Credit Scores and Car Loans

Hey there I'm Jim and Baxter and I certainly radio is the director of business development. Our team's job is to find businesses that love Moody radio and Jesus Christ and want to support the work we do financially just like you today. I like to introduce you to United States mortgage. Simply put, they are afraid focus mortgage team serving clients across the United States.

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Check out the top five things you should know about United States mortgage@unitedfaithmortgage.com thanks to you and United for supporting the radio United for mortgages, a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license mortgage banker for all 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 know the number one reason why it's good to have a high credit score is.

It's not about bragging rights or feeling superior.

Although some folks view it that way. Rob West know the number one reason you want to have a good credit score is that it makes sense dollars, and six. A high score saves you money.

I'll talk about that first today that it's all your calls at 800-525-7000 800-525-7000 call 24 seven. This is moneywise live biblical truth guides our financial decision.

So we often get called about their credit scores.

Other times we hear from people financing the car they want to know if they've been offered a good interest rate what they may not realize is how closely those things are related but when the lender approves you for a loan. The interest rate they offer isn't something they just picked out of a hat. The first thing they do is check your credit score often from more than one source, the higher your score, the lower the interest rate they'll offer you, and over the term of the car loan. A lower rate will add up to big bucks in your pocket, but that still leaves the question. What exactly is a good credit score while psycho is just one company providing credit scores to lenders, and consumers. But their scoring range is typical of most your FICA score will always be a single number between 308 50. Now keep in mind what that number really means it's based on your credit reports which show your past performance and handling credit. That is how well you kept your word to pay back money that you owe on time. Since lenders don't know you personally and they need a tool like a credit score to determine the risk factor in lending you money. And while the good range which will get you a decent interest rate is anything from 670 to 740 some lenders may give you a car loan with a scores low as 450. Why would they do that. Well, it's not because they like you. Since a higher percentage of folks with credit scores that low will likely default on their loans. Lenders need a way to make up for their losses and they do that by charging higher interest rates to folks with lower scores so with a credit score of 458 of 500 you'll be offered the very highest rates.

Now, as I said, the higher your score, the lower your interest rate and the lower your monthly payment how much lower while consumer expert Clark Howard ran some numbers on an all too typical 48 month new car loan for $25,000 and the results are eye-opening. I keep in mind that it's always better to pay cash for a car but if you have to borrow keep saving until you can pay cash for the next one.

Let's say you have a FICA score in the top range from 720 to 850 and let's say that get you an interest rate of 3.9% your monthly payment would be $560 and over the life of the loan. You'd pay a total of just over $2000 in interest. Let's compare that to a poor FICA score from 500 to 600. It's hard to imagine lenders would still give you money, but apparently some well for the same new car loan 25,000 for 48 months, but with the low credit score. Now the only rate you're offered is a whopping 15%. That's a long way from 3.9 so now your monthly payment is over $700 and you'll pay you ready for this well over 9000, and then interest over the life of the loan granted those are extreme examples, but they illustrate the point. The difference between the highest and lowest credit scores more than $7000 and that's just for one relatively short term loan. Imagine how that would play out with a 30 year mortgage. The bottom line is a high credit score is worth untold thousands of dollars over your lifetime.

If you're worried that your credit score is too low. The process for raising it is relatively simple.

It starts with checking your credit reports for errors that might be dragging down your score order free reports online@annualcreditreport.com in dispute any errors you find. If you have balances in arrears bring them all up to date, then commit to making all of your payments on time. Finally work to pay off as much debt as you can. Ideally, you don't want any balance on a credit card but never have a balance of more than 30% of your available credit because that will drag down your score. If you start doing all of those things. Your score will gradually begin to rise it will take time but now that you know how much money a good credit score will save you. You've got plenty of incentive to get started. If you need help sign up with a volunteer coach at moneywise. Live.org we can help you get on a budget and set up a plan to get the process started. And remember that a good credit score is really just the result of doing what you promise to pay back what you owe.

