On Take it to the Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt...
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solve your credit card problems,
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how to make and
stick with the budget,
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simple ways to save,
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buying or selling a home,
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and many more financial
matters on Take it to the Bank.
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Hi, my name is Cordell Thomas
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and welcome to
Take it to the Bank.
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Today we're talking
about an interesting topic
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on mortgage versus rent.
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What is better?
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What is it about a mortgage?
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What is it about rent?
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What do we need to
consider several things
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that impact our
finances greatly?
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So I wanted to keep
it as simple as possible,
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I don't want to go
into too much depth
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but I do want you to know that,
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I'm willing to talk to you
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and refer you
to the right people
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as necessary.
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If you have those questions,
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be sure you
send me those emails,
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we will be
discussing one of the emails
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that was sent to
me or one of the calls
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that I received in
reference to mortgages.
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And I think
there are some of the,
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these specific issues
are going to be interesting
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as it will have a
direct application
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as to what you do
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because many of you are
living in urban settings.
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Many of you are
living in settings
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that may not
necessarily be the same
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as what you see on television,
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what you see in the media.
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The key to what we,
you need to understand
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about where you
live and what you do
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is there are benefits of
both sides of the issues.
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We see many of
these sports figures
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buying these
multimillion dollar homes
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and we begin to understand
that there are a lot of people
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buying things and doing
things and they're not happy.
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You know, look, it is
incumbent on each one of us
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to make a little money
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and to keep the
food on our table
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as the Bible actually says that,
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"Godliness with
contentment is a great gain."
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And it does talk
about those who are wealthy
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are in great
danger of becoming greedy,
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and those that don't understand
the context of wealth,
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will let wealth run their lives.
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Look at this issue of housing
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and how comfortable
you are as a resource
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because not all
of us will own homes,
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not all of us need to own homes.
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Rent is not a bad thing
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and sometimes when
you look at this overall
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as you call mortgage and rent,
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we get a lot of our ideas
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and a lot of our
sense of satisfaction
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from what we see in the media.
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For example, they tell you
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that the best time to
shop for certain things are,
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when they offer great deals,
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when they offer great sales.
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So a lot of us end up
waiting out on the sidewalk,
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camping out
overnight at retailers,
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waiting for
that the door to open
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and for everyone to
rush in and try to get
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and pull the deals
from other individuals.
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And people end up
fighting each other,
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and stomping on each
other, and hitting each other
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because of these things
that we are told to value.
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And those things
should mean nothing to you.
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In fact, when you take
a look at buying cameras,
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what are the best time
of year to buy cameras.
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You're told, you can go in
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and buy these electronic devices
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at the time that
they tell you to.
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But you know they have
this own self-interest in mind
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because they already know
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they're asking you to come in
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and buy these things
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in November, December timeframe.
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When, in fact,
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they know that they'll
have other newer models
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or have a changeover
in their product portfolio
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that January or February
and the better time to buy
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these cameras would be
maybe January, February,
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or March of the following year.
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So you spend
hundreds of dollars extra
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to buy something that's
gonna be out of use actually
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or not being the
current model year
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within two or three months.
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The key for you to
understand is this,
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corporate America is
not interested in you
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except that you
can buy from them.
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That's what happened
in the housing market
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and where a lot of people
were jumping into the market
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because they wanted to catch
this wave of the investment
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in a home and
then bait and switch.
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I got a call from a young man
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saying he'd like to
learn about how to flip homes,
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how to buy and then improve,
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and then turnover
the home and sell it,
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and make some money on it.
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I'm really not into that
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because I really think more
so that if you think long-term
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and you figure out the value
of what that house is about,
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the house is to
house your family,
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it should be
there for a long-term
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and you should
plan on staying there
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for quite a while.
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The other issues
that come to mind is
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how people begin
thinking about that house
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and how inadequate it is
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when we see our
friends getting promoted
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and going to different
jobs and getting more money,
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and guess what they do?
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They go out and
expand the house,
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and they buy a bigger house,
and they buy a bigger car,
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and they get into
spending what you make,
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and that's one of the most
dangerous things you can do
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because it also tells you
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that they don't really have
a substantive budget in place.
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And when you hear me talk,
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I go back to the
fundamentals all the time
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because that's all
we really need to do.
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All of these things called
investments, and acquisitions,
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and big vacation packages,
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and all of those things
that are long-term issues
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as you plan for them,
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can come about if
you start by saving now,
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by planning now,
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and by coming up
with an understanding
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of who you are and
what your importance
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in this space, in time,
is that God has for you.
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Great gain comes from
being content with what you have
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and when God
places you elsewhere,
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He will give you
what you need to have.
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So be careful of
this thing called greed,
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be careful of
watching other people.
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Remember, happiness,
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the study from the
science of happiness says that,
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money is put low
on the priority list.
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And honesty and integrity,
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and we find that
in the happy movie
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or whatever study that they did
from a filmography standpoint
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says that, people
are far more happy
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when they're
spending time with family,
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when they're
spending time with friends,
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when they're spending time
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doing things of
philanthropic measures,
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but doing things that
are bigger than themselves
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and giving to other people
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rather than get involved
with these contentious things
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and these Black Friday deals,
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where they buy
things for themselves,
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no matter who
they overrun to get it.
