2021 Mortgage Outlook

In 1901. A woman by the name of Annie Taylor climbed into a barrel that she could ride that barrel over Niagara Falls. The first person to do so. The reason for her crazy endeavor. She was struggling to make ends meet and she was hoping for fame and financial security, it's Ryan from United faith mortgage of faith and family mortgage. Tina tries to improve your financial outlook without having to ship you over a 170 foot waterfall.

Our mortgage team happens to be an arm of a bigger company, was a direct lender, which means our company gets to use its own money and make its own decisions within its own walls. There is no middleman. This advantage often allows us to get you a better rate, which can save you monthly and lifelong money through refinance or help with the cash out refinance cashing out some of your home's equity to use for life. We are United faith mortgage not of faith. Mortgage is a DBA of United mortgage Corp. 25 Belleville Park Rd., Millville, NY license mortgage banker for licensing information, go to an MLS consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah and the pandemic made 2020 and unusual year for most sectors of the economy in the mortgage industry was no exception. So what might we expect in 2021 more historic lows of interest rates ups and downs in home sales and what will the new administration in Washington mortgages today host Rob less talks with mortgage expert, Dale Vermillion to get some answers were pretty recorded with great questions already lined up so please don't call him. I'm Steve Moore, the mortgage outlook for 2021 this next right here moneywise live for and deal Vermillion is author of navigating the mortgage may use the simple truth about financing your home and its chock-full of information anyone should have.

If there even thinking about getting a mortgage this year. That's exactly right Steve Dale. Great to have you back on the program will record to be with you guys. What an honor for me. We always enjoy your time with this. Let's start with a bit of a recap if you will of 2020.

Would you say it was historic for the mortgage industry.

No question about what we saw in 2020. Total mortgage origination across the nation were almost $3.4 trillion. That was the highest since 2003, which was a record year refinances were almost 2 trillion of that and the amazing thing was most that was in a seven-month spam so there was a 90% increase in refinances in 2020 over 20, 19 massive massive growth, so it was deftly a circular mortgage companies are probably still really trying to figure out what direction is how would you describe the state of the mortgage industry today. Dale you know it it's doing better now that we were doing at the end of 2020 middle of 2020, because literally the low rates caught us by surprise.

A volume was at the highest levels ever capacity was crushed for most lender.

So for consumers. It was hard to get alone get fast in 2020 2021. I think letters are much better position that we had a little bit of a little during the holidays that allowed them to catch up a little bit. They've hired a lot of new people in the industry that are now trained and able do it so I would say today literature in a much better position than they were in 2020, be able to handle requests from customers where our interest rates. Now Dale and where you see them going in 2021. It seems like every time I saw the headline rates reached a new low. Two weeks later I was seeing it again.

Have we reached bottom and where you see is moving from here.

Well we get the prediction that I made that I said I thought Rachel get under 2%. I've now seen right under 2% in the mortgage agreement, which is absolutely unheard of that free money the Fed just announced on June or 27th that they are going to believe that the Fed funds rate unchanged at 0.25%, which is great news for us. That means we can anticipate probably in the first and second quarter for sure the contingency low rates. We think the quantitive meetings and to continue because of the economy in the pandemic and all the other things so I anticipate this year that through the first half of the year will continue to see this historic rate 19 million people. It projected still not refinance that could improve their position is probably good idea to do that right now because we think by the second half of the year rates start to rise states that you mentioned you've actually seem rates below 2%. Let's talk about the average bar works thinking somebody who has a 750 credit score. It's good, it's not the best but it's still good there to put down 20%. They have good documented income on a 30 year loan what my day expects right now you're probably good to be in the mid 20 without any problem too high to be under 3%. Still, which is amazing numbers for a 30 year loan that under 2% was based on a 15 year term, and you know we always recommend that you want to get the shortest term you can because that's what God calls us to be out of debt as quickly as possible until just about a minute left for those who are listening their part of that 19 million that you center candidates to refi the tick off the principles the guidelines they should be thinking about.

