The Accunet Mortgage & Realty Show 4-20-25

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. Joined today by one TimHoldman ,

Speaker 4 (00:46):
Buenos Diaz

Speaker 3 (00:46):
Senior Loan consultant. My individual NMLS
ID is 3 2 8 8 4 7. Tim'sindividual NMLS ID is one five
Niner 3 1 4 6 . Thank you forthe niner and a happy Easter to
you, Mr. Holden. Yeah . Happy

Speaker 4 (01:01):
Easter to

Speaker 3 (01:02):
You as well, David.
Thank you very much. Um, if youlisteners would like to grab a
previous episode of the AnetteMortgage and Realty Show. You
can do so wherever you get yourpodcasts .

Speaker 4 (01:13):
Yes, indeed.

Speaker 3 (01:14):
Okay, Tim. So , um, this last week was quiet and I
was glad for that forrates and mortgages and

Speaker 4 (01:25):
A little bit more relaxed than the previous week.

Speaker 3 (01:27):
A little bit more relaxed. And the nice part
about that is markets began to, uh, give back recover. Sure.
What otherwise was theirheartburn in the week or two
that came before mm-hmm . And with
financial markets,predictability and, and

(01:48):
stillness allows for markets toget their footing to uh
, figure out what is what.
Right. Particularly around dataand not policy. Correct. So
when the policy becomes morequiet, then Wall Street can go
and then begin to look back atthe data without wondering if

(02:11):
there's this guillotine ofpolicy Yeah . Coming down the
line. Uh , so what I , at theend of the week on a 30 year
fixed, I, the scenario that Ipulled up, if you wanted to buy
a $300,000 home and put 25%down and all the other Right.
Stuff had low overhead academicmortgage, we could offer 6.875%

(02:33):
with no points

Speaker 4 (02:35):
And no origination fees. So not just no points.
That's no lender fees, no fees.
Yeah. No processing fee, nounderwriting fee, no
application fee, no . None ofthat. Make no makeup your name
for this fee, fee

Speaker 3 (02:47):
Fees , the paper fee. And the a PR on that was
6.89. Of course, because welike to offer options. If a
client was like, Hey, I'd likethat low rate. Yeah. Can you
give that to me? Yes, I can.
And then we should talk aboutit. Oh, do you want 6.375%
mm-hmm . We cando that for sure. The A PR is
6.58. I, a lot of times thoughwith clients describe that

(03:11):
interest rates are like hotelrooms and if you would like to
sleep in the presidentialsuite, it costs money to sleep
in that interest rate. And soin order to get to 6, 3, 7, 5,
oh man, that's so much moreattractive, Tim, than the half
percent higher. Well, it's'cause it's 4,400 more dollars.
Right. To get it.

Speaker 4 (03:31):
Well, and there's a another sort of dark horse
third option that I've startedto talk to with my customers
more about, and maybe we savethis for the next segment, but
there is such a thing as calleda temporary rate buydown,
where, 'cause the, the buydownthat traditionally people think
of is you're getting that lowerrate for the full 30 years. Yes
. Which is great, but becauseyou're getting that rate for

(03:52):
the full life of the mortgage,you are paying more for it
logically. Right? Yes. Thereason that may not be the most
prudent investment of yourfunds is that you're not gonna
keep this mortgage for 30years. Right. Because literally
show me , uh, someone who has,and that's gonna be the first
person I've seen ,who's , who's kept their
mortgage for the full 30 years.
Yes. Right . So there's anotheroption where you can choose to

(04:15):
get a well below market rateintentionally, not

Speaker 3 (04:19):
An equivalent payment.

Speaker 4 (04:20):
Yeah. An equivalent lower monthly payment for
either the first year or firsttwo years of this mortgage. And
because you're getting thatlower rate for a finite period
of time Yeah . It is muchcheaper to do that. Yeah . So
we can break down that math. Idon't know if you want to do it
now or we can do it as a wholestandalone segment,

Speaker 3 (04:38):
But just , but, but I think the , uh, the point is
as we step back, it's like,okay, these are what rates are
today. Again, this past week,as I've said in previous weeks,
none of my clients called methis week and said, David,
thank God markets were quiet.
I'm back in

Speaker 4 (04:55):
It. Back in it. I was out the week before, but
two

Speaker 3 (04:57):
Weeks ago I was out.
Now I'm back in. I was like,okay, so you're not buying a
home because of what rates are.
You're buying a home for reallife reasons. Yeah . You've got
a client who I want to talkabout

Speaker 4 (05:06):
For sure. When we get to story time , I, I
literally talked to him Fridayafternoon and it's a great,
great , uh, fodder for theshow.

Speaker 3 (05:13):
A real story. A real person. Yeah.

Speaker 4 (05:15):
He , he might be listening.

