December 9, 2025 • 41 mins
What are the current housing market trends and the 2026 predictions for mortgage rates and home prices? Lance Morgan, a financial expert and educator stopped by to discuss the current housing market and trends, the various types of mortgages like a 30-year mortgage compared to a 50-year mortgage, what trends he's seeing with Millennials and Gen Z looking to buy their first home or even forgoing home ownership, and more!
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Episode Transcript
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Speaker 1 (00:00):
It's Night Side with Dan ray I WBS costin his
new radio.
Speaker 2 (00:06):
To the callers who were late last hour, I apologize.
I tried to get to everybody. I was not successful.
Always troubles me when I can't get But again, folks,
when you call in and that you know you wait
until the forty five minute mark of an hour program,
sometimes we do run out of time. So having said that,
(00:26):
I think everybody understands, and we're now going to change
from top talking about anti semitism here in Massachusetts to
housing market trends and also the big catchword these days
seems to be affordability, whether it's at the supermarket or
for young people purchasing their first home. With us. As
(00:47):
Lance Morgan, he's a financial expert and an educator. Lance Morgan,
welcome back. Lance was with me. I think it was
December third. I could be wrong on the date, but
within the last week could too. And we talked about
the concept of a fifty year mortgage, and I thought
that it might be a great opportunity for people who
(01:09):
would have questions to have Lance come back and spend
a little bit more time with us and take calls
from listeners. So welcome back to night's mister Morgan, how.
Speaker 3 (01:19):
Are you, hey, Dan, Nice to chat with you, Thanks
for having me back on.
Speaker 2 (01:23):
Okay, Yeah, tell us a little bit about yourself again.
You are a financial guy and an educator. At some
point I'm going to ask you how people can get
in touch with you off here, but I'm hoping some
people will want to call and ask questions. And I
want to talk about this concept of a fifty year mortgage,
(01:44):
which I know a lot of people think, well, that's
not possible, but I actually the more I think about it,
the more I think there's some possibilities. First, your background,
how deep is you? I'm sure your background is very
deep in the financial world. Just give a little perspective.
Speaker 3 (02:02):
Yeah, so about twenty years ago is when I got
into the financial industry. I left the IT industry and
got into the financial industry. I just had a passion
for understanding different financial strategies and concepts.
Speaker 4 (02:15):
I got into the financial industry.
Speaker 3 (02:17):
Like a lot of people do, did a lot of
your you know, fiduciary type stuff, assets under management, insurance products,
and you know, just your typical stuff. And then I
went through a year long training program that was called
the Circle of wealth, and it just really talked about
a lot of eye opening concepts about money that I
(02:39):
had never really thought about, things like opportunity cost for example.
I remember learning about opportunity costs for the first time
and just thinking that, you know, that was something that
I had never.
Speaker 4 (02:50):
Thought about, you know, and mortgages.
Speaker 3 (02:52):
It's kind of funny, a big chunk of our focus
was actually talking about mortgages back in the day, and
I was learning, you know, concepts of like, you know,
people thinking that they're going to save a lot of
or save a lot of money by getting you know,
a ten year or a fifteen year mortgage over a
thirty year mortgage. And yes, logically, you know, there are
(03:15):
some ideas they're saving interest. But what most people don't
think about that I had never thought about, even as
a financial advisor. It was like, well, what else could
you be doing that with that money and the opportunity
cost of that money.
Speaker 4 (03:29):
So just outside the box ways.
Speaker 3 (03:31):
Of thinking about money, I would say, is my background
is learning ideas that I was not taught in the
traditional financial industry.
Speaker 2 (03:39):
Well, certainly, now we have a crisis that is impacting
young people, millennials, gen xers who are paying in many
cases exorbited rents. The money is good for landlords, but
it's not good for the renters, and many of them
(03:59):
are finding that they're priced out of market places, whether
it's places like New York or Boston or San Francisco,
major cities. And now this whole idea of a fifty
year mortgage, which is sort of the opposite of what
(04:22):
the first mortgage I took. And you'll laugh when I
tell you the amount of money that I that I
purchased my first piece of property for back in the
nineteen seventies, fresh out of law school, and how much
I flipped it eight years later. It was it was
(04:43):
I couldn't have timed the market better if I had tried.
I spent sixty seven dollars for a very nice condominium
on Beacon Street in Boston with a view of the
Childs River, and in addition, there came a couple of
parking spaces with that, and eight years later it it
was sold for four hundred thousand dollars. Wow, Now you
(05:07):
know that was just luck. I probably, if i'd been
smashed it held onto it because today God knows what
it would be worth in that location. Exitu Street. I
don't know if you know Boston at all, but prime
real estate location. Yeah yeah, But let's talk about the
fifty year mortgage. So you and I we don't have
(05:28):
to break the numbers down, but I'm sure you can
break it down so people can understand that the monthly
cost of a fifty year mortgage is going to be
less than a thirty year mortgage, which is sort of
the standard, and it's going to be substantially less than
if someone tries to accelerate a thirty year mortgage into
a fifteen or a twenty year mortgage. Let's talk about
the advantages from your perspective and also the disadvantages.
Speaker 4 (05:53):
You know.
Speaker 3 (05:54):
So this is a very maybe not so popular opinion
about about mortgages in general. But the way that I
was taught, not initially, but the way that I was
taught when I was taught about some of these financial
strategies is that when you're financing anything, whether it's a
mortgage or car or whatever the case may be, when
(06:15):
you're financing anything, the idea is is the lowest payment
over the longest period of time possible, and the reason
is because of what you could do with the extra money.
I guess that's the big the big difference, right is
if I can get a low payment, then that allows
(06:36):
me to save more, right, save more for retirement, maybe
maybe put more money towards an investment property, or pay
down some higher interest credit cards if I had something
like that, you know, anything that was costing you more.
I remember when I first so, I have a little
(06:57):
hobby farm of six acres, and I bought a tractor,
and the tractor came with zero percent of financing, and
they were like, you can have zero percent of financing
for five years or zero percent financing for seven years.
And then I was just like, is this really a choice?
I mean, why wouldn't I want the seven years?
Speaker 2 (07:18):
Be sure? Yeah? Absolutely, yeah, you know, I mean, well
that's kind of the point that I wanted to get
at here. And what I'm gonna do is I gotta
take a quick break of just to make some money
on a couple of commercials. But the question is that
young people today, they may not have the funds to
financially support a thirty year mortgage or worse.
Speaker 4 (07:42):
Than that, a twenty year They might not have a choice.
Speaker 2 (07:44):
Yeah, this might be the only way that they can
get into the real estate market and stop renting and
start building some equity. My producer Rob said to me,
how would you want a fifty year mortgage? You'll never
pay it off. That's not a problem.
Speaker 4 (08:00):
I mean, no, that's not the point.
Speaker 2 (08:02):
If if the value of the property increases and you
decide you got to move five years or ten years out,
you sell it at the increased value, and you pay
off the mortgage and you take whatever gain you have
and I guess roll it over into your next into
your next property. Lance Morgan is my guest. Let's let's
(08:24):
take a break, and when we come back, you can
amplify the experience that I just talked about, because I
think for some right now, bill lack of liquidity equals
lack of affordability, which means they got to keep pouring
money down the rental black hole. So we'll get to that,
(08:48):
and if anybody has questions or wants to comment on
the comparative wisdom, this is a difficult situation for your
real estate has skyrocketed in this country. I'm going to
also ask Lance Morgan if he feels it might be
time to just sit on the sidelines and wait for
(09:08):
things to come down. That's another strategy which could be
equally costly. We'll never know until the future unfolds. Six one, seven, two, five, four,
ten thirty six one seven, nine, three, one ten thirty
Talking a little bit about real estate investment. If you're young,
if you're out there, if you have children, are you
willing to help them? Can you help them? We have
(09:30):
lots of ground to cover here. Feel free to join
the conversation and ask questions or make comments. Coming back on.
Speaker 1 (09:35):
Night Side, It's Night Side with Dan Ray, Boston's news radio.
Speaker 2 (09:41):
We're talking about fifty year mortgages with Lance Morgan, financial expert.
We had him on the eight o'clock hour a couple
of weeks ago, and I just thought this would be
a good opportunity for people to ask questions. But before
we get to phone calls into questions from either young
people who are contemplating buying, or there are young people
out there who feel they have been priced out of
(10:03):
the market here in Boston, we can talk about that
as well, Lance, Why don't you, again, realizing that numbers
on radio are always difficult, try to explain the advantages
or the disadvantages of a longer mortgage for someone who
might be in their late twenties early thirties and for
the first time is thinking they want to invest in
(10:27):
a property, whether it's a condominium or a first first home,
either way, to get into the real estate market. And
do you feel that this is a good time to
get in the real estate market, because obviously any market
can always go up or in some cases can go down.
Speaker 3 (10:47):
Yeah, you know, I like what you said earlier. For
a lot of people, this may be their only option
and they're only chance of getting in and having some
ownership and building up some equity and getting into a
house you know that they can afford where you know,
over time, of course, there could be that equity. Whether
or not they ever pay it off.
