The Jon Sanchez Show
09/17-What are the best uses of home equity?
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Yeah, absolutely right. Corey Edge of Edge, really, how are you, my friend? - I'm doing very well, sir. - Good, glad to hear it, glad to hear it. Well, Dwight, to answer your question, the reason it's a beautiful day, I am now officially a grandfather, and my son and his wife had a beautiful baby girl born this morning at Carson Tahoe Hospital about eight o'clock and got to watch the whole delivery on FaceTime, and I'm just giddy, guys, so I'm just absolutely giddy. Lexi Lyn Sanchez, thank you, thank you. Wama and the baby are just phenomenal, and the baby is so beautiful, and I just can't out wait to hold her, and, ah, man, like, friends have always said, nothing like being a grandparent, so this feeling's any taste of it, I just, I can't imagine. (laughing) So, yes, I'm in a very, very good mood, guys. Thank you, I appreciate the kind words. All right, well, there's my day, so I'm done, so you guys can have this enough. (laughing) All right, let's get down to business today, guys. So, we're gonna go through today's market activity, we'll kind of get Dwight's latest perspective, of course, on mortgage rates from the standpoint of the big day tomorrow, of course, when we get the Fed interest rate decision, kind of tell you where the latest indications are, as far as what percent are expecting a half a percent cut versus a quarter percent cut, but then we're gonna get down to our topic. You know, the amount of equity, that, and I mentioned this on the show yesterday, so I want to kind of, obviously we were talking about other things, but I want to bring this to the focus of the real estate side of the show tonight. So, the amount of equity that Americans have in their homes has increased 80% or nearly $16 trillion, just from the end of the year of 2019. Think about that for a second. $16 trillion increase in home equity. And that's through the second quarter of this year, that's according to Bloomberg. Now, as we will discuss, if mortgage rates continue to decline, right? We were pushing 8% at our worst level back in, what was that, do I, around October, if memory surge went correctly? - Yeah, that's fast, yeah, that's all right. - Right around there? So, if we get these rates continuing to decline, ultimately, as both Corey and Dwight have said, over and over again on this show, ultimately, you the homeowner are gonna start taking some of your newfound wealth out in the form of a HELOC, cash out refinance, whatever it may be. But the question we're gonna help you answer tonight is, what is the best use of your home equity, right? There are good things you can do with it, and there are some stupid things and some bad things you can do with it. Well, that's ultimately your decision. Our job is to say, look, here are some of the most financially prudent things that you can look at utilizing that home equity for. So, we're gonna share with you this list that we put together and help you make those spending decisions as the saying goes. Dwight, real quick, before I get to the stock market side, or actually I'll ask both of you, what is the most foolish thing you've ever seen somebody do? And you may not even know because they don't, they never tell you what they're gonna really spend it on. They just tell you what they think they're gonna spend it on, but in reality, who knows where the money goes. But does anything ever stand out to you that you've heard from past clients? - A European vacation, you know, because, yeah, I mean, you know, and you know, when somebody has got their mind on it, what's interesting though, John, in the early days of my career, we used to have to tell you what you were doing with any of the equity you were pulling out, right? I mean, we had to, you know, there wasn't, we just didn't leave it blank. Now there's not so much, you know, micromanaging of what you do. So people, I'm sure, like you said, especially if they have that credit card and that checkbook from a HELOC, I mean, you know, it's unlimited, but yeah, they got back from a European vacation and, you know, good for them, but I know it cost a lot of money, they just didn't hold back. But, and I don't hope that's foolish, but yeah, I mean, there's probably worse things, right? There's probably worse things. - Oh yeah, yeah, definitely. Corey, how about you, does anything stand out that you've heard? - No, I mean, I hear about, I've heard about just kind of the depreciating essence of when a bag goes, the boats, those kinds of things. I did have a gentleman one time tell me a few years ago, and it wasn't a client of mine, we were just talking about it, that he had pulled out a lot of equity, if not all his equity and invested in one of those real estate seminars. So the tune of "World in the Six Figures" and I was talking to him at Home Depot 'cause he was working there, so obviously the seminar didn't work out too well for him, but-- (laughing) - As usual, yeah. My story is this takes us back to the dot com era, and, you know, I was, I just got independent, this was what, 1999, obviously things were booming in the stock market at that point. And I don't know, it was kind of the latter part of '99, we had quite a few months of just, obviously, incredible