To determine whether there actually a candidate well just do a calculation based on where your payment is at right now for your term at an equal loan at the same term in today's marketplace. The key is don't don't just take an calculative 30 year term because if you got 22 years left lower your payment but it will affect your long-term payback. But I want you to look at is based on the rates today compared where I'm at right now if I were to calculate that out of the same exact term. At that rate, what would my payment be if it's going down. You want to look at refinancing immediately. That means you can save money and not extend term and that one of this letter with questions about mortgages.

This is the guy we turn to deal Vermillion on navigating the mortgage may use the simple truth about financing your home. The other simple truth is that music means we have to get out of here, but we will be gone for long. Stick around. This is moneywise lot. Young couple newlyweds, perhaps in your looking at mortgage rates. What should you do want to miss this may be the last time she rates the slow but who knows. Well, if anyone knows is probably Dale Vermillion, the author of navigating the mortgage bases with us today. I not only does he know stuff about gauges and money in interest rates, but he's also a great brother in Christ, and it's always a great blessing to have them on the program just before the break, Dale. You were saying that 2020 was a historic year for the mortgage industry and where we find ourselves today is still at historically low interest rates. The mortgage industry had an opportunity to catch up a bit from that incredible backlog that was generated last year and that took place over the holidays and so now were ripe for another round of refinancing.

Obviously something is changed here at the start of the year and that is a new administration in Washington. How might that affect the mortgage industry, if at all. Yeah, great question Robin and we don't yet know anytime you have a change in government project. We want to say a complete change in some of the mindset and and and who's in control. It's going to affect the economy in different ways. Now the one thing that we do think it can happen is the CFPB. The consumer financial protection Bureau to put in place back during the mortgage meltdown in 2008. We do believe that under this new ministration that there to tighten up quite a bit. It was pretty lax and pretty loose underneath the Trump ministration I think of the body ministration will probably get a little bit tighter that's going to create a little bit of tightness and some of the programs. We also know is that there will be a commitment to affordable housing that that's going to change a little bit so those of the major things I don't think we'll see much change in interest rates or other things that would pertain to consumers because again the government wants to keep the economy in good shape.

Mortgage rates are a key part. A key factor of the economy. With everything else happening with the pandemic only things I think are to stay stable for quite a while now. That's really helpful obviously were still grappling with the pandemic and the impact it's having on people being able to pay their mortgages if they're in a sector of the economy. That's been the hardest hit.

Perhaps they lost a job they've had hours reduce they been furloughed, you believe will see any new relief programs coming out of Washington.

When we got back right now that is a forbearance act that consumers can take advantage of. If you have a government loan that the FHA VA USDA Fannie Mae or Freddie Mac loan you can talk to your servicer about that and you get an initial hundred and 80 day period where you can forgo payments on your mortgage you can extend to a second hundred and 80 days and if you're still in a situation where it's affecting you, and you can't afford to make payments.

Ideally, if you can afford to make payments, keep doing them, but the care Zach does allow you to have that forbearance and then what they do is end up putting that on the back end of the loan or working out through different payments after you get to that. Outside of that I'm not aware of any new programs are coming out and I don't know that we actually need any at this point because that really does cover for most people the challenges they face 2020. Dale, as you know it ended with housing starts higher than experts had predicted.

Do you see that trend continuing in the new year. I do we have such a massive inventory problem right now nationwide. That is the number one challenge we have in the purchase arena is that there's just not enough homes and therefore I believe are in a sea of good run of construction for several years now.

I think for a construction company that's great news for homeowners.

The challenge is going to be the cost of lumber and those kind of things is really high now because of the demand and supply issues, but I do believe housing start really continue to increase. I do believe her to see a lot of new construction in the coming to the three years and I do believe it can help us to start assaults on this inventory problem still should consumers be careful love as they chase these little rates. Whether it's buying that first homework or refinancing. We want to be prudent and careful looking at biblical principles. We don't want to get in over our heads. Even though our good friends at the bank say that we we can afford it.

We can afford it will. What's your recommendation. In that regard. Will you be careful of is refinancing. For example, just to get a lower rate.