Speaker 4 (11:07):
I don't know. Like you said, that's not really the question.
Speaker 3 (11:09):
You know, they could stay in that house for ten years,
twenty years, and then sell it, go buy another one,
you know, get another fifty year mortgage on the next house,
you know, and so they may not stay in a
house for fifty years. But I don't think that's the point.
The point is is if the payment's low enough that
they can actually get into home ownership, you know, then
(11:30):
that might be their only option. For some of these
families just getting started with their career.
Speaker 2 (11:34):
How significant a a break would there be? You know, again,
it's it's always difficult to talk numbers here, but you know,
if let us say, thirty year mortgage was going to
have I'm I'm just guessing here and you probably so.
(11:55):
You know, let's say that the monthly not was was
three thousand dollars a month on a thirty or or
on a thirty year mortgage. How much of a break
would that mean On a mortgage that would be fifty years,
it would obviously be less per month, But is that
would it have because of the length of the fifty mortgage?
(12:15):
Would that drop that number down significantly?
Speaker 3 (12:20):
You know, So I've played around with it, you know,
and it kind of will, of course depend on interest rates.
Speaker 4 (12:26):
Is what's tricky is is you know, sometimes.
Speaker 3 (12:29):
Your lower you know, your lower time frames, you know,
your shorter time frames are going to have a lower
interest The longer time frames are sometimes going to have
a higher interest. So it'll really depend on what they
decide to do, you know, on whether or not they're
going to you know, have the interest rate be much
higher or keep the interest rate you know, as low
(12:51):
as possible, but I mean depending on the property itself,
you know, it might only be you know, five hundred.
Speaker 4 (12:59):
Dollars a month.
Speaker 3 (13:00):
You know, to someone it might not be a huge,
you know impact, but sometimes that five hundred dollars a
month might be enough to get him into a property,
you know what I mean.
Speaker 2 (13:13):
No, I totally. And of course people understand that that
the way mortgages. Any mortgage, whether it's a twenty year
or a thirty or a fifty, you're going to be
paying off a lot of interest and little principle in
the first few years. I mean that principle. The payoff
of the principle is all towards the back end of
(13:34):
the mortgage, but you will over time pay that down
a little bit. And if you're able to hang in
there for a few years. Do you see the real
estate markets as at some point topping out. I mean,
it just seems it always goes up. But doesn't they
reach a point where it realistically a cackle much higher?
Speaker 4 (13:58):
Yeah, that is that is a great question.
Speaker 3 (14:01):
I know that my next door neighbor debated on building
for five years. He was just waiting for the prices
to come down. Prices never came down. They just kept
going up, sure, kept going up, you know, and it
was like we all think that you know, at some point,
you know, prices are going to come down.
Speaker 5 (14:19):
You know.
Speaker 4 (14:19):
We all talked about.
Speaker 3 (14:20):
Two thousand and eight with the big housing crash and
how everybody everybody lost their homes and all of the
negatives about two thousand and eight. What we don't talk
about is how many multimillionaires were made in two thousand
and eight, you know, who went out and bought homes
that were pennies on the dollar, right. I mean, that
(14:41):
was a moment in time where real estate dropped in
value significantly and investors went in and his bought houses
like crazy.
Speaker 2 (14:50):
And it bounced back. It bounced back quickly. A lot
of that was, if not influenced or instigated by government action,
the government was very much involved in a lot of that,
with the deventures and all of that back in two thousands.
I remember driving through Phoenix, Arizona, in the spring of
two thousand and seven and looking at all of these
(15:14):
areas in Phoenix. And I don't know if you were
in any anywhere near Phoenix at that time, but I
remember just driving and seeing blocks and blocks of how
you know, it looked like condominiums driving down a fairly
major road, and to the right and to the left
of me nothing but finished condominiums on the market, and
a couple of blocks later condominiums that were about three
(15:37):
quarters of the way finished. They weren't even yet in
the market. And then a couple of more blocks later
condominiums where the roofs hadn't been put on, and then
a couple of more blocks later where the condominiums they
had been framed. That was about it, and then a
couple of more blocks later just the sellers had been
and I thought, who the hell is going to be?
(16:00):
Why where is the you know, these were like literally
I thought they were probably hundreds of properties, but I'm
thinking thousands. And I wasn't swat enough at the time,
not that I'm swat enough now to thought to myself,
this is crazy. This market is looking at me because
there's just an oversupply of They were building them faster
(16:22):
than people could buy them. And I saw that with
my own eyes and it didn't compute. And I kicked
myself after that because obviously it impacted the stock market.
If I had been sworn enough, I would have dumped stocks,
gone to cash, and then gone back and bought similar stocks.
(16:44):
Do you have a recollection of that time when when
everything was booming, before the before the crash of two
thousand and seven, two thousand and eight.
Speaker 3 (16:53):
Yeah, back then, you know, everyone was I mean, the
markets were at an all times high from a real
estate standpoint, which of course we've now gone way past that,
you know. But at the time, Yeah, I had neighbors
that couldn't sell because they were upside down for several years,
you know, and they were kind of stuck, you know,
(17:14):
in these homes, and so it was.
Speaker 4 (17:17):
It was a tricky It was a tricky time. I
was going to tell you I did.
Speaker 3 (17:21):
I pulled up on my computer just a mortgage calculator
to give you some ideas.
Speaker 4 (17:26):
Here's the big question.
Speaker 3 (17:27):
Here's the big question on the fifty year mortgage that
I think has yet to be determined as the interest
rates and what the difference is on the interest rates.
Because what's crazy is is that if they can come
out with a fifty year mortgage with a comparable interest
rate to a thirty year mortgage, Yeah, then you're going
to you're going to see that three to five hundred,
you know, dollars a month in savings on like a
(17:48):
half a million dollar mortgage on a million dollar type mortgage,
a million dollar house. You know, yeah, you're looking at
a pretty significant difference, maybe up to like a thousand
dollars difference.
Speaker 4 (17:58):
Right, But but if.
Speaker 3 (18:01):
They were if it was an if it was one
percent higher and interest rate, right, So if it was
like a seven percent interest rate on a fifty year
versus like a six percent interest rate on a thirty year,
then the price the monthly payment ends up being about
the same.
Speaker 4 (18:17):
So the real question.
Speaker 3 (18:19):
Is going to be if they'll be able to keep
those interest rates comparable on both.
Speaker 2 (18:24):
Well, the Fed is going to have something to say
about that tomorrow, if I'm not mistaken. Yeah, the market
be interesting. They have played believe that they're going to
cut a quarter of a point. That's not a lot,
but it's it would be something that I think would
keep maybe go a long way to make things a
(18:45):
little bit more affordable. What is your sense on that?
Do you you have.
Speaker 3 (18:49):
A Well, and that's the thing, you know, these interest rates,
as they keep kind of working their way down, you
know it is going to be you mentioned earlier, you know,
when it is a good time to buy, I think,
I think again. You know, if you can afford the
monthly payment, then buy now because you can always refinance later.
Is the general rule up thumb, Like, don't wait because
(19:10):
who knows when they're going to come down. If they're
going to come down, you know how much they're going
to come down. There's so much unknown that if the
timing is right, you know, then it's a good time
to buy. The other thing about buying versus renting, you know,
it's interesting depending on the generation. You know, there was
a generation that never considered moving around much. You know,
(19:33):
you stayed at the same job and you didn't move
around much, and so buying a house and settling down
was always the American dream.
Speaker 4 (19:40):
You know.
Speaker 3 (19:41):
I feel like some of these younger generations too. I mean,
I'm fifty, so I'm kind of in the middle there.
But like you know, a lot of the younger generations,
they don't plan on settling down much. You know, they
plan on bouncing around, you know, from job to job,
sometimes moving every couple of years. I actually just bought
an investment property in Florida, and there's a lot of
(20:04):
military bases there, and the problem is is that they
bought houses two years ago and they didn't go up
in value much over just two years. So now now
they're trying to sell them just two years later, and
they're not able to make much, especially with realtor fees
(20:24):
and everything else. And so you know, sometimes if you're
in an area where you're planning on living for a
short period of time, maybe you're only going to be
somewhere for two to three years, it might be better
to rent.
Speaker 2 (20:36):
Yep. Yeah, those are all the factors, and every one
of those factors depends upon circumstances, your job, circumstances, maybe
what your spouse is thinking of doing. You know, what
is the health of your parents, where do they live,
are you tied to them? Are all of that? So
(20:57):
lit'sten this. We got to take a quick break here
for call to for news to the bottom of the hour. Again.
If you're someone out there who's thinking and you want
to run it by, it's a free consultation with a
financial expert, Lance Morgan will take your call and you
can explain you set of circumstances. Feel free six one seven,
(21:18):
four ten thirty six one seven, nine three one ten
thirty Coming right back on Night's Side right after the
news break at the bottom of the hour.
Speaker 1 (21:28):
It's Nightside with Dan Ray on Boston's news radio.
