The Jon Sanchez Show
10/03-Should I refinance now or wait?
The refinance wave is starting to build. According to the Federal Reserve, there is over $35 trillion in home equity, the most since the 1950’s. If you are considering refinancing, you may have a lot of questions. We’ll answer these questions, this afternoon on the Jon Sanchez Show at 3pm.
- Broadcast on:
- 03 Oct 2024
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- other
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A little bit of whiplash this week. I'm ready to get this week over. I was just going to say that. Yeah, a little bit of a whiplash from this week, and, yeah, glad it is Friday tomorrow. It has felt, and I mean this in all seriousness, it felt like two weeks blended into one. I don't know what it is, just this volatility, and the Middle East tensions, et cetera. Just, it's a, we've earned our money this week. That's all I can say. We have earned our money this week. For sure, for sure. I'm glad to hear you're in the same boat. Yeah, misery loves company, right? Absolutely. Oh my goodness, well, the show will be about Dwight. I'll tell you about that momentarily. But first, let's finish the introductions. Corey Edge of Edge Realty. How you doing, buddy? I'm doing great, and how are you guys? Sorry for the whiplash, you're good. Yeah. You wouldn't know what that's like for you. Yeah, yeah, exactly, exactly. It's nice and slow and steady, your world. How did this end up, Dwight? Well, Corey and I, I mean, you and I, you know, we live in a world where it changes second by second, and Corey just gets to go nice and easy, slow and steady. Little gains here, little losses there. Man, you chose the right career, Corey. You really did. Yeah, but you guys have all the excitement. Like, wake up, you never know what's going to happen every day. Yeah, this is true. I don't think I'd have the patience for your business. Yeah, it's, I need excitement. Like, Dwight, we're, we're adrenaline junkies. Oh, yeah, no, it's actually, especially Dwight. Dwight's built to be a mortgage lender, I mean. Yeah, he would have owned right. Or a stock trader, one of the two, or a bond trader. And it was so funny you said that today, Corey, because, or you just said that, because today we had a couple of hours where this market just, and I'm talking the Dow side of things, it just was not budget. I mean, we had three stocks positive up until literally the last couple of minutes for most of the day. And I'm just like, oh my god, what's something happening? You up down something to move this market. It would just not budge. And yeah, I was bored stiff during that time period. So you know my well, my friend, you know my well. All right, well, let me tell you what we have lined up for you this afternoon after we, of course, go through today's market activity, talk about the surge in gasoline prices. I hope you took my advice during the stock updates this morning and went to your favorite gas retailer and filled up, if not, go do it. Because if they already haven't raised the price at the pump, you're going to, by now, you're going to see it definitely happen overnight. So I'll tell you what's going on there. And we have President Biden to thank for what you're going to be paying at the pump, by the way. So here's our topic this afternoon. The refinance wave is starting to build and build and build. Now, if you recall, a month or two ago, we started to get into this subject, but things have changed a lot since then. We've had obviously a half a percent interest rate cut, rates of went down temporarily to climb on their way back up. I'm talking about the 30-year mortgage rate. But according to the Federal Reserve, and we shared the stat with you guys a couple months ago, there is currently $35 trillion in home equity sitting in the US, $35 trillion. This largest amount of home equity that the Fed has seen dating back to the 1950s. So we thought, you know what? If you are considering refinancing, which, again, the stats are showing that you are, you probably have a lot of questions, especially if you have not refinanced in years. Again, as this mortgage marketplace has changed. So what I've tasked the boys to do this evening is very simple, answer these questions. How does the refinance process work? What are you looking at, Dwight, to grant a refinance? What spread do we need to be looking at? I mean, there's some out there that say, you know, hey, 1% is enough. If I can save a hundred bucks a month, boy, refinance. And again, if it rates drop, you can do it again. All of these details, all of these questions come into play when you are deciding to pick up the phone and call Dwight and say, hey, I wanna refinance. I wanna pull some of this cash out. As Corey has so correctly said over the last, you know, six months, people have a lot of cash they want. They can only wait so long to start, you know, cashing in the ATM machine and pulling some of that cash out and utilize it hopefully for smart things. Paying down debt, maybe buying some more real estate, whatever it may be. But folks, if you're not thinking about refinancing now, you probably will be because, again, human nature is, you got this piggy bank, I hate saying that term, brings back some bad memories of some