Speaker 3 (05:16):
We'll see who, who must have thought, you know how
I can get on the academicMortgage and Realty show is
what

Speaker 4 (05:20):
We're gonna do .
Call him on Friday afternoon.
Yeah .

Speaker 3 (05:22):
and , and , and give real life reasons of
why my wife said I want morehouse. Amazing. That's the
reason why. But regarding rateand closing costs, the ACU net
mortgage team, I don't wannasay that we're agnostic, but
again, it's like, if rates arelike a ribeye, I was like, I
will cook your steak howeveryou want. Mm-hmm

(05:42):
. But may I share with you thechef's recommendation? May I
describe to you how it willtaste? But then if you order it
hockey buck , yeah . We'll giveit to you hockey book . I'll
yell back to the kitchen andthey will make it that way. But
let's look at what your optionsare as we put this plan
together. Not just in, youknow, where we are today, but

(06:04):
also where do we think lifewill be one year, two year ,
five years from now. This iswhy we are consultants and not
just order

Speaker 4 (06:12):
Takers. McDonald's mortgage is the term I've been
using lately. Thank you. It'slike we are, we are not that

Speaker 3 (06:18):
We are fancy restaurant mortgage. Yeah.
Alright . Uh , some storiesfrom the front lines of
mortgage and real estate. Afterthis first break, you are
listening to the AcuateMortgage and Realty Show on AM
six 20 WTMJ

Speaker 2 (06:33):
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 (06:42):
Welcome back to the Acuate Mortgage and Realty
Show. I'm David, that's Timover there. Good morning. We
turn the page to the frontlines of mortgage lending and
real estate where clients for26 years here at Acue have
bought homes for real lifereasons and not ever because of
what rates are or anything eesoteric or spreadsheet

(07:07):
related. Tim, you've got aclient, has this client been a
client of ours for 10 years? Uh, at this point? Uh , I

Speaker 4 (07:15):
Think eight May , maybe longer. I'd have to go
back and and look through thearchives, but long , long time
customer of of ae and he callsme up Friday afternoon and we
hadn't talked for a , a goodwhile, but, you know, we helped
him . Well 'cause

Speaker 3 (07:30):
He had refinanced in like Covid

Speaker 4 (07:32):
2020. Yeah. It was

Speaker 3 (07:33):
Like, look, I'll take your call anytime , but
like , don't ever trade thatin. No. There's no reason.

Speaker 4 (07:38):
Yeah. We helped him . So we helped him and his wife
buy their current home in 2018.
They refinanced in 2019 andthen again in 2020. And then ,
you know, they , that rate theywere gonna keep as long as they
were gonna keep the house.
Yeah. And that's the keybecause he called me up and
said, Hey Tim, my wife and I,you know, everything's great.
We got a 5-year-old and a9-year-old at home and my wife

(07:58):
wants to get a little bit morespace, get out into the country
a little bit more, maybe get alittle bit more land. And he
even said, and

Speaker 3 (08:05):
He stubbornly said, no honey, I am unwilling to
give you what you

Speaker 4 (08:09):
Want. No, no, he did not. And he even said though,
he is like, you know, it , it'sgonna pain me to give up the,
the rate I have with my currentmortgage and current

Speaker 3 (08:19):
Home spreadsheet pain.

Speaker 4 (08:20):
Yeah. And I said, Mr. Customer, I totally agree
with you, but you and I bothknow from your own past
experience that we're gonna getyou the, the most non-painful
rate and payment that we can atthe time of you buying the
home. But the key is you'regonna get that home that you
want and more importantly, thatyour wife wants. And then as
the markets change everyavailable opportunity for you

(08:41):
to save money on that paymentwhen it comes along, we're
going to help you with

Speaker 3 (08:45):
Well, and and you have a track record of having
done just that. Yeah. Hey,remember how we helped you buy
your house in 2018 andrefinance rice ?

Speaker 4 (08:51):
Right. So, and he understood that. And that's,
you know, his own personal pastexperience with that whole
journey has already made himrealize, you know what, this is
the right thing to do for ourfamily. That is not rate
related at all. No. Not tomention that, you know, in the
area , in the area that he'sbuying, he's never going to pay
less for the property that hewants to buy than he is right

(09:13):
now. I told him, you can tradein your rate in the future. You
can't trade in the value of theproperty. Meaning if he waits
whatever, two years for somemagical lower rate to come
along, he's probably gonna paymore for that property

Speaker 3 (09:26):
Two years from now

Speaker 4 (09:27):
Yeah . Than he would if he would've just pulled the
trigger on it and and bought itin and , you know, spring of
2025

Speaker 3 (09:33):
And you get to live your life in the interim then
there too.

