04.24.23 Two Mortgage Warnings / Clark’s NEVER NEVER Advance Deposit Rule

The Clark Howard Podcast

Clark Howard

Investing, Entrepreneurship, Business

4.6 • 4.9K Ratings

🗓️ 24 April 2023

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

One of the biggest financial decisions in life is the purchase of a home. Clark has warnings about 2 trends that can be perilous in the long run for home buyers. Also on today’s episode, the recent shuttering of David’s Bridal stores points to a bigger concern: How to handle making an advance deposit on a future purchase. Clark has an important “NEVER NEVER NEVER NOT EVER” rule, to protect your money. 2 Mortgage Warnings: Segment 1 Ask Clark: Segment 2 Advance Deposit Rule: Segment 3 Ask Clark: Segment 4 Mentioned on the show Feds expand 40-year mortgage eligibility. Experts say it could lead to more. NYT - Retired and Buying a Starter Home. It’s Forever. Banks Are Closing Customer Accounts, With Little Explanation How Many Credit Cards Should I Have? Capital One now rejecting transactions from Affirm, Afterpay and more WSJ: David’s Bridal Will Close All Stores in Chapter 11 Unless Buyer Emerges Do Not Give Your Social Security Number at These Places NYT - Shifting Norms on Tattoos in Japan Clark.com - Streaming TV - Live TV Streaming Channel Tool Clark.com resources Episode transcripts Community.Clark.com Clark.com daily money newsletter Consumer Action Center Free Helpline: 636-492-5275 Learn more about your ad choices: megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	It's my pleasure to welcome you to the Clark Howard Show, where our mission is to serve
0:10.2	you and empower you so you make better financial choices in your life.
0:16.3	One of the biggest financial decisions you ever have to make is buying a home and with
0:23.2	it getting a mortgage and I'm really concerned about some trends that are playing out in
0:29.7	the mortgage market.
0:31.2	I want to make sure you know heads up on these.
0:35.9	Also in today's episode, David's bridal has brought up a bigger issue that we all need
0:42.9	to be concerned about and that's making deposits on items we buy that are going to receive
0:49.7	at a later date.
0:52.2	So a thing that have driven me crazy over the last 20 years is something that comes
1:00.9	up from time to time that is as bad an idea as a bad idea could be the 40 year mortgage.
1:13.1	And it's back and why is it back because the cost of housing right now with higher mortgage
1:22.3	rates is effectively so high and a monthly payment that people are wanting to buy a home
1:30.5	and going to a step that says step back because it's already bad enough with 30 year
1:38.6	mortgages that everything you're paying pretty much is going to interest and almost nothing
1:46.2	to principal for a long long long long long long time in that mortgage.
1:52.2	40 year loan you magnify that problem because the ultimate cost of that mortgage unbelievably
2:02.1	high.
2:03.5	Now I'm going to say something that I don't say lightly I don't say it in any way being
2:12.1	flippant but if you've listened to me long enough about cars I have a simple rule when
2:19.1	you're shopping for a vehicle if you need a loan for that vehicle if you cannot afford
2:25.4	the monthly payment on a 42 month loan you cannot afford that vehicle.
	...

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