of the real estate crashes, but you got this piggy bank that's growing fairly nicely and at some point you're gonna wanna start taking some of that money out, most likely. And we wanna make sure that you make the right decisions and understand the entire refinance process. Dwight, just real quickly before I get to the stock market, tell us, since you're in the trenches every day, as a mortgage lender, is the phone ringing a lot on this subject or am I a little bit ahead of the curve? - I think you're a little bit, well, the fact that the feds lowered the rates at half a point on the 18th of September generated a bunch, but, you know, if you go to Mortar's News Daily, consistent higher rates and stead cut, you know, I mean, to your point, we've seen nothing but an increase in the mortgage-backed securities and the rates. But I mean, it's never too early to at least kind of start thinking about it, I think you're right, I think more and more people now are saying, how do I get into this equity position, you know, how do I get it out? And so when we talk about refinances later on in the show, we're gonna distinguish between just a simple rate and term refinance, is it time now, or, you know, and then obviously the big one is the cash-out refinance, where, how much can I get, where can I go, how do I get my hands on all this? So, you know, those are two different questions and two different probably answers that people are gonna have to kind of, you know, ask themselves, because it's, you know, but yeah, we may be just a little bit, but like you said, on Tuesday, you know, there's the probability now of a quarter point in November and a quarter point in December looking pretty. So, looking pretty good. So, I think that as we start talking about this, at some point in time, the, you know, I think you'll start to see that migration downward, don't you? I mean, I mean, this is a knee-jerk reaction and nobody can really explain it, but the media still, you know, is all over, I think, and the rates have come down. - You know, to your point, Dwight, as we discussed on Tuesday, and I want to, of course, bring it up tonight in that, again, the situation unfolding in the Middle East and Biden's comments today that just drove the oil market through the roof, so on and so forth. I said this on the show with Jason last night, and I'm gonna say it again tonight. You know, I've been doing this a long time, and just like you guys, you get some some senses, Jason calls him the Spidey Senses, you know, silver spider-man, so I'll use that term. My Spidey Senses are starting to sense there is something, something brewing underneath the surface, as far as what's gonna happen in the Middle East. And if that happens, if my gut is telling me correctly, Dwight, I think you could see, like, as we experienced earlier this week, an immediate flight to quality. I mean, you know, I know it was a tragic event when those missiles began flying into Israel earlier this week, but boy, what reaction you saw in the bond market, right? I mean, that told me in how nervous investors were, we haven't seen that flight to quality into the bond market, which, of course, drove those rates down, drove your yields down on the 30-year mortgages a bit, not nearly as much as the 10-year, by any means. But it just was a, I think it was a test, it was a shot across the bow to say, you know, if the situation does intensify in the Middle East, you could see people just piling bonds, drive the yields down, and then the mortgage market. So to your point, it may not be the time now, and I didn't expect you to say, yeah, now is the absolute time. But again, things could change at a moment's notice. And again, I'm gonna share with you what Biden had to say. And there is something brewing underneath the surface. You agree, Corey? - I do, and it felt like that for a little bit. You know, you also sit back and look at it and say, okay, well, it's September, it's October. It feels like every year, you know, you're playing this Groundhog Day, if something kicks in, you've got an election coming up, and then it kind of dissipates itself. This one might be a little different, because usually you don't have missiles flying, and now you do, and now you take a long time to, you know, to work through. But I do agree with you. There's something happening underneath, and hopefully we're wrong, but you know, you've been doing this a long time, so I'm sure you're right. A lot more than you're wrong. (laughs) - I try to be, I try to be. (laughs) Well, let's go to today's market action. Thanks for that, Corey. Let's go to today's market action, 'cause this is again what I'm seeing. You'll be in the trenches, you know, for every single day, of course, watching this market like a hawk. It was a day of volatility, just like yesterday, just like the day before, just like on Monday. This market is very nervous. Now, it seems like every day we have a reason to say, the market was volatile, the market was nervous. Today's excuse, of course, is we've got the nonform payroll numbers tomorrow. You know, folks, the market's not gonna give a damn about the payroll numbers tomorrow, right Dwight? I mean, they're looking for 135,000. If we get 135, if we get 150, it's not gonna be a market moving