The Accunet Mortgage & Realty Show 1-12-25

Episode Transcript

Speaker 1 (00:00):
The following program. The ENT , mortgage and
Realty Show is paid for in fullby ENT mortgage, LLC and equal
housing lender consumeraccess.org number 2 5 5 3 6 8.
The advice and opinionsexpressed during the Academic
Mortgage and Realty Show aresolely that at the hosts and
guests of ENT mortgage, LLC,and not WTMJ or Good Karma
Brands.

Speaker 2 (00:20):
Welcome to the Accu Net Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from Accu Net Mortgage
and Realty. And now here'sDavid Wicker and Tim Holdman.

Speaker 3 (00:35):
Good morning and welcome to the Accu Mortgage
and Realty Show. I am DavidWicker, president and managing
owner, where my individual NMLSID is 3 2 8 8 4 7. Joined today
by Tim Holdman, senior loanconsultant, whose individual
NMLS ID is 1 5 9 3 1 4 6. Yes .

(00:56):
Good morning, Tim. Yes,

Speaker 4 (00:57):
Indeed. Good morning, David. How are you

Speaker 3 (00:58):
Today? I'm excellent, thank you. Good. Uh
, for any of our listeners, ifyou'd like to catch up on where
we've been in weeks past, youcan catch this show and past
shows wherever you normally getyour podcasts. So, Tim, it was
an eventful week in thebond market. It was, it was ,
uh, and

Speaker 4 (01:17):
It was

Speaker 3 (01:17):
Eventful and, and , uh, capped off by Friday
morning at seven 30 Central.
Yeah. When the Department ofLabor announced the jobs
report, the employment reportfor December, you know, last
Friday, you know, it was barely2025. Yeah . So they gave
themselves another week at theDepartment of Labor to announce

(01:40):
that. Well, they wereexpecting, well , not they, the
economy , smart , smarteconomists, people with PhDs
thought across the board.
Somehow consensus is made. Wethought, you know what? We
think the American economy willadd 160,000 jobs in December.
Yeah . And the American economyin December said, hold my beer

(02:03):
, we are gonna add256,000 jobs to cap off 2024.
Woof . Wow. So, as I waswatching CNBC live, you know,
digesting this, it's kind of,it's, it's both like good news
and bad news. Yeah. It's greatnews. Like,

Speaker 4 (02:25):
It's good news for the economy when

Speaker 3 (02:26):
People , when people have jobs, that's good. That's
really good. When

Speaker 4 (02:29):
People have jobs, they have money, and then when
they have money, they can spendthat money. Right.

Speaker 3 (02:33):
And , uh, but guess what? Interest rates went, ugh
.

Speaker 4 (02:37):
Yeah.

Speaker 3 (02:38):
Oh , right . 'cause when people have money, they
spend that money and it couldbe a harbinger for not tackling
inflation as fast as we thoughtwe could. Correct . 'cause if
people have jobs, they havemoney, they spend that money,
it can drive up the price ofthings. Yep . If there's not
enough of those things. So, buthere's how I wanna frame this
to you, Tim, on Friday, I'm notgonna talk about rates.

Speaker 4 (03:00):
We're not talking about rates.

Speaker 3 (03:01):
On Friday, your monthly payment went up $42 a
month.

Speaker 4 (03:05):
Yeah. 42 bucks a

Speaker 3 (03:07):
Month. Do you know how many phone calls I got at
Friday at 10:00 AM saying,David, I saw the news this
morning and my monthly paymenton my $250,000 loan, it went up
$42. My wife texted me at 7 31.
Stop

Speaker 4 (03:21):
The home search.

Speaker 3 (03:22):
Called it off. Yeah.

Speaker 4 (03:23):
Cancel everything.
No , we're not touring any openhouses this weekend. Right?
Yeah . No, you got we

Speaker 3 (03:28):
Were planning to, yeah.

Speaker 4 (03:29):
You got zero of those phone calls .

Speaker 3 (03:30):
I got zero of those phone calls and

Speaker 4 (03:31):
I got zero of those phone calls. I mean, yes, I had
customers ask me about rates.
But let's not forget all ourlisteners out there that the
interest rate is really justaffecting the monthly payment.
Yeah . And that's in real life.
What matters to people. Sure .
No one , no one remembers theirmortgage rate even six months

(03:53):
after getting the mortgage tobuy the home. You do remember
the dollar amount that leavesyour bank account every month
when you make your mortgagepayment. So yes, that did go
up, but it went up by $42 amonth kind of using What , what
loan size David, are you using?
For

Speaker 3 (04:08):
Example? I was using $250,000 loan . Yeah . So I'll
give you another example herein a second. Yeah.

Speaker 4 (04:12):
A median, you know, average loan size that we're
using for that example. Butit's like if your monthly
payment going up by $42 a monthis gonna be the thing that
breaks your back financially,then yes. You , you should not
, uh, look to buy a home rightnow. But I think for most
people that are looking to buya home for real life reasons,
they're gonna stomach that $42a month increase in , in

(04:35):
payment

Speaker 3 (04:35):
Here. If you, you wanna borrow $600,000 Oh man,
on Friday, the payment went up102 bucks.