Speaker 2 (21:33):
We're talking with financial expert Lance Morgan, and we're trying
to focus and get people to focus on the benefit
of home ownership but also the cost of home ownership.
It is arguably cheaper to rent than it is to own,
but the money that you pay in rent has no
(21:56):
long term benefit for you other than a bunch of
rental receipts. Uh and uh, your your the receipts that
you may get from the bank who who has helping
you pay off a mortgage does result in some home equity, uh,
so that when you decide to sell that property, you
(22:18):
actually have more than just rental receipts in your hand.
Is that the simplest way to put it, Lance, Would
you say, yeah, I think that's great. Let's go to
Supole Calls sixty six, one, seven, nine, three, one ten thirty.
Jack is in Newton. Jack appreciate your calling, and you
on with Lance Morgan, who's a financial expert, and we're
(22:40):
talking about the possibility of fifty year mortgages. I should
have asked before Lance, We've never had that vehicle in
this country, to the best of my knowledge, correct, this
would be they now Are they now actually available in
some in some banks and some some credit agencies, or
are we're still talking about them in the theoretical and
(23:02):
then we'll go to Jack's call.
Speaker 4 (23:04):
To my knowledge, they are not available yet.
Speaker 2 (23:07):
Okay, let's let's go immediately to Jack's call. Jack, welcome,
You are next to the nights. I go ahead, my.
Speaker 6 (23:14):
Friend, Yeah, Jack Corter, I've done some calculations lands on
five hundred thousand dollars at six point two five percent
for fifty years, thirty years, and fifteen years, and here's
the figures. For fifty years, five hundred thousand dollars will
(23:34):
be two thousand, seven and twenty four dollars a month.
That's pretty good, but the same as renting at fifteen years. Well,
I'm sorry, at thirty years, it's only three thousand and
seventy eight, so you're only saving theaters and fifty four
dollars at thirty years. But if you have for fifteen years,
it's four thousand, twitter eighty seven dollars a month. You're
(23:56):
saving one five and sixty three. But on fifteen years
you might be able to pay it off because you're
going to pay a lot of money. So this is
a good program if the banks will allow it for
fifty years. Not that much difference in thirty but yeah,
from fifteen you say ten thousand and sixty three dollars,
So well.
Speaker 2 (24:16):
That would be the diference between a fifteen year and
a fifty year. So those those would be the two,
you know, furthest apart. The thirty would be the one
in the middle, and most people have a thirty I
think Lance would agree with that. It's a few events, yeah,
(24:36):
but they're most of between. Lance, I don't know if
you have these numbers off the top of your head.
In terms of mortgage people will have mortgages today, one
percentage are thirty years versus fifteen years. I'm assuming it's
ninety percent thirty years, and maybe if we're lucky ten
percent fifteen years.
Speaker 3 (24:54):
You know, it might expe I mean, I don't have
the exact data. I'm just speaking from experience of talking
to hundreds of clients of mine over the years. You know,
I would say the thirty year is definitely the most common,
but you do get a lot of people with the
fifteen year mortgage. Trying to pay off their mortgage before
they retire. That's a very common thing as well.
Speaker 2 (25:14):
Yeah, I turned mine into a into a fifteen and
I was still like twenty nine years old. I just
wanted to get it, get get it done. But again,
my mortgage was pretty small money because it was on
a condominium that in nineteen seventy eight cost me sixty
seven thousand dollars, which I thought was I would never
(25:35):
see that money again in my life. I mean, I
was terrified by the jack You have moved around a
little bit more than I have. Have You always rented,
mostly owned? What has been your experience? You've lived in
Wisconsin for a while. I know that, amongst other places own.
Speaker 6 (25:52):
But I was very you know, I've moved around Dowton
for the last forty years, but mostly all right, Well,
I have a two point eight percent mortgage. I was
very smart, so lucky four years ago I refinanced.
Speaker 2 (26:07):
You refinanced to two point eight percent four years ago?
Who are you? Who are you dealing with the mafia?
Speaker 5 (26:16):
Who?
Speaker 2 (26:17):
Listen? What was I didn't realize they were two point
eight percent? Was this through a bank?
Speaker 6 (26:24):
Well, it was through a mortgage company.
Speaker 2 (26:26):
Bluggage interesting.
Speaker 4 (26:29):
Idea that was right, that was right before they started
going up.
Speaker 2 (26:33):
Yeah right, okay, well, good for you, Jack, congratulations, go ahead.
Speaker 6 (26:39):
Oh you know it's impossible for me, you know, to
to move just you know, fine. But the main thing
is for young people with the rent, so I you know,
a fifty year mortgage would be fantastic for them. They
would only pay two seven and twenty four dollars a
month for million dollar mortgage even at six point two five.
(27:03):
Can you imagine if it drops to four point two
five or left? I'll detain and left. I don't know
if the banks will want to do that though, that's
the thing. Maybe they will. I think it's a political
thing or something. We've got to lance pushed the banks
to start utilizing sisty your markets.
Speaker 4 (27:22):
Yeah, well, I wonder if the political or not.
Speaker 2 (27:27):
Well, I wonder if the Trump administration. Obviously they have
taken a real hit in the polls because of the
issue of quote unquote affordability, the drum that the Democrats
are beating right now, and a lot of people are
hearing the beat of that drum and appreciating it. How
(27:48):
much pressure do you think can be put on the banks?
I mean, I assume that a quarter point cut by
the Federal Reserve tomorrow is not going to make a huge,
huge difference in terms of mortgage rates, right or wrong
on that lens.
Speaker 3 (28:05):
Yeah, I mean any cut and mortgage rate, you know,
always does a little, you know, to help in the
right direction. Yeah, you know, I think that it's showing
that they're moving in the right direction. The problem is
is you're right, it's not enough to move the needle,
you know, to the point where we get down to
those two point.
Speaker 4 (28:24):
You know, nine percent mortgages.
Speaker 3 (28:26):
You know, like we like we had for a while,
you know. So interest rates are definitely very helpful.
Speaker 4 (28:32):
You know.
Speaker 3 (28:33):
The other thing that a lot of people don't think about,
and I'm not trying to get off topic on the
mortgage you know concept, but but when interest rates are
a little higher, it does help in other vehicles, right,
like CDs and annuities and these insurance products, you know.
And as these baby boomers are getting you know, well
(28:54):
they're in retirement, you know, and so.
Speaker 2 (28:56):
Not all of them, not all of them, not all.
Speaker 7 (29:00):
Definitely, not definitely, not all of them, you know, But
that is the topic, right. They're very focused, they're very
focused on that retirement, so they want they want to
get their mortgage paid off. They want to pay off
to their mortgage, but then they also want you know,
CD rates to go up right and things like that
so that they can have more safe vehicles to invest
in in retirement, which is all tied to you know,
(29:23):
we're talking about twenty year olds being able to afford
a house, and we want interest rates to go back
into that two percent range and maybe three percent range.
But then at the same time, when we had mortgages
in the two to three percent range, we also had
you know, CDs and annuities and some of these fixed
assets that were also in that two to three percent range.
Speaker 2 (29:44):
Absolutely, Hey Jack, great, great comments. Thank you so much
for moving the conversation along as always appreciated very much,
and thanks for doing the research for us. Okay, okay,
thank you, Thanks Jack. Talk. So we're going to have
a final couple of phone calls. I'm certain with my
guest Lance Morgan. If you want to ask a question
or or you know, advice is what you pay for it,
(30:07):
so this is free advice. But if you want to
make a comment, challenge anything that I've said or Lance
has said, you're more than welcome and do that as well.
This is an open conversation. Six one, seven, two, five, four,
ten thirty six one seven, nine, three one, ten thirty.
We'll be right back on night Side.
Speaker 1 (30:22):
You're on night Side with Dan Ray on WBZ Boston's
news radio.
Speaker 2 (30:28):
Back to the phones. Let's go to Melinda in Belmont. Hi, Melinda,
you are next with financial expert Lance Morgan. Go right ahead, Melinda.
Speaker 8 (30:36):
Well, I'm high Land. Thank you for taking my call.
So I had a quick question. We bought a property
six months ago, and we bought it at a really
high rate eight point two, and we're looking to refinance,
but we heard that we have to keep it for
twelve months before we're able to refinance. We're just trying
to figure out if that's an accurate statement.
Speaker 4 (30:55):
It's possible.
Speaker 3 (30:56):
I know some loans they do a lot, you know,
they do require you to keep them, you know, before
refinancing them. That is very possible. The other thing to
consider is just the cost involved in refinancing. You know,
there are like we we help families with their college
loans a lot, and of course with college loans you
want to refinance all the time because there's no cost
(31:17):
associated with it, but with a mortgage, you know, there
is a cost associated with refinancing.
Speaker 4 (31:22):
So if you do have to sticker.
Speaker 3 (31:25):
You know, stick in it for twelve months, then maybe
just wait. Hopefully interestrates will come down another quarter point
and then you won't have to try it to do
it twice.
Speaker 8 (31:35):
Okay, what.
