In this episode, Jason Hartman analyzes the debate between Peter Schiff and Jim Rickards about inflation. He discusses inflation, the velocity of money, and whether we are in an inflationary or deflationary environment. Towards the end of the show, Adam joins him to give a January 2021 mortgage update.

Announcer 0:02
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in 1000s of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 0:52
Welcome to Episode 1639 1639. And that means Wednesday will be a 10th episode show where we discuss something of general interest. And Wednesday show will be of not only general interest, but interest to everybody. Everybody who cares about freedom? Yes, I know that’s a cliche, right? It’s a cliche, but it is legit. It is so important. So today we have our mortgage update, and we will have that in a few minutes. But first, since we had Jim Rickards on last week, I found an interesting clip from the qipco podcast, where Peter Schiff, and Jim Rickards are debating inflation, or deflation, and with Jim Rickards being on So recently, if you’ve missed those episodes, for any reason, be sure to catch them. They were last week we had Jim Rickards on both Monday and Wednesday. Of course, we’ve had Peter Schiff on the show a long time ago. And, you know, these, these guys out there in the financial world, definitely have some interesting points of view, even though oddly, they’re wrong. So often, aren’t they wrong so often? Yes, they are. But let’s, let’s get into this clip, of course, you will have my brilliant commentary included. So here we go. And I will interrupt the clip at the appropriate times, and correct the possible misperceptions. What are the major risks that you’re looking out for today, we’re already living through the worst pandemic, in recent history, we’re seeing a recession that some analysts would say is even worse than the Great Depression of the 1930s. And in response, we’re seeing monetary stimulus on a historic level. Jim, let’s start with you. How could things possibly get worse from here?

Guest 2:54
it? Well, first of all, I encourage everyone to stop using the word monetary stimulus, there is no monetary stimulus, there is money printing, yes, there is money printing, and debt monetization, but it has no stimulative effect, you don’t get inflation from printing money, you get it from velocity, which is psychological, which the Fed doesn’t understand.

Jason Hartman 3:12
Which by the way, I do not completely agree with you do have to have some velocity of money. In other words, how much is the money changing hands in the economy? And, you know, it’s interesting that when I talk to these various people that I interview the 1000s, I’ve interviewed over the years, economic experts in every realm. And I asked them questions like, why does velocity create inflation? It’s funny, they many times will make that statement, but they can’t really explain it. So I, by your host, will attempt to just give you a very basic idea as to that concept. When money changes hands and it moves around the economy. Every time it moves, there is a potential for a markup. And when that markup occurs, that can be I did say can be inflationary, I didn’t say always is but mostly is, however, you can have relatively low velocity, and still create quite a bit of inflation. And that goes to the argument where Jim is arguing from a more more technical perspective. And he’s arguing that there hasn’t been any inflation, which I would beg to differ with. Okay. And then Peter, of course, he’s always got these more outlandish statements about the end of the world and the dollar crashing. Yet it never seems to happen. And I was talking with someone about this yesterday, one of our clients and a friend of mine, Nate Nate, if you’re listening, hi, we talked about this yesterday and with Keith as well, another one of our clients and friends. What I said is I said, Look, if you look back to say, Howard Ruff, who I had on the show many years ago, who I believe has passed on, brilliant newsletter writer wrote several books. Really interesting guy. And, you know, he was talking in the 70s, the 80s, the 90s, the 2000s. And, you know, talking about how all of this stuff, all of this bad monetary and fiscal policy is, you know, the end of the world. And it just never ends. And the problem is, is that, yes, they can all say there’s a bubble. And yes, there is a bubble. But who knows how long the bubble can last? How big can the bubble blow up? Right? You know, every time they blow up the bubble, they seem to get a better, stronger balloon will liken it to a balloon, not exactly a bubble. And they can just keep pumping more and more air into that balloon. Look at a little tiny kid’s balloon that maybe at its maximum size, when you blow up is eight or 10 inches in diameter is much different than a hot air balloon, right? That is, you know, maybe 50 feet in diameter. So the balloon keeps getting bigger and stronger. And yes, eventually, it will pop. But the question is when? and How big can it get before it pops. And the problem with all the doomsayers is that they keep waiting for it to pop. And they miss out on a fortune in terms of returns, during that time, they are waiting for the bubble to burst. That is the problem. Yes, they will eventually be right. Just like the broken clock is right twice a day As the old saying goes. But they will miss so much opportunity on the way to that, that reckoning date. Okay, let’s go back to the video.