Speaker 4 (04:42):
102 bucks. Yeah.
That's what

Speaker 3 (04:43):
Like Yeah. You'd much rather it go down $102.
Right. But the, the differenceif you're deciding to be in the
house hunt Yeah. That wiggle onpayment is not the thing that's
gonna keep you from getting outthere and looking at a house
on, well, I guess what time'skickoff, 3 30, 3 15,

Speaker 4 (05:04):
Get out there, gonna get out the

Speaker 3 (05:05):
A hundred bucks, the 42 bucks. That is not the thing
that's gonna hold you back. No.

Speaker 4 (05:09):
Especially 'cause as we all know, you're gonna be
able to refinance this mortgagedown when rates eventually go
down. I know everyone's tiredof this conversation because
most people predicted rateswould be lower by now, but that
doesn't mean they're gonna stayhigh forever. Yes . They are
going to go down and then ifyou've bought a home, you can
refinance the mortgage to getthat payment relief, you know,

(05:29):
as soon as possible or as soonas it makes sense to do so.

Speaker 3 (05:31):
By the way, you know what you get to do in between
the time that you buy the houseand you refinance

Speaker 4 (05:35):
Live in the house, you get to, you

Speaker 3 (05:36):
Get to live life .

Speaker 4 (05:37):
Live , live your life. Yeah. Literally live your
life.

Speaker 3 (05:40):
Um , yeah . So that's , uh, and then coming up
next week , uh, we have moredata around , um, inflation.
Yeah. Uh , consumer priceindex. And, you know, just

Speaker 4 (05:53):
One other thing I'll mention quick before we go to
break, David, is that inresponse to these rates
creeping back up , you know ,uh, I think they're probably
easily over 7% for most folksnow. Sure. We've seen this
before and I'm seeing aresurgence in the conversations
around temporary rate buydowns. Sure. As a product that
makes sense. It's like, if youwere gonna get seven and a

(06:13):
quarter, why not take six and aquarter for the first year with
no extra upfront cost to you asthe

Speaker 3 (06:19):
Borrower with an a PR of 7.4?

Speaker 4 (06:21):
Yeah. And then refinance , uh, you know,
around the time that your ratewas gonna adjust anyways.

Speaker 3 (06:27):
Yeah, that makes sense. But at least

Speaker 4 (06:28):
For the first year, you're getting a well below
market rate. So, just somethingfor folks to keep in mind

Speaker 3 (06:32):
When we come back, I would like to tell a story
about a Navy veteran who Ispoke to this week and the fun
consulting, a lot of the movingparts that we went through.
Awesome. So after this break,you are listening to the Accu
Net Mortgage and Realty Show onAM six 20 WTMJ

Speaker 2 (06:52):
Home buying advice from the guys who know it best.
This is the ACU Net Mortgageand Realty Show with Brian
Wicker on WTMJ.

Speaker 3 (07:00):
Welcome back to the Acuate Mortgage and Realty
Show. I'm David, that's Timover there . Hello. Tim. I
spoke with A-W-T-M-J listenerexcellent. On Thursday
afternoon, who is a Navyveteran. Bought their home out
in Walworth County, you know,let's say seven or eight years

(07:22):
ago. Okay. God bless. They paidoff their mortgage like

Speaker 4 (07:25):
Fantastic during Covid .

Speaker 3 (07:27):
Beautiful. And but guess what they've got? I think
I , they've got, let's say an8-year-old, a 6-year-old, and a
4-year-old. Hmm . And you knowwhat? They want more space.
Those

Speaker 4 (07:37):
Kids . Uh, I got a six and an 8-year-old at home
and , uh, soon , almost9-year-old, soon to be
9-year-old. Happy birthdaySamuel. They , uh, they make a
house feel real small. ,we got them roller skate for ,
for

Speaker 3 (07:48):
Christmas. This guy has 50% more children than you
too . Oh

Speaker 4 (07:50):
Geez . That's terrifying.

Speaker 3 (07:51):
So , so they want more space. Yeah . Not because
of what rates are. His currentrate is zero 0%, but they need
more space. Yeah. So they'reinterested in a house that just
came up , uh, on the market anda couple moving parts. Right.
So the timing wise , they willnot be selling the soon to be

(08:14):
old house. Let's pretend they,you know, oh my God, we love
this house. It's amazing. Wewanna buy it. We wanna move in.

Speaker 4 (08:18):
Yeah. You want to , you want to get it before
anyone else does. Yeah . Andyou wanna be able to sell the
seller. Yeah. I can closewhenever you want and I don't
need to sell this otherproperty. I have first, like
I'm going to later. Right. But,

Speaker 3 (08:29):
But that was the first diagnosis because we
can't just assume that you canswing even on the old house. We
still need to count mm-hmm . Any HOA dues.

Speaker 4 (08:39):
Right.

Speaker 3 (08:40):
Property taxes and homeowners insurance Yeah . On
that old house. 'cause thosebills still exist even if you
don't have a loan . That's

Speaker 4 (08:46):
A good PSA for everyone out there. It's even
if you don't have a mortgage onyour current home, if you're
retaining that, at least forthe immediate own future, we
have to count what I call themonthly ongoing expense of
owning that property.