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You hear some
interesting stories
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from that standpoint.
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So when we talk about this thing
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called housing and mortgage,
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I think that we
should take a look
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at what a mortgage actually is.
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And when you look at a mortgage,
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let's take a look at
several different elements.
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One of the questions
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that we got from
one of our viewers
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had to do with,
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can I payoff a mortgage early?
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What is it with
the mortgage payments
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that can help me
get to that place?
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So what I did is I took a moment
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and I went and talked with
one of our financial experts,
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Mr. Joshua Hernandez
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and we had an
interesting conversation
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about this specific
issue, and this is what he said.
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This person sent me an email
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and she asked about
paying off her mortgage quicker,
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and she said, is it appropriate
to pay two times a month
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and will that help
payoff for her big investment
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in the home a little bit quicker
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as she's headed
towards retirement.
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What are your thoughts on that?
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Great question that.
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The answer is,
yes, definitely yes.
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The first thing
we need to know about
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paying interest on a mortgage
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is the first 10, 15 years
of your mortgage payments,
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the majority is
interest payments,
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so you don't always
see your balance, you know,
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going down as significantly
as you would like it to.
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But an extra payment
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at any time
definitely helps to reduce,
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you know, let's say,
it's a 30-year mortgages
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which is a very
typical mortgage.
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I've seen scenarios
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where I've talked to
mortgage professionals
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and they say, you know,
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even if you pay 1 extra
mortgage payment a year,
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you're moving
your 30-year program
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down to between 20 to 25 years.
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Wow.
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See, you know,
just one year helps out.
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Now if you can do that,
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you know, an
extra one per month,
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now you can move
your 30-year plan
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to closer to maybe
a 15 to 20 year plan.
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And so those are
things that I've seen
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depending on your
interest rate and your mortgage
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and you know, that you know,
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your financial situation,
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they can vary
but it definitely is,
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it's helpful and if
you can do that, it helps.
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Now I remember the conversation
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as I was
outside of a shoe store,
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that's where I was
and I had taken the call
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'cause it rings through at times
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when I get an urgent call.
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And I said, you know, as
I was talking to her I said,
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"Do you pay a
half of the mortgage,
00:08:57.47\00:09:02.14
or are we talking
about making your mortgage,
00:09:02.17\00:09:05.21
full mortgage payment
00:09:05.24\00:09:07.28
and then making an
additional mortgage payment
00:09:07.31\00:09:09.48
as opposed to making
half the mortgage payment
00:09:09.51\00:09:11.85
twice a month?"
00:09:11.88\00:09:13.21
Does that change
the scenario a bit?
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It changes a scenario
little bit, not very much.
00:09:15.12\00:09:17.42
Okay. Yeah, not too much.
00:09:17.45\00:09:19.69
So, you know, if
you're gonna pay,
00:09:19.72\00:09:21.12
you're saying you
pay half your mortgage
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at the beginning of the month
00:09:22.76\00:09:24.09
and the other
half of your mortgage
00:09:24.13\00:09:25.56
at the end of the
month or middle of the month.
00:09:25.59\00:09:27.16
Correct. Right.
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It does help it, it
doesn't help that much.
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You know, but if you wanna
add an extra payment per month,
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then that's when you start
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to significantly see
some increases or decreases
00:09:35.90\00:09:38.37
in your long-term mortgage plan.
00:09:38.41\00:09:40.81
Okay, okay, so I think that,
00:09:40.84\00:09:43.08
I hope that
whoever sent me that email,
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I hope you're watching.
00:09:46.28\00:09:47.62
And anyone else that has
questions about your mortgage,
00:09:47.65\00:09:49.35
please, feel free to email
those kind of questions in.
00:09:49.38\00:09:52.05
But in reference
to two times a month,
00:09:52.09\00:09:54.66
it works, it
pays it down quicker,
00:09:54.69\00:09:57.29
and you will be a
better person for it.
00:09:57.33\00:09:59.49
So you can pay
things off quicker,
00:10:03.47\00:10:04.93
you can do things
once you understand
00:10:04.97\00:10:07.07
how this thing
works called a mortgage
00:10:07.10\00:10:09.80
and many of us don't
00:10:09.84\00:10:11.17
because we just get
into it, this and we want it
00:10:11.21\00:10:14.48
because of this
thing called homeownership.
00:10:14.51\00:10:16.75
Is homeownership right for you?
00:10:16.78\00:10:18.38
Is it a thing that you
would like to get involved?
00:10:18.41\00:10:20.62
Is it something that
you're getting involved with
00:10:20.65\00:10:22.65
because you see
your friends doing it?
00:10:22.68\00:10:24.45
Is it something
you're getting involved
00:10:24.49\00:10:25.92
with after you've studied
00:10:25.95\00:10:27.92
where you're at
and where you wanna be?
