Latest / The Jon Sanchez Show / The Homeowner's Mid-Year Check Up
Transcript
- Jon G. Sanchez: Good Tuesday afternoon to you. Welcome to the John Sanchez show on Newstock seven eighty KOH. Pleasure to be with you and a pleasure to be with my co host. Let's go around the horn. We've got the full house today. Dwight Millard on Q Home Loans. How are my friend? Dwight Millard: I'm doing fantastic. John, how are you today? Jon G. Sanchez: Good, good. Glad to hear it. all trying to stay cool. Got a got a little storm coming through here, Dwight. I know you're not here locally right now, but ⁓ Corey and I are enjoying the ⁓ the thunder and lightning and hopefully no fires. And soon be rain, I hope. ⁓ Corey Edge Vid Reality, how are ya? Cory: Yes. Yeah. Dwight Millard: Yeah, yeah. Cory: I'm doing great, sir. How are you? Jon G. Sanchez: I see some stress on that face that handsome face of yours today. No? Okay. Cory: No no no no. I was just looking outside 'cause it's very ominous. But I'm with you. Like it would be great if it rains and the smell and all the stuff, like no. Jon G. Sanchez: Okay. Yeah, yeah, absolutely. Absolutely. You betcha. righty, fellas. Well, good to be with both of you and good to be with all of you. Let me tell you what we have lined up for you. We're going to recap today's very trading action today. I'll just give you a little preface on that side of it. Then we today's show, The Homeowner's Mid Year Checkup. Right. We get checkups. We do some, hopefully some financial checkups. But what about one of your biggest assets, your home? When was the last time you gave it a checkup? Right? That's really the question. And know, ⁓ I think the answer, if I had a room of about a thousand of you, the answer would probably be never, What's involved in a checkup? Well, today, Dwight and myself, we're gonna discuss the 10 financial questions every homeowner should be asking themselves from what's my current value? My mortgage? Is it, you know, do I have a competitive rate? My insurance coverage. I I just had to renew my insurance and ⁓ I Yeah, it's an issue we're all dealing with right now. ⁓ is the house properly titled? Is everything you have in there you know, properly protected from an estate planning standpoint? All of these important things, that should be part of a checkup. But again, something no one ever thinks about. Dwight, I'm gonna start with you real quickly. have you ever had anybody say they've done a checkup their on their house? I haven't, yeah. Dwight Millard: Mm-hmm. Not not no no no and and certainly not in the detail form that you you know we're gonna cover tonight but you know every now and then they'll say well you know what's my real value because as Corey will tell you they're usually checking Zillow or something you know that's not really helpful there's so much now Jon G. Sanchez: Yes. Dwight Millard: to it, John, that especially like the insurance like you said. And then you can, you know, we can also talk about property taxes. So ⁓ are some, you know, some benefits to this question. But no, I don't I don't get people, ⁓ you basically saying that. So yeah. Jon G. Sanchez: Yeah. Yeah. How about you, Corey? Cory: No, not in I agree with Dwight, not in the detailed terms. The biggest one I see is insurance, but I think these days, myself included, it's one of those things that people don't want to mess with 'cause if you have insurance, unfortunately you count yourself lucky. Like I don't wanna I don't wanna I don't wanna spook it. Exact. Jon G. Sanchez: Yeah. Yeah. Yep. Yep. That was that was my situation. Yep. That was my situation. Yeah, you you you literally make a a business decision, right? And you go, Man, they just jumped me up, you know, X percent. But then what else is out there? You have your broker shop and they come back and like, nope, know. So yeah, it's it's you they have Let's just say insurance companies have us, right? Because They're they're all increasing it. Either they're not taking cover new coverage or they're increasing it and they know there's nothing you can do about it. So it's a it's a tough situation. Dwight, just brought something up and and I I did not have this plan today, so I may catch you guys off guard, but I wanna I wanna rap about this for just a few moments. I'll be than happy to send you guys or anybody else this article. I saved it. was in it was in Yahoo Finance on Sunday. And it was an what caught my attention. It was an estate planning article. But Dwight Millard: Mm-hmm. Jon G. Sanchez: According to White, what this article went on to talk about a major issue facing California residents. And here's the issue. Correct me if I'm wrong, because I'm not a property tax expert like you guys are, but the way it used to be in California under Prop 13, when you sold your property, or let's say somebody inherited your property, they would keep your property tax rate. Am I right so far? Dwight Millard: Prop thirteen. Jon G. Sanchez: Yeah, exactly. But evidently a law was passed ⁓ I think just a few years ago that said if you inherit a person's property, i.e. most likely your parents or grandparents, your that Prop thirteen, I'll call it protection, does not exist anymore. So there's a there's a massive dilemma going on, especially down in the Bay Area where, you know, again, parents bought these homes for cents on the dollar, now