April 8, 2025 • 20 mins
Market volatility has created dramatic swings in mortgage interest rates, with rates falling sharply after tariff implementation caused stock market declines, then rebounding rapidly the following day.
• Mortgage rates directly tied to 10-year Treasury bond yields, which drop when investors move from stocks to bonds
• Recent volatility saw rates swing from 5.875% to around 8% within 24 hours
• Locking rates provides protection while "relocks" allow borrowers to benefit if rates improve later
• **Minnesota Housing has reduced down payment assistance amounts and increased minimum credit score requirements** KNOW THESE NUMBERS!
• Experienced real estate professionals provide crucial perspective beyond rate fluctuations
For guidance through this volatile market or to discuss your specific situation, reach out to us directly - we're here to partner with you and help you achieve your real estate goals.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
All right, let's go.
Speaker 2 (00:05):
Nikki, you're up.
Well, it's certainly aninteresting Monday.
So, since the tariffs have gonein place, of course we've all
heard that the stock market hasreacted and gone shooting down.
Some places are reporting, youknow, downwards of twelve
hundred or fifteen hundredpoints.
What that does is, when thathappens, people tend to invest
(00:26):
in more bonds than they arestocks, and so that'll usually
lower the interest rate on thebond side, which helps mortgage
interest rates Because, as areminder, mortgage interest
rates are based on the 10-yeartreasury bond.
So as that 10-year treasurybond goes down, mortgage
interest rates also go down.
So what happened on Friday isthat we saw this huge decrease
(00:47):
in mortgage interest rates, andwhat you can take a look at here
is these handy dandy littlecharts.
This point right here, with thered line.
That was Friday.
So the higher up this line goeson the graph, the lower
mortgage interest rates end upon the graph, the lower mortgage
interest rates end up.
So you can see that there wasextreme volatility on Friday,
with mortgage interest ratesgoing all the way down into,
(01:08):
like the high fives.
Okay, well, what happened todayis a major bounce back.
Look at all the volatilitytoday.
This right here is about 8%.
So if you take a look at allthis volatility, all this
movement in the market has gonebouncing up and down, up and
down all morning and we've got arelatively small change overall
(01:29):
of 12 basis points, but you cansee that we went from 5.875-ish
all the way up to like eight inthe matter of a market of 24
hours, and so we've just seenall this extreme volatility that
is happening in the marketright now as a reaction to the
stock market, to the bonds, towhat's happening in the global
(01:49):
economy.
This is probably going tocontinue to happen with the
volatility, probably for thenext couple weeks at the very
least, until, kind of, themarkets even out and decide what
to do in reaction to thetariffs.
So it'll be very interesting.
It's now my job, moreimportantly than ever, to advise
my clients and make sure that,if they do want to look at
(02:11):
refinancing or if they do wantto look at purchasing a home,
what the best play is going tobe from a timing standpoint as
far as interest rates areconcerned, and then help to also
settle things down for them ina market that's very volatile
right now.
A lot of times when I talk aboutlocking in interest rates,
there's a couple differentphilosophies.
Yes, we want to catch theinterest rate on a good day.
(02:34):
Obviously we want to catch itat the lowest possible during
the amount of time that they'regoing through the loan process
and closing.
The good news in the mortgageindustry is that let's just say
you do lock in your interestrate and let's say you locked in
at a six and a half andsomething dramatic happens in
the market or we can achieve alower interest rate.
We are allowed to do what'scalled a relock throughout the
(02:54):
process.
That means that basically, Ilocked in at six and a half.
Mortgage interest rates are nowdown at 6%.
You know, and they've been.
You know and we can do what'scalled a relock to bring you
down to that 6%.
We aren't necessarily requiredto in the idea like, oh, anytime
rates drop, we're just going to.
You know, keep doing that, butwe will keep an eye on it so
(03:14):
that there is some safety inlocking in an interest rate that
you're comfortable with andthen knowing that if the market
does improve significantly, youcan do what's called a relock
and get down to that lowermarket rate.
The other cool thing is,obviously, if there's more
volatility and interest rates goup, you're not subject to those
(03:35):
interest rates increasing.
So it's just basically my jobright now is to make sure that I
bring as much calmness as I canto locking in your mortgage
interest rate and making surethat I'm watching things on a
daily basis, sometimes even anhourly basis, to make sure that,
as prices change and thingslike that, we can still, you
know, lock in at a comfortablerate for people.