00:10:27.96\00:10:29.96
May be it's
something you can put off
00:10:29.99\00:10:31.33
in the next three to five years
00:10:31.36\00:10:33.06
until you save
the substantial amount
00:10:33.09\00:10:34.76
necessary to put
as a down payment.
00:10:34.80\00:10:36.46
May be it's something you
don't really need right now
00:10:36.50\00:10:39.03
because you're
constantly moving around,
00:10:39.07\00:10:41.04
may be there are some
other things in place,
00:10:41.07\00:10:42.84
and then, of
course, understanding that
00:10:42.87\00:10:45.17
a rental versus a mortgage,
00:10:45.21\00:10:47.18
there are benefits on
both sides of the aisle.
00:10:47.21\00:10:50.21
But what I do say is go
back to your fundamentals
00:10:50.25\00:10:52.45
and think about, okay,
"What does my budget say?
00:10:52.48\00:10:54.52
How much money do I have?"
00:10:54.55\00:10:55.88
And there are some interesting
little tidbits out there
00:10:55.92\00:11:00.12
that I
typically throw out at you
00:11:00.16\00:11:01.82
when we talk about
getting involved in debt
00:11:01.86\00:11:04.99
because that's what
a mortgage actually is,
00:11:05.03\00:11:07.16
it's a long-term
debt that you payoff
00:11:07.20\00:11:09.06
over 30 years in most instances.
00:11:09.10\00:11:11.53
It's coming up with a
number, where are you now?
00:11:11.57\00:11:16.14
Where do you want to be
00:11:16.17\00:11:17.51
in the next two
years, five years, ten years?
00:11:17.54\00:11:20.41
And then is a mortgage
a part of that expense?
00:11:20.44\00:11:23.55
And then, of course, looking
at rental type of expenses
00:11:23.58\00:11:26.48
and what that incurs.
00:11:26.51\00:11:27.85
One of the things
people look at is for housing.
00:11:27.88\00:11:30.19
And, you know, for living
00:11:30.22\00:11:32.39
we typically put a
number associated with that
00:11:32.42\00:11:36.06
and that number
is about 33 to 36%
00:11:36.09\00:11:39.03
of your monthly
income should go towards
00:11:39.06\00:11:42.40
paying for some type
of rental or mortgage,
00:11:42.43\00:11:44.83
whichever keeps a
roof over your head.
00:11:44.87\00:11:47.30
So what is that 30 to 35%
00:11:47.34\00:11:49.47
and if you put it into
a specific number to it,
00:11:49.50\00:11:53.68
if you're making $6,000 a month,
00:11:53.71\00:11:58.05
33% of that or
3rd of $6,000 a month
00:11:58.08\00:12:02.35
is $2,000.
00:12:02.38\00:12:04.15
Is that something
that gives you a context
00:12:04.19\00:12:07.62
of what you can afford?
00:12:07.66\00:12:08.99
And what I actually ask people
to do is, okay, a 3rd is $2,000
00:12:09.02\00:12:13.70
but the rental
market in your area
00:12:13.73\00:12:16.10
is more like $1200 to $1400.
00:12:16.13\00:12:18.93
So you can, since
you've allocated that amount
00:12:18.97\00:12:22.34
towards living expenses,
00:12:22.37\00:12:24.47
now you can cut
back approximately, what?
00:12:24.51\00:12:27.58
Six to eight hundred dollars
00:12:27.61\00:12:28.94
because the
market in and of itself
00:12:28.98\00:12:30.88
has told you that you're
in a better type of setting.
00:12:30.91\00:12:33.55
Of course, there
are other elements
00:12:33.58\00:12:35.25
involved in that
00:12:35.28\00:12:36.62
because you have to
include many different items
00:12:36.65\00:12:39.12
associated with
your home expenses.
00:12:39.15\00:12:41.42
What do those entail?
00:12:41.46\00:12:43.29
Well, I can tell you that
00:12:43.32\00:12:44.66
if you live in a
home or the yard,
00:12:44.69\00:12:46.19
then you don't have
the time to mow the lawn,
00:12:46.23\00:12:48.83
somebody is gonna
have to mow the lawn,
00:12:48.86\00:12:50.60
so there could be
$60 a month expense
00:12:50.63\00:12:53.54
to have someone
come and take care
00:12:53.57\00:12:54.97
of gardening expenses.
00:12:55.00\00:12:56.84
How big is the house?
00:12:56.87\00:12:58.21
How much heating
does it have to entail?
00:12:58.24\00:13:00.24
How much water does it
take to keep the lawn green?
00:13:00.28\00:13:04.55
All of these become major issues
00:13:04.58\00:13:07.22
as we talk about homeownership.
00:13:07.25\00:13:10.92
One of the other
most important things,
00:13:10.95\00:13:12.75
that people don't
take in consideration,
00:13:12.79\00:13:15.99
is that when we get
a promotion at work,
00:13:16.02\00:13:19.09
when we get a bonus at work,
00:13:19.13\00:13:20.93
when we get some type
of extra money coming in,
00:13:20.96\00:13:23.90
we typically spend that
00:13:23.93\00:13:25.87
and put it into a bigger house,
00:13:25.90\00:13:28.50
another car, some
other type of expense.
