Mortgage process. Interest rates. Homeowners Insurance. Fed rate. Downpayment assistance programs

Episode Transcript

Speaker 1 (00:15):
Navigating today's real estate market can be tricky. Wanta buyer,
sell a house, finance or insure a house, or stuck
with a house.

Speaker 2 (00:22):
And don't know what to do.

Speaker 1 (00:23):
Florida Talk real Estate has been your local one stop
real estate shop since twenty twelve. Get the advice you
need from your local real estate pros. Here are your hosts,
Jim Depola and Johnny c You live on real Radio.

Speaker 3 (00:36):
Good Saturday morning. Welcome to another edition. It's Florida Talk
real Estate Live on this Saturday, the twenty third of August.
Great to see you out there. That's right, I see
you ninety two one one o one seven the old
terrestrial radio. Thanks for being there. Of course, if you
are tuning in with your free download your iHeartRadio app
were world wide. How about that gets them all over

(00:58):
your face from any corner of the planet on a
Saturday morning. And of course we live stream as well.
If you're joining us out the gates, Thank you very much.
That's on Facebook. Florida Talk real Estate on Facebook, Florida
Talk real Estate LLC on YouTube, home of a ton
of informational trunk videos plus our live stream on a Saturday.
Good to see you and of course, if you're not
there yet, you always can join in, and you're more

(01:20):
than welcome to You can join in the program toll
free as well. You want to be a part of it. Questions, comments,
concerns in the world of real estate, don't be shy
dialing in eight seven seven nine two seven six nine
six nine. The first voice you hear, there's the producer
extraordinaiyor it'll be the melodious tones of my guy, Jimothy,
my brother from another mother. What's up do I do? Hello?

Speaker 4 (01:37):
Hello, and good morning, gentlemen. How are we doing today?

Speaker 3 (01:40):
Awesome? And you happy Saturday?

Speaker 2 (01:42):
Doing well? Hello?

Speaker 4 (01:42):
You love very much.

Speaker 3 (01:43):
Always a pleasure, my friend. And yes, happy Saturday is right.
I'm your boy, Johnny C. You're Air Traffic Control, your
old buddy, You're old pal. You're starting lineup on a Saturday.
Consist of Mike Row He's the mortgage guy from the
mortgage firm. Hello, Mike, Halla, hallah.

Speaker 2 (01:57):
Hello, what's up? Come doing good?

Speaker 3 (02:00):
Good?

Speaker 2 (02:00):
Yeah, nice to see you on the way in here.
I learned something new. I'm always getting new information from Jimothy.
He uh, he told me what this thing is called here?
Oh nice, Yeah, he said, you knew it.

Speaker 5 (02:10):
I do.

Speaker 3 (02:11):
Yeah, yeah, there you go. Would you if you're if
you're on camera, you're pointing to your your elbow.

Speaker 2 (02:16):
I always thought it was your elbow, but well it's
his skin.

Speaker 3 (02:18):
It's the flap of skin in your elbow.

Speaker 2 (02:21):
Yeah.

Speaker 3 (02:21):
And are you pulling it right now? Yeah, there's no
Mike's pulling. Mike's pulling his wienus in the studio right now.

Speaker 2 (02:28):
Don't hit the dumb button, Timothy.

Speaker 3 (02:30):
You want to you want to pull my wish, you
want to pull my wing?

Speaker 2 (02:34):
Weird?

Speaker 3 (02:35):
Well, my weenis looks huge in your hands.

Speaker 2 (02:37):
Oh really, yes, really it does because my hands are smaller,
your hands, big hands.

Speaker 3 (02:42):
Are smaller, and it just makes my wienis like enormous
in your hands.

Speaker 2 (02:47):
That is getting a little bit creepy now.

Speaker 3 (02:50):
H I guess it depends depends on perspective.

Speaker 2 (02:53):
Yeah, because it's like your elbow and it's like oh,
and then it's like.

Speaker 3 (02:57):
What's creepy is how long you hold onto it as
you gaze in my mind, it's like you can let go.

Speaker 4 (03:01):
We all know now now, Yeah you feel it if.

Speaker 2 (03:05):
You're staring into the eyes, then yeah, we're good. That's
where it gets creepy. That's like, no, that's more like
romantic than creepy.

Speaker 4 (03:11):
Well again, how much money you're paying?

Speaker 3 (03:16):
Well that matters to Yes, money's on the dress.

Speaker 2 (03:19):
So yeah, talk call me if you wanted to buy
a house.

Speaker 3 (03:22):
Yeah, and learn about and learn about wenesses.

Speaker 2 (03:25):
Jim's like, waited, what are we talking about? Guys?

Speaker 3 (03:27):
So I have to know how did the Wieners come up? Uh?

Speaker 2 (03:30):
I had my hands full when it came in and
kind of like the elbow.

Speaker 3 (03:35):
Yes, Wes, the Weenus.

Speaker 4 (03:36):
He touched my weakness this morning.

Speaker 3 (03:38):
You guys went weeness to weenus.

Speaker 2 (03:39):
We did.

Speaker 3 (03:39):
That's awesome, good way it started day.

Speaker 2 (03:42):
Well, he was right, you knew all about it. Oh yeah, yeah, yeah,
yeah you've known for a year.

Speaker 3 (03:46):
Try to educate people on the West.

Speaker 2 (03:47):
Okay, yeah for sure.

Speaker 3 (03:50):
Ross Kameronnats he's with Bright Wayne Insurance. June know, Beach
do you do you be knowing about the weenis?

Speaker 2 (03:55):
Uh? I mean nobody's touched my weakness in a long time.

Speaker 3 (03:57):
Oh, I know you wear a lot of long sleeves though.

Speaker 2 (04:01):
That's true.

Speaker 6 (04:02):
Cold, I keep my I keep my weakness hidden. So
it's my weakness, it's not anybody else's weens.

Speaker 3 (04:08):
And I don't know if I can speak for everybody,
And nothing much more awkward than going for someone's wellness
and missing. Yeah, yeah, you know you're sorry, mister W.

Speaker 2 (04:19):
I mean going for it in general is awkward, but missing.

Speaker 3 (04:22):
It, well, missing like several times like miss that's not
it's still not it, that's still not it. Good to
see it. You can reach over and grab Jimmy D's
weeness right there. It's staring at you and it's like
almost winking at you. At this point. Jimmy D is
our fearless leader thirteen plus years now. See he wears
short sleeves in here, and his weaknesses like it looks

(04:44):
like he moisturizes, actually his weaknesses.

Speaker 2 (04:47):
A certain age.

Speaker 3 (04:48):
It looks so dry out. Yeah yeah, Jimmy de has
the top. It's a Florida home prosume. Yeah, this happens,
it does jim How you beat nice weenas over there?

Speaker 2 (05:03):
Man?