So that's kind of huge.
These next couple of weeks aregoing to be very interesting and
(03:56):
very volatile when we look,when we consider all of the
different changes that arehappening.
And until things even out andkind of settle down, we're just
going to have to deal with thevolatility, which isn't a huge
deal.
It's just something to keep aneye on and make sure that I keep
the customers as calm aspossible as things are happening
.
As we all know, the media doesplay into a lot of this as well,
(04:19):
and there is a lot of talk outthere about oh, mortgage
interest rates are lower orwhatever that is, and that is
true, they are lowering, butit's like I said, it's a direct
result of what's happening inthe stock market right now.
Anyway, with that being said, Ialso want to talk about just
some changes that have beenhappening.
For, with Minnesota housingspecifically, they did some
(04:45):
changes I know there's somepeople that are in Minnesota,
but, um, there's.
They did some changes to theamounts that they're lending in
down payment assistance funds.
Um, it used to be that theywould have limits up to 18,500,
um or 16,000, depending on whichprogram you qualify for.
They've now lowered thoselimits to 14,000 and 18,000.
(05:05):
So, um, we got to pay attentionto that.
Also, they have increased theminimum credit score
requirements from $640 and $650on FHA to $650 and $660.
So, depending on where you'reat from a debt to income
standpoint, a credit scorestandpoint and an income
standpoint, that is going to putyou in a different category.
(05:25):
Now, with Minnesota Housing andthose changes that they're
making, they have, like I said,they've lowered the amounts you
can get for down paymentassistance.
They've increased some of thecredit scores needed to achieve
the down payment assistancequalifying and they have updated
also not allowing manuallyunderwritten files to be
qualified for down paymentassistance.
(05:47):
So those are some of the majorchanges that have happened with
that down payment assistanceprogram, but obviously we keep
on top of that stuff From anoverall standpoint and not
really state specific.
I kind of want to talk aboutlead times when it comes to
buyers that are shopping forhomes, that have leases for
(06:07):
apartments or leases forwherever they're living, and
kind of what that timeline lookslike to get them out shopping.
Obviously, it's always good topre-approve them before the
60-day mark, before their leaseis up you know, within 60 days
because most places will giveyou, will require you to get a
60-day notice in order to vacateyour lease when it ends, and so
(06:30):
we want to make sure that theyare pre-approved well before
that 60-day mark.
And when they do give their60-day notice, that's probably
the most ideal time for them tostart shopping for homes,
because then we can time theclosing so that they aren't
making double payments, so theydon't have a rent payment and a
mortgage payment in the samemonth.
That's usually the goal there'sa lot of.
(06:50):
You know you can start lookingbefore that 60-day mark, but as
far as writing a purchaseagreement and a closing date, we
just have to be mindful of whenthat lease is going to be done
and when that first mortgagepayment is, so that they don't
overlap and have double paymentsin one month Some people might
be okay with it, but for themost part we're gonna wanna make
sure that they don't have todeal with that.
(07:10):
I've had people that theirlease is up at the end of June
right now and we're trying totime a closing and it's
resulting in their shopping alittle bit too early for them to
be able to get a realisticclosing time that's going to
help them so that their firstpayment isn't until July.
So just things to keep in mindas you're working with clients
(07:34):
who are in a lease just checkwith the lender and talk through
the timing and make sure thatwhen they get pre-approved when
they should start shopping sothat we can make sure to have
the sequence of events happen asit should.
Speaker 1 (07:47):
Mm, hmm.
Well, and I know on the flipside of that, if you want to
talk, because I know in the pastI've had renters that were fine
, having to take both on justbecause it made financial sense.
And so can you touch base onthat when it does make financial
sense, maybe to double up orwhat that looks like.
Speaker 2 (08:22):
Yeah, it really it's.
It's all about, like, as far asfinancial sense goes, it's all
about like timing, like what arethey comfortable with?
That's really what we payattention to.
And then do they, you know, arethey going to be strapped with
a lack of money and savings,with you know and all those
other things that come alongwith you know ending utilities,
setting up new utilities, youknow final bills and all that
stuff, and that's a lot.
That could be a lot to take on.
A lot of people will move, youknow, just because they found
the right place, and that's okaytoo.
(08:42):
But as far as we want to makesure, do our best to make sure
that we aren't overspendingtheir money.
If that makes sense, if we cantime it where it's, you know,
not a double payment, that'd begreat.