stock market activity. And had a, he was a prospect, he wasn't a client call up and say, yeah, I wanna take you, I don't get your advice on taking out about, I think it was either three or $400,000 of equity out of his home. And he wanted to go put it into a brokerage account and invest in a dot com stock, I won't mention which one it was, invest in a dot com stock. And then in addition to that, not only did he end up doing that against my advice, and again, he wasn't a client, but not only did he end up doing that, but I got a phone call about, oh, I'd say a year or so later when things began to fade. But not only did he take this three to $400,000, again, I can't remember the exact amount out of his home, but then he went further and he went on margin. And again, for those of you that may be new to the show or new to investing, when you have a taxable account, a trust, a joint tenant, a single name, on an account, in most cases, you can borrow up to 50% of the value of that account. So in his case, let's say it was $300,000, well, the brokerage firm's going to lend him $150,000. So now he's trading $450,000. Well, it just so happened. Of course, what happened, the dot com bubble burst, and he lost it all and got his house foreclosed on and so on and so forth. So, yeah, it can happen, especially in crazy times where people just, the cocktail party, hey, my buddy, just made a whole bunch of money trading this or trading that and you want to, the FOMO, the fear of missing out, you'll do whatever you can to get your hands on that equity, and that's why, again, you've got to be very careful because, you know, something interesting to what I was thinking about this, getting ready for the show also. I remember back in my very early days when I worked for General Motors Acceptance Corporation, GMAC, the auto lending side, and I was a credit analyst there, and I remember so many times people would, you know, I was the one that was reviewing the credit apps when the dealers would fax them over, like you always do it in that curly paper, right? You'd have to kind of put paper weights on it to read the credit app. But I remember reading that and so many times people, of course, would utilize their home equity for the down payment on a car, or sometimes they'd pay cash for it. And I always used to think how foolish that was because, you know, a lot of people, of course, you know, let's say you take out whatever $20,000, $50,000 nowadays to put it on a car, which as Corey just said is a depreciating asset, but number two, think about it. You know, if you keep that home equity line of credit to its term, you know, usually as the white will indicate, you know, that usually they will amortize and come do in 10 years and amortize over 30. You could be paying on a car for 10, 15, 20, if not longer years, not the best use of the money, right, Dwight? (laughs) - Absolutely not. - Yeah, yeah. So again, you got to be careful about it. But I always shock guys when I did this research to find out that amount of equity that is sitting out there. And I mean, look at a chart, pull it up somewhere, guys, on the, not you guys, but the audience, pull it up on the internet. There's some incredible charts like at Bloomberg, for example. And it just shows how this equity has this skyrocketed on these last few years. I had no idea that amount was so great. So anyways, we're going to go through and help you spend some of that money wisely. But in the meantime, let's get down to the stock market side of things today. Lot of intraday volatility, both on the NASDAQ and the Dow Jones industrial average side of things. We did hit an all-time ultra high for the NASDAQ and an all-time ultra high for the, excuse me, for the S&P, we had an all-time ultra high, an intraday high is the best way to put it. And same for the Dow, remember, we closed it a record closed yesterday. So an intraday, all-time high for the Dow Jones industrial average. But we didn't finish there. Came close on the Dow side. We only lost 16 on the Dow, gained 36 on the NASDAQ and gained just one point on the S&P 500. Had a bond auction that didn't go very well. But bottom line, guys, what we're seeing, of course, is people very, very nervous about tomorrow. So let's kind of bring everybody up to date with the latest FED funds features. Contract is guesstimating as to be the cut. So as of today, we are sitting at a 63% probability of a half a percent cut. That is a dramatic increase. From one week ago, that same number was 34%. So from one week ago, 34% probability of a half a percent, to now 63%. Corey, I'm gonna start with you. I'd love to get your perspective in the same question as I'm gonna come to you, Dwight. Your anticipation of market reaction with a half a percent or with a quarter percent. - You know, this is the first, correct me for a month. This is the first live FED meeting that I can remember in a long time where you're not sure what's going to happen as far as quarter or after all the other one. - That's right. - Jerome Powell's been a pretty good job. You know, even though there's a bunch of people talking all different directions, you kind of knew what he was gonna do. I don't know what this one. My personal thought is he'll probably go a quarter. - I'm guess, and I think that's probably the wisest