Speaker 3 (09:00):
The equivalent monthly expense.

Speaker 4 (09:01):
Yeah. Which is , yeah. It's, I know taxes and
insurance are an annual bill,but we gotta divide that by 12
Yep . And throw it in as ahypothetical monthly expense
for the purpose of qualifyingfor the next mortgage.

Speaker 3 (09:12):
So that was our first, you know, take out the
ruler and say, well, tell meabout your income. Yeah. And
can I fit this new housepayment in with the carrying
cost of the old one? Plus he'sgot basically no debt
otherwise. Sure. So hequalifies for that , um,
tightly

Speaker 4 (09:30):
Gotcha. And VA income , uh, rules are luckily
a little bit more lenient insome cases compared to
conventional lending for sure.

Speaker 3 (09:38):
The other element that I did ask, just being
mindful, this is only chapterone in the book, right. We all
the time, as we alluded to inthe first segment, owning a
home as many chapters in abook, I'm thinking, okay, well,
is chapter two gonna be yousell the old house and you
wanna pay down Right . The newhome. There are very strict

(09:59):
rules about you cannot , uh,recast

Speaker 4 (10:05):
For a VA mortgage, a

Speaker 3 (10:06):
VA mortgage, even if you've got a chunk of mm-hmm
. Proceedslooking at you in your bank
account. Yeah .

Speaker 4 (10:13):
They, you can pay down the principle. They're
just not gonna ream, amateurizethe monthly payment for you
lower Yeah. Based on the newloan balance. So like, you can
still pay down the loan

Speaker 3 (10:23):
And , and for as much as want folks , they
haven't decided yet if they'regonna sell it or if they're
gonna keep it. Sure. I thinkthey are flirting with the idea
of like, oh, what can we getfor rent? Yeah. By the way, if
you're looking for David'spersonal opinion, , if
you have a $300,000 house paidfor, sell it and take the money
rather than , um,

Speaker 4 (10:41):
Take the money and run Steve Miller Bank .

Speaker 3 (10:44):
Hey , come on.
Milwaukee Zone. Whatcha talkingabout , um, Les Paul was his
godfather, by the way. I didn'tknow that . RIP Les. Wow . I'll
look that up on the break, butokay. Music tangents. But take
the $300,000 in my examplerather than the rent payments.

Speaker 4 (11:01):
Not to mention then now you're the hassle . Now ,
now you're a landlord and haveto deal with the ,

Speaker 3 (11:05):
The calls on Christmas to be like, you know
, the fridge isn't workinganymore. Mm-hmm .
Et cetera . That's just, that'sjust me. Yeah. So they haven't
decided yet, but the, the nextpart of our conversation went
to, as he shared, he is a Navyveteran. He, when they bought
their soon to be old house, heused his VA benefit. Got it.

Speaker 4 (11:28):
Which

Speaker 3 (11:28):
Is awesome for anybody. Yeah. Just as a
reminder, you can put as littleas 0% down as a military
veteran on a home purchase. Andthere is no monthly PMI. Yeah.
There is or can be a fundingfee, which is what a is the
cost. Yeah . To the VA

Speaker 4 (11:47):
Of utilizing the VA loan

Speaker 3 (11:49):
Loan product benefit . If you have a service related
, uh, disability , that fundingfee is waived. By the way, when
ACU net goes to the VA website,we get something called a
certificate of eligibility.
Yeah . That lays out your name,rank , and number. Um ,

Speaker 4 (12:06):
And , and even if we can't get that, we can actually
order one from the VA on theveteran's behalf , uh,
utilizing a form called a DDtwo 14, which

Speaker 3 (12:14):
I so many acronyms

Speaker 4 (12:15):
I have yet to find a veteran or talk to a veteran
who did not know exactly whatthat was or where to find it.
'cause it's an importantdocument

Speaker 3 (12:22):
As our , as our colleague John Bells used to
say. That's the kind of thingyou put up on the mirror and
you look at every day whileyou're

Speaker 4 (12:28):
Shaving frame . You frame that Right, right. Along
next to your Social Securityaward letter once you're
retired . Exactly.

Speaker 3 (12:34):
. So , um, at the time , so he, this
particular client does not havea service related disability.
So I think at the time thatthey bought the ho , you know,
the, their first home, they didpay the funding fee. Sure. I
want to get into the analysisof VA versus conventional.
Yeah. As we keep going along onthis story, after this break,

(12:57):
you are listening to the ACUNet Mortgage and Realty Show on
AM six 20 WTMJ getting

Speaker 2 (13:02):
You into the home of your dreams. Here's more of the
ACU Net Mortgage and RealtyShow with Brian Wicker on wg.

Speaker 3 (13:10):
Mj, thanks for hanging out with us here on
Playoff Sunday. Are you gonnabe wearing your Donald driver
jersey? You know it.

Speaker 4 (13:16):
Okay.

Speaker 3 (13:16):
Yeah.

Speaker 4 (13:17):
Packer's hat, Donald driver jersey. That's my
playoff victory.

Speaker 3 (13:21):
Not bad

Speaker 4 (13:21):
Uniform.

Speaker 3 (13:23):
Uh, so telling the story here of a Navy veteran
thinking about buying theirnext house and the VA benefit
is mortgage benefit is awesome.
Yeah.