I mean, sometimes it happensand that's fine.
But especially for a first-timehome buyer, they think they
usually think they can probablytake on more than they actually
can, because they aren't veryfamiliar with what the actual
(09:04):
cost of you know moving andthings of that nature can amount
to.
So, just a good conversationwith them and making sure that,
yes, they're excited, they wannabe able to buy a house and they
wanna get out shopping, butbeing very mindful of when we're
writing the purchase agreementand talking about closing dates
and things of that nature, toreally make sure that they have
(09:24):
the understanding and knowledgeof what those costs are.
Speaker 1 (09:28):
Yeah, well, and I think it's just another very,
very strong point that yourlender partner matters.
And working with Nikki andsomeone of our caliber that's
been doing this, can I say aquarter of a century?
Yes, you can A quarter of acentury.
I mean, honestly, it's almostlike you're the expert.
(09:52):
They don't know what they don'tknow, so they don't even know
what to ask.
So that's where, when I keepcontinuing to beat this down and
I will until the end of time,who you partner with matters,
because Nikki can take thosethings or the different
scenarios.
You thought about A, but did youthink about B, C, D and Z?
(10:12):
Some people just don't knowwhat they don't know Most people
, because this is not what theydo every day.
So it's really important and Iknow the instances that I had in
the past when it kind of madefinancial sense.
It's when we just happened tofind that one property, and so
there are those one-offs.
And that again is why, if youpull in Nikki and you can have
(10:35):
this conversation on a muchlarger scale and kind of be able
to forecast and pull in thesedifferent pieces that they just
don't know or understand for themost part, it can change
everything Absolutely.
Speaker 2 (10:52):
Yeah, I was just gonna say there's also a
strategy.
If someone's moving from oneproperty to another, like an
only owned property to anotherowned property, there's also a
strategy there that talks aboutyou know when they should make
their last mortgage payment onthe property that they're
selling.
You know because there is atiming thing.
Like, for example, if you'relet's say, you're closing on the
fifth of the month on bothproperties, making that mortgage
(11:13):
payment on the prior home onthe first of the month is going
to change the payoff, it's goingto change all those things and
it's going to put you in rightup against your closing date as
far as making sure you haveaccurate numbers when you go to
sell the house and making surethat payment's gone through and
all those things.
You do have a 15-day graceperiod on a mortgage payment
where there aren't any late feesassessed.
So one of the discussions thatwe will have when vacating one
(11:36):
property to another is do I makemy mortgage payment the same
month that I'm closing, just tomake sure that nothing gets
screwed up from a timingstandpoint and from a payoff and
all those other items that haveto do with how much you're
getting out of the house andwhere that money's going to the
next house.
So there's a lot of thosediscussions too.
So it's not just renters butalso the people that are selling
(11:57):
homes.
What does that timing look likeas far as making that last
mortgage payment?
Speaker 1 (12:03):
Very good point and I just wanted to go back in.
Like I said, I was reallyexcited to talk to you today,
and why is because I want justto have the agents out there
understand, with the 5% to 8%,and that many of your clients
are not listening to thispodcast and the people that are
actual experts in the businessand understand that they are
(12:25):
listening to the media andthere's just a lot of
misinformation, disinformationand just you know.
We have to now take all of thisnoise and bring it in.
And you said be the calm, bethe neutral and give the facts
(12:46):
good conversation.
Look like that we as agents canbe having with either our
sellers or our buyers,first-time homebuyers.
That will put this in a betterperspective moving forward over
this next, you know, few weeksor months.
Speaker 2 (13:01):
Yeah, I think it's important to recognize that
we've been in times ofvolatility before.
That.
When you are relying on agentswith experience and you're
relying on, you know, lenderswith experience, the ones that
have been through this situationbefore and can help bring
reason and calmness to yourparticular experience is going
to be important rates are doingto get some resolve to that, to
(13:33):
feel safe, knowing that you knowit's not the end of the world
if you lock in between you know,at a 6.625 versus a 6.5, where
we don't want to see that muchdisparity obviously is the
difference between fives andeights, you know.
I mean, obviously that's a veryvolatile area to be in, but
knowing that you know somewherein the mid sixes is probably
where you're going to end.
And as long as you're happywith that payment and you're
(13:53):
happy with, hey, this is wheremy budget is, then the rest of
the noise and all the thingsthat are happening around you
don't matter and you can reallyrely on your trusted agent and
lender to really say, okay, isthis going to work for me and
(14:13):
will I be better off with thissituation or this house versus
what's happening in the media?