As followers of Christ that you always be our priority here because her next.

800-525-7000 statements much more to come. Today's version of moneywise lines to our phone lines are not a blast along with us today.

Phone lines are open were about to take your calls and questions here in just a moment. Here's the number 800-525-7000 800-525-7000 will look forward to speaking to you and hearing what's on your mind today. We had the chance to start today by talking about one of my favorite topics, biblical generosity, and as we think about this idea that money, the power of money if you will.

The grip that money can have over our lives is broken through generosity. It's a powerful concept. I love what that the author Paul David Tripp says in his book redeeming money.

He talks about the gospel being a generosity story for God so loved the world he gay right we are created in the image of the ultimate giver God himself. So were most like him when were giving.

And Paul challenges us in this book redeeming money to think about the fact that we often start with the role of money being provision to provide for our families and clearly that's part of it.

But Paul makes the case if we start their work and end up with an endless list of needs and wants that perhaps will never get beyond what if we were to start with the gospel being a generosity story and with our use of God's money that we should give first and then once we address what God would have us do in the generosity area, we can fully address the provision area as well. Perhaps that simple change of how you view your money will change everything just about as I said will take your calls. We do have the several lines open today. Here's a number 800-525-7000 800-525-7000. Looking forward to hearing from you, but we did ask the question today on Facebook. Can you share a time when you experienced the joy of getting we got some great responses that Lorene said I experienced that joy every month I give to the homeless shelter in my area. I'll never know the individuals who are helped by my care package, but I feel great. Every time I get it and I think that's what Jesus meant when he said it is more blessed to give than to receive. Here's what Pamela said. She wrote out when I was in Uganda two years ago I had surplus funds to give us God directed in the blessings I saw and received.

I will never forget that Kristi says I love to get my favorite was sending cash in the mail to someone in need with an anonymous card.

What a great idea and Angela says it's always great to pay for the car behind me in line at a drive through, or ask the waiter or waitress for the bill of a nearby table in a restaurant. What a great way to share your generosity with somebody just on your path. In the course of your day. Love those ideas. Thanks for weighing in on Facebook.

If you'd like to find us and engage with us. Perhaps like us on Facebook you can do that when you search for moneywise media art. Let's dive into some phone calls today.

Again, the number 800-525-7000. We first go to Binghamton, New York Jean, you're on the broadcast dock and we assisted, I really appreciate your show this, and I'm frustrated with all male, political, and everything else I already do my church family life network in New York State police and Samaritans purse, especially operation Christmas Child in memory. Another time in Vietnam Memorial in memory of my husband and I also support to children through compassion international and do 529 for my grandkids. I have 35 other places listed and I have I got 25 pieces of mail yesterday. I am very frustrated with all of it. How do we know which ones are legit and which ones we should support. Can you give me any insight yeah and so you're not talking about junk mail, specifically credit card and refinancing solicitations you're talking about solicitations for additional giving opportunity specifically and other political things in this sort of thing that just everybody gives out my name. I guess when you get to London, all of a sudden you're inundated with many shorts think the thing to recognize Jean and I realize the mail can be overwhelming.

In fact, I did a little exercise a few years ago where I decided I was going keep credit card solicitations for six months. I did it in the stack came up to my waist. That was done so that it can be overwhelming and clearly those asking for you to support for wonderful things. It is a part of that equation in so many cases. I think the starting point. Jean is for you to realize that you can't do everything you I love what Andy Stanley says he says do for one what you wish you could do for everyone in the idea there is that you can't help everyone you can't help every ministry or every cause and so you need to first of all, have a plan for yourself before the Lord say Lord you given me your resources you've entrusted them to me and I realize part of that provision is to be a conduit where your provision doesn't stop with me, but I become a pipeline into your activity where you're at work and develop a plan around how much you want to give both systematically so that would be around the principle of the Tiger, you're giving a percentage of your increase starting with your local church, but then beyond that what you want to give even sacrificially how much on an annual basis is the Lord leading you to give in both of those areas.