The reason you do it is to get yourself in a better financial situation that always gotta be your your guiding light. Remember the Scriptures and what they tell you absolutely love how God guides us through this and he tells us that we should be very careful how we borrow and how we buy.

So the key is to make sure that number one when you're looking at either buying or refinancing your always doing a budget that's always the number one thing we talk about. Make sure you can afford that payment. Make sure you're putting a good down payment.

Look at your credit score. Know your credit score so that if you need to improve it.

You know sometimes people will jump into every plant or more transaction when they can actually improve the credit score might 20 or 30 or 40 points are easily next to get a much better rate when they do it. Look at your credit score beforehand if you need to make modifications do that, then apply for the mortgage loan and be prepared.

Do your homework have everything ready and prepared when you talk that lender make sure you got all your income documentation and all your financial information with you and compare lenders and rights between different companies. If you do that you're making the decision and always, always, always avoid extending your term when ever you can bet that is the biggest single mistake. I think that we make as we set our terms out and we really don't want to do that because it gets in trouble. Remember. Romans 13 it says nothing anybody Your obligation to love one another, were called to we want to get out of debt quickly know Lisa compare lenders and rates what it what's the what's the rage I want to be looking at is adjusting interest rate, the interest rate and it's the season and that's a great question because what happened to wheat we get hooked on the advertisements that will pop up a taking a 1.95% right okay but at what cost you have to ask the question okay that's probably what's called a buydown right I don't write it for your paying fees upfront in order to get that low rate. So the question becomes how much you have to pay to get it.

You gotta calculate it in your saving so for example if I got to pay $5000 upfront to get this low rate. I'm saving $300 a month well do the math, it's not hard to figure out. It's going to take you several years to recoup just your cost on that you got to make sure you're not making a decision for the short term that's affecting you negatively. The long term because you be there for 3 to 5 years. So really look at what the cost is in fees for the loan and the interest rate you pay again calculated out determine based on where you're at today, what would your new payment be if your saving hundreds per month and you can keep your term the same.

There's no reason not to do that unless you're paying some absorbent fees but you don't need to. In today's marketplace because there's a lot of low fee. Some even no fee programs out there still. You want to shop around.

You don't want to just go with the company that's advertising the most on TV. I'm thinking of one in particular right now that seems to be there every time the television is on my home. So how do folks go about researching and finding the lowest rate. Is there a website should they find a local mortgage broker at their church where they go where you want to start online with the bank rater pillow or lending tree to get comparison of rates and letters and then get four different comparisons one from a local broker one from a mortgage banker, one from your bank or credit union and then look for referrals and if you can find somebody who's a Christian, that you trust that you know that not only can do a great job on your loan, but they're also going to get back to the kingdom and tied in that year, doubling down and you're really making a great decision. I love stopping by today Dale look forward to having you back will soon be here.

Thank you. Hadley got bless you guys that still vermilion.

He's better yesterday and signed his book navigating the mortgage amazingly wise live.org. Today's broadcast is prerecorded, so we won't be taking any calls but we have some calls lined up in some great information coming your way that I think you'll find it usable. At the very very least, this is money wise live on Steve Moore.

Thanks for staying with this it's money wise. Live your host is Rob last time Steve Moore and we have a bunch of calls. So let's dive right in Devon or Iowa hi Jeff, what you question for Rob West hi Rob person was promoting fixed annuities with life insurance companies I believe and show graphs where guaranteed that you would not lose any of your investment and that would only go out that it would only go up 3 to 6% a year, unless the market did extremely well in which case you would get a higher return than you heal them of 3 to 6%, but generally 3 to 6%.

What It but they said you never lose any money.