choice, but he could go a half and, you know, question back to you is a week ago or two weeks ago, if he, that 30 was, if he goes a half, the market's not gonna like it, something's wrong. Well, now it seems like if it goes a quarter, the market's not gonna like it, something like that. - Exactly. - I don't know, it might be too bad option there. - Yeah, yeah, yeah. And let me interject for a turn over to you, Dwight. And what's interesting is, and I'll share with you some stats on that. I went back and I did a little query to find out how did the market perform the S&P the day after a Fed interest rate cut. And I'll share that again with you when we come back. But what's interesting is you're gonna find out they were not big performances, because remember folks, the market is a forward looking indicator, right? The market is already priced in a cut. Now, again, whether it's a quarter or a half, so again, as I always like to say, what's gonna be most important is not a quarter or a half, but it's gonna be most important what Jerome Powell says at the press conference at 11.30. Decision comes out at 11, press conference at 11.30. I think guys, if he gives some type of hints that this is one of many Fed rate cuts to come, I think the market could get excited. If he doesn't telegraph that, then I think the market, again, whether it's a half or a quarter, could really interpret it. Like you just said, Corey, so correctly and eloquently, it's anybody's guess, right? A quarter percent is, geez, they didn't do enough. A half is, oh, what are they seeing on the horizon? So that is why I'm saying this press conference is gonna be the most important part of this whole interest rate decision. So I'll share with you how the market has performed again on a historical basis, the date of a Fed interest rate cut when there's not a recession. Let's turn it over to Jack Saban right now in the right no traffic center. Jack, how are we doing? Welcome back to the John Sanchez, showing you stock 780 kiwh with Corey Edge of Idrility at Dwight Millard of Center G1 lending. All right, as I mentioned, we finished down 16 on the Dow, close of 41606, NASDAQ rose 36 and 0.20% in the S&P higher by just one. All right, what are the best uses of your home equity? We're gonna be discussing that ahead of tomorrow's Fed interest rate decision, but before that, guys, I wanna give a little bit of history. Now, I didn't have a chance to go way back into history. So what I'm about to tell you is a little bit skewed because we were in a bit of a different economic environment, the last three times that the Fed has cut interest rates, all right. Now, that time period was pre-COVID. 2019 was the last time that we saw some aggressive rate cutting by the Fed. So I wanna share this with you. And I thought I was, I pulled up the Dow Jones or the S&P, but I'm gonna cover you with just what the Dow did. So here we go. The last three cuts occurred July 31st. These is all 2019, July 31st, September 18th, and then October 30th. Now, remember, these cuts at that point, we had a slowing economy, a little bit different than what we have now. There were some concerns about growth in the economy and a lot of uncertainties about global trade. So again, a little bit different mixture, but to my point of what I said earlier, the streets already priced in a cut. It's just a matter if they want a half or if they want a quarter. So going back into history, on July 31st, the Fed cut rates a quarter percent. That was the first cut dating all the way back to the year 2008. And this reduced the Fed funds rate to a range of between 2% to two and a quarter. And I mind you folks, we're up to five and a quarter now. So that shows how low things already were at that point. That day, when the Fed interest rate decision came down, the Dow Jones Industrial Average lost 338 points or 1.23%. September 18th, here we comes the next Fed cut, down a quarter percent. Drop the Fed funds rate between 1 and 3/4 to 2%. On that day, the Dow finished up modestly just 36 points. And then the final cut of that year, October 30th, that was the third rate cut. Saw another quarter percent come down, that lowered the Fed funds rate between 1 and 1/2 to 1 and 3/4, and the Dow finished down 140 points or 0.51%. And what kind of got everybody also at that point was that the Fed hinted that they would pause future rate cuts unless there were significant change in the economic outlook leading to a mixed reaction to the market. So this is my point of what I said before we went to break. It's not going to be the rate cut that moves the market one direction or the other. It's going to be what the Fed is, you know, telegraphing as far as future cuts. You know, we all know the way that Jerome Palace. He's not going to predict out in the future. He's not, in my opinion, he's not going to say, oh, you know, hey, guys, this is one of many that we're going to be giving you. No, he's going to say we're going to be dependent upon economic data and address this each and every meeting we have. Now, remember, folks, there is no meeting in October. We have two more meetings for this year in November and December. So this is where the whole confusion comes in. Now, Dwight, let's come over to you. Let's see the reaction of what you're dealing with right now in