embarrassing i was month to month. that is if i didn t have a paycheck that month, my bank is not going to get the mortgage statement. as the clock ticks i have one question. it is not just about families, it is about the banks when they don t get a check, what are we going to say? what are we going to say? the families are going to start to suffer and this issue will become more about people and less about politics because people are going to say, i can t pay. and, remember also, that even before this crisis the president, who signed this massive tax cut for rich people, froze the pay of all federal workers. you know, froze the pay. didn t even give them cost of living increases, you know, for the secret service agents who follow him around the golf course. they re not going to get a raise that they were supposed to get. i mean the abuse and maltreatment of our federal workers by this president in and of itself is a total disgrace. everybody stick around. there s a lot more we r
basic cost of living is more than they are bringing in. they can t do any more. what advice do you have for those folks? how do they plan for their retirely or their future? what you have to do, the first item is where are you now? you know, if times or great or times are bad, you still are where you are right now. so it s even more important, go online, type in the words household budget worksheet that you just referred to. use the one you used last year n. january, you are going to get your year-end or december statements for everything you have credit card statement, mortgage statement, bank accounts, retirement accounts, investment accounts. and you are going to open the envelopes this time and you are going to carefully look at them jamie: so many people bury their head in the sand. amen. jamie: we bring ourselves up to speed on everything we have. given the new tax regulations,
remember, when you refinance, even if you are going from a 20- or 30-year loan to a fen-year loan, you are restarting that term. so if you had a 30-year loan and hu12 years left, even if you refinance to a 15-year loan, you are going to be paying, including interest, for 15 years, rather than 12 years. with each monthly payment, you pay down a little bit of principal. so you are paying less and less interest. but at beginning, you are paying the highest rate of interest, so it could be three or five years before you make a dent in the principal. but in terms of financing, if you have a fannie and freddie loan, they are the best off with the new 2.0 product, because it allows anyone, even if you are underwater, no matter how far underwater you are, to refinance. being underwater and having bad credit are holding most folks back from the low rates, i want to advise people to take a look at the current mortgage
value of the house. the house that i live in is 100 years old. there s some great stone, wonderful woodwork. i paid about $180,000 for it some years ago. and to replace it, brick by brick, stone by stone, would cost about a million dollars. wells fargo said, all right, you re going to have to carry a million dollars worth of homeowners insurance. and i said there s no way that i would do that. and they said, well, if you don t do it, we re going to do it for you and i said you re on. so i refused to renew that policy at a million dollars and they did what s called force placing insurance on my property. and once they did that, then there were irregularities that started with their accounting and their billing. and when i noticed these irregularities on my mortgage statement, that s when i started writing letters and that s when the court case started to come into play. okay. so they said that you didn t have enough insurance on the home so they were going to foreclose on it because t
your income, so about 30 days ooze worth of your income, but if you re self-employed, about six months of income, but you also want to bring the mortgage statement so they can see who your servicer is, and the monthly payment. you also want to make sure they have information about the property, they know exactly what the property taxes are, and can get all these things together to help you modify that loan. tell us about that guy in the piece, and how that worked out for him. it s amazing, you know. they re really restructuring these loans for people. that s the key, to be able to restructure the loan and get them a new loan that s actually affordable. so a lot of times, when you re going into this, people are skeptical, but a lot of people need help, and the counselors are on spot. they re 24 hoirs, so i think that s a great thing for them to be there to help these people. a lot of times they don t have