What's happening with themortgage interest rates?
What's happening with all thisstuff?
It's more important that weconcentrate on the individual
situation, because the media canmake blanket statements and
things that don't necessarilyapply to you in particular.
And there's, you know, there'sall these different factors that
go into buying a house orselling a house, and the
(14:36):
interest rate is just one thing.
It's just one factor thathappens during the process.
It's not the whole thing.
It's not determining whether ornot you should buy the house.
It shouldn't determine whetheror not you know you have use and
enjoyment, whether or notyou're making a good financial
decision.
That interest rate is important, but it's only one thing and we
(14:56):
just need to make sure thatwe're talking about all the
other things that surround theirdecision and why they're making
the decision that they are.
Speaker 1 (15:04):
Well, and that's a perfect example and segue into
this is a relationship-basedbusiness.
So it's again looking at thewhole picture.
I know right now with somebuyers I'm working with, they
are just looking at theirpayment, because that's the
determining factor on where theywant to go or what this looks
like.
I mean, we looked at a housethat was priced $10,000 more
(15:26):
than they wanted to spend andthe association was $100 less a
month.
So there are so many differentfactors that go into it.
So it's really aboutunderstanding.
When you meet with your buyer oryour seller, I want one of the
first questions you ask them iswhat are your goals?
What are your goals around realestate or around selling your
(15:47):
home or, you know, do you have aportfolio?
I mean, just again, take theirblinders and peel them back and
give them even some things andplant some seeds that they might
not even been thinking about.
But that's our job is the youknow expert, the consultants,
the people with the license iswe have to give this bigger
picture and let them knowoptions and what they don't know
(16:12):
right now.
Speaker 2 (16:14):
Absolutely.
Speaker 1 (16:15):
Yeah.
Speaker 2 (16:16):
And it does take a lot of experience.
You know I've been also kind ofdealing with, you know, agents,
that one in particular thathasn't had a lot of experience,
and so really kind of helpinghim as well to explain things to
his clients and explain whatyou know timing of things and
all these you know, all theseother items that you know play
(16:36):
into really purchasing a home atthis time.
And you know anything that Ican do to help is going to be,
you know, helpful to, obviously,the clients.
but it does make a difference tohave an experienced realtor and
to go through a process as alender, to go through a process
with an experienced realtorversus a one that's you know you
can have probably hasn't hadtheir license and has had their
(16:58):
license for probably less than ayear, and you know, I would
encourage anyone that has hadtheir license for a shorter
amount of time to really rely onyour mentors and to really make
sure that you have a good coachand a good mentor in place,
because it does make a hugedifference.
It makes a huge difference foryour clients, when you're
offering on homes, to haveconfidence in knowing that you
(17:20):
understand the process andunderstand what's supposed to
happen, and understandnegotiating and all those other
things that go into being a goodsteward for your client, and
all those other things that gointo being a good steward for
your client.
Speaker 1 (17:30):
Absolutely, and I know.
That's why I'm so passionateabout coaching and mentoring
agents, both new and 20 plusyears in the business.
Because when I got in thisbusiness, sure I did over 30
deals my first year, but can Itell you what it looked like in
the background?
Oh man, it was hard and it wasstressful and it was confusing
and it was.
(17:50):
I was anxious all the time.
I mean, it was not fun and, um,you know, some parts of it were
the closing table is alwaysamazing.
I always got a hug and that'swhat kept me going.
Is that when my clients lookedat me and said I couldn't have
done this without you, I knew itwas true, because I gave
everything I had, and more thanyou know and it showed in other
(18:11):
parts of my life, which is awhole different story, but you
know, it is.
It's who you partner with andwho they partner with.
So, yeah, if you're an Asianout there that is looking for a
good coach or mentor, definitelyreach out to me.
That's my passion and what I do.
Or, you know, if you're anagent that's been doing this 5,
10, 20 plus years and you wantto start building your own
wealth and stop building yourbrokerage's wealth, you're
(18:34):
looking for legacy wealth.
I have that answer too.
So I think it's just everythingis changing, and some in a
really good way, in a reallypositive way.
So, like you said, if we focuson what we can control and the
positive parts and you know thegoals of the people that we're
partnering with.
(18:54):
Everything else can kind offade into the background.
So it's yeah, I love it, I loveit all.
It's a great call.
Yeah, good, any questions?