the bond market and mortgage rates. So we've finished up two basis points on the tenure today at 3.64%. You've kind of been stuck here for a while on this yield, how we do on the 30-year mortgage, according to Mortgage News Daily. - Yeah, so Mortgage News Daily puts the conventional 30-year fixed rate at 6.11 today, John. That's been right where we've been talking for the last, probably a couple of weeks. The FHA rate, according to Mortgage News Daily, is 5.65. - You know, I'm agreeing with you, and, Corey, I think a quarter with positive movement in the future is the best case. I would hate to see him do a half. And, you know, it is so split between my peers on a half and a quarter, but I'd rather see, I always say, 'cause it's like you always say, "It's not what they do, it's what they say." So we already know, I mean, if he did nothing, that would be a real tragedy, I think. But the quarter would make sense, 'cause the street is already kind of bought into it, right? But, John, here we go back again. Feds have done nothing, and we were at 7.79 on a 30-year fixed rate, October 26. So less than a year later, we've come down almost two points, and the Feds haven't done anything. - That's right, that's right. - So, I mean, they're going to help on some of the relief, what we're talking about, home equity lines, things like that tomorrow. But I mean, the market is taking care of the 30-year fixed rate. - As we've always said, we know this, yeah. We know this, yeah, I'm not saying we know this twice. No, this is what we always say, and caution everybody about. Again, the bond market is the tell to. What the Feds doing, folks, let's remind you again, as I did last night. When we talk about tomorrow, if we get, again, pick your poison, half a percent or quarter a percent, remember, folks, that's the FED funds rate. That is the rates that bank charge one another to borrow money overnight. That's it. It has nothing to do with mortgages or car loans or credit cards. However, we immediately, if we see a cut, we immediately see the prime rate go down, and then that prime rate is attached to a lot of things, like credit cards, like auto loans and so on and so forth. And then, Dwight, of course, now you, obviously, your mortgage rates are dependent upon the bond market. So, as you just said, the bond market's already done the work for the FED, theoretically. - I mean, and I hate to see it get a disruptor thrown into it, right? And so, I mean, it's a lot of caution tomorrow because, you know, the mortgage-backed security market, although be it small, it was off today, right? On anticipation and to your point, I'm not, a quarter of a point isn't gonna be a victory lap for me 'cause you might see rates actually rise a little bit, you know? - Yes. - So, you know, it's really, I wish, now I wish there was just less things along the way we were going. I mean, you put a-- - You're saying that? - It's gonna easily have been in the five, you know? - Yep, a lot of people, a lot of market strategists and economists, right? Corey, you've heard this, are saying that exact same thing. They're saying, we wish the FED would not do anything. We don't think they need to do anything at this point. So, it's interesting. Now, real quick, guys, before we go to break, I wanna throw this, Corey, you'll love this stat here that I dug up. So, this is according to Evercore ISI. So, I told you how the market has reacted in the last three rate cuts, but again, keep in mind, you have to look at the overall environment, different environment than what we're in right now. Now, Evercore said this, the S&P 500 has slumped an average of 4% in the six months following the first rate cut in a rate cutting cycle. If the economy was in a recession, that goes all the way back to 1970. So, let me repeat that. S&P has slumped 4% in the six months following the first rate cut if the economy was in recession. And remember, this is an argument. Many are saying we are in a recession. Others are saying, and I've always said this, we won't know for months if we're in a recession or not. Now, that's again, if we're in a recession. If we're not in a recession, the S&P has posted an average gain of 14% when the Fed is in a non-recessionary period going forward the next six months. So, keep in mind, you know, we have, let's see, where do we finish out today on a year-to-date basis? We got the S&P up 18.1% year-to-date. So, that's how important this recessionary call, again, that we won't get for months upon months is as far as the market performance. We in a recession, great. You're looking at a, you know, gain of only 4%, or, excuse me, a loss of only 4% over the next six months. If we're non-recessionary, an average of 14% gain for the S&P going forward, you know, for the next six months. So, isn't that interesting, Corey? How the market focuses so much on recession versus non-versus really the rate cut? - Oh, yeah. I see a point you really don't know until hindsight, whether or not you are in the recession. I think tomorrow, one of the big things I look at, too, is we get the dot plot. So, they're gonna see how aggressive future rate cuts, if any, will be through the next zone if the dot plots go out at least two years, maybe more. And he, if that is in line with market expectations, because to Dwight's