Speaker 4 (13:35):
It's great.

Speaker 3 (13:35):
But it does warrant ,

Speaker 4 (13:36):
There is warrant potential drawback to it .

Speaker 3 (13:39):
It , well, it warrants analysis. Yeah. So
when you take out a VA homeloan, you may incur the VA
funding fee. Right. 'cause whenthe VA guarantees these loans,
they need to , they're buggingyou for some money so that they
can make sure that if they needto make whole, any investor who

(14:00):
buys a VA loan, that thatinvestor gets all their money
back. Yeah .

Speaker 4 (14:02):
And the funding fee, I think it's worth noting,
isn't something that theborrower slash veteran needs to
pay out of pocket .

Speaker 3 (14:08):
They can, but they can

Speaker 4 (14:09):
Exactly.

Speaker 3 (14:10):
Zero times have I seen that?

Speaker 4 (14:11):
But you can finance it into the loan amount. So
even in the scenario where aveteran would choose to put 0%
down, the VA will allow you tofinance technically in total
above a hundred percent of thepurchase price. If , uh, some
of that is to finance the VAfunding fee . So when we , you
know, just wanna clarify, whenwe're talking about paying the
VA funding fee,

Speaker 3 (14:33):
You can

Speaker 4 (14:33):
Borrow it. You can , you can borrow it, which
basically just equates to alittle bit of a higher loan
balance, a little bit of ahigher monthly payment as a
result. Yeah . So go on David.

Speaker 3 (14:40):
So our client , uh, has available cash funds in a
checking account. Okay. Thatthey could get to as much as a
10% down payment. Nice . Andthat's a big deal. So they
might borrow up to $600,000 forthis new house. Yeah. If, if

(15:02):
you're a Navy veteran or anybranch and you're about to use
your VA benefit for a, for asubsequent time, time number.
Yeah . 2, 3, 4, 5, 6, not justthe first time. And putting
less than 10% down ,the VA funding fee can be 3.3%
oof . Of the loan amount, whichfor this client on a $600,000.

(15:26):
I

Speaker 4 (15:26):
I did that

Speaker 3 (15:27):
Mortgage is Yeah.
Gimme a

Speaker 4 (15:29):
$19,800. That's a big chunk of change

Speaker 3 (15:35):
I

Speaker 4 (15:35):
For the privilege of doing a VA loan. Yeah.

Speaker 3 (15:38):
As I was describing it to this client, I said, I
will, you know, proceed withany plan that you tell me.
Absolutely. But I wanna showyou all of what's possible.
'cause the break that you getif you put more than 10% down,
is that VA funding fee becomes1.25% or a little over 8,000

(16:03):
bucks.

Speaker 4 (16:03):
7,500. Okay . Way better than 19,800. But ,

Speaker 3 (16:08):
But still, what I said, and and what I prepared
and shared with him was I justwant to show you what a
conventional loan looks like incomparison. Yeah . Because
tacking on rolling in either19,000 or $7,000 payable to the
VA is like, I'll do it, but Ijust wanna show it to you in
comparison to what else youcould do.

Speaker 4 (16:29):
Yeah. The right choice is whatever gives him
the warmest and fuzziestfeeling. But this is the part
of the job that I love probablythe most is Yeah. The
consulting, which is we'regonna show you all the paths
that you can take to get tothis thing called home
ownership. And the other nicething is it's like all the
paths are still availableliterally until he is under

(16:50):
contract. Yes. At that pointyou gotta pick the game plan.
Yeah. Because it's a differentapproval process with
conventional versus va.
Correct. But you know, layingout the options as you're doing
for this customer, just stufffor him to chew on right now,
he doesn't even need to make uphis mind until he has a
specific property in mind witha specific purchase price.
'cause like, as we all know,you know, maybe one house he

(17:12):
doesn't have to do anything to, but maybe another house, you
know, he is gonna want to keep15

Speaker 3 (17:17):
Grand . Yeah . Maybe he only wants to make a 5% down
payment . Yeah .

Speaker 4 (17:20):
Because he wants some cash on hand to, you know,
remodel a bathroom or put innew carpets or, or something
like that. So

Speaker 3 (17:25):
For me, for me, the analysis is if you're gonna do
the VA loan, you cannot do lessthan 10% down. 'cause you just
get,

Speaker 4 (17:32):
You get hammered.
Yeah . Yeah.

Speaker 3 (17:33):
You get hammered on that VA funding fee. Right. If,
if you're gonna do less thanthat 10% down, it may be the
smartest path to do theconventional loan. Mm-hmm
. Which doesn'tpreclude, he could always come
back to, you can refinance aconventional loan into a VA
loan Sure . If sometime in thefuture. That makes sense. Yeah.