Speaker 4 (09:35):
Exactly. Exactly. So we , uh,

Speaker 3 (09:38):
As I like to say, you can either , uh, you can
buy your new ho house and staymarried or you can become
single and hang on to your oldhouse if you won't give Sure .
Your spouse what they ask for.
Yeah .

Speaker 4 (09:49):
It's extreme but possible. . Um, so we,
we got the, the newpre-approval game plan going.
Uh, I uh , believe they made anoffer Friday afternoon. We're
waiting to, to hear back onthat. But the other discussion
that we had, which is again,very common for anyone not a
first time home buyer, is, HeyMr. Customer, there's kind of
two different ways we canpre-approve you. 'cause you own

(10:11):
a home right now and you wannabuy a new primary home. Yes. So
in that scenario, a apre-approval is you're way of
presenting your qualificationsto the seller. Right. So you
can present yourself twodifferent ways. The first is,
hey, I own a home right now andI want to, or need to sell it

(10:31):
on, or before the day I buyyour new home. And that is the
only way I'm willing to moveforward. The technical term for
that is called a home salecontingency. Right? Yes . And
in real life, that's the mostcomfortable thing for the buyer
almost a hundred percent of thetime. Right . The

Speaker 3 (10:43):
Risk reduced version.

Speaker 4 (10:45):
Yeah. You don't have a period where you own two
homes. You get all your homeproce , uh, proceeds out when
you sell that home that you canuse then however much of that
you want towards the downpayment for the new home. Yep .
And it's all nice and clean.
However, from the seller'sperspective, that's the least
desirable of the two scenarios.
Yes . 'cause from theirperspective, they're like, oh,
well, in order for this personto buy my house, they gotta go

(11:07):
out and sell this house first.
They're reliant on this wholeother transaction to go on
successfully. So I , I said theother scenario, which

Speaker 3 (11:15):
By the way, you know, it occurs like we have
clients do that, but thelisting agent or not the
listing, the seller needs to bein a position where either they
are desperate or they don'tcare. Right. And I've had some
clients, like they're trying tobuy a home and the seller's
building a new house mm-hmm . And maybe that

(11:35):
house isn't ready or won't beready for a while . So like
they don't Yeah. Go ahead, sellyour house 'cause we're gonna
be waiting anyways. Right.

Speaker 4 (11:42):
And it's a seller's market and it's, you know ,
highly unlikely that someoneisn't able to sell their home
in a timely manner in thisenvironment, you know, if it's
priced appropriately. So thatpivoted to the second scenario
of pre-approval that we willcover after this next break.
You are listening to the AnetteMortgage and Realty Show on AM
six 20 WTMJ

Speaker 2 (12:02):
Getting you into the home of your dreams. Here's
more of the Anette Mortgage andRealty Show with Brian Weer on
WTMJ.

Speaker 4 (12:11):
Welcome back to the Accident Mortgage and Realty
Show. I am Tim joined with me ,uh, with David. So David,
before the break we weresharing , uh, you know, story
of a longtime past customer whowants to get ready to buy his
new home and they , they own ahome right now that we'd helped
him buy several years ago. Yep. So the second way to pre-pro

(12:33):
someone, and this is how I kindof explained it to my customer,
is you can show that you canqualify to buy this new home
without needing to sell yourcurrent home first. So the way
you're presenting yourself tothe seller of that property you
wanna buy is , listen, hey, Ido own a home. I'm letting you
know I own a home right now.
Yeah . My ability to buy

Speaker 3 (12:52):
Don't be silent about it. Yeah.

Speaker 4 (12:54):
Bring it to light.

Speaker 3 (12:56):
I'm so strong Yeah .
That

Speaker 4 (12:57):
I

Speaker 3 (12:58):
Can own the new house and the old house.

Speaker 4 (12:59):
Yes. My ability to buy your house. Mr. And Mrs.
Seller isn't dependent orcontingent on selling my home
first. So we talked about thepros and cons and you know, he
said, yeah, Tim, that that'sthe way I want to get
pre-approved. 'cause I don'tknow if there's gonna be
competition. I I want to , youknow, he's like, it's, it's a
relatively worth it trade offto show that I can buy this

(13:22):
house without needing to sellmy current home first. And I
said, great. I said, okay, youhave about $200,000 worth of
equity in your current home. Iknow. Eventually you're gonna
get that .