point, I completely agree, a lot of times the bond market will price all this in, and sometimes they overshoot. So, if you get a quarter percent cut, you may see rates rise 'cause they may have overshot thinking they're gonna have a half a percent cut. So, you know, the theory or everybody that's waiting for tomorrow's decision to lock in rates, you might wanna rethink that, depending on how the decision comes out in the news conference. - Absolutely. Yeah, it's all gonna be how he walks the fine line and describes the Fed's feature activity, you know, going forward, obviously. So, yeah, I don't think, I don't know about you guys, but I'm not hearing too many people saying that. Most people are, you know, strategists are saying, no, it's depends, you know, mark where you act as I just share with you, based upon, you know, the size of the cut, and again, recession or non-recession. But, I think most importantly, it's gonna be what the chairman has to say at that news conference. So, don't miss tomorrow's night's show. That's all I can tell you, do not miss it. Speaking of don't ever miss, and that is Mr. Greg Neff. He's got news, trafficking, weather. How you doing, Greg? (laughs) Deal. (mumbles) - Welcome back to the John Sanchez Show, a news talk, 780 KOH, it's with Dwight Millard of Synergy, One Lending, and Corriage of Edulity. We finished down 16 on the Dow, rose 36 on the NASDAQ, and a one-point gain on the S&P 500. Hey guys, I dig up one more stat during the break, I want to share with you, and then we'll get to our topic tonight, which is what are the best uses of home equity, as America is swelling with home equity at this point. I found a note that came out of JP Morgan from their traders today, and they said by cutting, meaning tomorrow's interest rate cut, of course, if you just joined us, by cutting by a half a percent tomorrow, that would be more of a quote clearing event that would propel the market into gauging the impact of other factors, such as earnings and the November presidential election. So in other words, it's behind us, right? We don't need to talk about it anymore, it's done. To them, it would actually, it wouldn't excuse me, to them it wouldn't actually send the market into a panic, but calm it by validating the market's expectation for an aggressive easing for 2024. So in other words, in English, it's setting the table that the Fed's going to be more aggressive going forward for the rest of this year, and into next year, than a quarter percent. Now, conversely, what did they say? On the other hand, if we get a quarter percent, they said it would quote, add to market uncertainty, meaning that we probably shouldn't expect the market to keep building on its all time highs with a quarter percent. So they said essentially the only positive outcome for markets in a 25 basis point scenario, would be a string of stronger than expected labor market data over the next month. So there you go, another mixed emotion. So oh, what a day it's going to be tomorrow. Gotta get to bed early tonight, not bad about it. All right, guys, let's get down to our topic tonight. What are the best uses of home equity? As we said at the beginning of the show, according to Bloomberg, 80% of homes have, or excuse me, home equity has increased nearly 80%. If we go back to 2019, 80% increase, bringing that total of home equity to $16 trillion. So if you haven't already done so, you probably will be given to why to call to start taking some of that equity out as these mortgage rates, if they continue to fall. So we thought, all right, what are some of the best uses that we can tell our audience, our dear family, you guys, about, what can they do with it? Especially if this is the first time that you decide to take some equity out. So put together a list of about nine. But before we do, do I, real quickly, please educate everybody about what a home equity line is, how the pricing is done, and how the rates fluctuates before we get into it. - Yeah, so the home equity line of credit, and you're gonna start to see some creativity, John, with all that $16 trillion. But typically what you do is 80%, some go to 90%, but it's based on prime, plus the margin. And so to give an example, like today, so your prime's at eight and a half, a typical bar would fall into, let's just say, that 80% HELOC would be prime plus two, is that your most likely scenario. So your 10 and a half today. Well 10 and a half today, yeah, on that home equity, conversely to what we saw what four or five years ago where we were, you know, 3% on your HELOCs. So, but as the feds would change rates up or down, so let's say down tomorrow, you might go from eight and a half, the prime might now drop to eight and a quarter if they do a quarter point. So that will have an impact on the home equity lines. And John, I mean, you know, there are several reasons coming over, but synergy one offers on my website a 60 minute home equity line of credit application and approval. So I mean, these things are getting very, very aggressive in terms of tapping out equity. So, you know, it's, you're gonna start to see, I think, you know, this, like you said, an untapping, especially if they're starts or lower rates. Okay, now real quickly, Dwight, as far as how the rates work, you explain a course as prime plus, you