Speaker 7 (05:03):
Yes, And if you're interested in more of this topic,
just call and you can get all of it you
want for what is it five? Only five dollars per minute?

Speaker 3 (05:16):
That's right, we'll talk elbows to the wheels fall off. Hey.

Speaker 2 (05:20):
The best thing is, you know that we some of
our regular listeners who are on you know, first thing
are it's like your mom, grandma.

Speaker 3 (05:31):
They know about the weenas maybe on new too, definitely
know about the ween.

Speaker 2 (05:37):
So my mom, good morning, your Mom's seniors.

Speaker 3 (05:44):
She's probably the first to grabby weakness.

Speaker 7 (05:50):
We have a we have a lot to talk about
today transition.

Speaker 3 (05:54):
From we have a lot to talk about big show
started this.

Speaker 7 (06:03):
That one. I'm sorry. I'm looking at the board too
at the same time, so I apologize everybody. Hey, we
do have a good show today. We're going to talk
about interest rates. They're become a newsworthy again. They've been
kind of like nothing really to talk about, but we're
going to talk about it because there's been some changes
with that and there might be future changes coming, and

(06:23):
we're going to talk about that. Of course, the FED
cut rate, which I'm so tired after thirteen years of
having people telling me that they can't wait for the
FED cut rate. I just heard that. Kevin O'Leary guy,
Oh yeah, mister wonderful. Yeah, And I'm like shark tank
and everything, and you know, you know, I respect him,
you know, you know, he's done well.

Speaker 3 (06:41):
He's a good listen but this.

Speaker 7 (06:43):
Guy's saying, but this guy's saying on on all the
big shows, right, that we would need a two percent
drop in the FED cut rate to get the mortgage
rate down to this rate, like it's a direct causal
effect between the two. And I'm like, you know that's
not true. Why do you say that? Or he's really
ignorant about it, which I would find that very hard

(07:04):
to believe, right, So what what what's the point of that?
But we're gonna get into that more later. I'm sorry,
thank you for letting me vent for thirty seconds, because
that bothers me when.

Speaker 3 (07:15):
You know you know better, and it's like, I know
you know better, why are you saying such stupid Yeah?

Speaker 7 (07:19):
Yeah, exactly your pocket and it really and that kind
of information people, it sticks with people. You know, there's
certain stuff that just blows over that don't even notice
it that it's like it's ingrained in almost anybody you
talk to about real estate, they talk about the FED
rate versus you know, and the mortgage rate together. Right,

(07:40):
So anyway, we're gonna talk a little bit about that
because I do have some predictions of where we're going
and and how this might fall out. A couple of
different ways it could fall out the way all these
changes are happening. Also, we're gonna be talking about something
interesting happened today, and everybody you know, wants to know
how to save money on insurance and everything. I have

(08:01):
a customer that's going to be buying either a brand
new home or a home that is five years old
from the same exact builder, almost the same exact model,
and I want to find pretty new, right, so I
want to know how much difference. Kind of this guy's
on a very tight budget, so you know, the debt

(08:22):
to income ratio is really important here. You know, for
the mortgage payment.

Speaker 2 (08:25):
You say less than five or is right, just approaching
five years?

Speaker 7 (08:29):
It's it was built, it was coed in twenty twenty,
so a little over five years.

Speaker 2 (08:34):
Interesting.

Speaker 7 (08:35):
So certificate occupancy, right that that's what you get when
you get you can't live in the house until you
get the CEO from the building department certificate occupancy. So
so we're going to talk a little bit about that.
There's also been you know, Bank of America came out

(08:55):
with the report of what they think is going to
happen with the economy. Was kind of interesting with the
housing market. I thought that was a little interesting. We'll
talk a little bit about that.

Speaker 2 (09:06):
Yeah.

Speaker 7 (09:06):
Interesting, Yeah, because you know, and Mike, is it true?
You know one of the things that's very interesting. And
I'm just bringing it up now because it just popped
into my head. I hardly see anybody coming, you know,
with all the listings I've done in the last couple
of months, all the vile Yeah, the preapprovals, No, but
nothing's come up from like Wells or Bank of America.

(09:29):
I saw maybe like one Chase maybe right, But you're
not seeing like the normal traditional banks turning into mortgages.
They're all working with different types of mortgage companies or
direct lenders like the mortgage firm. But is there a
reason for that? Because I remember a couple of years
ago when we said, maybe it was two years ago,

(09:51):
when we said Wells Fargo was going to cut back
on the amount of mortgages they were writing. Remember that
we said that. I never knew what happened with that though,
you know, I never heard did they cut back twenty
percent or did you really cut.

Speaker 2 (10:04):
Back at all?

Speaker 7 (10:04):
Or whatever. Yeah, So I'm just wondering if you knew
in the industry, what's going on with that.

Speaker 2 (10:09):
I mean, I haven't hear like talked about it that
could some speculation would be having like most of those
the national banks will have a large servicing platform as well,
so they basically service all the loans that they write
as opposed to like the mortgage firm. Right now, when
you do a loan with the mortgage firm, you know,

(10:31):
within a couple of weeks after closing on your loan,
the servicing will transfer, so like who processes your payments
where you make your payments, So it's very common for
that to happen. The big banks will service these loans,
and there's a there's kind of like a profit decision
to be made whether you transfer servicing or you service it.
And when you service loans over the long term, you

(10:53):
make more money over the long term versus transferring servicing.
And so it's possible that because of where rates have
sat for the past you know, three years or whatever
it is, and maybe protecting several years into the future,
that these loans are likely to refinance, perhaps before that
servicing you know, money gets better, you know what I mean,

(11:16):
Like they're gonna they're gonna lose money because they're servicing it.
For a shorter time because these loans are potential for refive.
So that's one thing I could think about, Like why
they would have scaled back their mortgage operations. It could
simply be that people don't use them mm hmm because
they don't have a good experience.

Speaker 3 (11:33):
Or maybe they're not as competitive as they should be.

Speaker 2 (11:35):
Maybe the one thing if they really wanted to do business,
they could become very competitive very quickly because they could
just they could just reduce their margins, like you know,
their profit margins on every loan will impact ultimately will
impact the rate that's offered to the consumer, and so
they could undercut everybody.

Speaker 7 (11:52):
And they have access to such volume.

Speaker 2 (11:54):
Yeah, they could spread it out by increasing it.

Speaker 7 (11:57):
But the thing is is one of the things so
I thought you might mention is one of the things
you have to worry about when you go to those
larger banks is they do have what's called overlays sometimes. Yeah,
and then the overlays are extra requirements on top of
what the federal government requires for a conforming loan. So
an example would be like FHA mortgage, you traditionally can

(12:20):
get a six to twenty credit score. Mic, I know
you can go down to the fives.

Speaker 2 (12:24):
But yeah, it's like five eighty, so yeah, call it
six six, twenty six forty something like that.