event. What this market is concerned about, and no one is talking enough about it, is the Middle East tensions. Folks, this is a very, very serious situation that could unfold. And so I think, you know, talking with our clients, people are very nervous. I just got off of an account review right before the show started. And, you know, people are very nervous. They're thinking about, hey, I wanna build up a little bit of cash, and I have to remind people, and we did it on our webinar last night, and you know, I'll mention it again now. Wall Street has historically been very resilient to any type of Middle East tensions, even when the bombs begin to drop, and the missiles fly, we don't seem to see a lot of sustaining panic. Now, of course, every situation is different, and I think this one could be different, based upon, as Biden said, some of the targets that the US is kind of, you know, putting a stamp of approval on for Israel to go after. I mentioned on the show last night, and also the previous night with you guys, you know, what makes me the most nervous, of course, is the nuclear facilities, right? If there's a lot of world leaders right now telling Israel that, you know what, this is your one and only opportunity to go after and knock out the nuclear facilities that are bunk or underground. But as Biden has, you know, talked about today, going after their oil facilities, he's all for it, basically. And so, you know, you think about that, and you think about what that could do to the world's oil flow and supply and shipping. We already, we know we have a major shipping strike by the longshoremen going on, people starting to worry about that. So, you kind of factor all this together, and you go, man, oh man, that's the reason the market is so volatile. And like I said, today was just one of those days where the market would raise its head up, and then boom, here come the sellers. Raise its head up, here come the sellers. And, you know, again, we kind of got lucky, only finished down 184 today. We were down over 300 multiple times, just like yesterday, just like the previous days. So, we're just watching things very, very closely at this point. We'd have the non-farm payroll numbers tomorrow, as I said, 135,000 is anticipated, but I don't think it's going to move the needle much at all. So, when we come back, guys, I want to spend just a quick moment talking about these oil price surge that we experienced today up over 5% on the price of oil, and a lot of it was attributed to President Biden's comments. I'll tell you what I mean in a moment. First, Kristin Snow is going to tell us what she means about the highways of Northern Nevada. Kristin, welcome back to the John Sanchez Show on Newstalk 780-KOH, which with core edge of edge reliability Dwight Mallard of Synergy One Lending. All right, we got a late afternoon rally. I mean, like last few minutes, it took us well off the lows, but still finished with a triple decline on the Dow, down 185 for the day, 0.44% to 42,000, 11. Now, is that not bad? Down to seven, same with the SP, lower by nine. All right, let's hit gold, $8.50 rise, 2,678, 20 an ounce, up seven basis points, Mr. Mallard, on the 10-year treasury 385. How do we do on the 30-year mortgage? According to mortgage news daily. Yeah, so the 30-year fixed on conventional is 6.26, John, which is, I mean, we were at 6.11, just two weeks ago. So you can see it's a steady, but it's a slow but steady increase up. So, I mean, people are kind of a little bit surprised when they are revisiting where rates are at and finding out that they're slightly higher than they were a couple of weeks ago. So, you know, you're about ready to take my advice. Like I said, the other day where I know you're getting probably so tired of saying the same comments over and over again when people call them, you know, or act completely shocked when you tell them that rates are higher than what they're, you know, thinking they are. And I told you, we need to do a little recording for you, do I? Yes, yes, yes. Wait, wait, my voice is better than we'll do. Yeah, yeah, exactly. You probably need it more than it is. John, it really is perplexing to people. And, you know, I mean, I get it because you explain it, you know, the dumping of the bonds and, you know, trying to, you know, but it's really 'cause people get fired up, you start to see the excitement and, you know, rates are coming down and then all of a sudden it just, it deflates them and it's discouraging. So, you know, it's, we just keep a close eye on it. Like you said, and, you know, I hate to see, 'cause I agree with you, if you see some Middle East tension, escalate, I think the bonds will do, you know, will start to improve, but, you know, what it costs. Yeah, yeah, exactly. All right, well, speaking of the Middle East tensions, I'm gonna jump to some information that came out today. And again, we had a, and this put some pressure on the equity market when Biden made the comments I'm gonna share with you in just a moment. But guys, I want everybody to think about something as I go through this data with you, this oil data. And what I want you to think about is, remember this folks, right? There's a whole economy's driven, the interest rate scenario, everything is driven by the