know, two points will just call it. Now, when do these adjust and how susceptible are they to future interest rate increases or decreases? So they'll adjust. So it's a 10 year draw period typically. So it's interest only for that period of time. So during that period of time, it will adjust the next payment cycle of any movement of prime rate. So any movement of prime will adjust your payment the next payment cycle. So it can adjust if they get on a little interest rate, it decreases on, you could start to see multiple decreases if they do that over the next several months. So your payment would be affected on the next billing cycle from that reduction. - There you go, there you go. And that's my point, and I know you guys agree, if we get on this, again, aggressive interest rate, cutting cycle, you could start seeing your payment going down. Let's say they do it, you know, between now and next year is most on the street anticipate, you could start seeing that interest payment drop, drop, drop, drop, drop. Now, conversely, Dwight, rates start to go up, obviously the opposite just happens, but you said they go for 10 years, and then they convert into a 30 year, if the member serves for it. - It's a 20 year, it's a 20 year amortization. So the total loan periods, 30 years, it's whatever the unpaid balance is after that 10 years goes, it rolls into a 20 year amortization. And basically simplicity, the market rate. - And website, the people can go to, you mentioned that Synergy now has us on the website, I think you guys, 60 minute approval. - Yeah, so it's just, well, I've got to get my, I don't know what my email is, I don't know what my website is. - All right, when you give your phone number next break, have that address for us. - Yes, I have that one here. - That's all right. Okay, let's get into our nine reasons, or nine things I should say that we can prudently do with our home equity if we start to take it out. Corey, first one is you, the home renovations or improvements. Of course, we can take out some equity to finance our remodeling project, do some upgrades or repairs. Hopefully that will increase the value of the home. So that's a pretty good spend if you do it correctly. Expand on that what you would like to see, as far as remodels to kind of get our good return on investment on that. - Yeah, I think if you do it correctly, and if you need it to be done, right? There's no problem with updating a house. You just want to make sure, if all we're looking at is with a financial piece of it, not the emotional, not the all the other, but just the financial piece of it. You want to make sure that if you're going to do a remodel, you don't want to remodel beyond what your name or characteristics, because at any point, something could change, maybe you got to sell that house. And if you have something extra 500 grand into that, and the process around you haven't done anything, well, you're only going to get so much value of that back, as Mr. Lace explains to us all the time for the appraisal matters. So I think it's prudent if you need it, if there if you need it, just be wise, and any kind of remodels you do. Editions are the same thing. I see houses all the time, and there's nothing wrong with them, John, where you have one house that's 6,000 square feet surrounded by houses that are 1500. Well, now that creates an issue. And just remember that a lot of times, you're not going to get a dollar in, a dollar out. All right, very rarely do you get that. So you just want to be prudent with the money if you're going to start revolving, spending it that way. And real quickly, Corey, what would you like to see done? Is it, you know, the granite countertops, or there's certain, and it changes all the time, but what do you see in the market place right now that can give me a good return on my home equity money? I still think it's just like the old days, kitchens, bathrooms, backyards are a big one now, because a lot of people are staying home. They're having the big kind of decks and arbors and outdoor kitchens and those kinds of things. Third cargo, or not third cargo, I'll just detach garages. Those kinds of things will bring value. If you need something repaired, if your roof is 40 years old, and you're trying to decide whether should I replace my roof or lead to my bathroom to the roof, I mean, the things that always blows my mind when people come in and I'll have a listing, and they'll be like, everything's great, but you're a sewer line collapse. Well, we're going to negotiate because we don't think we should have to pay for like that. Everybody expects functional plumbing, non-licking roofs, all those things when they buy out. So, you have those issues in the market. - But you can't see that stuff, Corey. You can see the backyard remodel. - I know, that's not sexy, but it is important. - That's right, that's right, kind of important stuff. All right, we'll come back with Dwight's going to mention about deck consolidation. Let's wrap it up with Jack Saban in the Right Now Traffic Center, Jack. Welcome back to the John Sanchez show on Newstalk 780K, which Adobe White Millard, let's start with you phone number and that website for that quick pre-approval process on the-- - Absolutely, 240-2022. So, it's just wwws1l.com/loanoffsurp, backslash the white hyphen millard. - Got it, beautiful. Corey and David Drility, phone number song. - 673-6700. - Beautiful. All right, guys, let's get hustling here. What are the best uses of equity? He said, obviously, home renovations and improvements. Dwight, real quickly, the deck consolidation. Obviously, the numbers, this is a no-brainer, right? If you're paying, let's say 15% on your credit cards and other debts and so on and so forth, at that rate, whatever it is, is higher than what it's going to cost you after tax deductions or tax deductibility of interest, et cetera, many times that home equity line of credit will make it more greater sense. This is my favorite and most effective. You had 15's a low number right now, right? 