I will check the live streamquick before we jump off.
I don't see any there.
Well, nikki, I reallyappreciate again your time and
as you're listening to this,again, reach out to Nikki, reach
(19:17):
out to myself.
We're here to partner with youand help you and your clients
get to their real estate goals.
Speaker 2 (19:23):
Awesome, all right, bye everyone.
Speaker 1 (19:26):
Have a good one.
All right, let's go.
Speaker 2 (00:05):
Nikki, you're up.
Well, it's certainly aninteresting Monday.
So, since the tariffs have gonein place, of course we've all
heard that the stock market hasreacted and gone shooting down.
Some places are reporting, youknow, downwards of twelve
hundred or fifteen hundredpoints.
What that does is, when thathappens, people tend to invest
(00:26):
in more bonds than they arestocks, and so that'll usually
lower the interest rate on thebond side, which helps mortgage
interest rates Because, as areminder, mortgage interest
rates are based on the 10-yeartreasury bond.
So as that 10-year treasurybond goes down, mortgage
interest rates also go down.
So what happened on Friday isthat we saw this huge decrease
(00:47):
in mortgage interest rates, andwhat you can take a look at here
is these handy dandy littlecharts.
This point right here, with thered line.
That was Friday.
So the higher up this line goeson the graph, the lower
mortgage interest rates end upon the graph, the lower mortgage
interest rates end up.
So you can see that there wasextreme volatility on Friday,
with mortgage interest ratesgoing all the way down into,
(01:08):
like the high fives.
Okay, well, what happened todayis a major bounce back.
Look at all the volatilitytoday.
This right here is about 8%.
So if you take a look at allthis volatility, all this
movement in the market has gonebouncing up and down, up and
down all morning and we've got arelatively small change overall
(01:29):
of 12 basis points, but you cansee that we went from 5.875-ish
all the way up to like eight inthe matter of a market of 24
hours, and so we've just seenall this extreme volatility that
is happening in the marketright now as a reaction to the
stock market, to the bonds, towhat's happening in the global
(01:49):
economy.
This is probably going tocontinue to happen with the
volatility, probably for thenext couple weeks at the very
least, until, kind of, themarkets even out and decide what
to do in reaction to thetariffs.
So it'll be very interesting.
It's now my job, moreimportantly than ever, to advise
my clients and make sure that,if they do want to look at
(02:11):
refinancing or if they do wantto look at purchasing a home,
what the best play is going tobe from a timing standpoint as
far as interest rates areconcerned, and then help to also
settle things down for them ina market that's very volatile
right now.
A lot of times when I talk aboutlocking in interest rates,
there's a couple differentphilosophies.
Yes, we want to catch theinterest rate on a good day.
(02:34):
Obviously we want to catch itat the lowest possible during
the amount of time that they'regoing through the loan process
and closing.
The good news in the mortgageindustry is that let's just say
you do lock in your interestrate and let's say you locked in
at a six and a half andsomething dramatic happens in
the market or we can achieve alower interest rate.
We are allowed to do what'scalled a relock throughout the
(02:54):
process.
That means that basically, Ilocked in at six and a half.
Mortgage interest rates are nowdown at 6%.
You know, and they've been.
You know and we can do what'scalled a relock to bring you
down to that 6%.
We aren't necessarily requiredto in the idea like, oh, anytime
rates drop, we're just going to.
You know, keep doing that, butwe will keep an eye on it so
(03:14):
that there is some safety inlocking in an interest rate that
you're comfortable with andthen knowing that if the market
does improve significantly, youcan do what's called a relock
and get down to that lowermarket rate.
The other cool thing is,obviously, if there's more
volatility and interest rates goup, you're not subject to those
(03:35):
interest rates increasing.
So it's just basically my jobright now is to make sure that I
bring as much calmness as I canto locking in your mortgage
interest rate and making surethat I'm watching things on a
daily basis, sometimes even anhourly basis, to make sure that,
as prices change and thingslike that, we can still, you
know, lock in at a comfortablerate for people.
So that's kind of huge.
These next couple of weeks aregoing to be very interesting and
(03:56):
very volatile when we look,when we consider all of the
different changes that arehappening.
And until things even out andkind of settle down, we're just
going to have to deal with thevolatility, which isn't a huge
deal.
It's just something to keep aneye on and make sure that I keep
the customers as calm aspossible as things are happening
.