they're worth multi-millions. These kids are going, Yeah, I just Dwight Millard: Mm-hmm. Jon G. Sanchez: you know, inherited you mom and dad kicked the bucket I just inherited, you know, a three million dollar house. That is until the time comes that they get their property tax bill and then they can't afford to do it and they end up selling the property. Have you guys heard anything about this? It was the first time I did. It it really caught my attention. Dwight Millard: Yeah, no, John, I'll look at that because the the the bottom line is is that that was part of the reason for the Prop thirteen is it it was what passed along. So it only makes sense that if you bought it twenty years ago, you know, you should be grandfathered in from the moment that they passed it. But they get really sneaky and Cory will tell you, they get really sneaky, you know. They want you to do a, you know, a little building permit for a little, you know, two by two shed just so they can reassess your property. So yeah, it's it no, that's a a new one, but Jon G. Sanchez: Yes. Sure. Yeah. That's right. I yeah, and again it it was it and it was on the inheritance side of things. I I didn't see anything about if you just, you know, outright sold your house if the ⁓ buyer gets, you know, again, I'll call it the stepped up tax basis, or do they get to keep your own? I I've I've got to look at that further. But Corey, any experience on your side ⁓ with that? Dwight Millard: That takes away that benefit. Cory: No, no, and I I think again I'm not a I'm not in California, but I don't think a new buyer would get it. So for instance, if I sold my California house to you, you don't get my tax rate because it the prop thirteen is based on the sales price. And it's i I think it used to be one percent, now it's probably who knows what it is. the inheritance thing doesn't surprise me because again, you know, California's horrible. Jon G. Sanchez: Okay. Right. Dwight Millard: Right. Yes. Jon G. Sanchez: Yeah, me neither. Cory: But anytime they put a tax in there, it starts super small and then it expands. So I I I haven't heard that, but it would not surprise me in the slightest if they're doing that. Jon G. Sanchez: Yep. Yep. Yep. Right. Right. Right. Okay. Okay. Dwight Millard: Yeah. Yeah, John. My my aunt had a house in El Cerrito and ⁓ overlooked the Bay Bridge and the Golden Gate, you know, and she it was just bought it, you know, in the fifties. And her property tax, I think, were eighty-two dollars a month, you and the and the the house before she passed was probably a couple million, you know, or whatever. But ⁓ but and I i so to your point, and I I I don't know if the her girls kept the my cousins kept the house or not, but Jon G. Sanchez: Yep. Sure. Cory: Mm-hmm. Jon G. Sanchez: Yeah, yeah, yeah. Dwight Millard: You know, there was no way she could do anything because she would be then you don't want to mess around with that eighty two dollar a month tax, you know, and and so but the moment she sells to Corey's point, that now goes, let's say you sold it for two million. I think it's still one and a quarter. I'd have to check, but one and a quarter of the sales price, boy, they went from eighty two dollars to one and a quarter and two million. They just got their, you know, they just hit gold, you know, so yeah. Jon G. Sanchez: Right, right, right, right, right. Yeah. Absolutely. Yeah. Yeah. Exactly. So I I thought that was really interesting. But again, something like that, looking at your property tax bill, should be of the financial checkup. How often do you guys hear or see or do you have any experience of people look finally ⁓ looking at the property tax bill and going, Man, something's just not right on this and and you know, basically it. Any experience on that side? Have you? Cory: We've been through it. Yeah, I've been through it. That's that's actually how I met Mr. Bosmo. ⁓ way back in the day, because we were appealing a very huge tax bill on a huge project that I was involved in. Jon G. Sanchez: Is it really? Interesting. Cory: and it's not an easy process. It's you know, n ⁓ taxes differently. They tax on depreciation. It's not such a standardized way of saying your house sold for X, so here's your taxes. It's all based on formulas and you have the right to appeal it. And there's a certain window and you can go down to the county chambers and go through, but you better have a very good case. You know, a lot of people appeal it, at least in my experience, they appeal it just because they think it's too high. ⁓ this is too high. Well, that doesn't matter, right? Like Jon G. Sanchez: Yeah, I can imagine. Mm-hmm. Yes. Right, right. Yeah, exactly. Not Dwight Millard: Mm-hmm. Mm-hmm. Cory: You have to have a reason as to 'cause all your neighbors are high too. So there has to be a reason why yours is different. That was the huge deal up at the lake. Remember when they assessed everybody the lake views? The assessor's office fought them for years, lost at the Supreme Court, and then had to pay back tens of millions of dollars to these people. ⁓ so Nevada's a little more complicated than California. Jon G. Sanchez: Yep, yeah. Dwight Millard: Yeah. Jon G. Sanchez: ⁓ yeah. Dwight Millard: Yeah. Yeah, really. Jon G. Sanchez: Yes, yes. Absolutely. Dwight Millard: And I think, Corey, are the the aren't the appraisers county appraisers