30% most credit cards. So, deck consolidation, as you said, no-brainer. I mean, if you only got 2500, 3500, it's probably not worth the effort, but anything, you start to get up 8, 10, 15, 20 grand all day long. - Absolutely. Our third point, investing in education. Now, many people will, I have seen this with clients, they will take out home equity money. Again, whether they want to further their education, maybe an MBA, a PhD, they're going to be out of the workforce for two years, three years obtaining that degree. Not a bad use, right? Return on investment. How much are you going to make once you obtain that degree versus what it's going to cost you? It's a pretty simple math. Now, I want to give one caution and delight. I know you've lived through this many times as I have. Back in 2008, 2009, many clients were looking to use their home equity line of credit to send their children or grandchildren to college. All of a sudden, they got a letter because of the fallout in the real estate market. They got a letter from their lender saying, "Hey, yeah, you have a $100,000 home equity line of credit, but we're yanking it." Nothing related to them, it was just banks pulled back. So that's always a possibility. - Yeah, they froze them really fast. And if you start to see a market situation deteriorating, be aware. So, yeah, that's just be aware. - Absolutely. All right, I'm going to throw a two in real quick. Starting or expanding to business? Absolutely, great use once again. What's going to be my return on investment for that? Emergency expenses, you've heard Dwight and I and Corey say this all the time. Even if you have a paid in full home or you've got all this equity and you don't have any use for it at this point, still get the home equity line of credit. It doesn't really cost too much of anything, maybe $1,500 a year, but it's available for any type of an emergency that arises. Then Corey, wrap us up on buying a second home or investment property, another great use of home equity. - I think that's just another form of investment, especially if it can get you in a position to have positive cash flow. You're confident with the property. It makes financial sense. It's no different than starting a business. You're just starting a real estate business. So, put the same terms and everything on it, get the experts on it. Absolutely. Go for it. - Love it. Love it. - Hey, Dwight. - John, there's a programs out there that have equity advances. So, you know, there's lots. Well, they'll give you your equity on your house that you're getting rid of if you're actually moving. So they'll advance your equity up front. So, there's lots coming this way. Like I said, yeah, it's gonna get real interesting with 16 trillion out there. - Yeah, that's it. Yeah, and like you said, creative financing, right? A lot of fun topics, guys. Great stuff. We'll do it again tomorrow night. Don't miss the show after the Fed interest rate decision. See you guys. God bless everybody. - The material in this program was intended as general information only and should not be taking a specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John@santresswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through Independent Financial Group LLC, a registered broker, dealer, and investment advisor. Member FINRA SIPC. Securities only offered in states, John Sanchez is registered in. Sanchez Wealth Management LLC and Independent Financial Group LLC are unaffiliated entities. Synergy One Lending Equal Housing Opportunity, and MLS number 1907235, Dwight Millard. And MLS number 24129, phone number 77524022. The information provided today is for educational purposes only. The position strategies or opinions of the show do not necessarily represent the position strategies or opinions of Synergy One Lending or its affiliates. All information loan programs, interest rates, terms, and conditions are subject to change without notice. Synergy One Lending offers home loan financing only Synergy One Lending is not affiliated with the John Sanchez Show. Any speakers, companies, or institutions feature, this is a paid advertisement. - When you need meal time inspiration, it's worth shopping king supers for thousands of appetizing ingredients that inspire countless mouth-watering meals. And no matter what tasty choice you make, you'll enjoy our everyday low prices, plus extra ways to save, like digital coupons worth over $600 each week and up to $1 off per gallon at the pump with points. So you can get big flavors and big savings, king supers, fresh for everyone, fuel restrictions apply.