anticipation of or lack there of inflation, right? We all agree upon that. Remember, oil prices, energy prices, et cetera, are a large portion, one of the largest portions of the calculation of the CPI, i.e. the inflationary data, okay? So, pretty simple. Oil prices rise, Corey, what happens to inflation? You're goin' up. You got it, opposite of what everybody puts. That's right, that's right, okay? So, this is why I wanna spend a little bit of time talking about what's goin' on with oil and the perception of what may potentially happen, because here we are, what do we guys said? Four weeks, five weeks, whatever it is from the election. Last thing Biden wants is inflation to go up, but he shot himself in the foot and the Democrats today. So, here's where oil finished up. So, I'm gonna go back to early this morning when I did my first stock update. I got my notes here. Oil was up $1.50 at 71.60 at barrel. We closed at $73.73 a barrel, up $3.61, a little over a 5% gain, about 5.2% gain. The bulk of this gain happened, guys. When Biden, I don't know where he was, but the press picked up on 'em, they were talking to him. And they asked the president if he would support Israel's attacking Iran's oil facilities. Biden said the following quote, "We're discussing that." Before he added, "I think there would be a little, "and then he just murmured, murmured, "and nobody can understand, "the press couldn't understand what he said." But he said, "We're discussing that. "And then I think that would be a little blah, blah, blah." Yeah, again, no one knows what he said there. So, immediately, I mean, we saw, you know, watching the church, we saw this oil price, this skyrocket based upon what the president said. He said, "Look, the US advises the Israeli government "on military operations, but we don't dictate them, "and there's nothing that's gonna happen today." So, we'll talk about it later. That was his quote, okay? Now, remember this, when I'm talking about inflation, let's go back to the summertime, right? Lower gasoline prices, lower oil prices, help pull down inflation, we all know that. That put money back in all of your pockets, right? You're paying less at the pump and so on and so forth. Now, if we start to see this average national price, I know we're gonna laugh about this, but the average national price right now, or actually, let's just say last week, was $3.18 a gallon for regular gasoline. That's according to federal data. That price is down 13% from April. Diesel prices, that price is down also, okay? So, we're down, but now it's starting to climb, and what we gotta do now is we gotta start watching the impact that's gonna happen on inflation. Now, let's talk about what happens in the event that this escalation occurs, and I found a great quote from a fellow by the name of Robert McNally, very well-respected. He's the president of the Washington-based consulting firm, Rapid and Energy Group. And he said, it's hard to overstate how complacent the oil market has become. And he gave an analogy of the boy who cried wolf, which of course, as he said, is a fable in which a shepherd lulls nearby villagers through repeated false alarms. He said, that story did not end well for the boy for the village. And so, that's his comparison to the oil market not paying enough attention to the tensions that are going on, even though they bid the price up. Some traders now, guys, are saying this, okay? So again, we closed it at 73.73 a barrel. Some traders now are saying, we could see oil prices skyrocket all the way up to $100 a barrel. And that's what some of the derivative action that we're starting to see in the oil pits is starting to happen. Trading in what we call call options, that's where they're betting that the market's gonna go up, tied to the $1.4 billion, $1.4 billion US oil fund, surging to its highest level today in more than two years. That's according to the CBOE global market data. Now, I ran real quickly. They pump about 3.3 million barrels a day. That's what they were doing in the second quarter. It's according to the US Energy Information Association. Ship tracking firms and traders say that the country often exports half or more of their output despite existing US sanctions. Now, a huge portion of the Islamic shipments abroad run through a massive terminal. And this is what the traders are focusing on will be one of the major targets by Israel. This massive terminal on what's called Karg Island in the Persian Gulf where skyscraper sized hankers ferry supplies to refineries in Asia and elsewhere. Now, Clearview Energy Partners recently estimated that an Israeli attack on that facility alone could add more than, you ready for this? $12 a barrel to oil prices. Just an attack on that one facility. That is equivalent to about 30 cents a gallon more in gasoline dependent upon the damage that we would end up paying. And even bigger fear is whether an Iranian response to such attacks could include an attempted closure of the Strait of Hormuz. Now, a key choke point, of course, for oil and refined petroleum products from other Gulf nations. A seven-day interruption. Now, listen to this. A seven-day interruption in shipments. So again, the Strait of Hormuz attacks, the ships get attacked, et cetera, and they shut it down