Speaker 3 (13:31):
Can we talk about that? Yeah . Yeah . Because
like they bought this home in2018. Yeah . And seven years
later, I can only imagine theamount of appreciation they've
had bonkers in that. Okay. Yeah. But it's kind of trapped at
the moment because Yes . It'sjust, oh my gosh, I got all
this equity, but until someonewrites me a check

Speaker 4 (13:49):
Yeah. How do I get it? Yeah . So not relying on
selling the home and gettingall the equity out that way. We
talked about the different waysthat he could get, you know ,
shooting for a 20% down paymenton the new home. Uh, which is a
nice, you know, healthy goal ifwe can get there. Yep . Not
saying you , he could put lessdown, but he wants to get to
20%. So we talked about abridge loan, which is something

(14:12):
we've talked about on the showmany times before . I

Speaker 3 (14:13):
Have, I have a story on that too later

Speaker 4 (14:15):
As well. Okay. But also something he brought up is
he was like, oh yeah, you know,my father-in-law in the past
when we bought our currenthome, he, he did this thing
where he gifted us money , uh,to use for our down payment.
Uh, and then, you know,whatever we decide to do with
him privately after I buy thenew home and sell my current
home is private. Yes . And noneof our business is the mortgage

(14:37):
guys. Nope. I said , uh, HeyMr. Customer, that might be the
smoothest way to go for a fewreasons. Number one, you don't
incur any transactional costsof doing a bridge loan. Yeah .
'cause that is a whole othertransaction. The costs aren't
terrible, but why not pay payif you don't have to. Yeah .
And then that bridge loan alsodoes accumulate interest on a
daily basis. Right . Which, youknow, can add up to a

Speaker 3 (15:00):
Few hundred

Speaker 4 (15:02):
Thousand , you know , some dollar amount. So if you
have a family member with deeppockets that is able and
willing to help you out, it's

Speaker 3 (15:09):
A father-in-law bridge loan. Yeah.

Speaker 4 (15:11):
For relatively no risk to the father-in-law.
'cause he knows you're gonnasell your current home at some
point in the past or in in the

Speaker 3 (15:17):
Future. Do you love your daughter enough to do
this? Yeah. You just have to.
And it sounds like grandpa'sprobably willing to For

Speaker 4 (15:23):
Sure. So it's, yeah.
You want your grandkids to,that's, that's the leverage .
You want your grandkids to havethis fun new big yard to play
in.

Speaker 3 (15:29):
Yeah . Oh no, sorry, kids grandpa wasn't willing to.
Yeah.

Speaker 4 (15:32):
So there were really a couple different ways to
solve , solve that little, youknow , uh, bump in the road for
these particular borrowers.

Speaker 3 (15:41):
It's not a bump, but this is why you have to have a,
a mortgage pro a mortgageplanner. Right. Because I ,
because they decided we wantthis house and then they're ,
they call Uncle Tim and they'relike, how do we do this? Yes.

Speaker 4 (15:51):
We can see into the future. Yes . Because we've
done this so many times. Weknow what the things are going
to be that come up that need tobe addressed in order to
actually get a loan fullyapproved and Yeah . Get the
money to the closing table.
Right. So we got himpre-approved with no home sale
contingency. Um , reallymultiple different ways that
they could cobble together that20% down payment. Yeah . At the

(16:12):
end of the day. And now theyjust have to decide if they
really want this house. Andthat's really the only big
decision left on their platefor the time being. Everything
else we can take care of forthem , uh, in the smoothest,
you know, least stressful waypossible.

Speaker 3 (16:27):
Do you feel like this was property specific for
them? Or if not this house youhad described that mrss client
was like, we need more space.
Yeah . And they're gonna go dothat regardless.

Speaker 4 (16:39):
This property fit the criteria that they wanted,
but if this isn't the one,they're gonna keep looking.
Okay . So that's the otherbeautiful thing about the
pre-approval is like, now ifthis property isn't the one,
the game plan's already inplace, so then they just keep
on

Speaker 3 (16:54):
Yeah. You've handed them the firearm. It's like,
okay , now go out and hunt fora house. Yeah,

Speaker 4 (16:57):
Exactly. Yeah. You, you see a 10 point buck , uh,
you know , uh, uh, house there. I've

Speaker 3 (17:02):
Never gone hunting out . I'm just , just like,

Speaker 4 (17:04):
You , you , you , you go out and get it. Yeah. Or
, or you wait for a bigger buckto come along and that's fine
too. But you know, the, theconversation of doing the right
thing when calling your expertloan consultant anette before
walking through the house iscrucial. Not to say that we
can't get something togetherreally quickly because we can,
but why wouldn't you want to gointo a home showing with the

(17:26):
confidence that you know whatis happening? Yeah. And , and
that you know, what the nextsteps are

Speaker 3 (17:32):
To that point. Uh, I'd like, after this next
break, tell a story about abridge loan. Right . Because
again, it's, it is putting onpaper the plan that might be
rattling around in your mindand just scoping out how all of
those different pieces cometogether. Mm-hmm .
So we'll get into that afterthis break, but right now it's
time to turn it over to theWTMJ Breaking News Center.

Speaker 2 (17:56):
Don't break the fact to get into a house. Back to
the ACU Net Mortgage and RealtyShow with Brian Wicker on WTMJ.