Guest 7:10
But the biggest threat is deflation.

Jason Hartman 7:12
Peter, you thought you’ve argued that we could see inflation as attacks? So

Guest 7:15
how would you respond to that?

Guest 7:17
Well, first of all, the only thing you’re going to see deflation measured in is gold. But in terms of fiat currency prices are going to go up dramatically, because they will continue to print the dollar in until it until it no longer has value. That’s the only thing that’s going to stop it. But look what we’ve seen so far. You know, even with the civil unrest, and the riots and looting, this is just a small dress rehearsal for what’s coming. Because when the dollar crashes, you know, and and prices skyrocket, right? The stimulus checks or, you know, or, you know, whatever welfare benefits the government wants to dispense, they’re not going to be worth very much. I mean, you’re not gonna buy anything. And I think the government is going to respond to the surge in consumer prices, with price controls, kind of the way we did in the 1970s. But prices are going to be rising much faster now. Okay, so

Jason Hartman 8:09
a little bit of context on what Peter is saying. So that’s Peter Schiff. And of course, he’s predicting the end of the world and the dollar crash. And he’s been saying that for a long, long time, I’ve got videos that I’ve shared with you of him saying that back in, you know, 2006, right, and here we are 15 years later, but he will eventually be right. The only question is, when will it be in our lifetime? That’s the problem. They can kick this can down the road for a long, long time. But he’s referring to the price controls that Nixon implemented in the 70s. And what do price controls do while they do the same thing rent control does. We as landlords, as real estate investors know that rent control is an epic disaster. Because what does it do? It’s supposed to create more housing affordability, just like Fannie Mae. Their goal is to promote homeownership, just like another government program. You know, this program that program this price control, that price control, this regulation, all these things ever do is create shortages. Okay. Now, in the Fannie Mae example, you may be saying, well, Jason, Fannie Mae did not create a shortage of housing. You’re right. What I meant there is a little bit of a different idea. Fannie Mae and Freddie Mac with the idea of promoting homeownership, all they did is increase the prices of homes. That’s the very definition if you if you promote something, the price will rise and fewer people will be able to afford it. You know, I’m going to share with you, you know, on a future episode, a clip about SEO Sears. Sears, you know, the retailer. That’s, I don’t know, are they completely out of business yet? They keep holding on for an awful long time. Just like JC Penney. Well, Sears, you know, Sears used to ship you a house. Yes, a Sears house from the Sears catalog, you could buy a house. So if you had a little piece of land, you could order a house, I kid you not a real house. That was you know, it had assembly instructions. And it told you you know, when you when you got it, you got all these pieces of lumber and all these different parts. And it told you what part when were just like assembling a piece of IKEA furniture. You could buy get a house from Sears and those houses are still standing from the 1920s. Okay, they’re they’re still around. You don’t necessarily know which ones they are because they don’t say, Sears, there’s no nameplate on them that says Sears, but there are many Sears houses. And you will not believe how inexpensive houses were back in the day. And I don’t mean, in nominal dollars, I mean, in real dollars, compared to people’s wages, before Fannie Mae and Freddie Mac and the government and VA and FHA and all the rest got involved in promoting homeownership, which means codeword making it more expensive and less affordable to people. That’s exactly what they did. Okay, back to the video

Guest 11:29
now than they did back then. But I think there’s gonna be controls on all sorts of consumer goods. And that means shortages, that means long lines. And I think there’s going to be power rationing. And so I think you’re gonna see a real blow up particularly in the cities, there’s going to be a lot of crime, a lot of violence associated with widespread shortages and a lack of food and power outages. So things are gonna get pretty bad as we go through a monetary crisis. It’s not, you know, this is not just a financial crisis. This is a US dollar crisis and a sovereign debt crisis. That’s a whole nother ballgame.

Jason Hartman 12:07
Jim, I’ll let you respond and close the argument.

Guest 12:10
Yeah, well, I agree with Peter that the Fed wants inflation, but they don’t know how to get it. And they haven’t by the last 12 years?

Guest 12:16
Well, that’s the one thing they do know how to do. Thank you cause inflation, that’s all they can do. They can print money that

Guest 12:21
they can’t they can’t pay, they printed $7 trillion in 12 years, and we have no inflation.