00:13:28.54\00:13:31.11
Remember this,
when you get money
00:13:31.14\00:13:34.21
the best thing
you can do with it
00:13:34.24\00:13:35.58
is plan for a long term.
00:13:35.61\00:13:36.95
If you have a budget in place
00:13:36.98\00:13:38.41
you know what
you're planning for.
00:13:38.45\00:13:40.15
So if your
objective is to payoff debt
00:13:40.18\00:13:42.58
you're gonna take that
bonus and help payoff the debt.
00:13:42.62\00:13:45.45
If you know that you
planned to do some other things
00:13:45.49\00:13:49.86
or plan to put some more
money into an emergency savings,
00:13:49.89\00:13:53.06
you're gonna take that bonus,
00:13:53.09\00:13:55.06
or you're gonna
take that increase funds
00:13:55.10\00:13:58.40
that you're taking home,
00:13:58.43\00:13:59.77
you'll apply it to your budget
00:13:59.80\00:14:01.44
and you look how
you can save more,
00:14:01.47\00:14:04.17
how you can put more
back to work for God's glory,
00:14:04.21\00:14:09.08
and look at providing
some type of mechanism
00:14:09.11\00:14:12.45
where you can say
I've been a good steward.
00:14:12.48\00:14:14.38
Because we are going
to be held responsible
00:14:14.42\00:14:16.75
for how we manage the funds
00:14:16.79\00:14:19.12
that God has given us
and it's very important,
00:14:19.15\00:14:21.69
it's very important
00:14:21.72\00:14:23.06
because I've
seen it all the time.
00:14:23.09\00:14:24.73
You got a bonus
at work, you go out,
00:14:24.76\00:14:26.53
you get the better car
00:14:26.56\00:14:27.90
'cause now I can
afford the better car,
00:14:27.93\00:14:29.50
and you get into this
debt for the next four years.
00:14:29.53\00:14:31.97
And if it's a lease on a car,
00:14:32.00\00:14:35.34
that could extend
itself from four years
00:14:35.37\00:14:37.91
to almost seven years.
00:14:37.94\00:14:39.27
If you get a four year lease,
00:14:39.31\00:14:40.64
then of course you've leased it
00:14:40.68\00:14:42.01
and you still
have to buyout the car,
00:14:42.04\00:14:43.75
so after the lease is done
00:14:43.78\00:14:45.41
you have to still get a
loan to buyout the rest,
00:14:45.45\00:14:49.95
the remaining value of the car.
00:14:49.98\00:14:51.45
We don't think
about those things.
00:14:51.49\00:14:54.16
And then, of course,
the question comes up,
00:14:54.19\00:14:55.82
"Is a lease better
than a buy on a car?"
00:14:55.86\00:14:58.26
We can get into
that at a latter time,
00:14:58.29\00:15:00.43
it wasn't asked of me
00:15:00.46\00:15:01.80
but I thought I should
mention it at this time.
00:15:01.83\00:15:03.80
We are talking about
mortgage versus rent,
00:15:03.83\00:15:06.33
and one of the things that
Joshua talked about is that,
00:15:06.37\00:15:09.74
it is possible for you to payoff
00:15:09.77\00:15:11.97
your mortgage early.
00:15:12.01\00:15:15.04
Is it important to do that?
00:15:15.08\00:15:17.31
Is it in part of your
budget? Can you do it?
00:15:17.35\00:15:19.45
And if you do have a budget
in place, you can now say that,
00:15:19.48\00:15:22.68
you know, every couple of months
00:15:22.72\00:15:24.49
I have accumulated an
additional amount of money
00:15:24.52\00:15:27.69
that I can actually take
00:15:27.72\00:15:29.06
and pay an extra
payment on my mortgage
00:15:29.09\00:15:31.09
that will pay it down quicker.
00:15:31.13\00:15:33.06
But we, as consumers,
00:15:33.09\00:15:34.50
have got caught up
into this overall ideal
00:15:34.53\00:15:38.00
that we need to
buy, buy and buy.
00:15:38.03\00:15:41.94
Our viewership on
television is up substantively.
00:15:41.97\00:15:44.64
This whole technology
with smartphones and tablets
00:15:44.67\00:15:48.78
has increased
access to our lives,
00:15:48.81\00:15:51.05
and so now we are watching
00:15:51.08\00:15:53.08
an average of 151
hours of television
00:15:53.11\00:15:56.79
on a monthly basis.
00:15:56.82\00:15:58.15
Added to that is
people are actually watching
00:15:58.19\00:16:01.02
live streaming and
television on their smartphones.
00:16:01.06\00:16:03.86
They are added on to that
as another six hours a month
00:16:03.89\00:16:06.86
that we're watching
video on live streaming
00:16:06.90\00:16:09.03
on our
smartphones and our tablets.
00:16:09.06\00:16:11.23
Now we begin to understand
00:16:11.27\00:16:12.60
that we're
spending a lot of time
00:16:12.63\00:16:13.97
watching others do other things,
00:16:14.00\00:16:17.17
and guess what it's going on?