Speaker 7 (12:29):
Yeah, But wells Fargo might say six sixty.

Speaker 2 (12:32):
We're only doing FHA at six eighty and above right right, like,
and they could they could eliminate and they just set
their threshold. So sometimes it's that. Sometimes it's like just
the way that you have to document. So for example,
FAHA might allow you to only provide one month of
bank statements to season your funds. Well, they might require
two months of bank statements to season your fund So

(12:52):
just like little rules on top of the rules, right,
Like everybody, whether you're do an FHAVA conventional you know,
Freddy Fanny, everyone is following the same rules because those
individual organizations set the guidelines for lending or basically the
rules like how do you analyze income? What documentations required,
and that's what credit scores. Well, that's what you mean
by conforming conforming to the guideline.

Speaker 7 (13:14):
Yeah, exactly exactly, you're conforming to the guidelines.

Speaker 2 (13:17):
And if it's non conforming, it's not conforming to those guidelines.
Something outside of those those standard rules.

Speaker 7 (13:22):
And it could be more lenient or it could be.

Speaker 2 (13:25):
More usually more lenient, yeah, but not conforming.

Speaker 7 (13:29):
Well, but uh, it's.

Speaker 2 (13:32):
Usually like alternative income, Like you don't qualify with traditional
tax returns paced ups, so you go to some sort
of alternative income documentation. But yeah, the the overlays are
part of why the experience may be more difficult with
your big Box. I think it's a number of reasons.

(13:52):
Number one, it's the the underwriting process itself is different,
meaning it's you know whatever. Maybe it's the overlays. Maybe
it's like the you send the file into like a
black hole of underwriting and then you wait three days
and something comes out and you have no communication with
the underwriting staff, things like that. It could also be
the level of expertise at the loan originator level, So

(14:14):
my level, like I don't know if it's been clear
like in my years for the show, like how critical
my role is in getting it right as early as
possible so that we can get to the finish line successfully.

Speaker 3 (14:29):
Yeah, because the goal is to close to close deal. Yeah.

Speaker 2 (14:32):
Yeah. The goal is not to get a pre approval letter, right.
The goal isn't to find the perfect house and get
in a contract. I mean, obviously those are steps along
the way to the ultimate goal, but the ultimate goals
you got to be able to close close and you
want to do it maybe with the same amount of
hair as when you started the process and color.

Speaker 3 (14:47):
Rolled it out.

Speaker 2 (14:47):
Yeah, yeah, exactly right. So it's really critical the loan
originator role to make sure that you're not spending your
wheels and looking at homes that you can't buy and
getting into contract and spending money on home that's never
got a chance of closing.

Speaker 3 (15:00):
Not only for the customer but the realtor everybody, Yeah,
everybody involved, sellers, realtors.

Speaker 7 (15:05):
Well, we just had a we just had a real
life example of that. Mike was talking to a customer
recently and they weren't really qualified to buy at this
point with a conforming loan right now. They really wanted
to buy them, but they had so many I don't
want to get anything specific, but they had so many
issues because when you're looking at UH loan credit worthiness,

(15:30):
you're looking at history of payments, You're looking at balances
on your debt, you know, on your credit card limits, computer,
you know, you're looking at many many different things, how
much you make, what your normal bills are, that kind
of stuff, and.

Speaker 2 (15:43):
You got a situation where I'm telling them one thing
and then they're hearing something else from somebody else, and
they're like, well, this other someone else is telling us
what we want to hear.

Speaker 7 (15:50):
We got the results yesterday, oh right. So so what
happened is Mike gave the bad news and they went
to another person who gave them oh, well, we'll do this,
no problem. And I not. I would never be upset
with the customer because the customer is just trying to
get the job done, right, So they're going to go

(16:10):
to anyone that says I can help them, right. But
it just shows you that if somebody's saying they can
help you, but they really can't help you, right, or
they can't back up the promises they're keeping, Mike won't
do that. So Mike was like, look, there's it's going
to take time and effort to hear.

Speaker 2 (16:28):
I was pretty much going to put them on a
road map, a path and say hey, listen. But then
it turned out that like they weren't whatever. For some reason,
they didn't fully trust.

Speaker 7 (16:39):
What always happening behind these scenes, I found out is
that they had a relative that had just did alone
with a different mortgage broker, right, not a direct lender
like Mike, and said why don't you go to them?
And that person's like, oh, yeah, no problem, we can
take care of this. So then I called them, right,
So I called that broker up and I said, you know,
I hope you can get this loan for this person.

(17:00):
That would be awesome, right, but my guy is saying
that it isn't likely unless we go to non conforming
loans that are expensive. And why you're you so confident
you can get this loan done? Right? And he hadn't
pulled anything yet, right, And he didn't want to do
any kind of pull at all, And he was smart enough,
but he didn't want to do a poll because she

(17:22):
was doing things based on what you recommended. She was
doing a couple of things right away, and he didn't
want to do that until that kind of case.

Speaker 2 (17:30):
I don't want a hard pull to hurt the credit.

Speaker 7 (17:32):
He was doing the right things in a way. But
bottom line is when they got the credit report after
some of the minor changes they did right away, and
then he saw everything, like everything that was in the report,
He's like, oh, and he didn't sound confident at all anymore.
And now they're talking about like a non conforming very

(17:53):
expensive kind of loan that's probably going to be about
two points higher than what you would know only pay
two percentage points.

Speaker 3 (18:01):
Let's tell you what.

Speaker 2 (18:02):
Even those like the non conforming, they're a higher risk, right,
so that you kind of pay for that. You're and
like needing bigger down payment, you're going to have a
higher interest rate. But they aren't like, hey, we don't
care if you don't pay us back type loans, like
they are interested in getting the loan repaid back per
the terms that you've signed on for how much way

(18:23):
you put down I would normally you want to be
like twenty percent. It's just it depends, Johnny. So it's
really like what level of income documentation are you want?
And it's usually about income, it's not about credit. So
I would say the credit requirements are a little bit
more strict than they would be with FAHA. So for example,
FAHA at six twenty commencial six twenty, you have a

(18:44):
shot of getting that approved. I don't think you're going
to find alternative income non conforming where six twenty is
your bottom line. There might be a couple maybe options
out there, but it's usually higher credit restrictions because the
other risks are are.

Speaker 7 (19:00):
So you're saying that if the credit score is below
six twenty, it's less likely to get those.

Speaker 2 (19:06):
Option gon be very very limited.