Jason Hartman 12:26
That is simply not true. Okay, because he’s not asking the question, compared to what compared to what I mean, think about this. We’ve had all of this technology in the past years since they since the Great Recession. And all of this, you know, first round of huge astronomical money printing, and now we’ve got it again. Right. And so that technology has been a deflationary force. And what what’s the comparison, there’s no basis for comparison is there because if you measure it with what we should have had, or could have had, if we didn’t have all of that money printing, prices would be fabulously low right now, I know a lot of consumer prices feel pretty low, because technology keeps pushing the price of those things down. But food prices are not low. If you go to the grocery store, it is not inexpensive. If you go to a restaurant, it is very expensive compared to what it used to be. And asset prices are out wages, the price of real estate, the price of stock, the price of bitcoin, the even the price of gold, which has done very little okay is up, okay, because it’s a measuring stick. So all of that stuff. Now, wait a sec, because you’re you’re probably thinking, well, Jason, haven’t you been telling us lately that real estate is cheap? How can you say it’s expensive? Now? You’re a hypocrite? You’re a Democrat. I hippocratic Oh, same thing. No, it’s expensive. From a price perspective, real estate is expensive. But from a mortgage payment perspective. And when inflation adjusted on those mortgage payments, real estate is still very cheap. So and but of course, it depends where real estate in the linear markets we like okay, still incredibly inexpensive, on a monthly mortgage payment basis, adjusted for inflation, very good buy. But if you’re paying cash, and you’re in a cyclical market, you’re gonna think Real Estate’s really expensive. So again, you got to peel back the layers of that onion and whistle while you do it. Otherwise It’ll make you cry. As you’re peeling the onion, you know that all of you chefs out there, you know how that works. Right? You gotta whistle as well, so they’re Rickard said assets. Yes, he admitted asset inflation, but not consumer price inflation. So Peter disagrees with them. And there has been fairly significant consumer price inflation, but nothing compared to the amount of money printing, because technology is tamping it down. And the geopolitical environment is tamping it down. But that cannot last forever. Like I’ve said for many years, they cannot defy gravity forever.

Guest 15:37
I mean, prices are higher than they were seven years ago consumer prices but we inflated a stock market bubble, we inflated a real estate bubble, we inflated

Guest 15:45
a bond market bubble. I mean,

Guest 15:47
asset prices went way up. We distorted the economy based on all that inflation. And look, consumer prices have risen. Right? I mean, I don’t care the way the government wants to keep track of them with their you know, with a CPI, the CPI is not an accurate reflection of what’s actually happening with consumer prices.

Guest 16:05
It’s it’s pretty weird. If you want to count assets, you’re right. But it’s changing. It’s moving the goalposts you’re changing the definition, if you count assets, yet, if you count assets, yes, but I count consumer prices or PC core deflator, because that’s how if you want to predict Fed policy, that’s what they look at. So you need to consider

Guest 16:23
the Fed low fat, I care about reality, you know, and prices, prices are going up. But that’s not inflation. Because if the Fed didn’t create all this inflation, maybe those prices would have really come down, maybe consumers would have gotten the benefit of a lower cost of living. as Jason Hartman,

Jason Hartman 16:39
your humble host always says, compared to what you can’t hear the dogs that don’t bark, you don’t know how much cheaper all these consumer prices would have been if they didn’t print the trillions of dollars during the Great Recession. Now, fast forward 13 years, and we’ve had an awful lot of money printing last year, and we’re gonna have an awful lot more this year. So it’s absolutely staggering, the kind of inflationary tidal wave we could see in the future. But again, it’s uneven. It’s complicated, like my favorite Facebook relationship status, it’s complicated. So he got to really look at the nuances.

Guest 17:30
But the feds stole that benefit away from them by creating inflation. But look, all of this inflation is going to come home to roost, all of a sudden, we’re gonna catch up, and we’re gonna see dramatic increases in consumer prices. And then when you go back over the entire period, you can say, Oh, look, prices are up 10% a year or whatever they’re going to be, because all of a sudden, they’re going to shoot way up. And it’s not gonna matter that they were benign for a while when all of a sudden they skyrocket and catch up to where they should have been. But the cause was all the inflation the Federal Reserve has been creating the entire time.

Guest 18:04
Well, they I agree that the Fed didn’t do what they did, we would have had more deflation. And in a way, they were just fighting it to a standstill, but we haven’t had inflation for 12 years. asset prices. Yes. But that’s not the definition of inflation.

