Todd Pietzsch from BECU 08-15-18

Wednesday, August 15th

Todd Pietzsch from BECU joins us live in studio. A texter wants to know how to buy a new home if they need to sell their old one to do it. A texter wants to know tips on how to better follow a budget. A texter wants to know if they should refinance their home. A Facebooker asks how to get credit when their score is below 600.

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Do you resist that KI SW financial advisor he heard the song money please were. God I invented numbers so I know how this just words speech. That's right man shot lead from BC news dot org. And don't forget man I if you don't know about credit unions they. I just like banks except they look out free EU because all ought to remember own just like DCU. I guess goes live work or attend school here in Washington State it's no longer is about Boeing you live here you work here you attend school here in Washington State. You get to join VCU and Todd you guys are cash machines everywhere you all sorts of banking services. You're just like a bank except I don't you joke on me so. Where is look we've done I've always talked about this be right back Clarence. And idea what is that they waited and it's it's so bizarre to think so that you can do everything that a bank does and yet you guys just care about the members that's what a credit unions on Bobby decorating and work a lot like there are other co ops out there as well Mari I being one for example hunting Daria and they're co op. So they're owned by them than they did people who use those services owned. The business so what that means is all the decisions and remain there about what's in the best interest of those people who loan and the members I'm not stockholders are Wall Street. Guys I think it was PCC is not a whole lot Julia there that's a great joy to buy your groceries at SuSE yes so co -- serve you know a phenomenal because there was all the decisions are what again what's best for those people who. Who own their own place so when we're looking at. You know interest rates how can we pay the most are charged as charged Elise I don't loan. I'm not hate you it's ten seasons. Don't did you know just c.s in general that's the idea is to get rid of that that's yes that exists anyway BC dot org if you want more information of course the talk to policies towards one rock Texas and 779990. Yeah this text was the process of buying a home when you're living in the home you're trying to sell. On what do you loyalty of a moving in that whole process of buying a home while you're living in the home you're trying to solve I'm sometimes you have to do contingency so it's a little tougher in this market and things there's so many things there's a slow a slowing down a little bit so. What you have to do is you have to find their new home near looking to mine and you have to make that offer contingent on you selling their home near and usually unless you have a lot of money right then you can. You have the money to put down and you and income they can actually handle. Two payments for a period of time then you can do ballet as well best. That's very common business that continues even again this market it's a little bit tougher to do that because flat and offers are coming in. I have no contingencies attached to a three so it's a lot easier for personal solar house is someone doesn't have a continues like that is knows no stability and a lot of time missing cash cash drain and that's always a nicer thing. Yet so I'm they can be done and and I think when the market cools down a little bit thin is starting to see that's a little bit right now. On this that I will be sending you manually do they pay given a world we have really nothing to lose if you're looking to buy Indian move. On find out what do you know finally looking for a get pre qualified. Con. So you're ready to go and then you can and they contingency had your house ready yourself or with an agent no help you guide you through the process. And and Todd hey you know I hear a lot about people with this our own situation but man I am how do you look. I don't like a light don't like you I heard his opposes same house for us you know at least thirty years or have that thirty year loans Ian says so and get table talking start homicide I don't understand how those go together. Starter homes and thirty years the LA into because that's the idea is you you if you get a thirty year loan you kind of wanna stand that house for a long time and yet people are getting these thirty year loans for what they call their starter homes and they're gone like in five years and I can't think financially that's cool. I'm I think five years is a minimum I think the average person's only stays in her home about seven years on average allow them above average look at your buddy rice and I'm never leaving it I'm off the chart I think I've been in my house 28 years twin nine year earlier you and I worry word you know where we're from the same generation we just that's what we're told so. How did my parents had their home for forty years and I said you know while we should I go to one of those you know retirement. Communities and just chill a little bit on this I'm guessing they probably paid it off I'd I would imagine I was forty some odd years they probably Peja how soft so that's the thing Todd. If these laws are designed for you