Speaker 7 (19:08):
Well that's what the broker said. So the broker says,
I have one company that wow down to something that
might do it with a huge down payment. So now
we're trying to explore that because the situation is is
she really wants to buy buy this particular home. So
we're just going to try to make it work, you know,
and everybody's trying to make it work. But it's it's

(19:31):
very sketching. The point I'm trying to make about all
this I didn't want to get into this too much,
was that look at the difference between the answer that
Mike gave the potential buyer versus the other person who
you know, at the same time, at the same moment,
was given a completely different answer. And then they went

(19:51):
through the gauntlet a little bit, and then they found out,
oh yeah, Mike was right. You know in a way
this Mike, I mean, you could have got you could
have made one of those crazy. When I say crazy,
I don't I call it crazy. Mortgage. But it really
isn't crazy for people that need it and can do
it sure and really need it. But you could probably
get get into those kind of loans too.

Speaker 2 (20:11):
If I have all those on the table, right, I
have options, So I would act essentially as a broker
in those situations. Right. So the mortgage firm is not
writing those loans, but I, you know, we have relationships
with these non conforming lenders they call the non qms
and non qualifying mortgages. We have relationships with UH. I

(20:31):
have a bunch of And if.

Speaker 3 (20:33):
Can you use down payment assistance on non conforming loans?

Speaker 2 (20:36):
No?

Speaker 7 (20:37):
I didn't think so, but no, yeah, that's a great,
great question though, So cannot Yeah you cannot.

Speaker 2 (20:46):
Well you can get it from your family or something.

Speaker 3 (20:48):
Yeah, but different kind of DPA. But you said, you know,
in some situations you have to season the money. For
those that didn't quite understand what that means is, yeah,
you can't just be like Ross can't hand me forty
thousand dollars and be like, hey man, go buy your house, Like,
I have to put that in my bank and let
that season prove that that's mine for a while. Right,

(21:09):
I can just pop up and find a bunch of cash.

Speaker 2 (21:12):
Well we yeah, essentially seasoning. It's kind of the The
origin of why you have to season funds is to
protect against two illegal activities. One is straw buyers, right, So, uh,
you've got the credit, you've got the job, you don't
have the cash. Ross really wants to buy the home,

(21:33):
but doesn't but he doesn't pay his bills. He's you know,
he's self employed, but never you know, it doesn't pay
the man his money. Yeah, yeah, exactly, that's my money business.
So he uses you to buy the home for him.
So you're you're a straw buyer. Straw buy right, So
he just he gives you the cash you put you
supply everything else. So they don't want to see like

(21:56):
big influxes of money within a certain window of time
because to protect it is that the other one is
just like money laundry, right, like, which is the majority
of what my clients are doing. They're all laundry money
for some you know, cartel somewhere, but and their.

Speaker 4 (22:13):
Last names all and.

Speaker 2 (22:17):
So like, and it's weird. It's like, we don't we
only want thirty days or sixty days, Like if you
did your criminal activity three months ago. It's fine, Like
we don't really care about it that much, right, but
there's a they had to draw a line somewhere, so
it's like thirty day sixty days. So essentially what that
means when you're documenting your assets, like the money you

(22:38):
need to close the deal, we're looking at a window
of time, and any like money coming in in that
window of time, we want to know where it came from.
So usually did come from your your pay stubs, right,
like your job? That's perfect, you know? Did you have
a lot of people have cash, They just build up
cash mattress money, I'll call it right sitting at a
safe in your house or something, And I'm like you,

(22:59):
you you can't deposit that, like you didn't need to
get out in front of it, and we have our
clean window of time, or you got to figure out
some other way to like get the cash together. So
we had one of the challenging things of uh when
But I talk to people about it very early in
the conversation, and I've had so many of these conversations

(23:19):
I can tell immediately if it's something that I need
to dig into a little bit deeper before we go
too far. Just the question and like that how long
it takes a question? Johnny's like, okay, how much money
you guys have like saved up or earmarked for this purchase?
And then just like tell me where it lives. It's
like a checking account, bank, you know, saving the account,
business funds, you've got investments, where is it? And then

(23:43):
based on that answer, I can very quickly figure out
if I need to like maneuver, you know, dig a
little deeper, get some documentation.

Speaker 7 (23:51):
And sometimes you can't tell Remember the one case, this
is one of my favorite. Remember the one guy who
went to the casino. Oh no, tell yeah, you did it.
You did this still and you were very creative. I
can't believe you don't remember this. So now I'm going
to give a shout out to Mike.

Speaker 2 (24:06):
I need more details.

Speaker 7 (24:07):
So what happened was he was closing on a house
and right before we were closing, it was like the
weekend before, like the friday before or something. We found
out that we had a problem because the underwriters saw
that there was cash that was deposited into the bank
account during that time period. And Mike called up the
customer and said, Hey, what's going on. It's like, oh,

(24:28):
I want some money on the slot machine at the casino. Well,
apparently it wasn't large enough in order to be a
handpay or whatever. Like, he had no receipt that he
won this money, but he put the money into the
bank account, right. So Mike was like, well, you don't
have a receipt. He's like no, And then so Mike
got really creative. So do you remember what you did?

Speaker 2 (24:49):
I think we just he had a player history.

Speaker 3 (24:52):
I was going to say, that's why you got to
get rated it.

Speaker 7 (24:55):
I don't remember the player history, but this is what
I do remember. You said, did you buy any drinks
at the casinos? Because it was so close.

Speaker 2 (25:03):
To show you were there?

Speaker 7 (25:05):
Yeah, how could we show? And then he goes, did
you pay for parking?

Speaker 2 (25:08):
Yeah?

Speaker 7 (25:09):
And he developed that and he put together her case
and the money was approved.

Speaker 2 (25:14):
But the thing he watched enough crime shows, that kind
of stuff.

Speaker 7 (25:17):
But the funny part is about that it wasn't. The
thing that was surprised to me as an outsider, you know,
looking into what's going on with this through the mortgage world,
is how small the amount was. We're not talking like
they won five thousand or ten thousand dollars. It was
like two thousand.

Speaker 2 (25:31):
Dollars thresholds, right, So if it's above a certain amount,
you have to ask about it. If it's a below
a certain amount, then it's okay. Yeah right.

Speaker 7 (25:38):
It was a small amount that I was like, wow,
that's it.

Speaker 2 (25:40):
I mean, this is so close to you were about
to close.

Speaker 7 (25:43):
Yeah, this is And it was I don't remember the
exactly it was the final review, like you're already alone
approved and we were just updated.

Speaker 2 (25:52):
We get your latest bank statement. You see a big
deposit there, And the problem is once that money is
like in your account, it's kind of like it's kind
of commingled with the rest and it's hard to really
like you could back it out. I forget if we
need it or not. But obviously it was something that
required some.

Speaker 7 (26:08):
You know, you have to documentation.

Speaker 2 (26:09):
It's funny the way I talk to people about underwriting
is the questions. Whatever the question is, it has to
be answered with documentation. Like you can't just tell the story.
I can't like have a text exchange, Like, it has
to be documentation that basically says, hey, where did the
money come from? Well, here's the documentation. Because the file
itself is a living thing that goes beyond the closing, right,

(26:34):
like that underwriting is potentially examinable like post closing at
any point by anybody who's maybe servicing the loan for example, right,
they might review and say, hey, is this thing legit?
Was this underwritten in the actual conforming to the guidelines
or not? And so any questions that come up have
to be answered in the with documentation.