that actually will go out? You don't you can't use an independent, right? They're they're internal, aren't they? Yeah. Cory: They're county appraisers and and most of them are licensed appraisers. Like in my experience, these people know what they're doing. So again, a lot of times it's just like, no, no, my taxes are too high. Like, well, you know, it's expensive to live, unfortunately. And that's just how it is. Dwight Millard: Yeah. Mm-hmm. Yeah. Yeah. Yeah. Jon G. Sanchez: Yeah. Yeah. Yeah, absolutely. right. Good. Thanks guys. Do appreciate it. So it's yeah, gonna a lot of a lot of great things we get to talk about on the ⁓ on the topic here and momentarily. All right, let's get down to the ⁓ to the stock market side. So, you know, I used the analogy guys on the show yesterday when we're talking about how this market is reacting. And market is driven not so much about interest rates, definitely not about oil, because oil's been rising and it's not having a negative impact on the market, ⁓ but on the semiconductor and the memory stocks. And the I gave was You know, we all heard the adage two steps forward, one step back. Well, now it feels like it's it's you know, three steps back and one step forward because we've gone through three consecutive days up until today where the semis ⁓ just did not perform and therefore the market didn't perform. But of a sudden today, here comes the buyers. So, you know, we snapped that that losing streak on the market, that three day consecutive losing streak. And again, was no specific news behind it. It had a little bit of earnings number on I shouldn't say earnings, but Guidance from Taiwan Semiconductor, the Nikkei reported that the company plans to raise chipmaking prices by roughly 10% in year 2027. And this is something to keep in mind ⁓ because knows we, you know, chips are used in everything. It's not just computers anymore. It's our cars, it's pretty much everything we use. And this what we're starting to see. These companies are starting to raise their prices because the demand is so very strong. And ⁓ they can do So Taiwan kind of Got the ball rolling this morning ⁓ they finished the day very nicely. Five and a half percent gain up twenty-two dollars and fourteen cents to four twenty-fourty-four. You had advanced micro devices up forty dollars and eighty-six cents, eight point one one percent. Intel was up eight point six four, eight dollars and thirty-nine cent gain to one ⁓ five forty-five. So you get the idea. The chip stocks, they were the whole story. We didn't have any major economic news. ⁓ So the chip were were everything today. 3M, a Dow component, very ⁓ strong earnings numbers coming out of that company. They finished the day with a big gain, eleven dollars and sixty five cents, seven point three two percent to one seventy seventy six. ⁓ General Motors, quite surprisingly, had a real strong earnings report. Also, they finished up almost five percent, four point eight nine to be exact, three dollars and seventy one cent rise to seventy nine fifty one. on and so forth. So it really that simple. It was a it was a chip driven market. I'll tell you what these markets did. We'll hit the commodity side as well as, of course, the mortgage side when we come back with Corey and Dwight. Welcome back to the John Sanchez show on News Talk 780 KOH with Dwight Millard of On Q Home Loans, Corey Edge of Edge Rility. right, we're gonna get to our topic here a moment early, the homeowners mid-year checkup. But in the meantime, let's tell you what this market ended up doing today. Like I said, it was a solid day across the board. ⁓ up 383, excuse me, 385 on the Dow. That was a 0.74% gain to close at 52,224. NASDAQ 329 point increase, 1.29%, closing at 25,837. SP up 66 points, 0.89%. To close at $7,500. Oil a strong one today, $2.40 gain, $84.99 a barrel. Market again, not paying attention to it. Gold $60.60, $4,076.40 an ounce. And a three basis point increase, Mr. Millard, on the 10-year yield of $4.63, had we do on the thirty year mortgage. Dwight Millard: Well, nobody's gonna like this, but according Mortgage News Daily, we are up four basis points, six point seven five on the 30-year fixed rate. ⁓ Yeah, and know what's interesting, John? I looked at the my mortgage backed securities market all throughout the day. We opened up down 16 basis points. We held 16 basis points ⁓ all the through close. We never budged off of down 16. So Jon G. Sanchez: Oof, oof, oof. Six and three quarters. Yeah, it was amazing. Dwight Millard: ⁓ it is you know, and again, I d I don't know if it's just the, you know, inflation, you know, narrative, if it's the o I I don't know. I mean, or is it just moving from commodity over to equities? I d I it's or it's all of them. Jon G. Sanchez: Mm-hmm. It it's out I'll tell ya, this this is this this is what the street is saying, Dwight. It's it's the anticipation that the next move of the Fed's gonna be an interest rate increase. The bond traders are just forecasting that down the road. That's all it is. They're they just are dead set in their ways that the Fed's gonna be again, the next move's gonna be an interest rate increase. Whether they're right or wrong, you know, we will see. But ⁓ yeah, yeah, I know. Yeah. Dwight Millard: I don't like that. Yeah. Yeah. I mean, I I th I mean, you know, John, this the this is really and you