(17:55):
Um,

Speaker 4 (17:55):
And you know, there's, there's so many
different aspects to consider.
'cause you know, if they dodecide to sell their current
home, which I know youmentioned, they're up in the
air about anyways, but if theydo sell it, they'll have a
windfall of cash at that point,which obviously they can then
replen

Speaker 3 (18:09):
Oh, the old

Speaker 4 (18:10):
House. Yeah. Yeah.
They can replenish their, youknow, depleted savings account
that they use to maybe get to10% down. Uh, and then they
have a VA loan, which is veryeasy to refinance into a new VA
mortgage through what's calledan interest rate reduction
loan. VA refi, I jokingly callit the fog of this mirror , uh,

(18:30):
refinance. Oh yeah. I'm helpinga customer do it right now. I
helped buy a home last year ona VA loan and we're doing an ,
uh, an interest rate

Speaker 3 (18:36):
Reduction. It's a streamline.

Speaker 4 (18:37):
Yeah. There's no appraisal. Uh, you don't have
to verify employment or incomeor assets. It is very much
like, oh, you have a VA loannow and can we prove to the VA
that you're getting a new VAmortgage at a lower interest
rate and lower monthlypayments. Yeah.

Speaker 3 (18:51):
The VA says,

Speaker 4 (18:52):
Do it. Yes. Boom.
Save that veteran money. Andthe funding fee on those
streamlines is I think only ahalf of

Speaker 3 (18:58):
1% or waived if you are eligible, but a half
percent on the borrowed money.

Speaker 4 (19:02):
So a lot of things to consider. We

Speaker 3 (19:04):
Know how to spell VA. Oh , a hundred percent .
Which amazingly is not the caseacross the board in mortgage
lending. No. So for any of ourmilitary veterans who wanna at
least explore that benefit,we're gonna give it to you
straight. 'cause I , for thisclient, again, a hard time
advising such a large fundingfee unless there's, unless they
get to that down payment about, I've

Speaker 4 (19:24):
Talked veterans , veterans where I've flat out
done the comparison and wedetermined together that the
best choice was not to use a VAmortgage. Yeah . Let's look at
And sometimes that's the casetoo. Yeah. Let ,

Speaker 3 (19:32):
Yeah. Alright . It's time to turn it over to the
WTMJ Breaking News Center.

Speaker 2 (19:39):
Don't break the bank to get into a house. Back to
the ACU Net Mortgage and RealtyShow with Brian Wicker on WTMJ.

Speaker 4 (19:47):
Welcome back to the ACU Net Mortgage and Realty
Show. I am Tim, senior loanconsultant joined by president
and CEO of Anette Mortgage.
David Wicker. Uh, David, Iwanted to pivot to another
conversation around helpinghome buyers, particularly
younger first time home buyers,because

Speaker 3 (20:04):
We were off the air last week after, because after
the first of the year, theskies open up and everybody
says, I wanna buy a house thisyear. This ,

Speaker 4 (20:13):
This is the year, this is the year happening .
And we do a lot of , um,business with first time home
buyers who are sometimes sentby their parents who are
either, you know, WTMJlisteners or past customers of
aced or , or both in manycases. Um, and I personally en
enjoy this 'cause it is a lotof good consulting and a lot of

(20:34):
times I view the parents as a ,an extension , uh, as a client,
of course, you know, of , oftheir kids who are ultimately
the ones , uh, you know,getting the mortgage and buying
the home. So the topic I wantedto discuss and maybe provide a
little bit of clarity to , forall of our listeners, both
young and old, is regardingdown payment amount. Because

(20:55):
talk to me. I'm , you know,you've heard this a million
times. I've heard a milliontimes. The the adage and
general wisdom that manyparents , uh, pass down to
their children is you gotta getto 20% down on the down
payment. That's the magicnumber. Everything will be so
much better for you, Johnny andSusie. Yes . If you get to 20%
down and there's nothing , uh,to be clear, borrow from Jason

(21:19):
or Jerry Circuit . To be clear,I think we all agree ,
there's nothing wrong withgetting a 20% down. That's
great. Yes . If you've got thepile of cash that you can put
that money down, obviously themore money you put down, that
means the less money you haveto borrow, which means that
your loan amount's lower, whichmeans that your monthly
payment's lower general, goodwisdom.

Speaker 3 (21:38):
Godspeed. But

Speaker 4 (21:39):
What I don't want anyone to think is that you
have to get to 20% down No . Tobuy a home or qualify for a
mortgage. Um , the differenceis, is that if you're a young
first stem home buyer and haveexcellent credit and good
income in relation to yourdebts, a lot of times it
actually makes sense to putless than 20% down even if you

(22:01):
have that money available.

Speaker 3 (22:02):
Heresy. Tim, I I

Speaker 4 (22:03):
Don't wanna leave anyone much less. First time
home buyers with five bucksleft in their bank account
after they buy a home. 'causeguess what?

Speaker 3 (22:11):
That's only the start after

Speaker 4 (22:13):
You buy a house. Oh my God, you're a homeowner. Yes
. You have to buy a lawnmower.
And it's snowblower . It's like

Speaker 3 (22:18):
The air conditioner is listening for when you move
in and says, oh , guaranteedI'm gonna croak in about 30
days.

Speaker 4 (22:22):
Your water heater just went out. Exactly .
. Yeah. It's like rightnow. Um , you know, so things
like that, it just, it's goodto have some money liquid in
the bank, not

Speaker 3 (22:32):
Just good like vital.