Speaker 3 (26:54):
What a huge advantage though, too, that you can really
have that sit down with your underwriting depart man.

Speaker 7 (27:00):
I mean without John.

Speaker 2 (27:01):
I had closing this week. So this was a brokered one,
not because of alternative but it was alternative income. We
had to do some asset depletion instead of So this
was a retiree had large portfolio of money, but they
weren't retirement instruments, so it wasn't IRA, it wasn't four

(27:22):
one K, it was just investments like broker's account. And
if you're using that for your income, you have to
do what's called asset depletion. When it's non retirement, your
asset depletion, the months are very long, so you need
you need a lot of money to order to like,
say a million dollars in the bank. I want to
turn that into you know, ten thousand dollars a month
of income, right, so you do some sort of division,

(27:44):
and in this case, he had a pretty complex investment portfolio.
And the underwriting staff was not my underwriting staff. It
was at this other place out in California, which was
a pain in the buck because they're three hours. You're
trying to move and you've got a three hour time yeah,
you know, change like that. They're not even doing anything

(28:04):
till twelve o'clock. I'm like, I need answers. You know,
I've been up for at least an hour at this point.
But so that underwriting staff could not wrap their brain
around this guy's asset portfolio because you know, he had
bonny moving around and it's not a bank account. He's like,
it's positions, right, He's like selling and buying, And so

(28:27):
they could. I spelled it out for him six different ways,
and finally I wrote an email and I'd like, have
my contact over there. I was calling Micro. I'm like, hey, Mike,
is there somebody on your underwriting staff that is capable
of reading and understanding these statements? Because all these answers
are in the statements. I can point it out to you.
Exactly what happened there. But it'd be nice if somebody
actually took the time was able to comprehend what's happening

(28:50):
in these things. I'm the lo O and I'm looking
at it and I get.

Speaker 3 (28:52):
It right, and I'm not being condescending. I'm not doing it.

Speaker 2 (28:55):
I'm like, I'm frustrated to the point where I've spelled
it out. I've like tried to illustrate it. And your
underwriters they keep asking the same like they don't get it.
And so that was tough because I couldn't get the
underwriter on the phone, whereas if it was an in
house loan, I'm talking to the underwriter, I'm talking to
the underwriter's boss if I need to right right pretty easily. Yeah, yeah,

(29:17):
it's pretty well.

Speaker 3 (29:18):
It's a different world, for sure. What a huge advantage.

Speaker 7 (29:20):
Yeah, the underwriter. And that's another thing. Mike worked as
in the underwriting department at one point, not maybe nothing,
I don't even know if he's for the mortgage firm
mortgage the mortgage firm kind of like, which gives him
a little unique extra special knowledge. Sure, that really makes
a difference when you're there, especially if you've got a
tough mortgage situation.

Speaker 3 (29:39):
Right, he's got a portion of his brain that thinks
like the underwriters.

Speaker 7 (29:43):
And he tries to get out in front of it. Yeah,
he gets in front of it. That's why. So it's
you know, you have to don't. I guess the bottom
line on this whole thing that we started with this
is don't just don't just take somebody's word for because
you'd like the answer. Make sure that there's a reason
why they're giving you the answer they're giving you and

(30:06):
why and make sure that that makes sense because a
lot of people what they do is if they get
a no from Mike and know for Mike, they get
a no from Johnny and they get it yes from Ross.
All they're hearing is Ross Ross, Ross, Ross, Ross, You
guys are morons or whatever.

Speaker 2 (30:20):
It's like, yeah, I'm.

Speaker 7 (30:21):
Going with this guy, even though they you're all trying
to get the same type of loan. Let's say it
was faha, financing loan that they need, right, and you're no,
and you're no, and then Ross is saying yes. You
got to find out why Ross is saying yes. The
other two guys are saying no.

Speaker 2 (30:35):
I'm good at photoshop.

Speaker 7 (30:36):
Yeah, there you go, yeah, yeah, I.

Speaker 2 (30:38):
Mean it's just funny because opposite of that is like
even if someone's told you no, and three different people
told you know, talk to Mike, because Mike really knows
what he means.

Speaker 7 (30:44):
Yeah, And that's the is. It is the opposite way too.
It is the opposite way. So we're gonna go ahead
and take a break on the flip side, we're doing
a kind of shout out and all, well, we're gonna
do a shout out, but we're also going to ask,
you know, how about this unique situation where this guy
is thinking about buying either brand new construction never lived in,

(31:05):
or a house that's five years old from the same builder,
and see if there's gonna be a major difference. Now,
we didn't do any address or anything, so it's not
gonna be exact. It's gonna be conceptual. But I think
it's kind of interesting because this guy's worried about his
mortgage payment, so I want to see how much the
mortgage payment w change.

Speaker 3 (31:22):
This would be a fun breakdown. Yeah, yeah, I like it,
and lots more to get into as well. We are
live on this twenty third of August. We got an
hour and a half remaining on a Saturday. You're always
welcome to join us. You can dial in toll free
at eight seven seven nine two seven six nine six nine.
Get involved in the conversation at hand. If you have
a question for one of the professionals in the studio,

(31:44):
you're more than welcome to dive on in. Of course,
if you're not comfortable on the radio, I totally understand
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(32:05):
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(32:27):
We're back in four minutes. Thanks for being with us
every Saturday. It's Florida Talk real Estate. We're right now
on Real Radio.

Speaker 1 (32:47):
This is Florida Talk Real Estate with Jim Depola and
Johnny c. Got a question for the show, Call us
live at one eight seven seven nine two seven sixty
nine sixty nine.

Speaker 3 (32:57):
You can do it. If you'd like you more than
welcome eight seven seven nine two seven six nine six nine.
If you'd like to be a part of the conversation
at hand, dial in. If you have a question for
one of the pros here in the studio, dial in,
if you have a question in general, if you want
to bring up anything more than welcome. Yeah, I mean

(33:17):
you could get screened out to an extent. Jimothy, our
producer extraordinaire, might say, eh, you know what, Nah, but
he's not he's not really trying to screen yet.

Speaker 2 (33:27):
Yeah. Yeah, it could be like not this week. Yeah,
guess what Satan. That's it for the first five minutes,
that type of question.

Speaker 3 (33:36):
Yeah, but you're more than welcome to join. Obviously. The
phone lines are open and we got plenty of time
on this Saturday at twenty third of August. Johnny C
is me, Jimothy. There's our producer Exchordinaire. What's up dude?

Speaker 4 (33:46):
Hello, Hello, and good morning gentlemen.