you highlighted it, I think, last week sometime when you were looking at the mortgage a year later, remember, we went through all this ups and down this gyration, and it was almost the same. But you know, you got I mean, you're this this atmosphere, this environment we're in has been much more difficult than the 08-09 meltdown, John, because this has been long. Jon G. Sanchez: Yes. Yeah. You've said that a few times. Dwight Millard: Yeah, well, I mean, at least you had stuff going. Here you got zero refinances. Most if you go back in history, most companies and even individuals, if you doing your business right, you probably had seventy-five to eighty percent was purchased business and fifteen, twenty, twenty-five percent were refines. Okay, there are no refines, you know, for all intent and purposes. So you are everybody's chasing the the very few Jon G. Sanchez: Mm-hmm. Dwight Millard: purchases that are out there. And ⁓ this has been t and you know, you go back, remember we all talked about this was March of twenty two. You know, March of twenty two when they went on this rate increase. And we are. It's this has been tough one for a lot of people. I talked to a lot of people in this industry. and ⁓ it's been it's been a long ride. It's and so here we are talking about interest rate increases again four years later, almost four years later. Jon G. Sanchez: Right. Right. But but but the question is to throw it over to Corey's desk and that is the question is, is it having an impact on home sales and prices? It doesn't appear based upon at least here locally our last report. Cory: So two totally different things. impact on number of sales, absolutely, I agree with Dwight wholeheartedly. The the it sounds so strange, but the amount of activity that happens is less than what it was during the great financial crisis. Like the amount of deals that are going on, that's what's causing high prices. Because there's no inventory. ⁓ amount of activity, so the number of deals in the market is way less than during the great financial crisis. Jon G. Sanchez: Wait, repeat that again. The the Okay. Cory: So the total activity level, which the realtors rely on, the title companies rely on, you know, everybody relies on. Now, the price of all those things has gone up. So I can't really speak too much to income because the prices are double or triple. So I can do half as much and make the same money if that makes sense. But the actual amount of activity across incredibly compared to the old days, if that's what you want to say. And I think that's what Dwight's alluding to is there's, you know, Jon G. Sanchez: Okay. Right. Mm-hmm, mm-hmm. Cory: It looks like activity, or you can say, ⁓ the median price is up, everything must be going gangbusters. Well, sure. I mean, it it is, but the amount of things happening is very little. It'd be like, and I know it doesn't, this isn't how it works in your world, but it'd be like saying, ⁓ Apple's $500 a share, but I only have, I'm only, you know, trading a hundred shares every six months. Right? Like it, it looks great, but underneath there's not really a lot happening. And that's what's that's what's been going on since 22, to Dwight's point. Jon G. Sanchez: Mm-hmm. Right, right, right. Right. It's a good analogy. Right, right. Dwight Millard: You know, and John, I mean, Corey brings up it, I mean, he gets right to the heart of it. This is affecting everybody, right? Appraisers, title companies. You know, there were just I I had a conversation with a couple of people this earlier yesterday, we had one in outside of our company got laid off because the activity's not there inside of a specific type of product. I mean, it's just not there. And and I you're hearing that more and more. So a interest rate increase is gonna be horrific for this industry. Jon G. Sanchez: Right. Mm-hmm. Right. Right. Dwight Millard: Yeah. And the people that depend upon, you know, the interest rates and the delivery system. Jon G. Sanchez: Why do you why do you think why do you think first of all, you have to you have to believe that Kevin Wurst, the new Federal Reserve chairman, is the scenes being controlled by Trump, which was one of the fears of everybody of him getting confirmed, which was. ⁓ but why do you think he's not calming the markets more? Because no one's gonna win, to your point, Dwight, if your industry slows down, right? And layoffs happen and so on and so forth. Why do you think he's he's not coming out and and trying to calm things a little bit? 'Cause you know he's hearing from you know lending CEOs and and home builders and so on and so forth that he's got to do something. Why do you think he's being so so immune to it? Dwight Millard: Yeah, yeah, I don't I I you know, I don't know, John. I I mean ma maybe we used er underestimated his allegiance or something, you know. I mean that I don't know. Corey, you I you got your Jon G. Sanchez: Yeah, I don't know I don't know what the rationale is. Unless it's inflation. Yeah. Cory: Yeah, but I I'm guessing, and I'm just purely speculating here. I don't think he'll raise rates. I just don't think he'll do it. But I do think some of these committees will come up with new ways to look at the existing data that'll show it in a better light. Not any conspiracy theory, just like, hey, this is the way we're gonna market now. I think it's the is