Systematic and spontaneous, or even sacrificial and you'll realize quickly that as you allocate those resources, then I think you need to go through an exercise of aligning those dollars that the Lord directs you to give which with with what's on your heart so begin to look at, you know what really perks your heart, where is God at work most aligns with how he's wired you and that's going to lead you to certain categories. Maybe it's the ministry of God's justice or the ministry of God's word preaching and teaching and discipleship could be widows of the homeless are prisoners are proclaiming the gospel to the ends of the earth reaching unreached people groups to be whatever it is you know each of us are going to our hearts and this will change over time are to be aligned in certain areas but once you figure out where that is.

Then you need to do the work of saying you who's doing this work in the name of Jesus really effectively and I think there's a couple of resources you could avail yourself of to do some due diligence.

One would be ministry watch.org where they rate these ministries just based on how effective they are. The percentage of dollars coming in that actually gets into the work that they're doing versus your administrative costs. You can also connect with our friends of the National Christian foundation in CF giving.com they could assist you in aligning where your heart is with those ministries that are doing nominal work in the name of Jesus. Perhaps in your local area or even outside the US and as the Lord makes it clear, and you do your homework and find out where you're going that I don't think you need to feel bad Jean when so solicitation comes in for your support and you decide to pass because it takes all of us working together to fund the places that God is at work and you can't do everything, and that's okay and I think as you get invested both personally with your time as well as with your giving dollars and some of these ministries that really just align with your heart, I heard you light up a little bit when you talk about operation Christmas child and some of the other things that you're supporting that's great.

And the fact that you can't support everything that comes in the mail. That's okay, I think you need to recognize. You don't need to feel guilty about that. God's going to use you and others to make sure his work is accomplished. Does it make sense that is very helpful just so frustrated yesterday that I get help with. I appreciate your call if you have other questions along the way, don't hesitate to give us a call and thanks for listening to the program I led said to Dalton, Georgia Michael, you're next on moneywise live go ahead.

Hey Rob what you want and no one I was going to give significant come to my church, and what the best way to do that yes well the person you're talking about is one of my mentors Ron blue. He wrote that in his book splitting errors ET IRS do your given why you live in so you know where it's going and I think it's a great principle to use as you think about your giving Ron goes as far as to say, I'm not sure you get credit when you give a death because you kinda have to that will leave that up to the Lord to decide.

The bottom line is I think is quickly as we can get God's money into circulation God's economy.

That's always a good thing in terms of the best and most effective way to do that element again mention my friends at the National Christian foundation. They're incredibly skilled at that.

But tell me what you're considering because you know there's ways to get money into the kingdom out of an IRA that can be effective.

I like non-cash giving appreciated stocks, business interests, real estate art. What are the various options on the table for you. Michael R okay you don't meet with the higher Glenn okay sorry not right okay yeah and that's good to be just a bit more challenging because you don't tell you're not in that season of life.

Yet at 61 where you need to do required minimum distribution.

So you have to realize that income and then transfer it when you get to 72. You can do a qualified charitable distribution which is going to satisfy your RMD and get that money to the ministry without any kind of tax consequences.

Right now, I'd be looking for other ways. Keep in mind 90% of giving is done out of cash, but we only have 10% of our wealth in the form of cash or your greatest opportunity to give the most is gonna be out of your balance sheet as opposed to your cash flow so if you have stocks outside of retirement plans that have appreciated that would be a great opportunity to give a stock gift. If you have no other assets that you want to give prior to the sale where they would be taxable. That's another opportunity apart from that, I think right now it's just a matter of maximizing the flow of income to your church and other ministries, whether that's an IRA distribution but just keep in mind you to create a taxable event there so you just need to recognize that and plan for it. And again when you get to 72.Q CD will be a great option for you but connect with our friends again and in CF giving.com and they can look at your situation help you develop a giving strategy and plan that makes sense for you folks exiting along with us today much more to come right around the corner.