Guest 18:15
The definition of inflation is an expansion of the supply of money. And that’s what we had in Spain. We This is the greatest I’ve ever experienced,

Guest 18:24
that you can make it beyond definitions. We’re definitely inflation’s Jim,

Guest 18:29
I’m not making up the definition. It’s it’s people today, you go back and get at Webster dictionary from 100 years ago, and you read what inflation is. And it’ll it’ll it’ll say inflation is an expansion of the money supply, supply of money and credit. rising prices are an effect of inflation, right? prices don’t go up and they go down money supply inflates, you inflate is to expand, right? You want to expand prices, what what is being expanded as a supply of money. See,

Jason Hartman 18:59
I would criticize Jim Rickards at first for being too technical, but now i’d criticize Peter Schiff for being too technical. Because look, Yes, that’s true that it’s an expansion of the money supply. I mean, that’s what an economist will tell you in their ivory tower, but it doesn’t matter. All we really care about is rising prices. That is a problem. But remember, you knowing my methodology that I’ve been teaching you for many years, will will benefit from this because you will benefit from inflation induced debt destruction. Now, more than ever, because the mortgages are so incredibly cheap, that so many people are finally calling that mortgage. What I’ve been calling it for 17 years, an asset, not a liability. That’s what people are calling it nowadays. That’s inflation.

Guest 19:58
It’s is an expansion of the money supply, deflation is a contraction of the money supply, the effects of inflation or deflation are on prices. When you have inflation and your late demise, why prices will go up. And when you’re deflating it prices will go down. But sometimes you can inflate the money supply and prices don’t go up, because the inflation is preventing prices from going down. But don’t confuse changes in prices with changes in money supply. money supply is in frame as inflation prices are just prices. The problem here

Guest 20:29
is like we’re talking, we’re talking past each other. Because we have two different definitions. If you if you say that prices are flat, that that’s inflation, fine. That’s not how any central bank in the world or any economist

Guest 20:41
guess the central bankers want to pretend that inflation has to do with prices, because they don’t want to be blamed for it. When when you accept the real definition of inflation, which is an expansion of the money supply. Yeah,

Jason Hartman 20:52
you know, that’s the problem. Peter is getting too far afield on this. And he talks over records too much. And, you know, so they, they look, they both got good points, they both got things that I would criticize, but the one thing that Peter kept pointing out there just at the at the tail end there and I’m not gonna listen to the rest, okay, you don’t need to hear it, I think you get the idea is that how much lower would prices have been when, when the Fed and the government and the other governments and the other central banks, ECB, Bank of Japan, etc, etc. When they all step in with this massive stimulus, this massive amount, this flood of money, this tidal wave of money, they prevent deflation in, in consumer prices, which we should get the benefit of, they are stealing that from us. But fine, we’re going to align our interest with them, the most powerful forces the human race has ever known. And we are going to go and stock up on those incredibly low cost 30 year fixed rate mortgages at artificially low interest rates thanks to them. And we are going to outsource the repayment of that debt to somebody else called a tenant. And that is the hidden wealth creator that I’ve talked about so many times with you the ultimate investing equation, my ultimate investing equation, and inflation induced debt destruction. Now, we’ve got to get to our mortgage update. I really wanted to talk to you today about gas lighting. But I got to save that for a future episode. Because this is very important to understand, gaslighting, you may be familiar with that concept. It originally came from a stage play back in the 30s. Okay, when this husband tried to convince his wife, he, you know, he was a sociopath, right? He was trying to convince his wife that she was going crazy by manipulating the environment. And she wasn’t going crazy. He was manipulating the environment. And you know, he just was driving her nuts, right with with this manipulation of the environment and telling her that no, you know, nothing changed, nothing changed. It’s all fine. It’s, it’s you, something’s wrong with your perception. And this is what the big tech companies are doing to us. This is what the mainstream media is doing to us. This is what the Federal Reserve and the other central banks are doing to us. In terms of the economic aspect. This is what the government and all all governments around the world is doing to us. Okay. Very important concept. So we’ll dig into that on a future episode. But if you need us, Jason hartman.com, and let’s get to our mortgage update.

Guest 24:01
Welcome to this edition of the mortgage minutes, we are once again joined by one of the lenders in our network and we want to talk today about the rates that you’re going to see whenever you go to get your pre approval and then hopefully get closed on your investment property. So let’s, uh, let’s have a talk today on this lovely day. What, what’s going on in the mortgage market today?