it the jobless report or one of the reports is changing next month. Jon G. Sanchez: Mm-hmm. Cory: And I was listening listening to CNBC a couple of days ago, Eisman or Easeman, whatever the guy's name is, was saying they already are factoring in a point or half a point reduction just because of the way they calculated them. And it's one of these new things. So I think he's gearing up for a rate decrease, but it's gonna take some time to get the data to follow and it's it's going to be the data from the committees. Does that mean and I'm not saying that's a conspiracy, I'm just saying it's a different way of reading the Jon G. Sanchez: Right. Well, no, it's logical. And and what Corey's referring to the he announced at the ⁓ Fed meeting a couple days ago that he's creating five committees to basically rip the band-aid off of Fed policy, looking at different ways again to measure economic activity, inflation, so on and so forth. But he was also very adamant inflation is his number one objective, right? Keeping inflation down. So if he doesn't raise rates, if the economy takes off. If he doesn't raise rates and inflation goes to the roof, he's he's not gonna have a choice but to raise interest rates, to slow things down. Cory: Agreed. And and but the inflation number can change depending on the metrics that go into calculating it. Depending on and the can Jon G. Sanchez: That's right. That's right. Dwight Millard: Well you John, you talked about but John talked you talked about that on Thur Tuesday or last week or Thursday. Remember we were talking about the inflation, he's gonna be at zero and you go, They're just gonna change the metrics to get at zero. I don't Jon G. Sanchez: Yeah. Yeah, yeah, yeah. Yeah, yeah, exactly. You can always play with the numbers. Well, remember when when fired the the gal that was a ho in charge of Bureau of Labor Statistics, the BLS. ⁓ And of a sudden th those numbers every week, I every week they they just are at historically low levels. I just it's this new person's just doing an amazing job. Absolutely amazing job. don't get me started on Washington. Cory: Yes. Yes. Yep. Yeah. Jon G. Sanchez: All right, when we come back, the homeowner's mid year checkup. That is where we will go. Something we can control. Welcome back to the John Sanchez Show on Newstock 780 KOH with Corey and Dwight. All right, once again, it was a good, solid session across the board today. Finished with a gain of 385 on the Dow. NASDAQ grows 329 and the SP up 66. right, it is time that we get to our topic. Again, the homeowners of mid year checklist. You know, again, most of us schedule our annual physicals. At least we should. We take our cars in for service when the oil light doesn't come on yet. We our investment portfolios. But what about, again, one of our largest assets, if not the largest, which is our home. Most families, well, their home is their single largest asset. Yet many homeowners have never reviewed it, or if they have, it's been years. today we're going to be discussing how we conduct a mid-year homeowners financial checkup. So, Corey, I'm going to start with you. Checkup number one. Do you know what your home's value is worth? Why do we want to know that in a in a our annual checkup? Why is that so important? Cory: You know, is it important in your day-to-day life? Probably not. Is it is it a good thing to know for estate planning reasons? Of course it is. to get an idea of what your estate may be worth, the assets you hold, in case you need to do any debt financing, anything else to get an idea. And I agree with Dwight, Zillow is not a hundred percent accurate, but it's gonna get you close enough, you know. Jon G. Sanchez: In the ballport. Yeah. Cory: where you need to be. And it is a good thing. I I I'd meet people not so much anymore, but you know, leading up to right after COVID and coming out of it for those first two years when things were just going bonkers, you'd meet with people and be like, Well my house I think I don't know, it's probably worth two fifty. I'm like, No, it's worth about five. Like So it's it's just it's good to know and maybe it gives you some different options. And I'm not advocating this, but maybe you wanted to start a business, or maybe you've got to pay off some credit card debt, or maybe you wanna put a kid through college. Like it's just good to know these things in case you can the money for something better or just for estate planning reasons. Jon G. Sanchez: Yeah. Mm-hmm. Mm-hmm. Well, I think also what what I deal with, and I just had this conversation today with someone, they had modest financial means, but they had a lot of equity in their home. And so from a psychological standpoint, we've said this a million times, people feel wealthy based upon probably number one, what their home is doing, more so than their four ⁓ one K. Four one K is not far behind as far as the the mental ⁓ impact. But yeah, if you know, yeah, my home I've got X amount of equity. you're gonna be a little bit more inclined to go borrow ⁓ or to go buy a car, go do this, go do that, 'cause you know you can always come back to that piggy bank. Again, whether it's right or wrong. So yeah, I think it's a very, very good idea. Dwight, any points you want to add on that? Dwight Millard: No, I I agree with you. It what's interesting is I don't think they're going to the piggy