Stay with us a lifeline line on moneywise live on West for biblical budget friendly answer.

The medical bills will Christian healthcare ministries Springs faith community together to write health cost sharing. You can find out more@chministries.org and were grateful that CH ministries Christian healthcare ministries as an underwriter of moneywise live. So glad to have you along with us today. Looking forward to taking more of your calls and questions as we apply God's truth to your financial situation. We have lines open.

Here's the number 800-525-7000. That's 800-525-7000.

Let's head to Pennsylvania's next up, Jackie.

You're on moneywise live go ahead and call going to be retiring and I and I and all her will be able to meet taking Social Security. I really don't know anything about investing and would like to know more like my question is because I don't know anything.

Should I take the whole amount of that I can retire.

I think that I can bring all rollover I've heard you mention 6040 4060 I guess not sure because I'm not really knowledgeable about investing and I little frightened and thinking your night.

Yeah.

Very good. Jackie Wells excited about this next season of life and what the Lord might have in store for you and you look at the two options are. You are given the option to either rollover a lump sum or take a monthly check is that what's been presented that I can get a monthly check out that I can rollover or I can find that if I didn't want all that I could specify it might look like the take him out whatever they're offering yes. Do you know those offhand the monthly check or the lump the lump sum amount 20, 1990 could be rolled over and not let it get me like 4500 okay. It would give you 4500 on top of the hundred 90,000 rolling over correct well yeah that's tremendous but I think you need to get into those specifics and get an update on what options are available to you. If you take the full amounts of the the full lump sum rollover versus only the check and whether their survivors benefits. If you're married, you want to make sure that you doesn't just stop with you perhaps and then the second option is if you take a partial rollover and then you know a partial monthly check that the key is and this is where a financial professional can help you both with the plan and that decision as well as ultimately the investment strategy for what ever you were to be rolling over into probably an IRA because you're gonna want to look at what's called the internal rate of return on what's possible with that lump sum rollover versus what they're guaranteeing for you on that monthly pension payout to see which one makes the most sense. So there's the financial calculation as to which one you prefer. And then there's the risk side of it, you know, are you looking for greater peace of mind to know that you've got a check for life no matter what happens you you're not in the market. Even though you be hiring somebody to make those decisions ultimately that principal would be at risk and so you have to be comfortable with that. If you are willing to assume again a modest amount of rest based on a conservative investment strategy. I like the lump sum option.

Assuming that the you confirm that it said your good payout based on the calculations that would be done because you have the ability to generate an income stream at the same time you have access to the funds. If you needed them and that season of life are a major medical event. You need a long-term healthcare or something like that. You have access to the funds, not just the monthly income stream or the hybrid of the two, so I never our website moneywise live.org click find the CK and try to connect with two decertified kingdom advisors there in Pennsylvania. Find the one that's the best fit for both the planning and the investments steno I will talk a little bit more off the air. This is moneywise live with God's word intersect your finances lines are not a bug about moneywise live around West glad to have you along with us today we have some lines open.

Looking forward to taking your calls and questions on anything financial is it giving your saving. Perhaps your retirement investments or your credit score getting out of that would love to hear from you is the number 800-525-7000 80 want to take a moneywise live on the go with you what you can do that through the new moneywise app. It's available in your app store today just had their whether it's the Apple App Store the Google play store.

Just search for moneywise biblical finance. You can download it free and all the episodes are there, you can search by topic.

We also have in our Discover tab the best content in Christian finance from folks like the National Christian foundation encompassing the Christian stewardship network and generous giving and gospel patrons. It's all there in one place.

You can read, listen to some great podcasts I can watch some wonderful videos again. It's all in the moneywise app.