Speaker 4 (22:33):
Yeah. I would say crucial. Right. And you're not
damaging the mortgage the waythat a lot of folks might think
by putting less than 20% down.
Uh, PMI is a lot cheaper nowthan I think it was back in the
day whenever that day Day ,

Speaker 3 (22:47):
Yes . Which was a Wednesday .

Speaker 4 (22:48):
It was a Wednesday.
Is that a Dane Cook reference?
Thank you. Yes. Nice. Um, and,you know, we can do that math
and I , I do this all the timewhere I'll share my screen with
a customer and I'll show them,here's what your mortgage
payment looks at 20% down,here's what it looks like at
15% down. Here's what it lookslike at 10% down. And oh my
goodness, if you wanted to getreal crazy and do 3% down, we

Speaker 3 (23:09):
Call that the wicker special. Yeah.

Speaker 4 (23:11):
Here's what the payment looks like that. And
it's about balancing thosecompeting factors. We show you
monthly payment, we show youtotal money needed at the
closing table, not just downpayment, but also closing costs
and

Speaker 3 (23:23):
Homeowner's insurance premium,

Speaker 4 (23:25):
Setting aside money for property taxes, all that ,
all that stuff. Right. Thewhole comprehensive approach.
And then just like we weretalking about with your VA
customer. Yeah.

Speaker 3 (23:34):
What feels good?
Yeah.

Speaker 4 (23:35):
What feels good .
You tell me , I'm not going toforce you to put 3% down, just
like I'm not gonna force you toput 20% down, but I just want
everyone who's listening toknow if you're, if you haven't
even called acuate because youdon't have 20% down, oh my
goodness. Please call. Yes.
Because the worst case is thatI tell you, you , you're right.

(23:56):
You do need 20% down. Let'scircle back in another year or
whenever you've saved up thosefunds. Right. But the result of
the conversation might beentirely different, which is

Speaker 3 (24:06):
Very rarely is that No . The follow up . Yeah.

Speaker 4 (24:08):
Yeah. A lot of times it's like, Hey, here's what
your monthly payment would beif you bought this much house
and you could do that tomorrow,right now if you wanted to. And
it's like, wow. How would youever know that unless you
inquired with a professional atACU net ? Yeah . The answer is
you wouldn't and we wouldn'texpect you to. But this is our
call to action for anyonesitting on the sidelines

(24:29):
because they have been told bya , a trusted loved one that
they need to get 20% downbefore they begin their home
buying journey. Just check inwith us, we'll let you know.
And not

Speaker 3 (24:39):
Just first time home buyers too . Oh , anybody. The,
the , um, among move up buyerstrying to buy more house mm-hmm
. That minimumdown payment is with no income
limits on a conventional loancan be as low as 5% down. Yeah
. So it's like, you wanna buy ,uh, $700,000 house. You, you

(25:01):
don't need 20% down, you needfive. It's 35,000 bucks. Not
$140,000.

Speaker 4 (25:06):
Literally. My personal example of this is
when Grace and I moved fromour, you know , uh, TOA
bungalow to our TOA ranch, weput 5% down when we bought the
ranch because we wanted all thecash we could on to have on
hand for a big remodel.

Speaker 3 (25:22):
Your house needed some love when you on the day
you moved in. So,

Speaker 4 (25:25):
You know, we looked at it and we're like, well, why
would we put 20% down just tohave to claw back some money
later out of that equity Yeah .
To do a remodel. It's like weput the minimum down and then
paid cash for the remodel. Yes.
So

Speaker 3 (25:39):
When we come back, I talked to a client this week
and I had, I wanna piggyback onwhat you said 'cause it was a
version sister to what you justdescribed now. Excellent .
Let's get into that. After thisbreak. You are listening to the
Accident Mortgage and RealtyShow on AM six 20 WTMJ.

Speaker 2 (25:57):
Important home buying questions and answers
you can count on. This is theACU Net Mortgage and Realty
Show with Brian Wicker on WTMJ.

Speaker 3 (26:06):
Thanks for hanging out with us. I'm David, that's
Tim. This is the AnetteMortgage and Realty Go Package
. Uh , so Tim, you weredescribing a good refresher for
our clients in the previoussegment about down payment.
Yeah. I was introduced to ayoung couple this past week by
their real estate agent.

Speaker 4 (26:25):
Excellent.

Speaker 3 (26:26):
And on our phone call miraculously, I had 3%
battery on my phone, .
And it lasted for a 23 minuteconversation. Amazing . I I
felt like I was staring at 1%battery for like six minutes
living

Speaker 4 (26:37):
Dangerously,

Speaker 3 (26:38):
But it last , but it lasted. And in our call as I'm
just trying to get familiarwith what their plan is mm-hmm
. I asked thequestion, I was like, how much
do you guys want for a monthlypayment mm-hmm .
And how much do you want tospend on your down payment?
Yeah .

Speaker 4 (26:54):
Which if a mortgage professional isn't asking you
those questions in the firstphone call, you need to run
away and find a differentmortgage lender.