00:16:17.21\00:16:19.27
The media has
you in their grasp.
00:16:19.31\00:16:21.64
Because do you
think a major corporation
00:16:21.68\00:16:25.91
would spend $3.5
million for a 30-second spot
00:16:25.95\00:16:29.68
on major
professional football game?
00:16:29.72\00:16:34.06
Why would they? Is
it worth their while?
00:16:34.09\00:16:35.89
Of course, it is.
00:16:35.92\00:16:37.59
Because they're
reaching millions of people
00:16:37.63\00:16:39.76
at one point in
time, they have their eyes.
00:16:39.79\00:16:42.76
So when you watch those things,
00:16:42.80\00:16:44.87
they know that with
something in the imagery
00:16:44.90\00:16:47.70
and what they're
trying to tell you,
00:16:47.74\00:16:49.10
you're going to respond,
00:16:49.14\00:16:50.51
you're going to
behave in the way
00:16:50.54\00:16:51.87
that they're
asking you to respond.
00:16:51.91\00:16:53.58
To the tune of people
not saving and spending
00:16:53.61\00:16:57.25
all of the funds
that they actually make
00:16:57.28\00:16:59.75
to buy the things that
people are telling them to buy.
00:16:59.78\00:17:03.42
It's crucial that we all
take a sense of responsibility
00:17:03.45\00:17:07.09
in not wasting our
time that we're given.
00:17:07.12\00:17:09.52
Psalms 90:12 tells
us this essential thing.
00:17:09.56\00:17:13.19
Help us to number our days.
00:17:13.23\00:17:16.67
We have 70
years, 80 if we're lucky
00:17:16.70\00:17:20.07
and in those
years that you give us,
00:17:20.10\00:17:22.20
help us to gain
wisdom and insight.
00:17:22.24\00:17:25.34
It's essential
that we take that step,
00:17:25.37\00:17:28.48
assess where we are,
00:17:28.51\00:17:29.84
question
everything that comes our way,
00:17:29.88\00:17:32.11
and don't just accept
00:17:32.15\00:17:33.95
what people tell
us to do in the media.
00:17:33.98\00:17:36.48
I will tell you this that
the media will mislead you
00:17:36.52\00:17:39.19
in a variety of ways
00:17:39.22\00:17:40.66
in reference to how
they get you to buy.
00:17:40.69\00:17:43.49
We all consider
certain big trucks
00:17:43.53\00:17:46.80
very durable, don't we?
00:17:46.83\00:17:48.23
And they send us
commercials that tell us
00:17:48.26\00:17:50.17
you've got to get this truck,
if you're a real hard worker.
00:17:50.20\00:17:54.07
And we don't see
behind the scenes
00:17:54.10\00:17:56.30
that they may have had
to do 20 different takes
00:17:56.34\00:17:58.71
on the same truck
leaping through the air
00:17:58.74\00:18:01.14
because the truck
actually broke apart
00:18:01.18\00:18:03.68
as it landed the first 15 times.
00:18:03.71\00:18:05.95
You don't know what's
going on right now with imagery.
00:18:05.98\00:18:09.12
One of the big
things with millennials
00:18:09.15\00:18:11.22
is the fact that
anything on the internet,
00:18:11.25\00:18:14.02
you don't know
if it's real or not.
00:18:14.06\00:18:15.72
People can splice things,
put heads on different objects,
00:18:15.76\00:18:19.03
they can do whatever
they would like to do
00:18:19.06\00:18:21.40
to make this
thing seem very real.
00:18:21.43\00:18:23.37
So we don't even
know what is real versus
00:18:23.40\00:18:26.27
what is not or artificial
in what we're watching,
00:18:26.30\00:18:29.17
and we get caught into
that process of consumption,
00:18:29.20\00:18:32.41
and we go out and do.
00:18:32.44\00:18:34.18
And now everyone knows
00:18:34.21\00:18:36.01
that we are living
paycheck to paycheck and,
00:18:36.04\00:18:38.15
as middle class
Americans or urban dwellers,
00:18:38.18\00:18:40.65
we are caught up in
variety of other things
00:18:40.68\00:18:42.95
that waste our
money and waste our time.
00:18:42.98\00:18:45.52
These things are
called payday loan centers
00:18:45.55\00:18:47.56
that give you a payday loan
00:18:47.59\00:18:49.92
and people aren't really aware
00:18:49.96\00:18:52.09
of the
magnitudes of the interest
00:18:52.13\00:18:54.43
that they're being charged.
00:18:54.46\00:18:56.30
And this homeownership
thing is another major issue
00:18:56.33\00:18:59.63
because if you think
about how you furnish your home,
00:18:59.67\00:19:02.47
the simplicity of how
you furnish your home.
00:19:02.50\00:19:04.54
And we don't get
caught up in buying things,
00:19:04.57\00:19:07.24
and buying a lot of stuff
00:19:07.28\00:19:09.48
that that leads to all
new programs on television
00:19:09.51\00:19:13.31
about people who can't control
00:19:13.35\00:19:15.15
their expenditures
and the behavior patterns.