Speaker 2 (31:39):
Rate do you have? Do you pay now? And what
rate are you looking at? Is there a specific rate
that you have access to which would allow you to
lower you right?
Speaker 8 (31:50):
Well, I don't know if there's a specific rate, but
right now we're paying eight point two okay, So yeah,
and that's pretty much pretty high. So we're trying to
get down to the sixes. It's possible.
Speaker 4 (32:00):
Yeah, how many how many months into it? Did you say?
Speaker 8 (32:04):
We're six months into it?
Speaker 4 (32:06):
Halfway there?
Speaker 8 (32:08):
Yeah?
Speaker 2 (32:09):
I assume that. So you probably would have a penalty
if you paid it off early. Is that that the deal?
Speaker 4 (32:17):
Yes?
Speaker 2 (32:18):
Yeah, okay, and that's a substantial penalty.
Speaker 8 (32:22):
It's not substantial, but you know, we're trying to like
save it instead of spending. We're trying to save No.
Speaker 2 (32:28):
I totally get I totally get that. Yeah, where do
you think rates might be?
Speaker 5 (32:34):
Uh?
Speaker 2 (32:35):
In your opinion? Lands if there is another cut tomorrow.
There's there seems to be a kind of some indecision
on this. Okay, Uh, there's some some articles say, yeah,
they do expect another quarter percent cut, and then others
are saying that the federal reserve is is deeply divided,
but they might pause rates going, you know, give the
(33:00):
you know, give the guidance that this would be the
last right cut for a while.
Speaker 4 (33:05):
Yeah.
Speaker 3 (33:06):
I mean, I've heard the same thing myself. I think that,
I mean, I think it's a pipe dream for us
to think we're going to get down to where we
want the race to get to any anytime soon. But
that is a significant rate on a mortgage. I mean,
so I understand you're wanting to refinance that as soon
as possible.
Speaker 4 (33:29):
We would have to kind of bout, we'd have to
run the numbers.
Speaker 3 (33:31):
My guess is is that you know, the cost associated
with refinancing if there is some sort of a penalty
associated with it, obviously over the long run, you know,
especially over like a thirty year window or of course
a fifty year.
Speaker 4 (33:47):
Window, if that's an option, you know, obviously you would
more than outweigh any sort of penalty you know, on
on something like.
Speaker 3 (33:56):
That, because we're talking you know, if we're talking two
percentage points for example, well, you know over a thirty
year window, like that's a huge savings. But mathematically of
waiting six more months to do it, maybe we're down.
Maybe we're down a point by then, and then it's
a win win because you're not gonna want to refinance
(34:17):
very often with the cost of refinancing, you know what
I mean.
Speaker 2 (34:20):
No, Yeah, I'm seeing that there are some rates here.
I'm not familiar with this website, but say as low
as four point three percent to four point seven percent fixed.
That seems like I'd be very careful as to who
that is. It's it's not it's some group called loan depot.
(34:42):
I have no idea. Yeah, you know, you got to
be careful. I'd always say, try to stay with the
bank to be to be certain. I mean, no, I'm
a big fan of Eastern Bank here in Massachusetts. So
give McCall to them. Want to ask what their rates are? Ye, well,
and see what they say later on the week if
that quarter percent kind of accurse tomorrow. Thank you, Melinda,
(35:03):
thanks for calling. Listen to the program of Great Night.
Speaker 8 (35:06):
Thank you.
Speaker 2 (35:07):
Let me go next to Mike and Bradford. Mike, I
want to get you into the wire here. You're on
with Lance Morgan, financial expert. What's your comment to question Mike?
Speaker 9 (35:15):
Hi, Dan, Hi Lance, Thanks for taking my call.
Speaker 2 (35:17):
Welcome.
Speaker 9 (35:18):
I just wanted to say that, you know, the kids
today are paying two to three thousand dollars a month
for rent, you know, for a two or three bedroom apartment,
and they only get on a tax deduction in Massachusetts.
I believe it's twenty five hundred dollars for the year. Now,
(35:38):
that twenty five hundred dollars deduction that they get is
the same as the twenty five hundred dollars deduction I
got like nineteen eighty seven, nineteen ninety one, you know,
so it doesn't seem like you're getting any relief from
the state.
Speaker 2 (35:54):
Certainly hasn't been adjusted for the increase in rate here,
hasn't been adjusted for inflation, that's for sure.
Speaker 9 (36:02):
Yes, yeah, and so I mean, you know, maybe maybe
something could be done from the state, you know, to
help alleviate that.
Speaker 2 (36:09):
Well, all that would do is that would make renting
properties more desirable. So I'm sure you have probably a
part of the real estate market up there that's pushing
for that, and part of it, maybe the home real
estate you know, portion of that industry, would be pushing
against it because that would allow people to continue to
(36:29):
rate to rent, and they want to get people in
the in the purchasing of property. The other thing, too,
is that everybody wants to live in Boston, everybody wants
to live on the Upper West Side of New York,
and those those areas are tough. I mean, I don't
know if I was a young person today, if I'd
(36:50):
even be looking at property in Boston and New York.
What's your thought on that lands.
Speaker 4 (36:55):
Yeah, that's the hard part. Some of those areas.
Speaker 3 (36:57):
Renting is going to be your only option just because
those desirable areas are going to be a premium you
know to purchase, Absolutely.
Speaker 9 (37:07):
Mike, until they raised the incomes, I mean, these people
are not going to be able to afford to purchase.
Speaker 2 (37:15):
Yeah, I mean unless unless you're planning for the Red
Sox or the Celtics at any of those those people
who have that opportunity, Mike, appreciate appreciate you calling. Maybe
there's some smart legislator out there is going to be
listening and take your idea and try to raise those
those rent deductions onto Massachusetts State Income Tact. Appreciate it mine,
(37:39):
Thank you much. Have a great Atlanta. Folks want to
get in touch you that. How how can they do
that most easily?
Speaker 3 (37:46):
So the easiest thing would be College Funding Secrets dot com.
We teach families creative ways to pay for college. But
of course we also help with all things financial, but
college Funding Secrets dot you give me book a free
call with my team, Tell him that you heard about
me on the radio, and.
Speaker 4 (38:05):
They can get you onto my calendar.
Speaker 2 (38:08):
Oh, that'd be great, That would be great. Just tell
him you listen to him and next time with Dan
Ray and Wbzlyz. Thanks so much for coming back and
talking to some of my listeners. I appreciate it so much.
Speaker 4 (38:18):
That was fun. Thanks for talking again.
Speaker 2 (38:20):
Thank you Lance. Appreciate it all. Right, We are done
with the eleven o'clock, the ten o'clock hour, with the
eleven o'clock our rates and I'm not sure we're going
to do so, stay with us and be surprised. Right
after the newscast here on a cold night, I'm supposed
to get a little warmer by morning. It is still
really cold. Here in New England. Stay warm, coming back
on night side. This is Dan Ray And yes, the
(38:41):
big day is almost here, New Year's Day, the day
we all tell ourselves we're gonna wake up motivated, focused
and ready to finally lose that weight. But let's be honest,
when January first rolls around, it's just the other day.
Nothing changes unless you do. I didn't wait for the
calendar to fix things. I heard about Awaken one idiot
resonated with me, and I thought, why not today? So
(39:03):
I made the call, and not only did I start
Awaken one eighty, I succeeded with Awaken one eighty. I
didn't have to go it alone. I had expert coaches
guiding me. And when I saw that scale drop week
after week, I knew this was the real deal. Maybe
your moment is hearing this, maybe it's a doctor's visit,
whatever it is. When you feel that this is the
(39:25):
day moment, make the call to Awaken one eighty eight
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Speaker 1 (39:38):
This is WBZ Boston, WXKSFM EHD two menphor in iHeartRadio
station guaranteed human. This is WBZ Boston's news radio re
defining local.
Speaker 10 (39:53):
News twenty nine degrees in BA at eleven o'clock, Good
Evening on Dan Watkins. Here's What's happening. Testimony continued at
the Brian Walsh murder trial today. A forensic scientist linked
blood found on a hack saw and a carpet to
Anna Walsh. Prosecutors claim Brian Walsh used that hack saw
(40:16):
to dismember his wife. CBS's CBS News Boston's Penny commit.
Speaker 5 (40:21):
Reports that is a sample of the handle of the
hack saw and this provides support for inclusion of Anna
Walsh to this DNA profile.
Speaker 11 (40:29):
For the first time, Anna Walsh's DNA has been connected
to items the prosecution says her husband used to dismember
her and clean up the mess. Forensic expert Simon Selene
with the State Police Crime Lab placing on his DNA
on a pair of bloody slippers, a hatchet, tivex suit,
rug with red brown stains, and several other items police
(40:50):
pulled from a dumpster.
Speaker 5 (40:52):
The DNA profile from this item is at least thirty
one million times more likely if it originated from Anna Walsh.
Speaker 4 (40:59):
What is an anilion?
Speaker 5 (41:00):
A ninilion is one, followed by thirty zeros.