Speaker 3 (27:01):
Well, you're just kind of avoiding the whole
point of the conversation. Yeah. If you're not getting down to
the nuts and bolts of it.
Correct. So they shared whatthey wanted their monthly
payment to be. Let's say it wasaround $2,000. Okay. Which I
can't help myself in those I,you know, conversations or as
for my follow up , I say, whatabout $2,050 ? Like for

(27:23):
the right house would , wouldyou consider $2,080? And I , I
can remember one gentleman in the last year who
was like, Nope, this is mynumber. Great . Not a nickel
over. It's like, Hey , he

Speaker 4 (27:35):
Knew what he

Speaker 3 (27:35):
Wanted. At least you know that. Yep . But for most
clients it is a,

Speaker 4 (27:40):
It's a range. Yeah.

Speaker 3 (27:41):
What's more than squishy? It's , um, malleable.

Speaker 4 (27:46):
There you go. It's silly putty.

Speaker 3 (27:47):
Exactly. Yeah .
'cause they would consider forthe right house, of course.
Maybe it doesn't need as muchlove. It's like, oh , 2150.
It's like, find, find the moneyin your monthly budget if
possible. Great. We now I knowwhat your monthly payment goal
is. Yep . Now Yeah. How much doyou want to spend on your down
payment? And maybe the otherway that I ask that sometimes

(28:09):
is how much do you wanna leaveyour checking account? Mm-hmm .
And how much do you want leftover in your checking account?
Yeah . When the dust settles towhat you said, oh, I want
$20,000 to leave my accountbecause I want $10,000 still in
my checking account after Idon't wanna send 29,995 and
then I have five bucks leftover in my checking account.

Speaker 4 (28:29):
And it's the , the best way to ask the question is
exactly what you said. How muchmoney do you want leaving your
bank account at closing? Not,not what do you want your down
payment to be? Right. Becausethe down payment is the bulk of
that. Right.

Speaker 3 (28:41):
But it's not , but you're paying for

Speaker 4 (28:42):
Other stuff. It's not all of that. So the, the
holistic approach is how muchmoney in total do you ideally
want to bring to the closingtable?

Speaker 3 (28:52):
They gave me their reply, they said 20%. Shocker.
And then, and then I had thisreply why?

Speaker 4 (29:05):
And their answer was crickets.

Speaker 3 (29:07):
Yeah.

Speaker 4 (29:08):
Because that's what they were. And this is not an
indictment on anybody, but it'slike, that's what they were
told I'd imagine from theinternet or their
parents or

Speaker 3 (29:16):
People not wanting to look dumb or poor.

Speaker 4 (29:19):
Yeah. It's like, oh yeah . 20% down. Yeah.

Speaker 3 (29:22):
So

Speaker 4 (29:22):
This is the way which,

Speaker 3 (29:24):
And so that led us to the conversation of what you
alluded to before was like,well great. Is that, is that
what makes you comfortable?
Like, 'cause again, I, we, thewhole ACU net team, we're
gonna, you call the play, we're

Speaker 4 (29:43):
Gonna run , we're

Speaker 3 (29:43):
Gonna snap the ball and throw it and we're

Speaker 4 (29:45):
Gonna , we're gonna score. You're the coach, we're
the quarterback. We'll run whatWe're not gonna, Aaron Rogers
audible it at the line intowhat we want. Okay . We're
gonna do the play that you call

Speaker 3 (29:54):
So . So for them, the incrementalism of,
you know, they say 20% down Idid in the conversation. So I
said, why? And then I'll saysomething like, why not 19%
down ? And then if theysay, oh , I guess we would
consider that. And then I'llsay, well, why not 18% down?

(30:14):
And it becomes this slipperyslope. Yeah. Approaching
whatever their comfort zonemight actually be. Because I
think what a lot of first timehome buyers , your down payment
is not going to bring relief toyour monthly payment as much as
you might pray it would. Nope .
And for it to share with ourclients that for every thousand

(30:37):
dollars, more or less, it'sgonna move your monthly
payment.

Speaker 4 (30:41):
Six bucks a month. I

Speaker 3 (30:42):
Was gonna say, let's just say seven. Sure . For the
sake of, you know , round upconservative seven bucks. And
I, I even posed it to 'em theother way. I said, imagine if
you're gonna make a 20% downpayment and then you got 10,000
more dollars burning a hole inyour pocket. Yeah . Above your
20% down

Speaker 4 (31:00):
You would you want a $70 a month lower monthly
payment or $10,000 sitting inyour bank account? Personally,
I would take the 10,000 sittingin my bank account Yes . And
deal

Speaker 3 (31:10):
With the you'll find the 70 Yeah . In the, in the
holdman budget. Yeah .

Speaker 4 (31:14):
I'll skip door dashing , uh, two meals.

Speaker 3 (31:17):
Yes.

Speaker 4 (31:18):
Za . And then you got it back .

Speaker 3 (31:19):
We did two less door dashes we're fine. Um, and, and
to just share with them thatlike this is available to them.
Yeah. Uh , especially given,did

Speaker 4 (31:31):
They, did they even know they could put less than
20% down

Speaker 3 (31:35):
Maybe intrinsically.
Sure. Uh , but to maybe havethe permission from the
mortgage doctor to be like, orbetter , you don't have to cut
out every Oreo, just eat Oreoson Saturday or just , you know
, not every day .

Speaker 4 (31:48):
Pull the curtain back and show what that looks
like. Exactly. Because like,oh, this isn't that scary. No .
Right . Not nearly as scary asthey probably thought it would
be.