Speaker 3 (18:04):
Welcome back to the ACU Mortgage and Realty Show. A
happy Easter Sunday. Yes ,indeed. Uh , to everybody. Um ,
and we have been sharing thealmost predictable stories when
clients come and say, I wantmore house. Yeah . But I own

(18:27):
this old house. How do , how doI do that? I've decided in my
heart, we have decided in ourhearts that we want more house
help my brain put together theplan that my heart has decided.
You are describing, you're aclient. I got referred to a
client this past week by theirreal estate agent because hey,
we're gonna go write an offeron this home , uh, in , uh,

(18:48):
Waukesha County. Okay, great.
They own a current home, a hugeamount of equity. And is as is
the case, they're thinking tothemselves, okay, well they
wanna write the offer notcontingent on their home. How
do we, you know, utilize and oreither before or after the
closing, man, we're gonna haveall this equity from the sale

(19:10):
of our house. How do we dothat? Yeah. And then the added
element is , uh, grandma andgrandpa are also going to be
moving in Ah,

Speaker 4 (19:20):
Okay.

Speaker 3 (19:21):
As well and would like to contribute Okay .
Toward the , uh,

Speaker 4 (19:26):
Expense of owning that home,

Speaker 3 (19:27):
The down payments, ah , of the home. Okay. Uh, it
is appropriate , uh, that thislast week was tax day and I
fielded the question, you know,David, if my parents , uh,
contribute a hundred thousanddollars to the down payment, is
there like a tax, you know ,concern or Yeah . Consequence.

(19:48):
And I, I, I just said, I waslike, are your parents worth
$29 million ?

Speaker 4 (19:54):
No . No, they're not. Okay.

Speaker 3 (19:55):
And I said, I'm not a tax professional. I can
connect you with one, but alsoI have been on the irs.gov
website. You have no concern.
Yeah. And , and so set thataside. Great. And then they
also have their own liquidfunds. This is really , as you
were telling your story,sometimes it's a little bit of
cobbling it together. Yeah.

Speaker 4 (20:17):
Down payment can come from multiple sources.
Yes. Like it doesn't all haveto be sitting in one bank
account Exactly. In order toget it to the closing table.
And

Speaker 3 (20:25):
So for my client, it was going to be a gift from
grandma and grandpa, some oftheir own savings, and then
also bridge loan. Okay. On theold house. And as I , um,
remark from time to time, thereis no mortgage class in high
school or college or

Speaker 4 (20:43):
Ever . I say that to almost every first time home
buyer I

Speaker 3 (20:46):
Talk to. And so sometimes a client just brings
what they think, theirunderstanding of like, well,
what's a bridge loan? Is that,and, and as my client was
describing it to me, I waslike, well , in a , in a world
of make believe that makes allthe sense in the world, but in
the real world, is nothow I can do it. They were
thinking, well, can I just, youknow, push the equity in my old

(21:10):
house over to my new house?
Like can I just somehow lop itoff and like move it over? Yeah
.

Speaker 4 (21:16):
Uh , partially yes.
But

Speaker 3 (21:18):
and so I was able to describe to them there
is a amount that we can extractfrom the old house while
maintaining a level of bufferYeah. In the old home. So for
them, the math was gonna bethey owe a hundred thousand,
the home is worth 400.

Speaker 4 (21:35):
Right. So they have 300 K of equity, but they
cannot take all 300 K of thatequity out ahead of selling the
home to push it over towardsthe down payment. Because then
you would essentially owe ahundred percent of your home's

Speaker 3 (21:49):
Value and no lender.
Like even if you thought that400,000 was conservative on the
value of your old home, I don'twanna lend you up to that
number. No. Even if, oh mygosh. Yeah. It's gonna , this
house is gonna sell in ananosecond and probably for
more it's like great. I wouldstill like some level of
buffer. Yeah. So for theseclients it was, they owe a

(22:09):
hundred, the house is worth400. Hey, we can help put a
$200,000 second lien Yep .

Speaker 4 (22:19):
Called a bridge loan. Called

Speaker 3 (22:20):
A bridge loan on the old house. I metaphorically
hand you that $200,000 and youcan turn around and use that as
down payment on the new house.
Correct. That's how a bridgeloan works. It's Yes. Putting a
debt on the old asset calledthe house. Yep . You get the
cash and you can use the ca Imean, you could use the cash to

(22:41):
buy a boat,

Speaker 4 (22:42):
You could do whatever you want, but

Speaker 3 (22:43):
You're trying to use it for down payment. Then when
you sell the old house, youdon't owe just the 100 anymore.
Now you owe 100 plus 200. Yeah.
300. And you need to pay thatoff. And let's just for the
sake of conversation, say yousell the house for 400 and you
don't have any expenses, youwill, but if you sell it for

(23:05):
400 and pay off the 300 thatyou owe. Yeah . That's , then
you walk away with the rest,

Speaker 4 (23:09):
That's when you get the rest of the equity out the

Speaker 3 (23:11):
Buffer. Yes. And , uh, in text, I was actually
kind of proud of myself that Iwas able to articulate that in
a text paragraph that was notjust like four scrolls worth

Speaker 4 (23:22):
That's an art. Yeah .