And then there will be no fees associated with this Psalm on the level you have me until you said no fees associated with this, you know, one of the challenges of these as they usually come with high fees. Their complex, so most people don't understand them and you can end up generating some significant taxes. Now what's the benefit. Well, they don't have contribution limits, he can put a bunch of money in that they often will grow tax-deferred and it can have these floors if you will, where you're not losing money but you get a percent of the upside, my preference, though, Jeff, for most people who are just trying to save is to eliminate all of those fees and commissions keep things very simple and invest in a diversified matter where you capture 100% of the upside and the downside but you're counting on a proper allocation based on your age and risk tolerance and time horizon to really work in your favor and you know, unless there's some other purpose. You don't have a retirement plan available to you or you know you need some other component in here or you're just completely risk-averse and in.

You want an insurance company to handle this for you then I would rather you go a more traditional route.

Just be a distant, disciplined, systematic investor investing for the long haul and you know that's where most people build their wealth over time as opposed to getting into these complex products with all the fees and commissions associated with them. That's just me Jeff or me.

There's a lot of people that would probably take issue with that and could show you all kinds of graphs and charts and illustrations as to why this is in your best interest is just for me. I like to keep things simple and I don't like to pay a lot in the way fees and commissions. I agree and yell my my dad was the same way the best. Vern was was just under 25,000 teaching school and yet when he died at age 95. It is almost up to the second million. Just by investing yeah he'd read the prospectus as all the way through college broker is brokered at date amount figure out what he was asking you very well. Now I can imagine then I think that's really the way I like to see most people invest because it's not complicated plays on this idea from God's word on steady plodding where you just steady plodding over time and you know were not worried about all the complexities inside one of these products, you know, often times when they say no fees it's because they're basically built into the.

The policy in such a way that they reduce the amount you could have earned but at the end of the day, everybody has to get paid. And that's how these things are built, so I'd probably go a different direction.

If you don't have an advisor. Jeff, you could find one in your area there in Iowa going to our website moneywise live.org just click on find the CK I'd interview at least two or three before you make a decision. Jeff, we appreciate your call buddy. Thanks very much. Greenwood Greenwood, Indiana and Karen. How can we help you.

I know I are coming to close retirement years and he's got a 65 turn 66 later this year where we have been contributing to a traditional IRA and were wondering if we should continue to do that. This last period of time, predominantly for that tax deferment kind of thing that did this to make sense for us to do that in this is kind of a market which could change yeah I think the key is that you can take advantage of the tax benefit. It gives you the way to continue to put away money that you have available down the road and you know it at the end of the day. Although the tax environment could change if you don't need this money right now. It's a place where you can park it. Unless you have some other plans for additional giving or lifestyle related or something like that at some point, though, you'll likely reach what you all might deem as a financial finish line just to say you know what we have saved enough and you know at this point we don't have a need to continue to save and therefore can increase our giving or or you may decide to continue to save and use this as part of your inheritance that would certainly be up to you all, but I don't think there's anything wrong with your continuing to contribute as long as you're able to and you don't have a need for the money I and want one.

Short were not able to contribute to our well that's right, you do have to have earned income, but you used to be that once you got to 70 1/2 for you, could no longer contribute to an IRA. Even if you had earned income with the new secure act that rule no longer applies. But you do have to have the earned income.

Okay what what what we ran into having to pay taxes on Sharon and his Social Security will we have to pay taxes on the way we start taking money trying running out. Yeah, I did just depends upon if you have any other income or what you have, you can visit to the Social Security's website.

Get a good bit of information on this SSA.gov but if you're drawing out of the traditional IRA.

Obviously, that would be taxable. And then, depending on any income you earn a portion of your Social Security may be taxable as well, so be a good idea to do some planning around that perhaps set aside a time to visit with the Social Security Administration do some planning with them will be very helpful. Karen will have to let you go but we appreciate your phone call and wish you and your husband the very best.

Thanks so much for listening to moneywise live reminder that today's program is pretty recorded. Don't try to call Lynn but also please don't go anywhere we have lots of interesting questions coming up in one of them just may be you. I know you guys that music, yes this is moneywise live your hostess around last times more phone number mentioned today. Please ignore that phone number. Today's broadcast is a reprise edition of the program. If you don't mind.