00:19:15.18\00:19:17.65
One of the things
that's come out of our
00:19:17.69\00:19:19.32
consumption
type of conversations
00:19:19.35\00:19:21.12
is there are now these
extreme couponers that,
00:19:21.16\00:19:24.46
that do a great
thing in couponing,
00:19:24.49\00:19:26.59
which is a good thing.
00:19:26.63\00:19:27.96
But then, of course, sometimes
you end up buying stuff
00:19:28.00\00:19:29.80
that you don't even need,
00:19:29.83\00:19:31.17
and you house them
00:19:31.20\00:19:32.53
with the intention
of maybe retailing them
00:19:32.57\00:19:34.07
or doing something other thing
00:19:34.10\00:19:36.60
kind of creative
to get rid of it.
00:19:36.64\00:19:39.44
Now I'm not criticizing
any type of couponing
00:19:39.47\00:19:43.65
because saving
money is an ideal thing,
00:19:43.68\00:19:45.81
but do you save money on
the things that you need?
00:19:45.85\00:19:49.08
Or do you buy things that
you don't necessarily need,
00:19:49.12\00:19:51.55
but you're just doing it
because it's a good deal?
00:19:51.59\00:19:54.42
There is a difference.
00:19:54.46\00:19:55.79
And buying a
house and looking at
00:19:55.82\00:19:57.86
what works for you
00:19:57.89\00:19:59.23
comes through the
same type of critical thing
00:19:59.26\00:20:01.56
that you should
apply to any other funding
00:20:01.60\00:20:05.93
or monetary decision
that comes across your table.
00:20:05.97\00:20:08.67
It's asking that extra question.
00:20:08.70\00:20:11.11
And that's why we
label this whole series
00:20:11.14\00:20:14.61
a critical think on money.
00:20:14.64\00:20:16.44
You have to ask
that additional question
00:20:16.48\00:20:19.18
and to know for certainty
00:20:19.21\00:20:20.72
why you're getting involved
in this type of transaction.
00:20:20.75\00:20:24.99
Many times I get
caught up with people
00:20:25.02\00:20:27.26
coming to my front door
00:20:27.29\00:20:28.96
and asking me to
do certain things.
00:20:28.99\00:20:31.13
And the first thing
that comes to mind is,
00:20:31.16\00:20:32.83
why are they coming and
asking me for something?
00:20:32.86\00:20:35.16
How are they dressed?
00:20:35.20\00:20:36.53
Why are they
pursuing this from me?
00:20:36.56\00:20:42.60
I get annoyed at
times and, you know,
00:20:42.64\00:20:45.74
from a Christian perspective
it's tough to figure out
00:20:45.77\00:20:47.64
how you respond when
someone is being very tenacious
00:20:47.68\00:20:50.25
and they won't go away.
00:20:50.28\00:20:51.68
But you have to know how
to say no in the most nice
00:20:51.71\00:20:54.82
and innovative way,
00:20:54.85\00:20:56.18
and tell people
that you love them
00:20:56.22\00:20:57.55
but, no, I'm not
really interested.
00:20:57.59\00:20:59.82
People keep coming by my door
to sell other type of items,
00:20:59.85\00:21:05.29
which I know I
don't really need,
00:21:05.33\00:21:07.66
I don't really need
it at this point in time
00:21:07.70\00:21:10.27
and, of course, I
have that conscience
00:21:10.30\00:21:12.60
on my shoulder
through my spouse,
00:21:12.63\00:21:15.74
she'll just look at
me and say, "Cordell.
00:21:15.77\00:21:18.47
Really, do we really
need this right now?"
00:21:18.51\00:21:21.14
And that's my answer.
00:21:21.18\00:21:22.84
Because, you know,
they have such creative ways
00:21:22.88\00:21:26.68
of giving you a line that
says this is something you need.
00:21:26.72\00:21:30.92
One of these
gentlemen came to my front door
00:21:30.95\00:21:33.12
and he actually
pulled out a smartphone
00:21:33.15\00:21:35.29
and he said, you're going
to need this security device
00:21:35.32\00:21:38.16
because right down
the street from you
00:21:38.19\00:21:39.96
is some person that
is on the most wanted,
00:21:40.00\00:21:44.20
or on the police officers' list,
00:21:44.23\00:21:46.33
or is a child molester
or whatever the case maybe.
00:21:46.37\00:21:50.91
And I look at this image
00:21:50.94\00:21:52.27
that he puts in front
of me on this smartphone,
00:21:52.31\00:21:55.64
and I take a step
back, and I said, yeah,
00:21:55.68\00:21:59.41
I need some type of security
00:21:59.45\00:22:01.32
because if this is
what's going in my community,
00:22:01.35\00:22:04.19
I need to be more aware of it.
00:22:04.22\00:22:05.95
But realistically,
00:22:05.99\00:22:07.79
as Christians we
know that contentment
00:22:07.82\00:22:10.73
associated with
Godliness, a trust in God,
00:22:10.76\00:22:13.40
can take care of a
lot of our concerns,
00:22:13.43\00:22:15.43
and there's a
peace involved in that.