Speaker 3 (23:23):
But laid out that like, here is the rather
explicit way that we're goingto help you unlock the money
that's trapped in your oldhouse. And it was like the
scales fell from their eyes andthe heavens opened up and Oh ,

Speaker 4 (23:38):
They understood.
Also, we, we can help game planfor when you get that remaining
a hundred K out after you dosell your home, there are ways
you can reduce your principalbalance Yes . On your new
mortgage, on your new homeafter the fact. Um , so we can
talk about that next

Speaker 3 (23:53):
Of that. Yeah .
Perhaps in the next segment. My, but as we note, it's like,
don't do this planning byyourself, phone a friend at
Acue so that we can help scopeout that plan together. You're
about to climb Kilimanjaro.
Don't start walking up themortgage Mountain by yourself.
All right . When we come back,I've got another story and I'm

(24:15):
gonna pepper you for anotherone of yours. Tim, you are
listening to the AcuateMortgage in Realty Show on AM
six 20 WTMJ.

Speaker 2 (24:23):
Important home buying questions and answers
you can count on. This is theAnette Mortgage and Realty Show
with Brian Wicker on WTMJ.
Thanks

Speaker 3 (24:33):
For hanging out with us here on the Anette Mortgage
and Realty Show. I'm David,that's Tim. Happy

Speaker 4 (24:38):
Easter everybody.

Speaker 3 (24:39):
So I , um, share with clients a lot that we can
put the preapproval game plantogether on paper. Yeah. But
then you must go forth and win.
And that can be a whole otherelement.

Speaker 4 (24:56):
It's the biggest challenge for a lot of folks.
Yes . Not everybody, but many .

Speaker 3 (25:00):
And I don't wanna , I don't wanna walk past what we
had talked about earlier in theshow. Like sometimes putting
the plan together is a key ifnot crucial element for sure.
But then you must go forth andbe like, and now I will do what
it takes to win. Yes. So one ofthe tools Yeah,

Speaker 4 (25:18):
Let's talk about what it takes.

Speaker 3 (25:19):
Let's talk about what it takes. One of the key
tools that the AC unit teamuses week in and week out is,
oh, Tim and Grace, you'rethinking about buying 1, 2, 3
Main Street in Wauwatosa. Tellme about, call me on Thursday.
Yeah . Before you walk throughon Saturday. Let's see if we
get an appraisal waiver Yeah .

(25:40):
Through the mortgageunderwriting software, we can
know that it's the same like wecan plan Yeah . How much house
you can buy. We ,

Speaker 4 (25:48):
We have the ability to find out if you, if if we
could not need an appraisal forloan approval, if you were to
get an accepted offer, we canfind that out ahead of you even
making an offer. Yes. And thatmatters because from the
realtor's perspective, if theyknow that they don't have to
write an appraisal contingencyYep . Into their offer, which
is by , by not writing that in,that is one of many things that

(26:12):
can make your offer a littlebit more attractive to the
seller. It's, in my experience,David, and you'd probably
agree, it's hardly ever justone thing that gets a
customer's offer head andshoulders above the rest. It's
a cumulative effect, a totalityof several things. Right. And
again, this is just one ofthem, but considering it would

(26:33):
take me and you about 10minutes to figure this out Yeah
. And do this little duediligence exercise, why would
we not turn over that stone andsee if, you know , uh, we can
leverage that detail.

Speaker 3 (26:44):
Well, and so , uh, that is, let me phrase it this
way. If your agent is notmessaging your lender to check
in on if they mm-hmm . Can , ifthe appraisal waiver will go,
you are not exploring orturning over every stone No .

(27:05):
To see if you can pile it allup to win. Yeah . And let me
just say this. I get lots oftexts from lots , lots of the
agents that I really like towork with mm-hmm
. And the number one text iscan we waive the appraisal? Can
you check to see if thisproperty will get an appraisal
waiver? Yeah. And I'd like tojust spend the 60 seconds to

(27:26):
remind everybody an appraisalwaiver is property specific as
well as borrower specific.
Yeah. And the, sometimes Ithink the text or the question
that I'll get is, well, whycan't , why can't this house
get the appraisal waiver? It'slike, well, I don't know.

