.080 --> 0:15:14.160 this week, Yet many people are buying new and are 0:15:14.160 --> 0:15:17.080 are spending an average of over thirty five dollars when 0:15:17.120 --> 0:15:19.800 they make that purchase. New cars aren't necessarily evil, Joel. 0:15:20.000 --> 0:15:22.240 You even wrote a post on this up on our 0:15:22.240 --> 0:15:24.320 site about when a new car might make the most 0:15:24.360 --> 0:15:26.800 sense for you. But you know, as the average price 0:15:26.880 --> 0:15:30.640 of a new car skyrockets, uh, the average length of 0:15:30.680 --> 0:15:33.560 a car loan is also getting longer, and that can 0:15:33.640 --> 0:15:36.680 really be a recipe for personal finance issues to pop 0:15:36.760 --> 0:15:37.840 up in your life. You don't want to end up 0:15:37.840 --> 0:15:40.480 in a situation where you just oh way more money 0:15:40.480 --> 0:15:42.600 on a vehicle than it's actually worth. Yeah, so we 0:15:42.640 --> 0:15:45.760 would suggest thinking twice before you start shopping for a 0:15:45.760 --> 0:15:47.800 new car. Could have used one work just as well 0:15:47.840 --> 0:15:49.760 for you. And if you do decide that you really 0:15:49.760 --> 0:15:51.960 want to bring new car, that's okay to right, but 0:15:52.040 --> 0:15:54.640 look for more affordable models that aren't going to struct 0:15:54.640 --> 0:15:56.720 your budget too hard. If you can pay in cash, 0:15:56.840 --> 0:15:59.040 that's great, But if you do need to take out 0:15:59.040 --> 0:16:01.280 a loan, we suggest not buying a car that you 0:16:01.320 --> 0:16:04.000 can't afford to pay off in three years. Thirty six 0:16:04.040 --> 0:16:06.520 months should be the longest length of a loan that 0:16:06.520 --> 0:16:08.840 you should be considering. If you choose longer loan than that, 0:16:09.040 --> 0:16:11.360 really you just can't afford that car. Or like you said, Joel, 0:16:11.400 --> 0:16:13.200 you can just stick with cash. Keep you nice and clean. 0:16:13.280 --> 0:16:16.400 It's ideal, that's for sure. Let's talk a little bit 0:16:16.400 --> 0:16:19.120 about student loans, dude. Since the executive order a couple 0:16:19.160 --> 0:16:22.000 of weeks ago, more details have come to light on 0:16:22.080 --> 0:16:25.720 relief for student loan borrowers. It now seems very likely 0:16:25.760 --> 0:16:29.200 that the suspension student loan payments and interest accruel is 0:16:29.280 --> 0:16:31.840 now set to last through till the end of the year. 0:16:32.320 --> 0:16:36.000 That's because the Education Secretary has quote unquote broad authority 0:16:36.160 --> 0:16:38.560 to act on something like this according to the White House. 0:16:38.880 --> 0:16:41.080 Uh and then plus two, you know, the continued suspension 0:16:41.160 --> 0:16:44.520 of student loan payments. It seems to have bipartisan support, 0:16:44.560 --> 0:16:47.200 so it's not likely to be challenged. There's a good 0:16:47.280 --> 0:16:49.360 chance that this is actually gonna happen. I'm trying to 0:16:49.360 --> 0:16:51.920 think of something that I have broad authority in life. 0:16:52.240 --> 0:16:53.840 I can't think of anything right now. Your own life, 0:16:54.200 --> 0:16:57.320 your ability to eat leftovers, to not throw food away 0:16:57.360 --> 0:16:59.520 in the trash. That's a good point, all right. Uh 0:16:59.560 --> 0:17:02.160 So yeah, keep in mind that this expected relief is 0:17:02.200 --> 0:17:05.200 not available to those with private student loans, and this 0:17:05.280 --> 0:17:08.520 is specifically for borrowers who have federal student loans, which 0:17:08.560 --> 0:17:10.919 make up about loans out there, so that's good to know. 0:17:11.320 --> 0:17:13.119 And if you have a stafford, a grad plus, a 0:17:13.200 --> 0:17:16.120