As we all know, the media doesplay into a lot of this as well,
(04:19):
and there is a lot of talk outthere about oh, mortgage
interest rates are lower orwhatever that is, and that is
true, they are lowering, butit's like I said, it's a direct
result of what's happening inthe stock market right now.
Anyway, with that being said, Ialso want to talk about just
some changes that have beenhappening.
For, with Minnesota housingspecifically, they did some
(04:45):
changes I know there's somepeople that are in Minnesota,
but, um, there's.
They did some changes to theamounts that they're lending in
down payment assistance funds.
Um, it used to be that theywould have limits up to 18,500,
um or 16,000, depending on whichprogram you qualify for.
They've now lowered thoselimits to 14,000 and 18,000.
(05:05):
So, um, we got to pay attentionto that.
Also, they have increased theminimum credit score
requirements from $640 and $650on FHA to $650 and $660.
So, depending on where you'reat from a debt to income
standpoint, a credit scorestandpoint and an income
standpoint, that is going to putyou in a different category.
(05:25):
Now, with Minnesota Housing andthose changes that they're
making, they have, like I said,they've lowered the amounts you
can get for down paymentassistance.
They've increased some of thecredit scores needed to achieve
the down payment assistancequalifying and they have updated
also not allowing manuallyunderwritten files to be
qualified for down paymentassistance.
(05:47):
So those are some of the majorchanges that have happened with
that down payment assistanceprogram, but obviously we keep
on top of that stuff From anoverall standpoint and not
really state specific.
I kind of want to talk aboutlead times when it comes to
buyers that are shopping forhomes, that have leases for
(06:07):
apartments or leases forwherever they're living, and
kind of what that timeline lookslike to get them out shopping.
Obviously, it's always good topre-approve them before the
60-day mark, before their leaseis up you know, within 60 days
because most places will giveyou, will require you to get a
60-day notice in order to vacateyour lease when it ends, and so
(06:30):
we want to make sure that theyare pre-approved well before
that 60-day mark.
And when they do give their60-day notice, that's probably
the most ideal time for them tostart shopping for homes,
because then we can time theclosing so that they aren't
making double payments, so theydon't have a rent payment and a
mortgage payment in the samemonth.
That's usually the goal there'sa lot of.
(06:50):
You know you can start lookingbefore that 60-day mark, but as
far as writing a purchaseagreement and a closing date, we
just have to be mindful of whenthat lease is going to be done
and when that first mortgagepayment is, so that they don't
overlap and have double paymentsin one month Some people might
be okay with it, but for themost part we're gonna wanna make
sure that they don't have todeal with that.
(07:10):
I've had people that theirlease is up at the end of June
right now and we're trying totime a closing and it's
resulting in their shopping alittle bit too early for them to
be able to get a realisticclosing time that's going to
help them so that their firstpayment isn't until July.
So just things to keep in mindas you're working with clients
(07:34):
who are in a lease just checkwith the lender and talk through
the timing and make sure thatwhen they get pre-approved when
they should start shopping sothat we can make sure to have
the sequence of events happen asit should.
Speaker 1 (07:47):
Mm, hmm.
Well, and I know on the flipside of that, if you want to
talk, because I know in the pastI've had renters that were fine
, having to take both on justbecause it made financial sense.
And so can you touch base onthat when it does make financial
sense, maybe to double up orwhat that looks like.
Speaker 2 (08:22):
Yeah, it really it's.
It's all about, like, as far asfinancial sense goes, it's all
about like timing, like what arethey comfortable with?
That's really what we payattention to.
And then do they, you know, arethey going to be strapped with
a lack of money and savings,with you know and all those
other things that come alongwith you know ending utilities,
setting up new utilities, youknow final bills and all that
stuff, and that's a lot.
That could be a lot to take on.
A lot of people will move, youknow, just because they found
the right place, and that's okaytoo.
(08:42):
But as far as we want to makesure, do our best to make sure
that we aren't overspendingtheir money.
If that makes sense, if we cantime it where it's, you know,
not a double payment, that'd begreat.
I mean, sometimes it happensand that's fine.
But especially for a first-timehome buyer, they think they
usually think they can probablytake on more than they actually
can, because they aren't veryfamiliar with what the actual
(09:04):
cost of you know moving andthings of that nature can amount
to.
So, just a good conversationwith them and making sure that,
yes, they're excited, they wannabe able to buy a house and they
wanna get out shopping, butbeing very mindful of when we're
writing the purchase agreementand talking about closing dates
and things of that nature, toreally make sure that they have
(09:24):
the understanding and knowledgeof what those costs are.