00:22:15.46\00:22:17.67
And that helps us to
ratchet our anxieties back
00:22:17.70\00:22:22.00
and figure that there are
other more important issues
00:22:22.04\00:22:26.27
then worrying about
this house, this building,
00:22:26.31\00:22:29.91
this facility that I live in.
00:22:29.94\00:22:31.41
And if I live in it
in a comfortable way
00:22:31.45\00:22:33.58
and budget to
the overall process,
00:22:33.62\00:22:36.65
then I know that I'm in line
with Christ's will for my life
00:22:36.69\00:22:40.46
and He'll protect me
00:22:40.49\00:22:41.82
and take care
of the other things
00:22:41.86\00:22:43.19
that I can't control.
00:22:43.22\00:22:44.56
But in reference to housing,
people asked us to compare
00:22:44.59\00:22:46.59
housing versus rental.
00:22:46.63\00:22:47.96
And one of the things I
tell people is, number one,
00:22:48.00\00:22:50.27
with the rental understand
what type of agreement
00:22:50.30\00:22:53.34
are you getting into.
00:22:53.37\00:22:54.77
Is it a lease agreement,
00:22:54.80\00:22:56.47
which is
typically for 13 months?
00:22:56.50\00:22:58.74
Or is it a rental
month-by-month type of process?
00:22:58.77\00:23:02.84
Understanding what
that is gives you an idea of
00:23:02.88\00:23:05.15
if you can leave immediately
or if you need a short,
00:23:05.18\00:23:08.58
to get that contract
shorten that lease shortened
00:23:08.62\00:23:10.82
so you can leave
on an earlier basis.
00:23:10.85\00:23:12.72
Know what you're signing
00:23:12.75\00:23:14.09
because it can
prevent you from moving on.
00:23:14.12\00:23:16.59
Most people who
move quite frequently
00:23:16.62\00:23:18.66
will sign a
month-to-month rental agreement
00:23:18.69\00:23:21.46
as opposed to getting involved
in a yearlong lease agreement.
00:23:21.50\00:23:25.37
So understanding
what you get involved in
00:23:25.40\00:23:29.24
is a critical item
from a rental standpoint.
00:23:29.27\00:23:33.78
So that's the consideration
we'll have from a rental
00:23:33.81\00:23:37.28
because rental will give
you a little more freedom.
00:23:37.31\00:23:39.98
Because you won't have
to worry about, you know,
00:23:40.02\00:23:42.42
any type of upkeep
issues with the facility,
00:23:42.45\00:23:45.72
any things that break down,
00:23:45.75\00:23:47.22
if a water heater
goes the property taxes
00:23:47.26\00:23:50.46
and that type of thing
00:23:50.49\00:23:51.93
which is what you
do have to worry about
00:23:51.96\00:23:54.46
when you go into homeownership.
00:23:54.50\00:23:56.16
So there is more
flexibility as a individual
00:23:56.20\00:23:59.13
and what you have to worry about
00:23:59.17\00:24:00.60
when you're getting
into a rental type of setting
00:24:00.64\00:24:03.34
versus if you get into
some type of mortgages.
00:24:03.37\00:24:05.77
Mortgages bring into
account, as I mentioned before,
00:24:05.81\00:24:08.81
property taxes.
00:24:08.84\00:24:10.18
One of the benefits of renting
00:24:10.21\00:24:11.55
is you don't have to worry about
00:24:11.58\00:24:12.95
that specific item called
a property tax, you don't.
00:24:12.98\00:24:16.75
The property tax
issue is relevant
00:24:16.79\00:24:19.02
and can be quite expensive.
00:24:19.05\00:24:20.89
So when you're getting
involved in the mortgage,
00:24:20.92\00:24:23.22
what is an important thing
that you talk to the bank about?
00:24:23.26\00:24:28.26
Can you include property taxes
in my monthly mortgage payment?
00:24:28.30\00:24:33.17
It makes it easier for you.
00:24:33.20\00:24:35.00
I've seen it from
both sides of the fence,
00:24:35.04\00:24:37.81
where I paid the minimal
amount to continue the mortgage,
00:24:37.84\00:24:43.48
and then there
were the property taxes
00:24:43.51\00:24:45.05
that weren't included in it
00:24:45.08\00:24:46.98
and I had to take
care of that expense
00:24:47.02\00:24:49.98
at the end of the
year at the right time.
00:24:50.02\00:24:51.72
If you were spending
00:24:51.75\00:24:53.09
a budgeted amount
on a monthly basis,
00:24:53.12\00:24:55.16
then the balloon payment
of a property tax of the year
00:24:55.19\00:24:58.99
can be avoided.
00:24:59.03\00:25:00.96
So those are big issues
that people typically think of,
00:25:01.00\00:25:04.57
concern themselves with,
00:25:04.60\00:25:05.93
and try to negate
those extreme expenses
00:25:05.97\00:25:10.37
when it comes to it.