Speaker 11 (41:04):
But Brian Walsh's DNA was excluded from a number of
items including the hack saw, bloody towels, and tissue
Speaker 10 (41:10):
And the exclusion was due to the defense arguing that
blood and NA could
It's Night Side with Dan ray I WBS costin his
new radio.
Speaker 2 (00:06):
To the callers who were late last hour, I apologize.
I tried to get to everybody. I was not successful.
Always troubles me when I can't get But again, folks,
when you call in and that you know you wait
until the forty five minute mark of an hour program,
sometimes we do run out of time. So having said that,
(00:26):
I think everybody understands, and we're now going to change
from top talking about anti semitism here in Massachusetts to
housing market trends and also the big catchword these days
seems to be affordability, whether it's at the supermarket or
for young people purchasing their first home. With us. As
(00:47):
Lance Morgan, he's a financial expert and an educator. Lance Morgan,
welcome back. Lance was with me. I think it was
December third. I could be wrong on the date, but
within the last week could too. And we talked about
the concept of a fifty year mortgage, and I thought
that it might be a great opportunity for people who
(01:09):
would have questions to have Lance come back and spend
a little bit more time with us and take calls
from listeners. So welcome back to night's mister Morgan, how.
Speaker 3 (01:19):
Are you, hey, Dan, Nice to chat with you, Thanks
for having me back on.
Speaker 2 (01:23):
Okay, Yeah, tell us a little bit about yourself again.
You are a financial guy and an educator. At some
point I'm going to ask you how people can get
in touch with you off here, but I'm hoping some
people will want to call and ask questions. And I
want to talk about this concept of a fifty year mortgage,
(01:44):
which I know a lot of people think, well, that's
not possible, but I actually the more I think about it,
the more I think there's some possibilities. First, your background,
how deep is you? I'm sure your background is very
deep in the financial world. Just give a little perspective.
Speaker 3 (02:02):
Yeah, so about twenty years ago is when I got
into the financial industry. I left the IT industry and
got into the financial industry. I just had a passion
for understanding different financial strategies and concepts.
Speaker 4 (02:15):
I got into the financial industry.
Speaker 3 (02:17):
Like a lot of people do, did a lot of
your you know, fiduciary type stuff, assets under management, insurance products,
and you know, just your typical stuff. And then I
went through a year long training program that was called
the Circle of wealth, and it just really talked about
a lot of eye opening concepts about money that I
(02:39):
had never really thought about, things like opportunity cost for example.
I remember learning about opportunity costs for the first time
and just thinking that, you know, that was something that
I had never.
Speaker 4 (02:50):
Thought about, you know, and mortgages.
Speaker 3 (02:52):
It's kind of funny, a big chunk of our focus
was actually talking about mortgages back in the day, and
I was learning, you know, concepts of like, you know,
people thinking that they're going to save a lot of
or save a lot of money by getting you know,
a ten year or a fifteen year mortgage over a
thirty year mortgage. And yes, logically, you know, there are
(03:15):
some ideas they're saving interest. But what most people don't
think about that I had never thought about, even as
a financial advisor. It was like, well, what else could
you be doing that with that money and the opportunity
cost of that money.
Speaker 4 (03:29):
So just outside the box ways.
Speaker 3 (03:31):
Of thinking about money, I would say, is my background
is learning ideas that I was not taught in the
traditional financial industry.
Speaker 2 (03:39):
Well, certainly, now we have a crisis that is impacting
young people, millennials, gen xers who are paying in many
cases exorbited rents. The money is good for landlords, but
it's not good for the renters, and many of them
(03:59):
are finding that they're priced out of market places, whether
it's places like New York or Boston or San Francisco,
major cities. And now this whole idea of a fifty
year mortgage, which is sort of the opposite of what
(04:22):
the first mortgage I took. And you'll laugh when I
tell you the amount of money that I that I
purchased my first piece of property for back in the
nineteen seventies, fresh out of law school, and how much
I flipped it eight years later. It was it was
(04:43):
I couldn't have timed the market better if I had tried.
I spent sixty seven dollars for a very nice condominium
on Beacon Street in Boston with a view of the
Childs River, and in addition, there came a couple of
parking spaces with that, and eight years later it it
was sold for four hundred thousand dollars. Wow, Now you
(05:07):
know that was just luck. I probably, if i'd been
smashed it held onto it because today God knows what
it would be worth in that location. Exitu Street. I
don't know if you know Boston at all, but prime
real estate location. Yeah yeah, But let's talk about the
fifty year mortgage. So you and I we don't have
(05:28):
to break the numbers down, but I'm sure you can
break it down so people can understand that the monthly
cost of a fifty year mortgage is going to be
less than a thirty year mortgage, which is sort of
the standard, and it's going to be substantially less than
if someone tries to accelerate a thirty year mortgage into
a fifteen or a twenty year mortgage. Let's talk about
the advantages from your perspective and also the disadvantages.
Speaker 4 (05:53):
You know.
Speaker 3 (05:54):
So this is a very maybe not so popular opinion
about about mortgages in general. But the way that I
was taught, not initially, but the way that I was
taught when I was taught about some of these financial
strategies is that when you're financing anything, whether it's a
mortgage or car or whatever the case may be, when
(06:15):
you're financing anything, the idea is is the lowest payment
over the longest period of time possible, and the reason
is because of what you could do with the extra money.
I guess that's the big the big difference, right is
if I can get a low payment, then that allows
(06:36):
me to save more, right, save more for retirement, maybe
maybe put more money towards an investment property, or pay
down some higher interest credit cards if I had something
like that, you know, anything that was costing you more.
I remember when I first so, I have a little
(06:57):
hobby farm of six acres, and I bought a tractor,
and the tractor came with zero percent of financing, and
they were like, you can have zero percent of financing
for five years or zero percent financing for seven years.
And then I was just like, is this really a choice?
I mean, why wouldn't I want the seven years?
Speaker 2 (07:18):
Be sure? Yeah? Absolutely, yeah, you know, I mean, well
that's kind of the point that I wanted to get
at here. And what I'm gonna do is I gotta
take a quick break of just to make some money
on a couple of commercials. But the question is that
young people today, they may not have the funds to
financially support a thirty year mortgage or worse.
Speaker 4 (07:42):
Than that, a twenty year They might not have a choice.
Speaker 2 (07:44):
Yeah, this might be the only way that they can
get into the real estate market and stop renting and
start building some equity. My producer Rob said to me,
how would you want a fifty year mortgage? You'll never
pay it off. That's not a problem.
Speaker 4 (08:00):
I mean, no, that's not the point.
Speaker 2 (08:02):
If if the value of the property increases and you
decide you got to move five years or ten years out,
you sell it at the increased value, and you pay
off the mortgage and you take whatever gain you have
and I guess roll it over into your next into
your next property. Lance Morgan is my guest. Let's let's
(08:24):
take a break, and when we come back, you can
amplify the experience that I just talked about, because I
think for some right now, bill lack of liquidity equals
lack of affordability, which means they got to keep pouring
money down the rental black hole. So we'll get to that,
(08:48):
and if anybody has questions or wants to comment on
the comparative wisdom, this is a difficult situation for your
real estate has skyrocketed in this country. I'm going to
also ask Lance Morgan if he feels it might be
time to just sit on the sidelines and wait for
(09:08):
things to come down. That's another strategy which could be
equally costly. We'll never know until the future unfolds. Six one, seven, two, five, four,
ten thirty six one seven, nine, three, one ten thirty
Talking a little bit about real estate investment. If you're young,
if you're out there, if you have children, are you
willing to help them? Can you help them? We have
(09:30):
lots of ground to cover here. Feel free to join
the conversation and ask questions or make comments. Coming back on.
Speaker 1 (09:35):
Night Side, It's Night Side with Dan Ray, Boston's news radio.
Speaker 2 (09:41):
We're talking about fifty year mortgages with Lance Morgan, financial expert.
We had him on the eight o'clock hour a couple
of weeks ago, and I just thought this would be
a good opportunity for people to ask questions. But before
we get to phone calls into questions from either young
people who are contemplating buying, or there are young people
out there who feel they have been priced out of
(10:03):
the market here in Boston, we can talk about that
as well, Lance, Why don't you, again, realizing that numbers
on radio are always difficult, try to explain the advantages
or the disadvantages of a longer mortgage for someone who
might be in their late twenties early thirties and for
the first time is thinking they want to invest in
(10:27):
a property, whether it's a condominium or a first first home,
either way, to get into the real estate market. And
do you feel that this is a good time to
get in the real estate market, because obviously any market
can always go up or in some cases can go down.
Speaker 3 (10:47):
Yeah, you know, I like what you said earlier. For
a lot of people, this may be their only option
and they're only chance of getting in and having some
ownership and building up some equity and getting into a
house you know that they can afford where you know,
over time, of course, there could be that equity. Whether
or not they ever pay it off.
Speaker 4 (11:07):
I don't know. Like you said, that's not really the question.