Guest 24:20
I guess what we’re seeing with regard to the industry in general, is underwriting teams and lenders, Fannie Mae and Freddie Mac are continually asking for a borrower to update their situation or position to the degree that, you know, we want to make sure that they haven’t lost their job, but they haven’t been furloughed from work or if you’re self employed borrower that your position within your employment and your business hasn’t changed negatively as a result of any COVID related concerns. On the flip side, however, the good side of it all is that rates have obviously been as low as we’ve seen in history. Not as modern times, but historically low. So that has led to some COVID related consequences as well, in the industry such as appraisal. And underwriting team has just been completely overwhelmed, then there’s, in general, the biggest delay that we’re seeing really is with the appraisers, they might go out and do the inspection and see the home view the home, but it might take them a week or longer or maybe two weeks to write up the report. Wow. So that’s why that’s kind of a related consequence of the overall volume that we’re seeing in the industry. Because everybody’s trying to refinance to lower rates. And all of our borrowers in our network are trying to buy these these properties with inventory, it’s kind of low as you can imagine. So there’s a demand on the purchase side, because of the inventory issue. There’s also a huge demand on the refinance side for for clients to lower their payments and or take equity out of their homes to buy more homes. So the whole system is a little strange, as a result of rates being low, which is a direct consequence, kind of COVID, under recessionary environment that we’re in having said that rates are excellent or rates are excellent. Right now, an individual borrower, let’s say, who’s buying our, you know, our typical investment property for 120 $125,000. You know, 20%, down that 30 year fixed rate today is going to be three and a half percent, with no points. And you can get down to maybe 2.75, if you pay a couple of points, a lot of our clients, a lot of our clients are doing 20% down and paying a point or two points to buy the rate down.

Guest 26:50
What’s the lowest, you’ve

Guest 26:51
got 25% of the deal, the lowest I’ve seen with 25% down is two and three quarters, no points. At all. Conversely, if you’re doing 20% down and you just pay a point or two, let’s say you pay two points and you get down to 2.75, then you’re putting 20% plus 2% of the loan amount onto the deal, as opposed to 25% equity in the deal and getting the same interest rate. Yeah, it’s definitely what I tell the numbers, when I tell a lot of folks is exactly run the numbers, but like I tell a lot of folks, you know, if you were to pay 20%, down and take the rate of three and a half, or even 3.75, and then wait for the market to improve again, you may never get down to 2.75. But even if you did, the cost of a refinance is much more expensive than just paying the point or two points to buy the rate down today. So it’s almost worth the investment today, when you’re buying your home because you’ll never touch that rate ever again.

Guest 27:47
Yeah, I was wondering with the massive increase you were talking about that we’ve seen, you know, with refinances and mortgage starts, how long is the pre approval process taking? Because, you know, everybody’s slammed and backed up. How long is that taking right now?

Guest 28:01
well read fives are definitely taking longer because the purchase market whenever the lender doesn’t matter who you are, every lender is going to prioritize a purchase deal over a refinance deal. So again, as it relates to the appraisal, and the timeline, anticipated around in your appraisal being gone, I would say we’re in between 30 and 45 days to close a loan, if the house is already appraisal ready, or maybe even tenant occupied. Now pre COVID, that would have been three weeks to 30 days to do that long. So we are allowing for a week or a 10 day extension on just getting the appraisal completed our execution as it relates to underwriting and documentation and collecting what we need from the borrower is pretty much the same. So our outlier here is just the appraisal turn time. Couple days, yeah, from an underwriting perspective, we’re 24 to 48 hours to get a decision. So that’s not changed really at all with the volumes simply because we’re managing that internally as a company and we’re staffing up and as we need to for the body. So but on the refinance side, you’ll certainly see that that delayed process, you know, it might take an underwriter a week to underwrite a refinance file, whereas pre COVID that would have been done in that 24 to 48 hours time only because again, the purchases are going to take precedence over the refinance transactions.

Guest 29:32
So one of the things that a lot of people have been talking to me about is forbearance right now, and they’re you know, there’s some people who went into it strategically. There’s some people who went into it because they needed it. And you know, now they potentially could come out, but they’re kind of biding their time. What is the current rules about coming out of forbearance and then getting a an investment property loan?