00:25:10.41\00:25:11.74
Other issues include
insurance for the house,
00:25:11.77\00:25:15.01
the homeowners insurance
00:25:15.04\00:25:16.38
is practically
through your acquirement
00:25:16.41\00:25:17.75
when you're buying a home,
00:25:17.78\00:25:19.11
so always consider that
00:25:19.15\00:25:20.48
insurance is very
good in the key issue.
00:25:20.52\00:25:23.18
You know, I've seen
in different states now,
00:25:23.22\00:25:25.12
I always thought
it was just California
00:25:25.15\00:25:26.52
that had to
concern with earthquakes,
00:25:26.55\00:25:28.72
but it's other places too.
00:25:28.76\00:25:30.36
I've seen it in
here in Illinois,
00:25:30.39\00:25:32.33
I've seen
earthquake preparedness issues
00:25:32.36\00:25:35.33
in other states and
it's a relevant issue.
00:25:35.36\00:25:39.13
So there are offers
right now on the table
00:25:39.17\00:25:42.30
for homeowners in California
00:25:42.34\00:25:44.24
to get some type of
earthquake insurance,
00:25:44.27\00:25:48.14
in case something happens
00:25:48.18\00:25:50.11
and the house has
to be reconstructed.
00:25:50.15\00:25:53.31
So those are little items
00:25:53.35\00:25:54.72
that I would make you aware
of in reference to making sure
00:25:54.75\00:25:58.02
you have the
right type of insurance.
00:25:58.05\00:26:00.72
The other issue is
maintenance and repairs.
00:26:00.76\00:26:03.12
They always come up,
something always comes up
00:26:03.16\00:26:04.99
and the bottom line
00:26:05.03\00:26:06.36
in reference to
homeownership is this,
00:26:06.39\00:26:08.13
do not go into any
type of homeownership
00:26:08.16\00:26:10.40
type of situation
00:26:10.43\00:26:11.83
unless you have some type
of emergency savings in place.
00:26:11.87\00:26:16.24
It's key to have
00:26:16.27\00:26:17.61
because there's
always something,
00:26:17.64\00:26:18.97
especially, if you get
into a fixer-upper type of home
00:26:19.01\00:26:21.58
as opposed to
getting into a new home.
00:26:21.61\00:26:23.35
In a new home, if you
may buy a new facility,
00:26:23.38\00:26:26.11
you're going to get the warranty
00:26:26.15\00:26:27.68
on all of the
items that's there.
00:26:27.72\00:26:29.32
But when you get
into some type of home
00:26:29.35\00:26:31.65
that you might have to fix up
00:26:31.69\00:26:33.36
and you have to do
a lot of stuff with,
00:26:33.39\00:26:35.09
you'll find that
expenses will hit you
00:26:35.12\00:26:37.23
as they have hit me.
00:26:37.26\00:26:38.96
The water heater, for example,
00:26:38.99\00:26:40.36
will always be one of the things
00:26:40.40\00:26:41.73
I'll remember.
00:26:41.76\00:26:43.10
Because we've owned the
home for about seven years
00:26:43.13\00:26:45.63
and our water heater broke down,
00:26:45.67\00:26:47.20
I was a little frustrated
00:26:47.24\00:26:48.57
because you go to
the store thinking,
00:26:48.60\00:26:49.94
wow, 7 years I
guess that's pretty good
00:26:49.97\00:26:51.97
to have water heater for,
00:26:52.01\00:26:53.34
and we found from other people
that there's lasted 22 years.
00:26:53.38\00:26:56.81
So equipment will
breakdown at different times
00:26:56.85\00:26:59.71
without your expectation
00:26:59.75\00:27:01.22
and it's therein
you begin to understand
00:27:01.25\00:27:03.79
that comparing
housing and renting mortgages
00:27:03.82\00:27:07.09
and rental lease agreements
is our major decisions
00:27:07.12\00:27:11.09
that only come
from preparing yourself
00:27:11.13\00:27:14.56
through a budget,
00:27:14.60\00:27:16.16
preparing yourself by planning,
00:27:16.20\00:27:18.70
preparing
yourself for the unexpected
00:27:18.73\00:27:21.30
in all of these items.
00:27:21.34\00:27:22.87
The bottom-line is
planning, personal planning
00:27:22.90\00:27:26.14
because when you
know and you understand,
00:27:26.17\00:27:28.94
and you've
prepared for the unexpected,
00:27:28.98\00:27:31.98
these things can be handled.
00:27:32.01\00:27:37.79
As we come to a close today,
00:27:37.82\00:27:39.45
I want to talk to you
really about this thing
00:27:39.49\00:27:42.62
called satisfaction
and complete contentment.
00:27:42.66\00:27:47.06
The Bible says,
00:27:47.10\00:27:49.83
"Godliness with
contentment is great gain."
00:27:49.86\00:27:53.37
Be happy with what you
have, plan for the future,
00:27:53.40\00:27:56.67
budget your life,
00:27:56.71\00:27:58.04
and you will take
that to the bank and save.
00:27:58.07\00:28:00.61
God bless you.
00:28:00.64\00:28:01.98