Go get it today to search for moneywise biblical finance in your app store ride back to the phones to Indiana Jean and so glad to have you with us today. How can I assist you on my and I am working on my I am finalizing my way out and a few years it. I've already checked with my with you on my mortgage. My mortgage rate of 389 yes 389 3.89 and my monthly payment of 369 and you said that was okay but I needed to have some repairs done on this house and I like these who are in charge.

Our local bank and ident manager talked me into truly simple or and then later it was called flex line loan.

They change the numbers on every few months and I've got all the paperwork that I just left the paperwork and files and I'm trying to sort them out now and the amount that I paid each month has now for quite a few months. Come to the 180 SA 151 online and adapt to like $700 from December of last year to the present, and so when I called her I would rate instead that she do a printout of everything that I had charged to a minimum minimum percentage on each time that when it came to that amount per mind and I looked at the 700 and some dollars. I thought for my executor. I should have this all printed out very specific as to whom the money went to that date, and so on. I called her and discuss this with her. She said no way. We don't do that. She had a scare and I told her I wanted to start making payments on this loan debt has become number 3156 and so she said they percentage that monthly percentage would be 7.52% is legal. Well, you know, as long as they disclose it in the paperwork they can charge whatever they want. What bank are you with Gina. I did not want to mention the name because I like people working there for the national Bank or local bank. I do not know Sarah okay no worries, you know it there's a credit card that's offered by one of the big banks with that name truly simple and the interest rates can be a lot higher than what you're describing.

That's my concern is that that what this that's what this might be.

We need to get into the details and and we can't do that on the air here, but I want to make sure you get proper assistance.

So what to do Jean and as I'd like for you to hold the line I'm can ask Amy my producer to grab your information and I'm gonna have one of our coaches call you or email you and set up a time to talk by phone where you can walk through the details together in our coach can help you with the game plan on where you need to go from here so that you get all the information you need. You understand what you have and there's no longer any confusion. We gotta do a little bit of legwork there. So you hold the line. I will get your information will get somebody to give you a call and will sort all of this out your super sweet and we appreciate your calling today and listening. God bless you Jean and let's go to Youngstown, Ohio, Lisa, you're next on the broadcast I think you're taking my call around a quick question my side and I my adult son, I should say and I recently been talking about investing opportunities and hands researching that claim might hurt other financial experts recommend against it: I just wondered what your take on yeah as an investment. I'm not a stand. There's just too much volatility. These are unregulated securities. There's no central bank. That to governing these ill bit coin than the other crypto currencies because of you know the various things related to them that they're just going to continue to be a lot I think of volatility.

Yes, they've gotten a lot of press lately, and they've many of them have had huge run ups and I recognize that, but I would put this Lisa in the more speculative investment category which I don't think is a prudent place for your long-term investment dollars as we manage God's money and anything that's more short-term in nature that has the kind of volatility that we would see with the crypto currency I think is just not the best place for you to be investing so I would stay away. I take a more kind of vanilla flavored approach if you will wear your investing in a diversified basis without taking a lot of speculation little bit more tried-and-true and steady with the Bible calls steady plotting I think is good to serve you quite well, so I'd probably just say you know what I'm gonna respectfully pass and the do your vesting another way.

We appreciate your call today to Akron, Ohio, Ron, your next on the program glad I rob my call Steve telling Tom. We met them I will talk to them just very very enjoying retirement. But he sure is so in 2020, and they took the penalty off of withdrawn from your 401(k) and I pulled a bunch of money out to pay off bills not knowing what the future holds for jobs and stuff and I guess by doing that, I went over the hundred and $60,000 limit for getting in bed this last check from the government is that I mean this was just like a savings if I pulled it out of savings, but they counted as income.

Is there any way that yeah that's a great question. You know, and now it does become taxable income when you take a withdrawn that very well could have pushed you above it of that income threshold for receiving it. I probably check with your tax preparer if you don't have one, you could connect with one who's got a CK there in Akron and just ask if there was anything you can do. Obviously could file an amended turn.