Guest 29:55
Well as urinate anything that we see on any company might be a little bit different and uncertain Some big servicers some big banks like Wells Fargo BBVA, the big big guys might have different internal forbearance guidelines, you know. So in other words, if your loan is with Wells Fargo and you want to refinance that loan with Wells Fargo, but it’s in forbearance, they may have some alleviated guidelines there, as it relates to Fannie Mae and Freddie Mac with our buyers who are buying investment properties to qualify for a new loan. If you’re in forbearance, and any other properties that you might own, you have to be get current on that forbearance. Okay. So if you’ve taken forbearance for 90 days, one way or the other in the past, but that 90 day forbearance is expired, or up and you wanted to extend your forbearance, we’re going to require that you come out of forbearance, and you get current on that mortgage. So you got to think about it this way, in practical terms is like, Okay, if you’re asking us to lend you more money to buy another investment property, with one of your other investment properties, and then forbearance because you took forbearance, because you no longer are, you had to take forbearance because your tenant wasn’t paying you. You know, why would a lender lend more money, and know the history on the loan that’s not being paid on time? You know the name, so they’re gonna want to make sure that you pay the loan that’s in forbearance to the current level before they’ll extend more credit to you?

Guest 31:23
Yeah, so for him, but pretty much as soon as you’re caught up on everything, you’re good to go?

Guest 31:28
Yeah, I mean, I could document that while we’re processing along to it just we sometimes don’t even find out that the borrower is in forbearance until the full credit, you know, so we’ve already pretty much gone down the garden path. And then we find out about the forbearance. So that’s when we have the conversation about getting current.

Guest 31:45
So with the rates being as low as they currently are, what do you say? And you know, you talked a minute ago about the refinance market and kind of pain down points now to because you’re not gonna be able to refinance. What do you see happening in, you know, 567 years, when people would usually refinance? Are we just gonna see a whole lot of heliox coming on board? Or what are these low rates going to do to the refi? market? in the future? Do you think?

Guest 32:09
Well, I think any refi market is cyclical. So you know, for example, were as low as they are now, as it relates to COVID. And the recessionary environment that we’re in COVID related recession, right? I think in three, four years time, we might see a more normal rate market where rates are going, rates will go back up, they don’t have any place to go. But all right, so in three years time, they might go back up. But then you’ll start that cycle of acquisition again, right. And then six years from now, seven years from now, you might see another recessionary environment where rates come back down. And those folks that had purchased in two years time at, let’s say, four and a half percent, or 4%, might get a chance to me for that. So the cyclical nature of the industry is very cyclical, right? The the average length of time that alone is on lenders books is probably five years, three to five years these days. You know, so those folks that purchased from us earlier in the year, and finance loans from us late last year, and earlier this year, pre COVID are now refinancing. Right? So I’m seeing a lot of customers that closed on loans in March and April of this year, and they’re now you know, in a higher interest rate environment, and now they’re trying to refinance that debt. Yeah. And but I mean, the rates are so low, but I mean, the ones who come in and are getting the, you know, three and a quarter, three, three and a half percent.

Guest 33:38
Are you expecting those loans to stay on the books longer since they are so yeah,

Guest 33:42
yeah, I don’t expect I don’t expect Well, we call it churning. That’s not going to churn. Yeah, those rates are still historically low that you’re set it and forget it. Or if you pay the point by the rate down to 2.99, or whatever the case may be, you’re making that investment now to buy that rate, the lowest it’s been in history, and you truly can just set it and forget it unless you want to take cash out of a property. That’s the only way you would refinance, often that low interest rate. Yeah. So yeah, I definitely anticipate rates that people folks that are taking these rates today to literally set it and forget it.

Guest 34:17
Yeah. I mean, there’s not much reason

Guest 34:20
not to, until it’s a 30 year fixed rate. Yeah. So I mean, there’s no, there’s no stress or no pressure on you to do anything with that market ratio, you know, so, but certainly, we’re seeing a lot of folks take advantage of the market. Yeah. All right. Well, is

Guest 34:32
there anything else going on in the mortgage industry and the rates that you think people should know?

Guest 34:37
I mean, I would just say have patience, because the process like I said, everybody’s overwhelmed. Our processing team certainly had challenges this year, personnel wise, you know, people get burned out and just personally on our team, we had a couple, two or three members has quit, you know, they just resigned because of the, the overwhelming volume and the stress that that creates. So I would just say have patience with us, we’ll get it done.

Guest 35:05
You know, so that’s the only thing folks kind of need to be aware of as it relates to the volume. You know, because we all want to win, we wanted that we want it done quickly, of course, but at some point, you know, there’s a strain on the system that needs to be acknowledged. And that will do it for this month’s edition of the mortgage minutes, everybody. If you haven’t started talking to us about your investment properties. Now, go to Jason hartman.com. Fill out any form there. And we will get back to you and start helping you with that. If you have an investment counselor, such as myself, reach out to us now. Let’s start talking properties and getting your portfolio going.

Jason Hartman 35:44
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