bank like you said as much as they were in eight, ⁓ nine. So yeah, yeah. So but but no, it does give you a sense of comfort. It and people I just everybody around me talks about it and probably with Corey. So yeah, you you're in the trenches, you hear it all the time. Well, my ho went up this. So yeah, you're right. They feel wealthier for sure. Jon G. Sanchez: ⁓ yeah, not at all. Not with these rates. Corey, should we be tracking ⁓ in our checkup, should we be tracking comp sales? Cory: It just depends. Like I think most people, the vast majority, are set it and forget it. It's their house. They live there. It doesn't matter what it's worth, right? As long as it's a roof over their head and if it's paid off, it doesn't matter. If they're banking payments and they can afford ⁓ it doesn't matter. So, you know. if you want to get really down in the weeds and figure out what your house is worth and why it's worth that much and I have a swimming pool, but my neighbor doesn't, so is mine worth more? All that stuff, good food for thought, but it can also go the other direction. Some people see that and say, well heck, why don't we just buy that nice big speed boat that we've been looking at? I mean we got 200,000 in equity. So it it cuts both ways, but as as your day-to-day life, it's not going to change anything unless Jon G. Sanchez: Mm-hmm. Mm-hmm. Right. Right. Dwight Millard: Yeah. Cory: you can use the capital towards something that that helps your cash flow or Jon G. Sanchez: Yeah. And and and when we write a financial plan, sp specifically a retirement plan, we like to know what it is, ⁓ 'cause it helps. Yeah, you know, hey, you're gonna stay here, you're gonna get rid of it. If you're gonna get rid of it, what are you gonna do with that money? And so on so forth. So yeah. Cory: Sure, of course. Yep. I think especially as you get as you get ⁓ you know, up there in age, you can say, Well wow, I didn't know I had a million in equity 'cause we could sell that and we can fund this and we can go watch the grandkids and maybe you've always wanted to live a certain life and you didn't think you could, but now now you can. Jon G. Sanchez: Yeah. That's right. That's right. That's right. Dwight Millard: Yeah. Jon G. Sanchez: You you know what I'm getting more and more of? I just had this conversation with a a potential client last week. People are s are not selling their primary homes here in Reno. They're renting them out and then they're either moving to another part of the country, ⁓ like low key living, like just rent a condo or rent an apartment or something because it's their favorite area to live, or they want to be next to the magnet, the the grandkids. Or the most common I'm seeing, they're actually going out and they're buying an R V and they're getting out of here for a couple of years. They're letting Dwight Millard: Mm-hmm. Cory: Sure. Yep. Jon G. Sanchez: They're letting that tenant make the mortgage payment for the next couple of years. Again, we've had nice appreciation. They anticipate more into ⁓ appreciation. They're out there living their life. and then then they're coming home and Hey, you know, thank you, Mr. Tenant, for, you know, making my mortgage payment for the last couple of years while we've got to enjoy ⁓ quasi retirement. So yeah, I finding that really interesting. Dwight Millard: Well, and John, I there there seems to be an elevated interest right now too in the reverse mortgage arena where you don't have to rent it out. You can just Yeah, yep. So yeah, there there's vehicles out there, but to your point. Yep. Mm-hmm. Cory: Absolutely. Jon G. Sanchez: Had that call today too. Yep. That's right. Had that call today. Indeed. All right, Dwight, this one's you. Checkup number two. Is your mortgage still the right mortgage? What should we be looking at in our checkup on the mortgage side? Dwight Millard: Yeah, so I mean, for the last few years, current interest rate has been the kind of the yawner. No, you know, there's nobody can do anything right now with based on current interest rates. You John, there was a lot of if you you we even talked about on this show, you know, remember when we got into seven and seven and a quarter. Well, what these people are gonna be able to refinance sooner than later. They're at seven and a quarter. Well, they still have not had the ability yet to even look at refinancing. So know what your rate is so that if you get a window of opportunities, and this is how it comes, it comes in windows. ⁓ Jon G. Sanchez: Mm-hmm. Sure. Right. Dwight Millard: then be ready to know what you are looking for and and and be poised. I mean, listen to the show. We talk about it every, week, what the mortgage, you know, average mortgage rate is. So I mean, know that that usually will come on your mortgage statement. Usually you'll it'll tell you what your interest rate is. And also it'll you the term, how much longer you have, because if you're sitting inside 10 years and you have an opportunity to do something, you're probably not gonna go back to a 30 year. I mean Jon G. Sanchez: Yeah. Dwight Millard: Chances are, you know, I mean, you're gonna try to stay within a 10-year or 15-year just to stay kind of current or evil equal with what you're trying to do. So monthly payment is always the big one, John. And and we, you know, we're gonna talk about insurance here. ⁓ That's been putting a lot of pressure on on on ⁓ monthly, know, on the monthly mortgage payments, which again are on your statement. So your statement tells you a lot of information. So that's quickest way to kind of maybe dive into that and Jon G. Sanchez: Mm-hmm. Dwight Millard: And go through it and and understand it. And then ⁓ just kind of, you know, like we were talking about, know your refinance opportunities right now, John. I think they're very, very specific needs right now on refinance opportunities, you know, new purchase of something big, you know, a a a a a big purchase. education and debt consolidation seem to be just really what I see out there that people are using any any ⁓ refinance opportunities to do. They're just not taking money out to hope, you know, I am gonna you know, do something with it down the line. So yeah. And those are coming through those are coming through HELOCs too, John. Those aren't coming through right now doing your you know, refinancing your big your big loan. Yeah. Yeah. Jon G. Sanchez: Yeah. Yeah. Okay. All right. Let's go. Yes. The refinance. Yep. Yep. You're right. You're right. All right. Let's go to check up number three. Is your homeowner's insurance adequate? And again, this is a very, very important one. I ⁓ I attended a webinar the ⁓ I think it was last Friday, and it was fascinating. It's a software package that we can purchase, and I'm I'm thinking real seriously about it to and it uses AI. literally we put in the client's address. And Corey, I thought you, ⁓ because your insurance situation. ⁓ You put in the address and it will search databases. I mean, again, it's whole all AI driven. So just imagine what it can do. But it will come back and tell you we do is we scan in the client's ⁓ policy. And we can do it on auto and I think pretty much any insurance policy, but let's focus the home. ⁓ So scan in the homeowner's policy. it will come back and say, Corey, you know, you you're paying a competitive rate, or Corey, you're way overpaying, or you're underpaying, right? ⁓ It will take a look at the amount of coverage you have. Dwight Millard: Mm. Jon G. Sanchez: It will then search all the databases to determine is number one, do you have the right policy? In other words, do you have enough liability protection? Do you have replacement costs in there? If you have replacement costs, is it accurate? Because you got to think about it. When you get a policy, it's you know, they're one year at a time. Well, a rising inflationary environment where home building costs go through the roof, like we've experienced, that replacement cost that was quoted to you on you know March 15th of 2025 when you renewed your policy. Dwight Millard: Mm-hmm. Mm-hmm. Jon G. Sanchez: may not be enough money now. And Lord knows we've all seen stories and had stories of people that thought their home, you know, the replacement cost was 500,000, they get, you know, into a into a fire and replacement cost of 700,000. And they're like, I don't have 200,000, you know, so I walk away, right? So that's kind of where the technology side's going. So I think I think that's really important. Obviously we talk a lot about the liability protection, umbrella insurance. Most people still I find have zero. Knowing what your deductibles are, do you have enough money tucked away in emergency funds? If you have a high deductible plan, do you have enough money to ⁓ to pay that? So you're not cashing in on investments. if your home was destroyed tomorrow, here's what you need to ask yourself: could you rebuild it? Would you have enough money through proper insurance company to rebuild it? If the answer is no, then it's time again to take a look at that insurance policy. But we heard us talk to where blue in the face about rising insurance costs and how it's impacting the home building market and and sales and and everything else. So please, please take a look at your your coverage. Talk to your ⁓ your insurance professional. And I don't know about you guys, but I'm finding very few people that use like use a broker. ⁓ I I've been been with him for twenty five years. ⁓ shops at he, you know, I'm confident in his his recommendations. But a lot of people, guys, they just go online and they try to find kind of you know, online lending, right, Dwight? They try to find the best deal out there and they have no idea what's stuck in that fine print until they need it. Until they need it. And so Dwight Millard: Okay. Cory: Mm-hmm. Dwight Millard: Yeah. Yeah. Well, John, what's amazing about that when they buy a house, it's the first thing I tell ⁓ you need to start looking. And you know what? They don't do anything. They're pretty derelict about it. They don't do anything. And then we're three days from closing. It's like, hey, I gotta have insurance. So it's just like you said, it's you know, ⁓ they just pick what they can get right there. Yeah. Jon G. Sanchez: You remember saying that? Yep. Tough one. Yep. Yep. And the cheapest. right. When we come back, Corey's gonna wrap us up in checkup number five. Is your title correct? This is a very, very important one. Welcome back to the John Sanchez show on Newstock seven eighty KOH. Mr. Cory Edge, can we get your phone number, sir? Cory: Six seven three six seven zero zero. Jon G. Sanchez: Thank you, sir. This is my lord. Dwight Millard: Yeah, two four zero