Speaker 4 (27:49):
Yeah. Well and ultimately we're not the ones
who decide. Right. It's FannieMae and Freddie Mac who decide
we're leveraging their softwareand by plugging in that
specific property address, theyare

Speaker 3 (27:59):
The at that price.

Speaker 4 (28:00):
Yeah.

Speaker 3 (28:00):
They are the , for that client. Right . For that
borrower. The funny version ofthe question from clients about
all that is, well, but David, Iam amazing as a buyer. I've got
great income, I've got a greatdown payment. Yeah. Why can't I
, why can't I get the appraisalwaiver? It's like, well it is
not about you.

Speaker 4 (28:17):
Yeah. Or not not solely about you anyways .
Right .

Speaker 3 (28:19):
Well you need both halves. Yeah . You're awesome.
But what if the property, ifyou're offering a billion
dollars for this property, it'slike, well you're not gonna get
an appraisal waiver. Right.
Even though you're awesome.
Yeah. So it's both of thoseelements together. Right .
Which

Speaker 4 (28:32):
Is why we can't really determine if we can
waive an appraisal until acustomer has a specific house
that they're interested in andtells us this is what I'm
planning to offer as a purchaseprice for this property. Then
we have the full picture thatwe can run through the software
to determine Yes. Borrower withyour qualifications and down
payment amount on this specifichome. Yep . At this specific

(28:54):
price. Yep . Is it a yes or ano for the appraisal waiver?

Speaker 3 (28:58):
I had a client who , uh, they , this was on a home
that they didn't win. But oneof the kind of yellow lights
that I wanted to share was,Hey, you , there is an
appraisal waiver on this home.
You are considering it is at20%. You have to be ready to
commit Right . To that beingyour down payment. Yeah.

(29:21):
Because if we change from 20%to 19% down payment, when I run
that through the appraisalwaiver goes away. Yeah.

Speaker 4 (29:29):
And that's a conversation worth having too.
'cause normally appraisalwaiver aside , typically I like
to give my customers theknowledge that they have
flexibility and , and maybeeven adjusting their down
payment amount after they havetheir accepted offer up until,
you know, a week or two beforeclosing is really when , when
you want to get that naileddown. Yeah. In , in most

Speaker 3 (29:47):
Cases. Right . But not if you want to use that.
Right . But computer generatedappraisal waiver,

Speaker 4 (29:51):
If you wanna use that appraisal waiver, you kind
of have to decide on day onethat you're gonna stick with
that down payment amount. And,and I'd say in my experience
you could do

Speaker 3 (29:59):
More just to say that.

Speaker 4 (30:00):
Sure. But I, you know, and I'd say more often
than not, my customers actuallydon't change the down payment
game plan anyways after it's ataking the initial one. But
sometimes, sometimes they do.

Speaker 3 (30:10):
For me it's a eyes wide open thing. Right . Yeah .

Speaker 4 (30:12):
You gotta know that you're giving up that
flexibility potentially indeciding to change your down
payment or be willing to say,ah , you know what? I do need
an appraisal and I'm willing togo forth with that. And
whatever comes after, you know,as a result of getting the
appraisal. Exactly.

Speaker 3 (30:26):
These are the , all the tools that we
reach for 'cause

Speaker 4 (30:30):
And more

Speaker 3 (30:31):
Winning is the only goal. Uh , not just the
preapproval but actuallygetting to the closing table.
Correct. Alright . When we comeback, you wanted to touch base
and circle back on temporarybuy downs . Yep . Uh, and then
we will just give a map outwhat might be coming next this
week in economic news. Thanksfor hanging out. You are

(30:51):
listening to the ANet Mortgageand Realty Show on AM six 20
WTMJ.

Speaker 2 (30:56):
Find a place to call home without the headache. This
is the Acuate Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 3 (31:04):
Welcome to the last segment of the Acuate Mortgage
and Realty Show. We will be onan Easter egg hunt at my house
a little later today at myin-laws. Yeah . Hopefully they
don't, hopefully my kids don'tfind any , uh, backyard caviar
as cousin Josh likes to call it

Speaker 4 (31:19):
Backyard

Speaker 3 (31:19):
Caviar. Yeah. Only eggs, colored eggs and other
prizes. Uh, as we aredescribing, Hey, clients,
listeners, are you looking toget into your new backyard for
your Easter egg hunt? Yeah ,maybe next year. Next year. One
of the tools that you are keenon, Tim, is temporary buy downs
. Yeah . So ,

Speaker 4 (31:40):
Which is just a fancy way of saying like,
listen, if you're not ecstaticabout where rates are right
now, but still want to , you're

Speaker 3 (31:47):
Not pot committed.
Yeah.