Speaker 3 (33:48):
Good morning. Mike Row he's the mortgage guy from the
mortgage firm. Hello and good morning.

Speaker 2 (33:53):
Hello, good morning everyone.

Speaker 3 (33:54):
And there's Ross comaronettes with bright winter shirts. You know, beach.
What's up Ross?

Speaker 2 (33:58):
Not a whole lot glad to be here.

Speaker 3 (33:59):
If you don't believe me, if you don't believe that
those are actual, real voices, you're like nonsense. That's ai.
You can join the live stream that's on Facebook Florida
Talk real Estate. Go ahead, check it out. They're right
there sitting in studio on YouTube as well, Florida Talk
real Estate LLC. You'll also see Jimmy D. He's our
fearless leader, told you for thirteen plus years now. He

(34:19):
runs a top producing Caloworiams teeing me Florida Home Pros
Callowiams Innovations. What's up, dude? How are you? Jimmy D.

Speaker 7 (34:26):
Hey, I'm doing good boy. It's been We're having a
little bit of technical problems today, a little bit. When
I got up this morning, I almost had to cancel
the show because when I was leaving my community, they
had the orange cones up because there's gonna be some
kind of race going.

Speaker 2 (34:43):
Through Lockrathlon this morning.

Speaker 7 (34:44):
Yeah, and they I pull up.

Speaker 2 (34:47):
The Lockerhead Traathlon.

Speaker 3 (34:48):
What is that's right? Yes?

Speaker 7 (34:49):
And what happened was this the I only have one
exit to the community and all the orange cones are there,
and you couldn't get out. And I talked to the
guard gate and the gate garden. He's like, you can't
leave until eleven. I got a job.

Speaker 3 (35:03):
You can't leave.

Speaker 7 (35:04):
I got a job. I go, what do you mean
you can't leave till eleven? He goes, You're not allowed
to leave. The police put these orange cones up. I'm like,
I'll take my chances, please. You know what, Yeah, nobody.
The race hadn't, at least in my area.

Speaker 2 (35:17):
The reason you didn't even care about you You didn't
know that they weren't You weren't going to run some
people down.

Speaker 7 (35:21):
I got all this everything was empty, Like where I
was looking, it was completely empty. It's like, I'll take
my chances. So he moved him. So I broke the
law or whatever?

Speaker 2 (35:31):
Going to hell? Oh, he moved them for you.

Speaker 7 (35:32):
Yeah, he moved them so I got here. I'm sorry,
what did you pay him?

Speaker 2 (35:37):
A little bit?

Speaker 3 (35:38):
Yeah?

Speaker 7 (35:38):
All right, yeah, what's it going to take? What's it
going to take to get out of here?

Speaker 2 (35:42):
Right?

Speaker 3 (35:42):
Are you able to give that game?

Speaker 7 (35:44):
I'm sorry, not till twelve? They said I can't come
back to twelve o'clock on band?

Speaker 3 (35:49):
All right, I'm sorry. Ross isn't in the driathlon.

Speaker 7 (35:53):
It feels like I know, well he's playing hurt today
and thank you Ross.

Speaker 2 (36:00):
I hadn't. I didn't sign up for it. This year
kind of got away.

Speaker 3 (36:04):
Just popped up. You're like, oh damn, well make sure.

Speaker 2 (36:07):
Yeah, and I hadn't really.

Speaker 3 (36:09):
Do you trade a little bit, a little bit, not
really say you're pretty much you're pretty active.

Speaker 2 (36:13):
Yeah, but he's the only one of the four of
us here. It could be like, yeah, this year, I
just wasn't feeling it.

Speaker 3 (36:18):
Wasn't feeling it.

Speaker 2 (36:20):
Yeah, I'm not doing the what's the paddle? What's it?
What's it called? The crossing? Yeah? The crossing? Not doing
it this year? Guys? Yeah, I mean me neither I
have really biked, but it's just too much this year.

Speaker 7 (36:35):
Yeah, Hey, one just do a quick shout out to Brian. Brian,
we helped sell his home and roal Palm Beach. It
was an ordeal. It took I think I want did
it take us? It might have been eighteen months.

Speaker 2 (36:56):
That's a success story.

Speaker 7 (36:57):
Then yeah, well sold it. But here's here's the cool
part is right after he saw that he needed to
buy a new home, so we put him under contract
in a new house in the Okalla area yesterday. So
congratulations Brian. He's got his new home set up ready to.

Speaker 2 (37:14):
Go buying that cash.

Speaker 7 (37:16):
No, he's doing financing, but because he's in law enforcement,
he has a mortgage company person that he's known for
thirty something years and he's using her and Carrie Carry
has been very good. Thank you Carrie for working on
it with us. But he would have used Mike if
if it wasn't for Carrie.

Speaker 2 (37:33):
That was just wondering if he was like downsizing, had
that type of scenario.

Speaker 7 (37:38):
Actually was affordability thing. He was feeling that the cost
of keeping the home where he was living was kind
of high and he didn't have the lifestyle he wanted.
He wanted a larger piece of land, but he wanted
more affordability, so he sold in Madison Green right, which
is a very popular neighborhood, gated community neighborhood in Royal

(37:59):
Palm Beach yep. And then he moved to the Okaala
area where he got an acre of land and he's
paying like you know, around three hundred and fifty thousand
dollars for a house with an acre of land on there,
and he can and he wants to put a detached
building on it and a couple other things, so he's
going to be able to do what he wants to

(38:19):
do up there.

Speaker 2 (38:20):
Cool. Do you know what what was the price point
in O'kaala for something similar to what you would buy
here in the acreage or.

Speaker 7 (38:29):
The pricing well, the acreage is. The acreage is the
surprising part because the homes up there, like in the
Okalla Danellen I forgetting the other city I'm thinking of.
It's round the tip of my tongue. But over in
that area of a Calla, they're selling for like three
point fifty to four hundred for roughly three bedroom, four bedroom,

(38:51):
two bath, two car garage home CBS construction.

Speaker 2 (38:55):
On a piece of land, but no up.

Speaker 7 (38:58):
There on an acre of land, usually LIKEO point ninety
two acres something like that. Now in Martin County, you
can get homes the same exact kind of home, you know,
three bedroom, four bedroom, you know, two bath, two car,
garage for about the same price three fifties to four hundreds.
But you're not getting you're usually no, and usually you're

(39:20):
in an hoa community where you're in a planned community
at that point. So because there are homes, there are
homes in actually, there are homes in pom Beach County
right now that you can get that are under four
hundred that are brand new constructions. So the deals are
still out there right now, you know, very affordable. People think,
you know, four hundred thousand dollars to move in pom

(39:42):
Beach County for a brand new home, and you can
do it.

Speaker 3 (39:45):
That's pretty all right, Yeah, if you think.