as we've seen happen. A seven-day interruption in shipments could mean a jump in barrel prices by as much as $28 a barrel. So guys, we'll be looking at what? $100 and $510 a barrel? Imagine what that would do for inflation, how that would screw up the Fed, how that would screw up your world, Dwight, my world, so on and so forth. And that is the estimation by ClearView Energy Partners. That would add 67 cents a gallon to our pricing. That is the worst-case scenario, they said. So this is a serious situation, folks. And again, I don't, by any means, want to be, you know, crying wolf, like the one gentleman indicated. But this is the world that we live in, and this is what Corey and I are in doubt, Dwight, we're saying at the beginning of the show. There's something brewing underneath. Obviously, Israel has not said anything since the attack a few days ago. Something is going to happen. They are going to retaliate. There's not one strategist, analyst out there that follows the Middle East that has said they will not do something. The severity of it, that's the key. They go after these oil facilities, which seems to be pretty obvious, especially when Biden, you know, made the comments that he did. That seems to be a foregone conclusion. Whether they go after the nuclear facilities, that's a whole nother, very severe situation there. So that is the reason we're seeing this volatility, why you're seeing your portfolios, is bounce like a super ball right now. Let's turn it over to Greg Neff. He's got news traffic and weather, Greg. Welcome back to the John Sanchez Show on News Talk 780K, which with Corey edge of edge-ability, Dwight Millard of synergy one lending. Once again, we finished with a loss of 185 on the Dow down seven on the NASDAQ and a decline of 10 on the S&P 500. Should I refinance now? Or should I wait? That is the billion dollar question many people are asking. Again, there is a north of 35 trillion dollars in equity in this great country. Largest amounts dating back to the 1950s. Many of you are thinking about this. We want to help you make an informed decision. Dwight, let's start our discussion, and Corey, let's start our discussion first and foremost, the question that I get the most, which is, when do I refinance? As I said at the beginning of the show, some people think it's a half a percent differential, meaning an improvement, a one percent, one and a half, what's your rule of thumb, Dwight, on that one? You know, John, everybody's got a personal situation. I mean, if you can use the money now to take care of, you know, debt or college or whatever it is, I don't know that there is a number. You know, obviously you want to get better than what you have. And I think if you're just going to go out and refinance, just to refinance, I'd like to see, you know, at least a point, if not a point and a half, because we ran up so high, I think that giving some patience, I think you can get there. So, you know, the people who closed at the end of 23, or the first quarter and second quarter of 24, are in the most ideal positions to take advantage of a refinance, 'cause they probably closed into the middle, you know, sevens, low seven, middle sevens, and now, you know, you can take advantage of, you know, the lower six, lower to mid sixes, however you want to slice it. So, but the people who, you know, have been in these homes for a few years, and have those lower, it's going to be a tough one for them to trade off psychologically, even if they want to pull cash out, hence the reason why we did the HELOC, you know, show, you know, a few weeks ago, you know, as an alternative to take out the cash, they're going to find it tougher to, you know, justify that in their brain, how I'm going to go ahead and refinance and take a higher rate just to get some cash out. So, I just think that, you know, it's going to be a personal situation, but if you're just going to do, you know, a refinance, just a refinance, I think you got to at least shoot for a point, if not a point and a half. - Okay, so a percent or percent and a half. Corey, what do you tell people that come to you and say, "All right, I've got some equity built up in my primary home." Corey, I've listened to the show for years. I know you're a big fan and you are so involved in investment real estate. I want to take some of my cash out and go buy my first rental property. What's your advice to them for using cash for refinance cash for that type of application? - I don't think it's a war state in the world. Like we've talked about, we talked about a couple of weeks ago, it's got appreciating assets and appreciating assets. And in theory, hopefully, real estate is appreciating, not all the time, but most of the time. So if you're planning on using your hard earned equity for something else, it'd be no different than starting a business or something else to build some additional wealth. Then yeah, that's not the worst thing. And what I always do is like, okay, well, you need to call it why you need to figure out if you can do this. And don't be over rushed. That's the biggest thing I see is, okay, all the monies in my account. Now what's on the market? I want to find the next one to do daily. - I bet. - Let's not, let's not borrow all this money in 30 days. Now