Speaker 4 (31:48):
But you, but you still wanna do that thing of
getting a new house for all thereal life benefits that that
comes with. We have a way tolessen the paying of where
rates are , and it's called atemporary rate buydown. So kind
of as we talked about in thefirst segment, traditionally
you can pay something calledpoints to manually lower the
rate, but since you arelowering the rate permanently

(32:10):
over a 30 year mortgage, it'sexpensive to do that. And
typically you can only lowerthat rate a quarter, three
eighths, maybe a half percent.
Yeah. But to do it on a moretemporary basis, you're kind of
pouring gasoline on that fireof how low you can get the rate
because you're not lowering therate for the full 30 years. So
a lot of times what I will show

Speaker 3 (32:30):
Customers, that's a good way of, you're kind of
slamming in the savings Yeah .
More on the front end here.

Speaker 4 (32:34):
Absolutely .
Exactly. That's what you'redoing. So, you know, if you
were to get , get a 6.875% rateoff of our generic quote,
that's the no points rate thatyou can get permanently for 30

Speaker 3 (32:44):
APR 6.97 . Yes .
Thank

Speaker 4 (32:45):
You. Why not get an effective interest rate of
6.25% Yeah. For the first yearstill without paying points.
And the way we can do that

Speaker 3 (32:57):
APR r is 7.4.

Speaker 4 (32:58):
Correct. The , the reason we can do that is we
choose a note rate of 7.25% andthen ANet actually funds the
money to get you a monthlypayment for the first year
that's equivalent to a 6.25%rate. Yep . And then after that
first year, it does a one timesingular adjustment up to 7.25

(33:18):
if you have the mortgage L on.
Right. But for that first year,you're at a 6.25% for no
points, which otherwise you'dhave to pay thousands upon
thousands of dollars Yes . Toget that rate permanently
locked in. And the reasoningbehind this is that I, as your
loan consultant, and certainlyyou as well, will be on the
lookout for, hey, when haverates improved enough where I

(33:38):
enough where I can refinancethis mortgage anyways Yep .
Into a permanent lower rate.
Right. But in the interim, I'mgetting way lower rate for free
in essence. Yes. Right. And Ilook at that in comparison to
the permanent 30 year fixedexamples. And then I , my job
is just to be a mortgageprofessor, right? Yeah . I

Speaker 3 (33:59):
Lay out the pross and cons , here's, here's
what's available to

Speaker 4 (34:01):
You. I show them the math, I show them the break
even calculations. We

Speaker 3 (34:04):
Even talk about the risk. It's like Yeah. If you
get to month 13, I

Speaker 4 (34:07):
Always want to talk about the worst case scenario.
Yeah, yeah.

Speaker 3 (34:09):
Well, because hey, remember we sometimes you get
to month 13 in your example, ohmy gosh, my payment went up.
It's like, well , remember allthat savings you had for the
first year? Let's not discountthat you are already ahead of
things.

Speaker 4 (34:23):
Absolutely.

Speaker 3 (34:23):
While we wait for a refinance to make sense. Yeah .

Speaker 4 (34:26):
So I just want the listeners out there to know
that this is an option that wecan absolutely show you as a
point of consideration. And itmight be the thing where maybe
this makes your monthly paymentthat much more comfortable,
that gives you the good enoughfeeling to say, you know what,
yes. Maybe I am ready to go outand look for a house.

Speaker 3 (34:43):
My , my version of that too, sometimes what I
pair, Hey, we can get you alittle bit of savings for that
first year or two. And then Iwas like, Hey, do you think
you're gonna get a a raise nextyear? Mm-hmm . Do
you think you're gonna get araise the next two years? Which
effectively, as is the casewith mortgage and real estate,
you're trying to skate to wherethe puck's gonna be a little

(35:04):
bit. Yeah . And as you pointedout right now , right, it's
like if, if we can massagemaking it comfortable now, and
you believe you'll continue toearn well in the near future,
that might be the tag team youneed to get comfortable
Absolutely. For your nexthouse.

Speaker 4 (35:21):
Yeah . Unless let's not forget in the meantime
you're living in your new homeand then join life in that new
home, which is, I I still thinkthat's the thing that matters
the most ,

Speaker 3 (35:30):
Uh , more than ever.
Uh, so if you are looking toconnect with the type of
mortgage architect who canshare with you the tools that
you need in order to fashionthat future, all you have to do
is click on the [e-mail]. That's
A-C-C-U-N-E t.com. Tim, I'mlooking forward to many more

(35:51):
Bucks Games, this , uh, playoffrun. Yes. We'll see how that
unfolds. But for you listeners,you have been listening to the
Accu Mortgage and Realty Showon AM six 20 WTMJ.

Speaker 1 (36:04):
The proceeding was a paid program. Advice and
opinions expressed during theAccu Mortgage and Realty Show
are solely that of the host orguests of academic mortgage and
ATE realty advisors and notWTMJ Radio or Good Karma
Brands, Milwaukee, LLC.