Speaker 1 (09:28):
Yeah, well, and I think it's just another very,
very strong point that yourlender partner matters.
And working with Nikki andsomeone of our caliber that's
been doing this, can I say aquarter of a century?
Yes, you can A quarter of acentury.
I mean, honestly, it's almostlike you're the expert.
(09:52):
They don't know what they don'tknow, so they don't even know
what to ask.
So that's where, when I keepcontinuing to beat this down and
I will until the end of time,who you partner with matters,
because Nikki can take thosethings or the different
scenarios.
You thought about A, but did youthink about B, C, D and Z?
(10:12):
Some people just don't knowwhat they don't know Most people
, because this is not what theydo every day.
So it's really important and Iknow the instances that I had in
the past when it kind of madefinancial sense.
It's when we just happened tofind that one property, and so
there are those one-offs.
And that again is why, if youpull in Nikki and you can have
(10:35):
this conversation on a muchlarger scale and kind of be able
to forecast and pull in thesedifferent pieces that they just
don't know or understand for themost part, it can change
everything Absolutely.
Speaker 2 (10:52):
Yeah, I was just gonna say there's also a
strategy.
If someone's moving from oneproperty to another, like an
only owned property to anotherowned property, there's also a
strategy there that talks aboutyou know when they should make
their last mortgage payment onthe property that they're
selling.
You know because there is atiming thing.
Like, for example, if you'relet's say, you're closing on the
fifth of the month on bothproperties, making that mortgage
(11:13):
payment on the prior home onthe first of the month is going
to change the payoff, it's goingto change all those things and
it's going to put you in rightup against your closing date as
far as making sure you haveaccurate numbers when you go to
sell the house and making surethat payment's gone through and
all those things.
You do have a 15-day graceperiod on a mortgage payment
where there aren't any late feesassessed.
So one of the discussions thatwe will have when vacating one
(11:36):
property to another is do I makemy mortgage payment the same
month that I'm closing, just tomake sure that nothing gets
screwed up from a timingstandpoint and from a payoff and
all those other items that haveto do with how much you're
getting out of the house andwhere that money's going to the
next house.
So there's a lot of thosediscussions too.
So it's not just renters butalso the people that are selling
(11:57):
homes.
What does that timing look likeas far as making that last
mortgage payment?
Speaker 1 (12:03):
Very good point and I just wanted to go back in.
Like I said, I was reallyexcited to talk to you today,
and why is because I want justto have the agents out there
understand, with the 5% to 8%,and that many of your clients
are not listening to thispodcast and the people that are
actual experts in the businessand understand that they are
(12:25):
listening to the media andthere's just a lot of
misinformation, disinformationand just you know.
We have to now take all of thisnoise and bring it in.
And you said be the calm, bethe neutral and give the facts
(12:46):
good conversation.
Look like that we as agents canbe having with either our
sellers or our buyers,first-time homebuyers.
That will put this in a betterperspective moving forward over
this next, you know, few weeksor months.
Speaker 2 (13:01):
Yeah, I think it's important to recognize that
we've been in times ofvolatility before.
That.
When you are relying on agentswith experience and you're
relying on, you know, lenderswith experience, the ones that
have been through this situationbefore and can help bring
reason and calmness to yourparticular experience is going
to be important rates are doingto get some resolve to that, to
(13:33):
feel safe, knowing that you knowit's not the end of the world
if you lock in between you know,at a 6.625 versus a 6.5, where
we don't want to see that muchdisparity obviously is the
difference between fives andeights, you know.
I mean, obviously that's a veryvolatile area to be in, but
knowing that you know somewherein the mid sixes is probably
where you're going to end.
And as long as you're happywith that payment and you're
(13:53):
happy with, hey, this is wheremy budget is, then the rest of
the noise and all the thingsthat are happening around you
don't matter and you can reallyrely on your trusted agent and
lender to really say, okay, isthis going to work for me and
(14:13):
will I be better off with thissituation or this house versus
what's happening in the media?
What's happening with themortgage interest rates?
What's happening with all thisstuff?
It's more important that weconcentrate on the individual
situation, because the media canmake blanket statements and
things that don't necessarilyapply to you in particular.
And there's, you know, there'sall these different factors that
go into buying a house orselling a house, and the
(14:36):
interest rate is just one thing.