Some were not in the studio taking calls think the upcoming information will help lessen the wise steward of what God's given Waynesville, Missouri hey Jim what's on your mind in the Army and my wife and children to Tacoma Washington were movement one of the lower house, the variate and I'm just wondering about for years and what kind of fear we should rent or buy compost of any kids have left you are very blessed. I'm sorry to me to catch up say that last part wondering what yeah yeah well it's the 2 to 4 years.

Jim that that would cause me to say immediately. You need to rent that's just not enough time. Given the cost to purchase a home. The cost of the transaction to be able to recoup that. Especially given that the housing market doesn't always go up and were in a very hot market right now, which means we could see in many parts of the country, a cooling of home values meaning certainly level off, if not a slight dip depending on what happens over the next four years. With regard to the economy and when you add on top of that the cost of the transaction, you're likely going to be underwater on that.

So unless you are just going into an area that was very difficult where rents were up very high.

I think you would be much better off. At this point renting. Given the short timeframe that you've got my producers tell me that there is one group that you want to check out cold.

That homeownership.com. It's run by a group of realtors who are themselves veterans and they would be able to share any specific financial situations or opportunities that might be specific to veterans. So that's that homeownership.com but other than that, that the short timeline is what's got me concerned about you by Jim. You probably with eight children.

This doesn't happen overnight so you probably struggled a bit over the years we have having a large family. As far as housing is concerned, but I would urge you to check with local churches in the area they would have. I trust may be an open heart for someone like yourself moving into the area, perhaps looking for a home church and they would you go again. I think would feel some some compassion for you and that maybe someone in the church that has a house that's a little larger that could handle a family. The size of yours so you might want to call or contact a couple of churches. Once you get to Tacoma but we wish you the very best with that we will keep you in our prayers Jim and his family as they move from a military post in Waynesville, Missouri all the way to Tacoma, Washington. Continuing on Ashland Ohio West what your question for Rob my records for my retirement funds and I noticed that almost every time I've sold off on reinvested in another fund, even if it's within the same fund family or company. This sale shows up at much lower price per share than what was quoted at the time I decided to sell and happen with several different companies that sneaky way about being and folks who want to start their share in buying other shares of someone else not necessarily West use of the word fun. So I'm thinking that it's a mutual fund is it inside a 401(k) or just that, a brokerage firm brokerage firm. Okay, okay, so basically what's likely happening here. Remember, mutual funds are sold at what's called net asset value and and so they don't trade like a stock where you can see every tech up and down when the markets open during the day and where you can set a limit order to say I want to sell at a very specific price and get out when you decide to liquidate your shares in a mutual fund, you get the net asset value at the close of business that day. They calculate all the total outstanding shares and factor in the price of each share and then you give you your pro rata portion which, if you sell on a day the markets headed down you're looking perhaps at the day before's closing price, and perhaps the slower the next day. The other thing that could be going on is there's two types of mutual funds you have what are called no transaction fee funds and then you have others that which is the majority of them that are subject to a transaction fee, so there could be a transaction fee that's being imposed on these.

It's likely the case where every time you sell or buy that transaction fee is kicking in and that's being deducted from the proceeds of the sale, so it's probably one or 21 or both of those issues that are going on the last one could be a load. So if these are not no-load mutual funds. There could be a load of some kind that's imposed on the backend, that's less likely, but anyone of those three could be going on okay well that little light on it. I on the wrong day I would check your statement and just see what's going on. I mean every transaction fee, or any loads that are being imposed. I should be there in the details, and so take a look at that and then you should be able to figure it out. Assuming it's not just the result of the net asset fee. Thanks Wes. We appreciate your call today very much. Robert you say we try to do a couple of emails here are that sounds good. I this begin with a one from Skip pieces dear Rob and Steve, I have $125,000 in cash. How can I invest it in the CD a bank or Vanguard is probably been listening to the program. Skip, you can invest this in the CD very easily. In fact, over 25,000 going into CD here and get the very best rates I would start by going to bank rate.com bank rate.com and put in the amount of the CD.