Speaker 3 (11:09):
You know, they could stay in that house for ten years,
twenty years, and then sell it, go buy another one,
you know, get another fifty year mortgage on the next house,
you know, and so they may not stay in a
house for fifty years. But I don't think that's the point.
The point is is if the payment's low enough that
they can actually get into home ownership, you know, then
(11:30):
that might be their only option. For some of these
families just getting started with their career.
Speaker 2 (11:34):
How significant a a break would there be? You know, again,
it's it's always difficult to talk numbers here, but you know,
if let us say, thirty year mortgage was going to
have I'm I'm just guessing here and you probably so.
(11:55):
You know, let's say that the monthly not was was
three thousand dollars a month on a thirty or or
on a thirty year mortgage. How much of a break
would that mean On a mortgage that would be fifty years,
it would obviously be less per month, But is that
would it have because of the length of the fifty mortgage?
(12:15):
Would that drop that number down significantly?
Speaker 3 (12:20):
You know, So I've played around with it, you know,
and it kind of will, of course depend on interest rates.
Speaker 4 (12:26):
Is what's tricky is is you know, sometimes.
Speaker 3 (12:29):
Your lower you know, your lower time frames, you know,
your shorter time frames are going to have a lower
interest The longer time frames are sometimes going to have
a higher interest. So it'll really depend on what they
decide to do, you know, on whether or not they're
going to you know, have the interest rate be much
higher or keep the interest rate you know, as low
(12:51):
as possible, but I mean depending on the property itself,
you know, it might only be you know, five hundred.
Speaker 4 (12:59):
Dollars a month.
Speaker 3 (13:00):
You know, to someone it might not be a huge,
you know impact, but sometimes that five hundred dollars a
month might be enough to get him into a property,
you know what I mean.
Speaker 2 (13:13):
No, I totally. And of course people understand that that
the way mortgages. Any mortgage, whether it's a twenty year
or a thirty or a fifty, you're going to be
paying off a lot of interest and little principle in
the first few years. I mean that principle. The payoff
of the principle is all towards the back end of
(13:34):
the mortgage, but you will over time pay that down
a little bit. And if you're able to hang in
there for a few years. Do you see the real
estate markets as at some point topping out. I mean,
it just seems it always goes up. But doesn't they
reach a point where it realistically a cackle much higher?
Speaker 4 (13:58):
Yeah, that is that is a great question.
Speaker 3 (14:01):
I know that my next door neighbor debated on building
for five years. He was just waiting for the prices
to come down. Prices never came down. They just kept
going up, sure, kept going up, you know, and it
was like we all think that you know, at some point,
you know, prices are going to come down.
Speaker 5 (14:19):
You know.
Speaker 4 (14:19):
We all talked about.
Speaker 3 (14:20):
Two thousand and eight with the big housing crash and
how everybody everybody lost their homes and all of the
negatives about two thousand and eight. What we don't talk
about is how many multimillionaires were made in two thousand
and eight, you know, who went out and bought homes
that were pennies on the dollar, right. I mean, that
(14:41):
was a moment in time where real estate dropped in
value significantly and investors went in and his bought houses
like crazy.
Speaker 2 (14:50):
And it bounced back. It bounced back quickly. A lot
of that was, if not influenced or instigated by government action,
the government was very much involved in a lot of that,
with the deventures and all of that back in two thousands.
I remember driving through Phoenix, Arizona, in the spring of
two thousand and seven and looking at all of these
(15:14):
areas in Phoenix. And I don't know if you were
in any anywhere near Phoenix at that time, but I
remember just driving and seeing blocks and blocks of how
you know, it looked like condominiums driving down a fairly
major road, and to the right and to the left
of me nothing but finished condominiums on the market, and
a couple of blocks later condominiums that were about three
(15:37):
quarters of the way finished. They weren't even yet in
the market. And then a couple of more blocks later
condominiums where the roofs hadn't been put on, and then
a couple of more blocks later where the condominiums they
had been framed. That was about it, and then a
couple of more blocks later just the sellers had been
and I thought, who the hell is going to be?
(16:00):
Why where is the you know, these were like literally
I thought they were probably hundreds of properties, but I'm
thinking thousands. And I wasn't swat enough at the time,
not that I'm swat enough now to thought to myself,
this is crazy. This market is looking at me because
there's just an oversupply of They were building them faster
(16:22):
than people could buy them. And I saw that with
my own eyes and it didn't compute. And I kicked
myself after that because obviously it impacted the stock market.
If I had been sworn enough, I would have dumped stocks,
gone to cash, and then gone back and bought similar stocks.
(16:44):
Do you have a recollection of that time when when
everything was booming, before the before the crash of two
thousand and seven, two thousand and eight.
Speaker 3 (16:53):
Yeah, back then, you know, everyone was I mean, the
markets were at an all times high from a real
estate standpoint, which of course we've now gone way past that,
you know. But at the time, Yeah, I had neighbors
that couldn't sell because they were upside down for several years,
you know, and they were kind of stuck, you know,
(17:14):
in these homes, and so it was.
Speaker 4 (17:17):
It was a tricky It was a tricky time. I
was going to tell you I did.
Speaker 3 (17:21):
I pulled up on my computer just a mortgage calculator
to give you some ideas.
Speaker 4 (17:26):
Here's the big question.
Speaker 3 (17:27):
Here's the big question on the fifty year mortgage that
I think has yet to be determined as the interest
rates and what the difference is on the interest rates.
Because what's crazy is is that if they can come
out with a fifty year mortgage with a comparable interest
rate to a thirty year mortgage, Yeah, then you're going
to you're going to see that three to five hundred,
you know, dollars a month in savings on like a
(17:48):
half a million dollar mortgage on a million dollar type mortgage,
a million dollar house. You know, yeah, you're looking at
a pretty significant difference, maybe up to like a thousand
dollars difference.
Speaker 4 (17:58):
Right, But but if.
Speaker 3 (18:01):
They were if it was an if it was one
percent higher and interest rate, right, So if it was
like a seven percent interest rate on a fifty year
versus like a six percent interest rate on a thirty year,
then the price the monthly payment ends up being about
the same.
Speaker 4 (18:17):
So the real question.
Speaker 3 (18:19):
Is going to be if they'll be able to keep
those interest rates comparable on both.
Speaker 2 (18:24):
Well, the Fed is going to have something to say
about that tomorrow, if I'm not mistaken. Yeah, the market
be interesting. They have played believe that they're going to
cut a quarter of a point. That's not a lot,
but it's it would be something that I think would
keep maybe go a long way to make things a
(18:45):
little bit more affordable. What is your sense on that?
Do you you have.
Speaker 3 (18:49):
A Well, and that's the thing, you know, these interest rates,
as they keep kind of working their way down, you
know it is going to be you mentioned earlier, you know,
when it is a good time to buy, I think,
I think again. You know, if you can afford the
monthly payment, then buy now because you can always refinance later.
Is the general rule up thumb, Like, don't wait because
(19:10):
who knows when they're going to come down. If they're
going to come down, you know how much they're going
to come down. There's so much unknown that if the
timing is right, you know, then it's a good time
to buy. The other thing about buying versus renting, you know,
it's interesting depending on the generation. You know, there was
a generation that never considered moving around much. You know,
(19:33):
you stayed at the same job and you didn't move
around much, and so buying a house and settling down
was always the American dream.
Speaker 4 (19:40):
You know.
Speaker 3 (19:41):
I feel like some of these younger generations too. I mean,
I'm fifty, so I'm kind of in the middle there.
But like you know, a lot of the younger generations,
they don't plan on settling down much. You know, they
plan on bouncing around, you know, from job to job,
sometimes moving every couple of years. I actually just bought
an investment property in Florida, and there's a lot of
(20:04):
military bases there, and the problem is is that they
bought houses two years ago and they didn't go up
in value much over just two years. So now now
they're trying to sell them just two years later, and
they're not able to make much, especially with realtor fees
(20:24):
and everything else. And so you know, sometimes if you're
in an area where you're planning on living for a
short period of time, maybe you're only going to be
somewhere for two to three years, it might be better
to rent.
Speaker 2 (20:36):
Yep. Yeah, those are all the factors, and every one
of those factors depends upon circumstances, your job, circumstances, maybe
what your spouse is thinking of doing. You know, what
is the health of your parents, where do they live,
are you tied to them? Are all of that? So
(20:57):
lit'sten this. We got to take a quick break here
for call to for news to the bottom of the hour. Again.
If you're someone out there who's thinking and you want
to run it by, it's a free consultation with a
financial expert, Lance Morgan will take your call and you
can explain you set of circumstances. Feel free six one seven,
(21:18):
four ten thirty six one seven, nine three one ten
thirty Coming right back on Night's Side right after the
news break at the bottom of the hour.
Speaker 1 (21:28):
It's Nightside with Dan Ray on Boston's news radio.
Speaker 2 (21:33):
We're talking with financial expert Lance Morgan, and we're trying
to focus and get people to focus on the benefit
of home ownership but also the cost of home ownership.