Speaker 3 (31:59):
These are the ways in which we consult Tim , uh,
for our last segment, I wantyou to tell me about your
duplex client that youconnected with Sure . This past
week. Uh , cover that in ourlast segment. You are listening
to the Anette Mortgage andRealty Show on AM six 20 WTMJ.

Speaker 2 (32:16):
Find a place to call home without the headache. This
is the Anette Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 4 (32:24):
Welcome back , uh, to the last segment of the
Anette Mortgage and RealtyShow. Last segment for this
week, obviously. Uh, David, Ijust wanted to share one quick
hit story of a customer of mine, um, young man , first time
home buyer , uh, buying aduplex mm-hmm .
In McGonagal . And , um, I , Ithink a couple things I wanted
to highlight about this storyfor our listeners. The first is

(32:45):
that I actually got himconnected with a real estate
attorney to draft up thepurchase contract. Sure. Um,
you know, we, we don't expectour customers to always come to
the table with the full team ofpeople that they actually may
need to complete a homepurchase. And that's fine.
We've got,

Speaker 3 (33:00):
We know

Speaker 4 (33:01):
Peeps, we know people, we've got lots of
connections. We've been doingthis a really long time. Uh ,
so to

Speaker 3 (33:05):
Your point , I have a divorce client , uh, needs an
appraisal. I was like, call,call my people over at
Heritage. Yeah . They'll helpyou out.

Speaker 4 (33:12):
Absolutely. Right.
So got him connected with areal estate attorney to draft
up the purchase contract. Hegot his offer accepted Hazah ,
and he was , um, you know, heis , um, just beginning his
professional career. He's abouta year and a half outta college
and, you know, the monthlypayment really matters to him.
And he was looking for Oh ,sure. You know, the best terms

(33:32):
possible, the best

Speaker 3 (33:33):
Execution.

Speaker 4 (33:34):
And for that, especially in this higher rate
, uh, environment we're in issomething called a WIDA loan.
WIDA is an acronym. It standsfor the Wisconsin Housing and
Economic Development Authority.
Mm-hmm . It is aWisconsin State specific
program.

Speaker 3 (33:48):
I had that loan for my first house.

Speaker 4 (33:49):
I, you know, I think race and I did too actually.
Yeah . There you go . And , um,if a borrower makes underneath
a certain income threshold,they can tap into this program
and essentially borrow themortgage money at a lower rate
of interest. The PMI ormortgage insurance is also ,
uh, very severely discounted.
Yes . Which is nice. Um, andhe, he had,

Speaker 3 (34:12):
It's a great tool when you can reach for it.

Speaker 4 (34:13):
Huge. And he had in his mind that he wanted to do
10% down. Oh. He had the fundsavailable. Plenty still in
reserve. Um , WIDA does havesome very nice down payment
assistance programs where youcould even do as little as 0%
down in total. Yes . He wanted

Speaker 3 (34:30):
Current a PR on that is like 6.4, give

Speaker 4 (34:33):
Or take. Yeah . The , the rate for WIDA as of today
is 6.25%. Yep . Uh , 'cause Ilooked up, which

Speaker 3 (34:39):
Is severely below Yeah . Otherwise going

Speaker 4 (34:41):
Rate . And that's, that's the rate for no points.
So the borrower is not payingany extra buy down closing
costs Yep . To manually lowerthat rate. That is

Speaker 3 (34:50):
Simply Well , 'cause the state of Wisconsin knows if
you put people in houses, theygo out to Menards and buy other
stuff.

Speaker 4 (34:56):
Exactly. And this is a , a Fannie Mae backed
conventional mortgage. Yes . Sothis isn't any weird voodoo
mortgage out there. Uh , well

Speaker 3 (35:04):
This is about as plain vanilla as it gets. Yeah.

Speaker 4 (35:06):
Yeah, yeah. Truly.
And if the income is cut anddry, which it is in , in this
borrower's case , uh, this is atool in my tool belt that I'm
looking at more and more forfirst time home buyers. WIDA
doesn't reserve this extra lowrate for repeat buyers is only
for first time home buyers.
Sure . Um, and if

Speaker 3 (35:27):
You're meaning you have not owned a home within
the last three years. Correct.

Speaker 4 (35:31):
Yeah. Good point.
And , um, yeah .

Speaker 3 (35:34):
And , and this is what we do. We reach for the
tools that, that are availableto us mm-hmm .
And we bring that to ourclients. Right. Exactly. So ,
uh, thanks for hanging out withme today. Uh, for any of our
listeners or your , uh, family,friends, coworkers , even your
frenemies, we'd be happy tohelp . Help . Even people you
don't like all sorts. Um, allthey have to do to get started

(35:56):
is click on the [e-mail]. You've been
listening to the AcuateMortgage and Realty Show on AM
six 20 WTMJ.

Speaker 1 (36:04):
The proceeding was a paid program. Advice and
opinions expressed during theACU Net Mortgage and Realty
Show are solely that of thehost or guests of Acuate
Mortgage and Acuate RealtyAdvisors and not WTMJ Radio or
Good Karma Brands. Milwaukee,LLC.