The duration you're looking for looking for 18 months two years three years five years and then see which banks with FDIC insurance are offering the most attractive rate you find a number of them and I shouldn't be any problem linking that new bank probably an online bank to your checking account. You'll be able to just ACH transfer the money in initiate the CD set up your online account and you are off to the races. Now he has an interesting follow-up. Says won't depositing $125,000 and in cash.

Create homeland security? Well, there are some new rules that came out several years ago accident number of years ago now related to know your client where when you're making some deposits if to ask questions, but it's not.

These questions are going to be a voluminous that it won't create any problems, you'll just have normal questions that any instant financial institution would ask when you're opening an account okay. I next emails from Kim. She says we just sold her house and paid off all our debts when we tied the profit from the sale does it all go to our church or can we quote spread it around. Yeah Kim Gray question. The key is here.

The profit from the sale will were talking about a house, make sure you're looking at the true profit after the expenses of course subtract out the initial purchase price, and any improvements but then I would see this is your increase so I treated just like any other income you get and tied 10% to your local church today sounds good to me always sounds good to me because Rob Weston really knows his stuff is the president of kingdom advisors joins you each weekday at this time.

Taking your questions and 800-525-7000 something I'll forget thanking those behind us, Judy, and particularly rich for his assistance. Today will be running that guy over there looking one tall dark handsome throughout West times more just that you can keep going, no, no, I'm but and Nancy were giving you a stick around.

Please, but next Chicago, Illinois Cynthia, how can we help you revise my question. In a nutshell, I'm trying to determine whether or not I should fix up my home or just salad it needs about $30,000 worth of work okay major work will you know you know Cynthia when you revise your question, there's an extra charge for that.

So would this happens to be exactly $30,000 so tell me about this home in terms of I see here in my notes that the home is paid off. Is that right okay congratulations for that. Are you retired yet okay and what are your plans do you plan to stay in this home for the foreseeable future. I would like to the paintball.

They just say why bother fix that out. Get rid of it don't put that money to fix that up.

Yeah, especially if you're not planning on staying in it you know if you said to me Rob I'm retired I want to downsize.

I want less maintenance and upkeep. I want to perhaps get rid of the yardwork. I just don't need this much space you know then it's a matter of okay we got home it's paid for. We just want to maximize the value of the home when you sell it and you're gonna want to get some advice from a professional on what things you should put money into and what things you shouldn't because 30,000 is not an insignificant amount of money that's a lot of money to be putting into this home and it could be that many of those things are not the best things to put money into right before a sale.

So give me an idea as this one major repair or improvement, or is it a lot of little things one is to be replaced. The other thing is the garage is falling apart and it needs to be torn down and or replay and detached garages that right right yeah thump thump issues not issues, but this repair okay what I think the first question is do you really see yourself staying put for the foreseeable future or do you really have a sense that you'd like to go ahead and sell and perhaps downsize or relocate. Did you have real clarity on that do not doubt now if I didn't know don't know where I want to go to you know what I want to buy if I'm on moving forward and just don't know now where I want to stay in Chicago and is really concerned about my stability in five moles.

In all effect salad and don't do the repairs. Am I going to be able to find something nice and affordable sure or want to go into having a mortgage yeah not make sense to me ask you this is your income stable in the sense that you got enough to meet your bills with perhaps a little bit left over every month and then secondly, how would you pay for whatever renovations or repairs. You do what it come out of savings or are you planning on getting a small loan with a loan came and tell me about your income every month. Okay well the good news is it sounds like you have a good bit of flexibility because you follow biblical principles you living within your means you've obviously been very careful and wise in your use of debt.

Given that you own your home completely and it sounds like you have a lot of flexibility which is what happens when we live by God's principal. So I think at this point I would do a couple of things number one in earnest. Be praying and asking the Lord for wisdom on this decision to sell and relocate, or perhaps downsize number two as you start to get an idea of where you might like to go I go ahead and start looking at the various options for housing and considering what you could get out of your place with perhaps limited improvements those things that are critical and perhaps things like the garage that the buyer may want to do themselves the way they want to do it. Perhaps you give a credit for that. But you be able with the help of a realtor, a professional in your area to get a good idea which things you do now which things you wouldn't do and what you could get in terms of the selling price.