you have the ability to negotiate. So now let's sit back and wait and see if the right thing is going to come on the market. And the way you know that is hopefully you've done the homework upfront to say, okay, I want this type of property, I want this type of cap rate, return, this and that. And I'm going to have patience until I get it. - Love it, love it. Is patience one of the biggest enemies of a, especially a new real estate investor, Corey? - Absolutely. Yeah, I mean, it's the biggest patient. It's the biggest enemy of everybody. It's my biggest enemy, right? Like I have a business partner who has done incredibly well in his life and he's got 10 times better patience than I do 'cause he never sells anything and I love selling stuff. (laughing) And you can tell by our bank account, it's better. So, it's the pay for the wall we've kept. (laughing) - That is so cool, I love that, that is so funny. Dwight, another reason when, okay, so we got it down as far as the spread, right? Between what you're currently paying on your mortgage and what a potential new rate would be. How about this next issue? What about when you took out a loan, maybe you had a, I don't know, I'm just going to pick a hypothetical number. Maybe you had a 620 FICO score, okay? But things have improved. Maybe you've been in the house a year or two. Now you've got a 720 FICO score. That can be a significant difference in the rate that you're going to get. That's another reason, correct? - Absolutely, and not only that, you can combine it with maybe a little bit of appreciation and principal reduction. So your loan to value spread may be more favorable to get you that. So you're absolutely correct that there are people who got in, you know, maybe they got under an FHA loan because of the low credit score. And now it makes sense to go into a conventional. Those are one-off situations that would actually at least drive the interest to at least explore what would be the difference of what I have now versus what I could get, you know? And so, you know, so those are variables that always come into play and they're unique to each person 'cause you're right. If you're just getting in by the care of your change in chin, you know, and you got in and, you know, you were subject to all those low level price adjustments we've talked about. Well, you might be pleasantly surprised in it. You know, again, if you're sitting with a seven and a quarter, you know, even a seven and higher, I would at least explore it, you know? And there are people that when you did add-on, John, they were in the mid to upper seven. So those people should at least be looking at right now. And I think the big thing-- - Let me keep your chance. I need to interrupt you real quick. We got some breaking news. Seems to see you's reporting that the port strike is now over. The workers have, yeah, that was a quick one. Workers have agreed to a tentative deal on the wages and the contract extension. No details yet as far as what they finally settled on. But the port strike is over. I just went to the futures market. It's a slight improvement. We're still down about 27 on the Dow futures. We're down about 45, just a few minutes ago at the last break. So good news there. That's the, that was another thing, Wayne, on the markets and the economy. So I'm starting to interrupt you, Dwight, but I got to get that news out. Continue on. - Well, we don't want anybody running out of toilet paper again, right? - Yeah, that's for sure. - That's good news. But I think, John, you know, the topic of, you know, that you put together of cash out 'cause there's so much out there. I mean, it's a valid one and people are sitting there. So, I mean, if the cash that you take out is greater and more beneficial than leaving it in there, why not, you know, to Corey's point? I mean, you know, if you've got true necessities, whether you're trying to purchase something or you're trying to start a small business, it doesn't matter, but if it makes sense, then at least explore it and kick it, you know, but right now, just keep in mind, you're limited under FHA and conventional to an 80% loan to value maximum cash out. So you've got to have that equity either initially when you put it down and you grow over time or you've had it for a while. So that's the caveat there to just do a straight, single loan cash out refinance. - Okay, great advice. Cook before we go to break. How about this next one? I want to change my loan terms, right? I started with a 30 year. I now want to go to a 15 year. I want to expedite the payoff of my mortgage. I know we've talked about this a million times. You can, you know, turn a 30 into a 15 on your own without physically going out and getting a 15, but we all three of us know a lot of people like knowing that they truly have a 15 year mortgage. Is that another reason? - Absolutely. And you're starting to see a bigger spread between the 30 that you might have and the 15 year that you can get. So that is a fantastic one because most people are not disciplined enough to pay that 15 year term on a 30 year. They need to be, you know, it's kind of like putting, like you said, put money away in a 401k or an IRA. As you don't see it, you don't know it. And that's the same effect there. So people