It is arguably cheaper to rent than it is to own,
but the money that you pay in rent has no
(21:56):
long term benefit for you other than a bunch of
rental receipts. Uh and uh, your your the receipts that
you may get from the bank who who has helping
you pay off a mortgage does result in some home equity, uh,
so that when you decide to sell that property, you
(22:18):
actually have more than just rental receipts in your hand.
Is that the simplest way to put it, Lance, Would
you say, yeah, I think that's great. Let's go to
Supole Calls sixty six, one, seven, nine, three, one ten thirty.
Jack is in Newton. Jack appreciate your calling, and you
on with Lance Morgan, who's a financial expert, and we're
(22:40):
talking about the possibility of fifty year mortgages. I should
have asked before Lance, We've never had that vehicle in
this country, to the best of my knowledge, correct, this
would be they now Are they now actually available in
some in some banks and some some credit agencies, or
are we're still talking about them in the theoretical and
(23:02):
then we'll go to Jack's call.
Speaker 4 (23:04):
To my knowledge, they are not available yet.
Speaker 2 (23:07):
Okay, let's let's go immediately to Jack's call. Jack, welcome,
You are next to the nights. I go ahead, my.
Speaker 6 (23:14):
Friend, Yeah, Jack Corter, I've done some calculations lands on
five hundred thousand dollars at six point two five percent
for fifty years, thirty years, and fifteen years, and here's
the figures. For fifty years, five hundred thousand dollars will
(23:34):
be two thousand, seven and twenty four dollars a month.
That's pretty good, but the same as renting at fifteen years. Well,
I'm sorry, at thirty years, it's only three thousand and
seventy eight, so you're only saving theaters and fifty four
dollars at thirty years. But if you have for fifteen years,
it's four thousand, twitter eighty seven dollars a month. You're
(23:56):
saving one five and sixty three. But on fifteen years
you might be able to pay it off because you're
going to pay a lot of money. So this is
a good program if the banks will allow it for
fifty years. Not that much difference in thirty but yeah,
from fifteen you say ten thousand and sixty three dollars,
So well.
Speaker 2 (24:16):
That would be the diference between a fifteen year and
a fifty year. So those those would be the two,
you know, furthest apart. The thirty would be the one
in the middle, and most people have a thirty I
think Lance would agree with that. It's a few events, yeah,
(24:36):
but they're most of between. Lance, I don't know if
you have these numbers off the top of your head.
In terms of mortgage people will have mortgages today, one
percentage are thirty years versus fifteen years. I'm assuming it's
ninety percent thirty years, and maybe if we're lucky ten
percent fifteen years.
Speaker 3 (24:54):
You know, it might expe I mean, I don't have
the exact data. I'm just speaking from experience of talking
to hundreds of clients of mine over the years. You know,
I would say the thirty year is definitely the most common,
but you do get a lot of people with the
fifteen year mortgage. Trying to pay off their mortgage before
they retire. That's a very common thing as well.
Speaker 2 (25:14):
Yeah, I turned mine into a into a fifteen and
I was still like twenty nine years old. I just
wanted to get it, get get it done. But again,
my mortgage was pretty small money because it was on
a condominium that in nineteen seventy eight cost me sixty
seven thousand dollars, which I thought was I would never
(25:35):
see that money again in my life. I mean, I
was terrified by the jack You have moved around a
little bit more than I have. Have You always rented,
mostly owned? What has been your experience? You've lived in
Wisconsin for a while. I know that, amongst other places own.
Speaker 6 (25:52):
But I was very you know, I've moved around Dowton
for the last forty years, but mostly all right, Well,
I have a two point eight percent mortgage. I was
very smart, so lucky four years ago I refinanced.
Speaker 2 (26:07):
You refinanced to two point eight percent four years ago?
Who are you? Who are you dealing with the mafia?
Speaker 5 (26:16):
Who?
Speaker 2 (26:17):
Listen? What was I didn't realize they were two point
eight percent? Was this through a bank?
Speaker 6 (26:24):
Well, it was through a mortgage company.
Speaker 2 (26:26):
Bluggage interesting.
Speaker 4 (26:29):
Idea that was right, that was right before they started
going up.
Speaker 2 (26:33):
Yeah right, okay, well, good for you, Jack, congratulations, go ahead.
Speaker 6 (26:39):
Oh you know it's impossible for me, you know, to
to move just you know, fine. But the main thing
is for young people with the rent, so I you know,
a fifty year mortgage would be fantastic for them. They
would only pay two seven and twenty four dollars a
month for million dollar mortgage even at six point two five.
(27:03):
Can you imagine if it drops to four point two
five or left? I'll detain and left. I don't know
if the banks will want to do that though, that's
the thing. Maybe they will. I think it's a political
thing or something. We've got to lance pushed the banks
to start utilizing sisty your markets.
Speaker 4 (27:22):
Yeah, well, I wonder if the political or not.
Speaker 2 (27:27):
Well, I wonder if the Trump administration. Obviously they have
taken a real hit in the polls because of the
issue of quote unquote affordability, the drum that the Democrats
are beating right now, and a lot of people are
hearing the beat of that drum and appreciating it. How
(27:48):
much pressure do you think can be put on the banks?
I mean, I assume that a quarter point cut by
the Federal Reserve tomorrow is not going to make a huge,
huge difference in terms of mortgage rates, right or wrong
on that lens.
Speaker 3 (28:05):
Yeah, I mean any cut and mortgage rate, you know,
always does a little, you know, to help in the
right direction. Yeah, you know, I think that it's showing
that they're moving in the right direction. The problem is
is you're right, it's not enough to move the needle,
you know, to the point where we get down to
those two point.
Speaker 4 (28:24):
You know, nine percent mortgages.
Speaker 3 (28:26):
You know, like we like we had for a while,
you know. So interest rates are definitely very helpful.
Speaker 4 (28:32):
You know.
Speaker 3 (28:33):
The other thing that a lot of people don't think about,
and I'm not trying to get off topic on the
mortgage you know concept, but but when interest rates are
a little higher, it does help in other vehicles, right,
like CDs and annuities and these insurance products, you know.
And as these baby boomers are getting you know, well
(28:54):
they're in retirement, you know, and so.
Speaker 2 (28:56):
Not all of them, not all of them, not all.
Speaker 7 (29:00):
Definitely, not definitely, not all of them, you know, But
that is the topic, right. They're very focused, they're very
focused on that retirement, so they want they want to
get their mortgage paid off. They want to pay off
to their mortgage, but then they also want you know,
CD rates to go up right and things like that
so that they can have more safe vehicles to invest
in in retirement, which is all tied to you know,
(29:23):
we're talking about twenty year olds being able to afford
a house, and we want interest rates to go back
into that two percent range and maybe three percent range.
But then at the same time, when we had mortgages
in the two to three percent range, we also had
you know, CDs and annuities and some of these fixed
assets that were also in that two to three percent range.
Speaker 2 (29:44):
Absolutely, Hey Jack, great, great comments. Thank you so much
for moving the conversation along as always appreciated very much,
and thanks for doing the research for us. Okay, okay,
thank you, Thanks Jack. Talk. So we're going to have
a final couple of phone calls. I'm certain with my
guest Lance Morgan. If you want to ask a question
or or you know, advice is what you pay for it,
(30:07):
so this is free advice. But if you want to
make a comment, challenge anything that I've said or Lance
has said, you're more than welcome and do that as well.
This is an open conversation. Six one, seven, two, five, four,
ten thirty six one seven, nine, three one, ten thirty.
We'll be right back on night Side.
Speaker 1 (30:22):
You're on night Side with Dan Ray on WBZ Boston's
news radio.
Speaker 2 (30:28):
Back to the phones. Let's go to Melinda in Belmont. Hi, Melinda,
you are next with financial expert Lance Morgan. Go right ahead, Melinda.
Speaker 8 (30:36):
Well, I'm high Land. Thank you for taking my call.
So I had a quick question. We bought a property
six months ago, and we bought it at a really
high rate eight point two, and we're looking to refinance,
but we heard that we have to keep it for
twelve months before we're able to refinance. We're just trying
to figure out if that's an accurate statement.
Speaker 4 (30:55):
It's possible.
Speaker 3 (30:56):
I know some loans they do a lot, you know,
they do require you to keep them, you know, before
refinancing them. That is very possible. The other thing to
consider is just the cost involved in refinancing. You know,
there are like we we help families with their college
loans a lot, and of course with college loans you
want to refinance all the time because there's no cost
(31:17):
associated with it, but with a mortgage, you know, there
is a cost associated with refinancing.
Speaker 4 (31:22):
So if you do have to sticker.
Speaker 3 (31:25):
You know, stick in it for twelve months, then maybe
just wait. Hopefully interestrates will come down another quarter point
and then you won't have to try it to do
it twice.
Speaker 8 (31:35):
Okay, what.
Speaker 2 (31:39):
Rate do you have? Do you pay now? And what
rate are you looking at? Is there a specific rate
that you have access to which would allow you to
lower you right?