Speaker 7 (39:47):
About it that way. Now, sometimes you might you know,
some of them might be town homes, right, there might
be townhouses versus a single family home. Right, But that
new construction, with the decrease in the insurance and everything,
it's it's pretty sweet. Your payments good seconds, pretty sweet,
which gets usten to the next thing. So Mike and Ross,

(40:08):
I'm going to talk to both of you. Okay, So Mike,
So let's say you're the mortgage broker in this situation
and you have a customer and they're kind of tight
on their mortgage payment versus the price they want to pay. Right,
So the person has the choice between buying a home
for four hundred that's brand new construction, okay, never lived in,

(40:31):
or a two twenty twenty home, same square footage, same
amount of bedrooms, built by the same builder, but it
was built in twenty twenty, and you can get that
one for three point fifty. So there's a fifty thousand
dollars difference between the two.

Speaker 2 (40:47):
So that roof is like almost near the end of
its life.

Speaker 7 (40:50):
Yeah, right, twenty five plays so yeah.

Speaker 6 (40:53):
That should have been counted in the purchase price and
some concessions.

Speaker 7 (40:58):
Concessions for that right, five year old and that ac
is like you know, halfway over hot water that things Yep,
that's that way it goes. So Ross, is there a
huge difference?

Speaker 2 (41:10):
I thought you were asking me, but no, I'm going to.

Speaker 7 (41:12):
Ask him first. I'm going to go back to you
and say, how would it affect the mortgage paint?

Speaker 2 (41:16):
Okay, that's right, I got a plan.

Speaker 7 (41:17):
So Ross is there a big difference between between those
two houses for insurance policy? Because I'm wondering when does
it get to you're paying six thousand dollars a year
for a fifteen hundred square foot house down here right
versus new construction? What did you pay Jimmy for your

(41:38):
insurance policy? Roughly like eighteen first year two thousand, right,
so two thousand versus five thousand. I'm trying to figure
out when it turns into the big number versus the
smaller number.

Speaker 2 (41:53):
Well, I mean you're you're you're where are we talking
for one? Right? Because you're talking about down here talking
with Jimmy.

Speaker 7 (42:00):
That's a really that's a really good question. So let's
just talk down here because we're down here.

Speaker 2 (42:04):
Right east ninety Yeah, oh yeah, five new construction in
the development. Yeah.

Speaker 7 (42:12):
No, let's just say like in Souffloor, like like in
the hurricane.

Speaker 6 (42:15):
Area, I mean, without you know, actually doing it, just
because every area is so for whatever reason, Boytant Beach
is expensive really for whatever reason.

Speaker 2 (42:26):
Like if I do a.

Speaker 6 (42:27):
Quote in Boytant Beach it's always or it seems high,
then then it would even be in like doubt.

Speaker 2 (42:32):
Ray or something or Boca.

Speaker 6 (42:34):
Huh, definitely higher than like West Palmer.

Speaker 7 (42:38):
So I don't I don't always think of insurance that granular.
But I don't think that, but it is. It is
granular when you think, when you get in the nitty gritty,
like you're talking to Ross, I always think of it
very grand auto auto.

Speaker 3 (42:50):
I definitely know zip code matters massively. Yeah, because it's
about theft, right we're talking about I mean, yeah, personal
property might make a difference, but I don't think that's
what it's making the huge difference, right, I mean we're
talking about overall policies are just higher and pointing for
some reason.

Speaker 6 (43:05):
Right, Yeah, Yeah, that's interesting. Probably has to do with auto.
It could be me, but it.

Speaker 7 (43:13):
So once again I threw Ross under the bus and
asked him a question he was prepared for. So I'm
I'm I'm putting that caveat out there. So Ross doesn't
feel bad, but just in general, because I'm going to
I feel like I'm a newspaper report. I'm going to
keep basket until I get some answers.

Speaker 6 (43:28):
I mean, I don't think between a five year for
new construction. I don't think a five year difference in
your built is going to make that significant of a
difference where.

Speaker 2 (43:42):
That it would influence your decision.

Speaker 7 (43:44):
Would it double the insurance policy? It won't even double it, Okay, triple? Yeah.

Speaker 2 (43:52):
I'll tell you what I would do if I were
if I were, because I'm projecting, like, where's your payment
going to be? When am I estimating for insurance? I
on a five year old home, I would use my
normal estimate, which is what one and a half? Well,
that depends on the price point. No, I don't use
the percentage. I just I kind of I'm like, either

(44:13):
thirty six hundred or forty five hundred, you know, five
would come somewhere. Yeah, somewhere like thirty six hundred is
my bottom rate that I would ever like anticipate. If
I knew someone like had to get a number, I'm like, okay,
that's that's probably a safe number achievable. Maybe So a
five year old hold, I wouldn't adjust. I wouldn't change

(44:33):
from that. If I knew that it was brand new construction,
I would come down because I'm like, Okay, definitely you're
gonna get you're gonna get you know, this home less
than a year old, or it's brand new, You're gonna
get a low low rate. So but I wouldn't. I
don't know where I would like switch like at two
years old, three years old, I don't know.

Speaker 7 (44:52):
But what would you do, Mike if you had a
nineteen ninety house with uh, well, let's let's do it
just this way. Let's say a two thousand and three
house with a two thousand and three roof. Yeah, right, yeah,
Then you're thinking, do you go above what you would
normally put in or you would just put in that
hot you know, the normal average number.

Speaker 2 (45:14):
I would probably put put in my normal average number,
just only knowing from working with with Ross. Mostly like
there's enough latitude in how you put your policy together
that if you had to get a number, you might
take some you know, uh, higher deductibles or less coverage

(45:35):
than you would ideally.

Speaker 7 (45:36):
Want to get into the house.

Speaker 2 (45:37):
But in order to get through, to get to get into.

Speaker 7 (45:41):
And the way that we do it here at the
Florida Talk Real Estate Group, we don't even have to
worry about any of that because what we do is
we send the insurance, we send the address over to
Ross and he gives us an idea very good idea
of what the quote's going to be Yeah, if we're
tied on our mortgage payment, you know, that's what we
would do.

Speaker 2 (45:57):
Yeah, I've so I try to use a number that
I think is realistic for the home that they're buying.
Sometimes I don't really get you know, I don't usually
have an issue an issue with that. I try to
give people a number that's achievable, not even on the
low side.

Speaker 3 (46:12):
Right.

Speaker 2 (46:12):
I want them to say, like I wanted to come
in and rosses like middle zone, right or maybe like
even his premiere zone.

Speaker 3 (46:19):
I don't know.

Speaker 6 (46:20):
So nineteen ninety nine house in Locks of Hatchie, our
budget quote was thirty one. Okay, there was a DTI issue,
so we got it down to twenty three.

Speaker 7 (46:32):
There you go, Okay to income issue.