will do it just out of pure discipline to pay it down and off. - Got it. Wow, guys, real quick before I go to break. Let me just read to you what CNBC is saying right now. The union for US stock workers in the United States Maritime Alliance have agreed to a tentative deal on wages and have extended their existing contract through January of 2025 to provide time to negotiate a new contract. They got nothing, guys. They got nothing. - Oh, wow. - So yeah, the international, there's a quote, the International Longshoremen's Association and United States Maritime Alliance Limited have reached a tentative agreement on wages and have agreed to extend the master contract until again January 15th of 2025 to return to the bargaining table to negotiate all outstanding issues. That's according to the International Longshoremen's Association and the United States Maritime Alliance. And they said in a joint statement. Wow. I don't know if I've ever seen that. I'm assuming based upon that nothing was given, right? They said, all right, time out. This is a bad time to be doing this. Let's table this thing until January of 2025. But that is an amazing sentence. - Can I try to say we have a presidential election? - Right. - Yep. - It is weird. I'm sitting here scratching my head. I'm going to dig into a little bit further during the break here. Let's wrap it up with Kristin Snow in the Right Now Traffic Center. Welcome back to the John Sanchez Show on News Talk 780KOH. All right, we have an update on the port strike ending. But first, let's get the phone numbers going guys. Corey, number please. - 673-6700. - Mr. Millard. 240-2022. - Perfect. All right, look like CNBC was a little behind because Greg just whispered into my ear and I was looking also online on Wall Street Journal.com, dvstj.com. And the Longshoreman did get their increase. 62% increase in pay over the next six years. So if we average that out, that's a pay increase of 10.33% per year. And then for the heck of it, I thought, you know what, what did the UAW get? Remember that strike against General Motors and Ford and all that stuff? They received a 5.5% increase per year. So the Longshoreman did better than the UAW in this situation. But again, the rest of the issues, remember the automation at the ports and all those other issues, the Longshoreman we're trying for, that's what they're bumping up until January of 2025. So, you know, Greg and I were talking off air guys, you know, the JP Morgan said the strike was costing the US economy $3.5 to $5 billion per day. So this could have been, you know, very devastating, but like I said, I'm shocked that they, that it's over. So I'm glad it is, but I'm shocked. So something, something probably going on behind the scenes. I know the Biden administration was heavily involved in this. So we will see, we will see. Dwight, I apologize so much. We've had so many interruptions in your, your great explanation of things. I want to wrap things up with another reason to refinance Dwight. Obviously rates is a, obviously rates are a, you know, a given, the elimination of PMI, private mortgage insurance. This is something I think a lot of people forget about. Can you educate us on that side of it? Yeah, so there's two parts to this. The first one is FHA. So FHA, infeminously back in I think 2014, put the life of the low mortgage insurance on it. So anytime you make an FHA loan, you want to try to have a plan to get out of it at some point in time, otherwise you're going to pay mortgage insurance indefinitely. So when somebody gets, when somebody has a FHA loan and they want to get out of that, they've got the equity position, absolutely. Refinance out of the FHA into the conventional. On a conventional loan, you don't necessarily have to refinance in order to get rid of the MI. So you just, you know, talk to your loan professional, call me, there's other ways to do it, than having to go through the expensive cost of refinance. And sometimes that's what it takes, but there are other options as well. So, but it's a good point. It's a very good point, especially for those that hold the FHA loans. - Right, right, makes perfect sense. - Yeah. - That's, like you said, I think people, I remember when, you know, I think my first house I had an FHA. Yeah, you forget about the PMI side of it after a while. So great reminder at that point, yeah. - Mr. Edge, thank you, sir. Appreciate you, Mr. Mallard. Thank you, sir. - Absolutely. - Appreciate you. And again, a lot of news this afternoon on the show. So great job boys, appreciate all the interruptions. But again, get ahold of the guys if you need any help on the real estate side of things. Future's improving a little bit now. Future's now down about 20 points. So we'll have a lot to talk about tomorrow when we go through the non-form payroll numbers also. God bless, have a great evening. We'll see you tomorrow on the John Sanchez Show. Take care. - This program was sponsored by Sanchez Wealth Management. 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@sansheswealthmanagement.com or 775-801-01. 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 #1907235, Dwight Mallard, and MLS #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 a 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.