Bottom line is if it's taxable income. It's gonna be calculated as taxable income and that absolutely could push you right above the threshold and put you in a situation where you don't qualify for say it's probably one of those unintended consequences.

We appreciate your call today the rotted.

Thanks for your kind remarks about Steve Howard to take a quick back to minimize line number was fresh off of vacation time way with my family came back to us from phone lines that were working very well. Our phone company alerted us earlier today that that they were having some challenges with thought they were resolved in.

Unfortunately, they persisted into this program and so if you've heard a few segments that sounded a bit off, it's because we've had to pivot in place replace some of these live segments with some prerecorded segments on the fly.

So I apologize for that. I know we had some great calls were able to share with you today so I'm sure you were encouraged by that, but that we are back live for this final segment, so thanks for hanging in with a syndicate this segment off. I'm delighted to welcome my good friend Bob Dall whose chief investment officer at crossbar global investments and Bob great to have you with us on a Tuesday. Good afternoon. Thank you sir great beer Bob in your deliberations this weekend. It seems like there is this trend that you started talking about, well, a couple of months ago is continuing and that is that is a lot of good news. Priced into this market, and for good reason. Because earnings in the economy have been red hot, but there's probably not much more upside in the near term is in the right.

I think that correct Rob this great economy great running been widely telegraphed among the reasons why stocks have done so well really think the pandemic load. Some 15+ months ago and that these levels saying good news better be good.

Yes. Yes. Well, that's right, and were about to hit 1/4 to earnings season, so the preview that for us. Yet this quarter will be aside from 1/4 in the 2010 off the 09 recession belt bath water and most people are listening to lifetime earnings are likely to get more than 3%. A lot of that is because they were so the rest of last year not to take anything away from a 60% increase and to repeat Rob, but the market knows that you if I told you 60% by well that's why you should what Dr. Knight nine months ago, the market knew we were going to have an amazing recovery of the great great earnings now markets like acceleration, not deceleration. And it's going to be part of top 60. In fact, in the third and fourth quarters, analysts are guessing any earnings will be up 20 and 15% effectively.

Not bad numbers in their own right.

They look puny after 60 yes.

So where do we stand in the P/E ratio above the price to earnings or price to sales in terms of the levels were at now versus a historical average well on all those measures price-earnings.

The sales price. The book it's rarely higher than where we have been recently price-earnings on trailing earnings are about 30 time on board earnings in the 2223 area price to sales doubled historic average, the highest in modern history. Price-to-book has only been exceeded in the.com bubble market do not mean you have to run out. Well, it just means there is higher risk in the news has to be good to so as we said in the program week by week. If you been fully invested in equities and have great games and want to take a little off the table or not to fight your yet make sense. Bob last question, drawing from history. If we look at. It's like we're in now me and obviously they're all different, and this one certainly is because were coming off of a global pandemic.

But if we just look at periods where you know we have seen an incredibly strong market that we feel like is about to rollover you what, what does that look like as we evaluate other periods. Perhaps like this where we believe were at the end of the cycle. Yeah. So we would argue there is more economic growth become slower pace therefore more earnings to come just at a slower pace of it generally means market earn shop here Rob Manning is not straight up left him updated will have some down days, but the trend while the economy earnings are still okay even though their decelerating ability upside for the market so I'm expecting choppy or probably put some days it will feel that way yeah very good I said last question member throwing one more before today, Bob. We talk often about the fact that the US stock market and in international investments with a properly diversified stock and bond portfolio is the very best place to build wealth over the long haul. If you're appropriately diversified. But there are some saying wait a minute you know we've got to the US dollar, potentially, is seeing some declines. We got no unprecedented debt levels in this country mean we got real problems ahead, and we should exit the stock market talk to that person with your thoughts on that so to take the money off the table. Repeat given a lot of good news and I'm not in a fight, but that whole scale get out because it would take the debt people and been crying Cassandra about the debt, not years, decades and keeps accumulating. I'm not saying we should ignore it. We are borrowing from the future but just because there's debt out there, does not mean the stock market goes down, we would need rising interest rates with significant degree, in my view for that debt problem to be triggered if you will soak up.

