Financial Independence Day–Episode 404 - Video

Your Financial Independence Day happens when your residual income stream amount exceeds your basic monthly expenses.

Rental demand is high for three big reasons: rates are rising, stringent mortgage qualification standards, housing undersupply.

I answer three listener questions: Should I make a big down payment? Is borrowing at lower than inflation profitable? What about prepayment penalties?

Ridge Lending Group President Caeli Ridge joins us to discuss today’s mortgage lending landscape.

Today, are ARMs beginning to make more sense than fixed-rate mortgages? We explore.

Learn about the cash-out refinance climate. Second mortgages on income properties are still limited.

Does it ever make sense to refinance to a higher mortgage interest rate? We discuss.

Caeli Ridge thinks mortgage rates will keep rising.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/404

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE

or e-mail: [email protected]

Freddie Mac Includes On-Time Rent Payments Into Underwriting:

https://www.housingwire.com/articles/freddie-mac-to-include-on-time-rent-payments-into-underwriting/

Airbnb Enacts Permanent Party Bans:

https://www.cnbc.com/2022/06/28/airbnb-makes-its-party-ban-permanent.html

JWB’s available Florida income property:

www.jwbrealestate.com/gre

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GetRichEducation.com

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Partial transcript:

Welcome to GRE! I’m your host, Keith Weinhold. Happy Financial Independence Day on American Independence Day.



I answer some of your most burning listener questions today.



Shifts in the mortgage market could now change your strategy.



Does a cashout refinance to a higher mortgage rate make sense or not?



Is an adjustable rate mortgage actually feasible for you now and lots more… on Get Rich Education.

_____________________



Hey, welcome in to GRE. From San Luis Obispo, CA to Saint Louis, Missouri and across 188 nations worldwide, you’re back in that abundant place.



And you’ve got to lead with an abundance mentality around here. How many places can you do that when the scarcity mentality is abundant and the abundance mentality is scarce.



I’m Keith Weinhold. This is Get Rich Education. Though it’s American Independence Day… is it your financial independence day.



Are you drawing closer to that day… as you add income streams in your life.



With 8.6% government-admitted inflation and stagnant wages and a higher cost of living… has there EVER been a more important time in your entire life to add an income stream through real estate?



You can make the case that this is the most important time for you to do that.



I am about to answer your listener questions here on July 4th. It’s also Episode 404. There’s no chance that this becomes an error 404. Some dorky humor there.



First…



Freddie Mac is going to include on-time rent payments into underwriting. Yes! This starts next week.



This is a good thing for you. This incentivizes renters to make on-time payments to you if they ever want to become homeowners.



…and…



Airbnb enacts a permanent ban on parties. They & VRBO have long struggled with what to do about parties.



I just shared those stories with you in Friday’s newsletter. If you didn’t see them, they’re in the Show Notes of today’s episode.



Be sure to get our free “Don’t Quit Your Daydream” newsletter.



We’ve been really informing you about so much in the real estate world there. We’ve also been telling you about our webinars. I know that some of you enjoyed last week’s Texas properties webinar.



Stay up-to-date with our newsletter at: GetRichEducation.com/Letter



Now, let me tell you. Back in the year 2004, eighteen years ago. Yes, I was an active REI then. My tenants were increasingly leaving. They were vacating my property and I had to find a new renter.



This was increasingly happening for a few reasons:



#1 is that mortgage rates were falling then.



But secondly, and really the big...