to basically be long term residence and your only stand for seven years how is your not we'll lose a lot of money I guess I would say who we know why at 3230 year loan. The YK usually the flip they first saw you can make additional principal payments and any time right yeah so I can tell you right now locate and BJ that's thirty year loan of chaos and seven. Here's what you meant when make your payments. So it doesn't happen you can start out of the thirty year loan he gives you flexibility your payment so low. If you don't have a lot of the money for down payments emergency funds and as you get you know through life indeed is stable and your job and you can make additional payments. Make additional payments on her door. Interest rates are higher now then when they were lower you could've flipped that and refinance to a ten or fifteen year loan and be done with it because we got a new homeowner and reds and questions are keys trying to get home and so this is this is good for your taste very good taste yeah. Great examples like in there for you know a few years threads on this season can make some initial principal payments some gifts and I'm actually planning on staying in this home for a long time got lots of plans for itself. I guess now it's nice home I am fairly quiet yes that's Smart financial decisions for the reds and Jenna artificial long in his backyard. Yeah. Some really think about it if it doesn't wanna Malulani Maureen has won a lottery anymore to one guy in America and please like me Todd idyllic Pacific yeah well hey I had nothing wrong with that. I don't know I Don has unless there's another kind of considers to be attacks or maybe she's cheaper to just get spray paint just drinking your Raul. Idea making and I'm gonna yeah yeah. 064 price surge on that. Texas 77999. Got Todd piece from DC you don't or he's got a question toss it over 25 years experience a financial services industry. He can help you out there about Texas a bizarre question but just south personal and say I really appreciate tides and vice always on site so I learn something new every time thanks Gerald awesome. This person as Tyson why it's so hard for my wife and I and follow a budget is there any way to make it easier. So it is tough these days. I'd say leave them. Biggest thing is Tom having envision having a goal together priority wanna go forty when he gets it as it did take sacrifices very well once. This thing today rates when we when we want to thank. If you can communicate work together on what your goals are what you're going for. Tom had their reward out there if it maybe it isn't buying a home right I mean. When I did that a long time ago we were both focused in on an upcoming empathize down payment that we sacrifice. I'm Danielle didn't you know had the problem I lunches and I'll kinds of things said today in today's that's so. That you gotta be no me is there's gotta be that carried out there why you wanna do that when you're driving for I think that's a tough one side because it and though more more people seem to be learning to cook at home I'm really excited about doing that because. I would say the millennial generation I actually see it on the on the TV show the big banks every every every week they don't ever cocaine they may always eat out that seems to be. What people like to do. But yeah you know man you're right if you can they needed and that's for CNN cut is like going out so much if you only with a lot of people realize what they stand that they distract gets. Thin jacket just did and that's what I'm wanting I would tell people the first thing to do is take thirty days and write down everything he stands and what he spend it on. Scattered up and you'll be surprised if you dine out alive you eat out alive for lines show I forgot my lines today. Comment adds up and hurry and can be and hundreds of dollars among Sunni think about and that's. Thousands of dollars a year on broken nose and Turkey mouse and I thought I also time share due to overtime box seats podcast yeah and a cup of coffee I really loaded people used to laugh when the star must first open because I'll do is go to McDonald's and got a governor copies elect a box what are you people know and and you still can get achieve cup of coffee now granted it may not see at the Bucs led. In the you know people spend a lot of money just go to Starbucks every day yet. And we actually had a benefits apple and then through work that we use and it talks about you know the new year. Here as you say on coffee today and you get points for everything he did. So did you get up and move on the hour did you have any analyst timely and animal and it's it's all about health redstone and tell the guys don't pretend the thermostat did you know keep your temperature. You know outfits on how did you keep it called now whenever I sound that was the idea of us and embassies icons and animal and myself both as a I don't got shut out I thought I'll host on an animal well hello. How could how my health goes into this feel good about that. To us exports of one rock Texas 77999. Todd B from BEC dot org I remember anybody can join VCU they live work or attend school here in Washington State's. Princesses or doesn't have love BCU question for you is now game time to refinance your home. Depends what your interest rate is or where you had today and how long you know be there. So how we can email