Be careful what negatives you pick on and how you react to very good.

It's always a joy having you stop by with some analysis and a biblical underpinning under everything you talk about and look forward to seeing you next week. God bless. Well Bob Dall, chief investment officer at crossbar global investments always appreciate his insights each typically Monday on the broadcast joining us on Tuesday this week.

Of course, hard working around out the program today and try to get to a few phone calls. Here are the phone lines are working, perhaps temporarily, but that we understand the working now sorting to go to Chicago, Illinois, and Sue, thank you for your patience today.

How may help you hi Sue are you there are, let's try Steve and Indianapolis give that one shot Steve can you hear me all right. Well, we hope that working. It's so there yes are you are able to get Steve thank you go right ahead, sir. I had a question I was thinking about. I don't have a lot of money but thinking about should I get try to get a house. Maybe I just renting a house now and I'm thinking about you know should I try to get a house by fall or wait till you know when errors bring and because low interest rates are great and I'm renting right now and I should I just stay in there for a year or I guess I got the approval for low interest rate house and I can put down you know 5% or something. Why do you think as I'm 46 years old trying to vest towards the house in the future.

Yes.

Well, I certainly understand your question Steve.

Here's my take on it. I want to make sure you don't try to buy a home until you're ready to buy a home. This is an unusually high real estate market right now, which means that you're going to be buying into a red-hot market with prices in most parts of the country above market values of national estimate right now. Somewhere around 5 to 6% overvalued. Now it's one thing if you're selling a piece of property at top dollar and then you can take those profits and roll it into a piece of property that you're buying a top dollar. If you're renting and you're not enjoying being able to sell a piece of property. First, it's not the best time to buy a home just because of the reasons that I mention there's low inventory. There is high demand. We do have low interest rates, but I don't see those interest rates going up anytime soon. In fact, the Federal Reserve has said German Powell said he's not good to start thinking about getting about raising interest rates until later this year or early next year and even then it's gonna be a slow build. So I think you're going to enjoy this low interest rate environment for the 4P seeable future.

I think we could see opening a rise in housing inventory as we get into the fall and early next year. I don't think were in a bubble situation with the housing market, but I do think we could see a cooling, perhaps a dip in housing prices. As the inventory builds and what's most important for me in your situation is that you go into this home with the right parameters meeting I'd really love for you to have 20% down about 5% down.

I'd love for you to buy a home where the resulting mortgage payment is not more than 25% of your take-home pay and I want to make sure you're going to stay, not for five years but you know, probably 7 to 10 years because of the where the housing market is today and I wouldn't want you to try to sell you when this market cools often find especially with only a 5% down payment that your upside down, so I probably waited out.

Let's see if if the housing market cools off just a bit as we head into the phone early next year which gives you time to continue to save and hopefully get that down payment up a bit higher to settle make sensitive make for the best way. Save your money at your recommended a plate yeah is the high-yield savings account is good to be the place to go. You don't want to try to invested you just don't have the time horizon for it and you don't want to put that money at risk.

So the key with this type of savings account is it needs to be absolutely 100% secure. So I use probably one of the online banks, Marcus Ally capital one 360. You're to get about 1/2 a percent in FDIC insured savings account and I understand it's not a lot of money but it's something that is not getting any fees. The keel will be when you need that money. It's good to be there because it's backed by the full faith and credit of the United States government so Perry lifestyle back and save save save you be ready to buy that house sooner than expected. Thanks for your patience today with some of our technical challenges. We appreciate you stopping by.

Will be back tomorrow to do it all over again. Lord willing to say thank you to my team. Dan, Amy, Rich, Robert, thank you for being here today moneywise. Love is a partnership between the radio and moneywise the forward to seeing you tomorrow and until then