It's just one factor thathappens during the process.
It's not the whole thing.
It's not determining whether ornot you should buy the house.
It shouldn't determine whetheror not you know you have use and
enjoyment, whether or notyou're making a good financial
decision.
That interest rate is important, but it's only one thing and we
(14:56):
just need to make sure thatwe're talking about all the
other things that surround theirdecision and why they're making
the decision that they are.
Speaker 1 (15:04):
Well, and that's a perfect example and segue into
this is a relationship-basedbusiness.
So it's again looking at thewhole picture.
I know right now with somebuyers I'm working with, they
are just looking at theirpayment, because that's the
determining factor on where theywant to go or what this looks
like.
I mean, we looked at a housethat was priced $10,000 more
(15:26):
than they wanted to spend andthe association was $100 less a
month.
So there are so many differentfactors that go into it.
So it's really aboutunderstanding.
When you meet with your buyer oryour seller, I want one of the
first questions you ask them iswhat are your goals?
What are your goals around realestate or around selling your
(15:47):
home or, you know, do you have aportfolio?
I mean, just again, take theirblinders and peel them back and
give them even some things andplant some seeds that they might
not even been thinking about.
But that's our job is the youknow expert, the consultants,
the people with the license iswe have to give this bigger
picture and let them knowoptions and what they don't know
(16:12):
right now.
Speaker 2 (16:14):
Absolutely.
Speaker 1 (16:15):
Yeah.
Speaker 2 (16:16):
And it does take a lot of experience.
You know I've been also kind ofdealing with, you know, agents,
that one in particular thathasn't had a lot of experience,
and so really kind of helpinghim as well to explain things to
his clients and explain whatyou know timing of things and
all these you know, all theseother items that you know play
(16:36):
into really purchasing a home atthis time.
And you know anything that Ican do to help is going to be,
you know, helpful to, obviously,the clients.
but it does make a difference tohave an experienced realtor and
to go through a process as alender, to go through a process
with an experienced realtorversus a one that's you know you
can have probably hasn't hadtheir license and has had their
(16:58):
license for probably less than ayear, and you know, I would
encourage anyone that has hadtheir license for a shorter
amount of time to really rely onyour mentors and to really make
sure that you have a good coachand a good mentor in place,
because it does make a hugedifference.
It makes a huge difference foryour clients, when you're
offering on homes, to haveconfidence in knowing that you
(17:20):
understand the process andunderstand what's supposed to
happen, and understandnegotiating and all those other
things that go into being a goodsteward for your client, and
all those other things that gointo being a good steward for
your client.
Speaker 1 (17:30):
Absolutely, and I know.
That's why I'm so passionateabout coaching and mentoring
agents, both new and 20 plusyears in the business.
Because when I got in thisbusiness, sure I did over 30
deals my first year, but can Itell you what it looked like in
the background?
Oh man, it was hard and it wasstressful and it was confusing
and it was.
(17:50):
I was anxious all the time.
I mean, it was not fun and, um,you know, some parts of it were
the closing table is alwaysamazing.
I always got a hug and that'swhat kept me going.
Is that when my clients lookedat me and said I couldn't have
done this without you, I knew itwas true, because I gave
everything I had, and more thanyou know and it showed in other
(18:11):
parts of my life, which is awhole different story, but you
know, it is.
It's who you partner with andwho they partner with.
So, yeah, if you're an Asianout there that is looking for a
good coach or mentor, definitelyreach out to me.
That's my passion and what I do.
Or, you know, if you're anagent that's been doing this 5,
10, 20 plus years and you wantto start building your own
wealth and stop building yourbrokerage's wealth, you're
(18:34):
looking for legacy wealth.
I have that answer too.
So I think it's just everythingis changing, and some in a
really good way, in a reallypositive way.
So, like you said, if we focuson what we can control and the
positive parts and you know thegoals of the people that we're
partnering with.
(18:54):
Everything else can kind offade into the background.
So it's yeah, I love it, I loveit all.
It's a great call.
Yeah, good, any questions?
I will check the live streamquick before we jump off.
I don't see any there.
Well, nikki, I reallyappreciate again your time and
as you're listening to this,again, reach out to Nikki, reach
(19:17):
out to myself.
We're here to partner with youand help you and your clients
get to their real estate goals.
Speaker 2 (19:23):
Awesome, all right, bye everyone.
Speaker 1 (19:26):
Have a good one.
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