Speaker 8 (31:50):
Well, I don't know if there's a specific rate, but
right now we're paying eight point two okay, So yeah,
and that's pretty much pretty high. So we're trying to
get down to the sixes. It's possible.
Speaker 4 (32:00):
Yeah, how many how many months into it? Did you say?
Speaker 8 (32:04):
We're six months into it?
Speaker 4 (32:06):
Halfway there?
Speaker 8 (32:08):
Yeah?
Speaker 2 (32:09):
I assume that. So you probably would have a penalty
if you paid it off early. Is that that the deal?
Speaker 4 (32:17):
Yes?
Speaker 2 (32:18):
Yeah, okay, and that's a substantial penalty.
Speaker 8 (32:22):
It's not substantial, but you know, we're trying to like
save it instead of spending. We're trying to save No.
Speaker 2 (32:28):
I totally get I totally get that. Yeah, where do
you think rates might be?
Speaker 5 (32:34):
Uh?
Speaker 2 (32:35):
In your opinion? Lands if there is another cut tomorrow.
There's there seems to be a kind of some indecision
on this. Okay, Uh, there's some some articles say, yeah,
they do expect another quarter percent cut, and then others
are saying that the federal reserve is is deeply divided,
but they might pause rates going, you know, give the
(33:00):
you know, give the guidance that this would be the
last right cut for a while.
Speaker 4 (33:05):
Yeah.
Speaker 3 (33:06):
I mean, I've heard the same thing myself. I think that,
I mean, I think it's a pipe dream for us
to think we're going to get down to where we
want the race to get to any anytime soon. But
that is a significant rate on a mortgage. I mean,
so I understand you're wanting to refinance that as soon
as possible.
Speaker 4 (33:29):
We would have to kind of bout, we'd have to
run the numbers.
Speaker 3 (33:31):
My guess is is that you know, the cost associated
with refinancing if there is some sort of a penalty
associated with it, obviously over the long run, you know,
especially over like a thirty year window or of course
a fifty year.
Speaker 4 (33:47):
Window, if that's an option, you know, obviously you would
more than outweigh any sort of penalty you know, on
on something like.
Speaker 3 (33:56):
That, because we're talking you know, if we're talking two
percentage points for example, well, you know over a thirty
year window, like that's a huge savings. But mathematically of
waiting six more months to do it, maybe we're down.
Maybe we're down a point by then, and then it's
a win win because you're not gonna want to refinance
(34:17):
very often with the cost of refinancing, you know what
I mean.
Speaker 2 (34:20):
No, Yeah, I'm seeing that there are some rates here.
I'm not familiar with this website, but say as low
as four point three percent to four point seven percent fixed.
That seems like I'd be very careful as to who
that is. It's it's not it's some group called loan depot.
(34:42):
I have no idea. Yeah, you know, you got to
be careful. I'd always say, try to stay with the
bank to be to be certain. I mean, no, I'm
a big fan of Eastern Bank here in Massachusetts. So
give McCall to them. Want to ask what their rates are? Ye, well,
and see what they say later on the week if
that quarter percent kind of accurse tomorrow. Thank you, Melinda,
(35:03):
thanks for calling. Listen to the program of Great Night.
Speaker 8 (35:06):
Thank you.
Speaker 2 (35:07):
Let me go next to Mike and Bradford. Mike, I
want to get you into the wire here. You're on
with Lance Morgan, financial expert. What's your comment to question Mike?
Speaker 9 (35:15):
Hi, Dan, Hi Lance, Thanks for taking my call.
Speaker 2 (35:17):
Welcome.
Speaker 9 (35:18):
I just wanted to say that, you know, the kids
today are paying two to three thousand dollars a month
for rent, you know, for a two or three bedroom apartment,
and they only get on a tax deduction in Massachusetts.
I believe it's twenty five hundred dollars for the year. Now,
(35:38):
that twenty five hundred dollars deduction that they get is
the same as the twenty five hundred dollars deduction I
got like nineteen eighty seven, nineteen ninety one, you know,
so it doesn't seem like you're getting any relief from
the state.
Speaker 2 (35:54):
Certainly hasn't been adjusted for the increase in rate here,
hasn't been adjusted for inflation, that's for sure.
Speaker 9 (36:02):
Yes, yeah, and so I mean, you know, maybe maybe
something could be done from the state, you know, to
help alleviate that.
Speaker 2 (36:09):
Well, all that would do is that would make renting
properties more desirable. So I'm sure you have probably a
part of the real estate market up there that's pushing
for that, and part of it, maybe the home real
estate you know, portion of that industry, would be pushing
against it because that would allow people to continue to
(36:29):
rate to rent, and they want to get people in
the in the purchasing of property. The other thing, too,
is that everybody wants to live in Boston, everybody wants
to live on the Upper West Side of New York,
and those those areas are tough. I mean, I don't
know if I was a young person today, if I'd
(36:50):
even be looking at property in Boston and New York.
What's your thought on that lands.
Speaker 4 (36:55):
Yeah, that's the hard part. Some of those areas.
Speaker 3 (36:57):
Renting is going to be your only option just because
those desirable areas are going to be a premium you
know to purchase, Absolutely.
Speaker 9 (37:07):
Mike, until they raised the incomes, I mean, these people
are not going to be able to afford to purchase.
Speaker 2 (37:15):
Yeah, I mean unless unless you're planning for the Red
Sox or the Celtics at any of those those people
who have that opportunity, Mike, appreciate appreciate you calling. Maybe
there's some smart legislator out there is going to be
listening and take your idea and try to raise those
those rent deductions onto Massachusetts State Income Tact. Appreciate it mine,
(37:39):
Thank you much. Have a great Atlanta. Folks want to
get in touch you that. How how can they do
that most easily?
Speaker 3 (37:46):
So the easiest thing would be College Funding Secrets dot com.
We teach families creative ways to pay for college. But
of course we also help with all things financial, but
college Funding Secrets dot you give me book a free
call with my team, Tell him that you heard about
me on the radio, and.
Speaker 4 (38:05):
They can get you onto my calendar.
Speaker 2 (38:08):
Oh, that'd be great, That would be great. Just tell
him you listen to him and next time with Dan
Ray and Wbzlyz. Thanks so much for coming back and
talking to some of my listeners. I appreciate it so much.
Speaker 4 (38:18):
That was fun. Thanks for talking again.
Speaker 2 (38:20):
Thank you Lance. Appreciate it all. Right, We are done
with the eleven o'clock, the ten o'clock hour, with the
eleven o'clock our rates and I'm not sure we're going
to do so, stay with us and be surprised. Right
after the newscast here on a cold night, I'm supposed
to get a little warmer by morning. It is still
really cold. Here in New England. Stay warm, coming back
on night side. This is Dan Ray And yes, the
(38:41):
big day is almost here, New Year's Day, the day
we all tell ourselves we're gonna wake up motivated, focused
and ready to finally lose that weight. But let's be honest,
when January first rolls around, it's just the other day.
Nothing changes unless you do. I didn't wait for the
calendar to fix things. I heard about Awaken one idiot
resonated with me, and I thought, why not today? So
(39:03):
I made the call, and not only did I start
Awaken one eighty, I succeeded with Awaken one eighty. I
didn't have to go it alone. I had expert coaches
guiding me. And when I saw that scale drop week
after week, I knew this was the real deal. Maybe
your moment is hearing this, maybe it's a doctor's visit,
whatever it is. When you feel that this is the
(39:25):
day moment, make the call to Awaken one eighty eight
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weight loss dot com coaches are standing by.
Speaker 1 (39:38):
This is WBZ Boston, WXKSFM EHD two menphor in iHeartRadio
station guaranteed human. This is WBZ Boston's news radio re
defining local.
Speaker 10 (39:53):
News twenty nine degrees in BA at eleven o'clock, Good
Evening on Dan Watkins. Here's What's happening. Testimony continued at
the Brian Walsh murder trial today. A forensic scientist linked
blood found on a hack saw and a carpet to
Anna Walsh. Prosecutors claim Brian Walsh used that hack saw
(40:16):
to dismember his wife. CBS's CBS News Boston's Penny commit.
Speaker 5 (40:21):
Reports that is a sample of the handle of the
hack saw and this provides support for inclusion of Anna
Walsh to this DNA profile.
Speaker 11 (40:29):
For the first time, Anna Walsh's DNA has been connected
to items the prosecution says her husband used to dismember
her and clean up the mess. Forensic expert Simon Selene
with the State Police Crime Lab placing on his DNA
on a pair of bloody slippers, a hatchet, tivex suit,
rug with red brown stains, and several other items police
(40:50):
pulled from a dumpster.
Speaker 5 (40:52):
The DNA profile from this item is at least thirty
one million times more likely if it originated from Anna Walsh.
Speaker 4 (40:59):
What is an anilion?
Speaker 5 (41:00):
A ninilion is one, followed by thirty zeros.
Speaker 11 (41:04):
But Brian Walsh's DNA was excluded from a number of
items including the hack saw, bloody towels, and tissue
Speaker 10 (41:10):
And the exclusion was due to the defense arguing that
blood and NA could
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