two zero two two. Jon G. Sanchez: Beautiful. Thank you. Okay, Corey. Let's go to checkup number five. Checkup number five. breaking news. LeBron staying ⁓ in Angeles. Well, that's what the ESPN just came across my computer. ⁓ All ⁓ It it was you talking about ⁓ yeah, talk about a negotiating tactic. Yeah, I'm leaving. ⁓ Yep, that's it. That's a good agent right there. ⁓ All Exactly. Cory: Is staying? We went through all that for nothing? Jeez, man. I gotta return all these jerseys now. ⁓ maybe, yeah. That 'cause I don't have enough money, I'm gonna go ahead and play hardball. Jon G. Sanchez: Well, was thinking it's like, okay, so you leave, you go to the Warriors, right? You're still in California. You can't do it for tax reasons. know, I mean ⁓ you're gonna pick up your your what seventy thousand square foot house he has in Beverly Hills. And I don't know. This whole thing didn't make sense. But anyways. ⁓ right, Corey, let's talk about title. Is your title correct? This should be this absolutely should be part of your homeowner's mid year checkup. Cory: Yeah, that's true. Yeah. Interesting. Yes, so we always recommend if you need one, get a trust. And part of that thing is if you have a trust, we want to check the title. Obviously, John, you know this, a a good person that handles that for you is gonna make sure that the trust is funded with the title of your house. Yes. You know exactly what. but if you didn't use somebody good like that, then you wanna make sure, hey, I have this trust. Look at the title of your property and make sure that it's titled in the trust. I see that a lot. And it's an honest mistake to make everybody. Jon G. Sanchez: Yes. Like specialized trust and estate plans? Okay, thank you. Yes. Cory: I thought he did it. I thought she did. I don't know what you're supposed to do it. No, they never put it in there. super simple to do. If you need to look at your title, I still get people to be like, well, I think the title's in my safe. So we're like, no, that your title hasn't been in your safe for years. Just to the Washoe County Recorder's Office or the Washoe County Assessor's Office online, and you can pull it up and it'll tell you exactly how that property's titled. And it's super simple. Jon G. Sanchez: Yeah. And yeah, I'll tell you what, we we look at both when we're doing our title research. I see different stuff. do you come across it? Okay. Yeah. Yeah. Yep. Every once in a while. Cory: Sure. Yeah. Yeah, every once in a while. And so the easiest way is to go to the recorder's office, look at the actual deed, the last one recorded, and see what the how it's written. And that is the gospel. That is the title right there. if you don't have a trust for whatever reason, but you're married, or even if you're not married, but you want to make sure, like if I get hit by a car, I want the person I'm living with to get the house, make sure you have a right of survivorship. It can be community property, it can be joint tenancy. Jon G. Sanchez: Yes. Cory: It can be whatever you want as long as it's writer survivorship so that it automatically passes to the other person that's on that title with you when they go. and then can get into talk to your accountant whether you should be titled ⁓ as joint versus community property because. ⁓ There are different ramifications in the state of Nevada when somebody passes away, different tax treatments. And I learned that the hard way with a family member. I had no idea that there were different tax treatments, but there are. So if worried about those things, then maybe talk to a good accountant or tax attorney to explain to you if my spouse passes away and we're joint tenants with the right of survivorship, what does that mean? Because it's sometimes it's not it doesn't mean exactly what you think it means. Jon G. Sanchez: Yeah. Well, along those same lines too, people think they're all protected joint tenants' rights to survivorship, which in a lot of cases they are, but where ⁓ you run across this a lot, Corey, and that is the five hundred thousand dollar tax free exclusion that you get when you're married, again, as soon as that f first spouse dies, you gotta be there too out of the next five years to to still utilize and many people about it. But well, you dealt with my father. He he did you guys make under the Did you make it under that that half a million dollars? You did, didn't you? That half a million exclusion when my mom died? Cory: It was a race at the end 'cause if you remember it w we were I was over there fixing the fireplace, doing all this stuff 'cause he had been trying to sell it with somebody else, it didn't work, and then we came in and so yeah, it was a it was a fight at it was a race at the end to get it underneath whatever date restriction it was. Yeah. Jon G. Sanchez: To get the five hundred thousand versus the two fifty? Yes. Yes, exactly. Why thank you. know he's looking to he's looking down from heaven, thanking you too. ⁓ he ⁓ he loved you. He he loved both of you. He he always just raved on and on. Yeah. You guys did great, great work with him. All right, great job, fellas. We'll do it again tomorrow on the John Sanchez show. We'll have an estate planning topic for you tomorrow. I promise you that. God bless. Have a great afternoon. Cory: Of course. He was always a pleasure to work with, John. He was a great guy.