me on did you establish some anybody really depends on. What your current interest rate is and again there are you going to be different and there are 51015. Years if not then probably won't make sense. Any higher interest for interest rates are finally going up is that right in our data on up about a 11 point 1% in the last year herself who just so insane I remember pain of paying double digits I don't really just everywhere in the in the eighties just eighties and early ninety's it was not. Trying I was nine point 9% so that historically there's still really low mean anything below 6% would serve out for half fish Gifford take ray announced. On anything new there's still historically low even though Louise we've been really spoiled over the last. Several years as they get these menus are very very historically lower itself. And Edwards got Todd patient VCU dot org and you know everybody wants to buy the house of Rudy wants to do that. And tie you really you guys in DC really help people understand okay the first. The milestones you should have in your life when it comes to our right now and it's all you've got money coming in. And what you should be doing with them money and everybody thinks are you know I wanna get that house and tired of paying rent. But you of course say they didn't really the emergency fund is the key things most of us don't even know even heard the concept of an emergency some yeah. I NE UN I have done a thousand bucks for an out of the gate that's the first thing you wanna start at before even think about you know saving for a house does. There are a breakdown you haven't under the gun for seeing medical fuel bill to make that thing up tomorrow and now happen again and you keep getting yourself into this rite in the annual. So I'm Daniel trying to make those payments and so the first thing would be if you're just starting out make sure you have a thousand box on the side before even starred same for anything else and that's. We hope that we have amounts as bonds and MySpace message okay. Tom crazy up there hasn't been as good fuhrman's it was a says Obama on Friendster. When she let us pray Jennings FaceBook page yeah I just sent us a message saying how does a person establish credit with your bank. When one has credit score lower than 600. I'm you can do is so what's on the secured credit card or eighth I shared secured loan to what this basically means they're gonna have to. Put a couple hundred bucks up for example as security. Con for and Elena credits they're gonna put an end to that. Lots accounts that it did you get that 200 dollar credit limit effect if you don't pay you a Nagin take from that so there's really no risk for them. How many you can build up beneath in the key is to make those payments on time. And if he had a line of credit keep it as low as possible that after a year or two he'll build a build up the new building go on your own. And like you said key deadline occurred low as possible what is it 10% of whatever the credit line is you should only have as a balance each month that's optimal enough guys 25%. Okay instead I prefer to see if you can. 10% or lower of that line of credit that it can be as your balance. Outstanding on that. Come on that's statement. You get a really did Todd has changed hasn't been police look at credit cards is a way to get things they want now on pace from later but now credit cards. Are all really if your Smart they're only designed to help increase your fight goes corn that's pretty much ice. Yeah I mean why else would you want I'm going to Democrat I mean if you don't want to loan and as you wanna pay an option if you're Smart you can use credit credit cards to your advantage absolutely. Gather a lot of them mileage plans are bonus point is yeah -- as we get in this cabinet vote I want this I want that and use easy to pull out the classic and now all I'll pay for our next month or anything when Amazon is really an army in that sense it's an I mean I know I'm sounding error allowed the plastic that's already have an ugly I don't see any incidents for us to make those changes but anything it's so true you talk about if we can make those changes manhole I like to be a lot easier guys and I tell people if you if you want something played 24 hours and she still won it okay. They do it don't impulse shopping by any PC you really need integrity. Toys are notorious for hours later and how do you feel about it now and most of time just still on land in. That's why the wish list on Amazon is pretty good reason to throw on the wish list that does give you some time to see if you really really wanted. And it just coming pilot up there near a car and you see how much every thing is you feel discouraged you know like a cameo by the straight now plus she. That's a nice. Well if you get through on the phone lines and always the sex lines you know why here's what she gets to do you get email Todd just go to KI SW dot com and the B Jamie's page he scrawled on C Todd smiling face and a banner click on that. Not only really answer your questions and also we'll take you to a website that actually a say on page that has some great information just. Great financial information it's absolutely free to check out and Todd will answer any question you can. And yet now BC dot org talking it's you it's great senior Bonnie thanks BA. And the next morning and neck point nine KI SW.