You'll take that information really begin to explore what options you have and where you might like to go so I would do those things is my two next steps one begin praying that the Lord will give you wisdom into contact a realtor a professional who's well-versed in your area to come out and evaluate your property. Tell you what they could think you could get in the comparative market analysis and which repairs or improvements to make. Prior to that sale. And then you'll take that information and begin exploring this further and call us back along the way, Cynthia.

I know this is a big decision for you.

Would love to help you process it. But I think those are the two next steps and Cynthia would be the worst thing in the world. If you actually asked to realtors to give you their thoughts. That's kind of what they do and you will hurt your feelings. If you decide to go with one over the other. Further on down the road and would have to let you go but we hope that helps. Thanks so much.

Claremont Florida Nancy. How can we help you not believe in. Like all and I'm like I might concern.

One of my children died I got my concern with my very reluctant and with high premium because we we got we were 70 and will not wandering about to beneficial to your grandchildren to die life insurance and I think that the company called Big Blue and get your life insurance that is deeper talking quite a bit like yes well Nancy.

I appreciate that you know I think you mean our general rule is insurance is very important part of a wise steward's investment strategy. You know, if we go back to first Timothy, we see very clearly clearly were to provide for our families and I believe part of that provision is offsetting risk.

Our trust is squarely in the Lord when I try to take that away from anything. But beyond that, we said okay. As a steward and being wise. What we need to do to manage God's money and part of managing God's money is offsetting the risk of risk of the home. Having a major problem of not being able to afford its repair a car accident. And yes, in the event one of you, you or your husband is called home before the other is there a hardship placed on that person because they're dependent upon your income or there's gonna be an increase in expense as a result of that person's death, and if so, that's where life insurance, I think, and provide a very appropriate level of five offsetting that risk but I think we need to have a reason for it. I actually prefer saving outside of insurance policies in other more traditional means were not paying the high cost of the mortality expense and the other fees associated with whole life policies so I think the first question is, to the extent you have life insurance at age 70. Why if it's on yourself, what's the purpose of it, and let's just make sure that's unneeded expense at this point given your season of life and then for grandkids.

It's really important to determine the purpose of it again because you a lot of grandparents will bind as a means of giving a financial start to grandchildren, but I'd rather them. Instead of building cash value in a policy like that. I'd rather them start a 529 plan that's going to grow in a tax-deferred environment in mutual funds and set them up for college or some other type of investment as opposed to a whole life policy which again typically have high fees if the purpose is to pay for a funeral. In the event that that were to happen with the child.

A term life policy would be a better more inexpensive approach and often as a rider to another.

Policy makes it more cost-effective. So those are just generally my thoughts on insurance why you have it, and then for grandkids. I like other options for helping them get a good financial start versus a whole life policy that just might general approach that son Nancy about my right now. We had a very long life insurance beneficiary to beneficiary, but I got another life insurance I die before my have a little bit of something to live on because we are this age and I couldn't believe how terribly as well.

It gets very expensive because again it's all based on actuarial tables and oh what the death benefit is based on your age and it's yelled. The cost obviously the older you get, the more expensive it is. So that takes us back to this question of what is the purpose of it, you know, is it just there to know that that death benefit will be paid but is the money really necessary or because of your other savings and income you could take that money that you're putting into those high premiums at this point in your life and redirect them to additional savings. Additional giving or perhaps buying a long-term term care insurance policy. For example, that would cover that risk as opposed to a death benefit that's really unnecessary at this point. So those are all things to think about and perhaps visiting with your financial planner to ask those questions would be good if you don't have one, you could find one of our website moneywise live.org just click on find a CK Nancy, thank you very much and thank you again. As I mentioned for tuning in for listening and being a part of the program moneywise live as a partnership between Moody radio and moneywise media and you are listed as Rob West, I'm Steve Moore hoping you and yours have a wonderful remainder of the day, then join us again next time