Dollars and Hops

046 | "Should I Buy A House With High Interest Rates Or Wait?" | Celebrating A Listener Win

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Money Hack of the Week: Sim Swapping

https://clark.com/cell-phones/sim-card-swapping/


SIM swapping, or a SIM swap scam, happens when a crook is able to take control of the personal information stored on your SIM card by using it on another phone.

According to the Federal Trade Commission (FTC), a successful SIM swap can occur if a scammer impersonates you and contacts your phone service provider with a bogus story.

According to the FTC’s website, “They may call your cell phone service provider and say your phone was lost or damaged. Then they ask the provider to activate a new SIM card connected to your phone number on a new phone — a phone they own.”

Once scammers successfully take over your phone, they can access your bank account, social media accounts, email account and more. How? While two-factor authentication is typically a decent form of protection, the scammer now has access to your phone number and email. That means they have access to any codes sent through an email or text message.


What can you do?

  • Depending on which carrier you have - you can essentially lock down your SIM. 

  • Head to Clark Howards website via the show notes link we have in the show notes to read how to lock down your SIM.

  • I am with T-Mobile - they have a process known as SIM Locking in which I have enabled to ensure nobody can get access to my SIM without me knowing. 

    • Main Topic


    Should you buy a house with today’s interest rates, or is it better to just wait?

    What is the current rate: Somewhere between 7.2 and 7.9% depending on if you go VA, conventional or FHA

    What is the historical 30 year rate?

    • 7.75% - as of right now we sit at 7.25% as of this recording

      • First off - Let’s talk about why rates are higher

      • Inflation

      • Federal reserve raising rates to cool buying and help strengthen the dollar

      • When rates go up, it's more expensive to borrow and people are incentivized to save because savings rates increase.

        • If you are thinking of buying a house, you are probably well aware that interest rates have a direct correlation with how much home you can afford.

        • A 500,000 loan at a 3.25 interest rate - which you could get about a year ago would be a $2,175 P&I Payment

        • A 500,000 loan at a 7.25 interest rate is $3,411 = 1,200 more for the same priced house per month.

          • So with a $1,200 difference on a 500k house - what are the pros and cons to buying now?


          Pros:

          • If you can afford the house and the payment fits with your monthly budget, it allows you to purchase a home at today’s prices

            • Prices could go up or down - but real estate tends to increase in price by at least the rate of inflation on an annual basis.

            • You get to start paying down the loan immediately

              • If you wait - you are paying someone else’s principle payment for them.

              • If you plan on staying the home a long time - even if values decrease in the short term, it likely won’t matter by the time you go to sell.

              • We have a supply of housing problem still in the USA. 

              • If interest rates decrease - you can always refinance and pay less of a monthly payment.

                • Cons:

                • You are locking in a “high” rate relative to what rates have looked like in the last few years. 

                  • Can’t predict if rates will go up or down.

                  • Property values are up in many parts of the country.  

                    • Nobody can predict where property values in the future

                    • Loans are not where they were in 08 and 09 when banks were loaning people money with “stated” income and interest only loans. 

                    • People feel like we could be sliding into a recession which could decrease housing prices

                      • This is speculation

                        • So would we buy a house right now if we were in the market - or would we wait?

                        • Solid credit score  = 720 or more

                        • You have a monthly budget and you’re living and giving on less than you make

                        • You have money in an emergency fund - for maintenance costs

                        • Your debt is manageable

                        • You have the money for a down payment.

                        • You’re steady in your career and relationship

                        • You know what you want

                          • Then it’s probably time to go ahead and buy that house!


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