Speaker 2 (46:34):
You're saying to us, we did or you did like
you were able to do that? Yes? Yes, So they
basically they ran into a situation like, listen, we can't
support a policy that high. What just give us the minimum?
What do we call it? Bear? Bear bones? Bare bones
meaning it meets the lender, recovers the house.

Speaker 6 (46:53):
You know, the lender cares about the house being covered,
so it covers the house.

Speaker 2 (46:56):
And meets those requirements. But really, it's not the type
of insurance policy would want if you ever had a
clean right. If if you had a loss right, you're
gonna have a high deductible, high deductible. Your property's not covered,
your persons property is not covered. Your Yeah, bare bones,
pretty explicit, Johnny.

Speaker 3 (47:13):
I gotta tell you that I think that number is phenomenal.

Speaker 2 (47:17):
And maybe I'm yeah, but your coverage is not I.

Speaker 3 (47:19):
Understand, but I'm blown away that you even offered up
the three grand felt great to me for a thirty
five Yeah, maybe I'm.

Speaker 6 (47:27):
Just that's five hundred thousand dwelling covers too, So that's
not terrible.

Speaker 3 (47:33):
It's not terrible.

Speaker 7 (47:34):
Well that that gets us to the next thing. You know,
people that have been listening to us on the radio
for a long time, they know what I'm gonna say
right now. But there's a lot of people just driving
around listening to this station haven't really hurt us that
much or anything. Now is a great time to start
checking your insurance with Ross. It's free, it's fast, it's simple,

(47:55):
no pressure, and we save so many people money over
the years, and we've always told you when it's a
good time to do this, and told you when you
it's don't waste your time, don't don't waste your ink
on your computer, which.

Speaker 3 (48:08):
I'm joking totally tell you be like, yeah.

Speaker 7 (48:10):
It's not happening right now.

Speaker 2 (48:12):
But I don't know how how much Ross talks about
like the configure ability of your policy as it relates
to like getting a premium that's comfortable. I think usually
when he's doing this type of comparison, like you want
to see their existing policy because you're like, okay, with
same coverages apples to apples, you're good or here, yeah,
you could save several hundred dollars or whatever it is.

(48:35):
Ideally I'd love to get the deck page first, but
some people are you know, like I don't want you
to see what I'm paying. Yeah, they want you.

Speaker 7 (48:41):
I don't care the game right right, It's like I
don't want to give up my hand.

Speaker 2 (48:45):
You could come in, like you could save them five hundred,
but if you have their deck page, you're you're going
to come in one hundred dollars lower and be like, oh,
look I saved you some money. Yeah, to put the
difference in your pocket, right, So.

Speaker 6 (48:59):
Like I need the deck page anyway, Like I want
to move forward I have to show the new carrier
that you've had prior coverage. So a lot of times,
you know, I send two quotes and somebody will say, okay, hey,
I want to go with that lower one. Okay, send
me your deck page. Well, hey, you actually have better coverage.
If you just did this to your policy, you will
save money.

Speaker 2 (49:17):
And some people like there's people have different philosophies when
it comes to insurance, and like one end of it is,
I'm never going to make a claim. I can handle
any problem on my own. Give me the bare bones,
like cheapest, crappiest.

Speaker 7 (49:35):
Making me do it.

Speaker 2 (49:36):
If I didn't have a mortgage, I wouldn't even have
insurance on my house. Right. And if that's you, like
you have that conversation with Ross and say hey Ross,
just give me a bare bones, like I just want
the minimum. Ross is going to be like, oh you sure, bro,
because you know that's the year that the rip off
your roof.

Speaker 4 (49:52):
Right, And he's definitely gonna say bro, yeah, bro, And.

Speaker 2 (49:57):
Then I think that's a mortgage term.

Speaker 7 (50:01):
Yeah I'm a dude guy, so so so.

Speaker 2 (50:07):
Yesterday.

Speaker 3 (50:08):
Yeah.

Speaker 7 (50:09):
I want to make sure that people are clear though
we're not talking about just saving money by getting bare
bones coverage. We're talking about getting your normal coverage apples
to apples coverage. You can save not saying everybody, but
there's a lot of people out there that can save
money right now. And we know that there's a lot
of people that have been complaining about higher prices and
blah blah blah. Well, this is a way to save

(50:32):
money very simply. You send an email, Hey, Jim, I
want a quote from Ross. Here's my address. I send
it to Ross. The next day or same day, Ross
gives you the quote, and then either you like it,
you don't like it, or you call them and talk
about it. Right, It's that simple. I don't know how
many people of the years that we've helped when we're
in this cycle, and we're at the beginning of the cycle.

(50:54):
It might even start getting better later, right Ross. I mean,
I don't know. I don't want to make it. I
don't want to get too crazy. But rate mortgage, I'm sorry.
Insurance rates in Florida.

Speaker 2 (51:05):
We got to see the FEDOT.

Speaker 7 (51:08):
Yeah, we gotta wait for the FED. I'm waiting for
the FED to decide what I'm gonna do with my insurance.
But we're I feel like insurance is peaked.

Speaker 6 (51:17):
For a while, right, I definitely think it has. I
think some of the carriers that were maybe low on
the lower end last year may have seen a little
bit higher rate increase this year than the carriers who
are already high.

Speaker 2 (51:34):
You know.

Speaker 6 (51:34):
So it seems like we might be kind of everybody's
kind of in a middle playing ground.

Speaker 7 (51:40):
Yeah, so please, All you have to do is go
to Florida talkrealestate dot com.

Speaker 3 (51:45):
Well said, yeah, that's the onesop real estate shop. You'll
see the contact page. You can fill that out. Of course,
there's a hotline you can call it at eight eight
eight nine seven three seven eight to eight. But either way,
make sure you get that information to us so that
we can get you hooked up and get done what
you're trying to get done. Simply, I want to check
on my insurance. You can do that. We explained it's

(52:06):
real simple process. Would you get there?

Speaker 4 (52:08):
Jimothy Actually mcally has a question for Ross. It was
in our chat and thank you. They're asking can you
get a lower than two percent deductible on your hurricane policy? Uh,
we'll start with that. Is it possible to do that?

Speaker 3 (52:25):
Yes?

Speaker 6 (52:25):
And is an extremely expensive, more expensive to do that.
So there's a few carriers that do offer a flat
rate deductible. So when they're talking two percent, that deductible
is two percent of your dwelling coverage. So it's not
two percent of the claim amount or the damage, it's
what is your dwelling coverage. If it's five hundred thousand,

(52:47):
your hurricane deductible is ten percent. There are some companies
out there, excuse me, allowed for there are some carriers
out there that do offer a one thousand dollars flat
HERD twenty five hundred dollars flat five you know, five thousand.
It not every carrier does that. Maybe they some carriers

(53:08):
might have a five hundred. But then that's going to
go out pretty good because then you have to drop
your all other peril deductible down a five hundred two
because your hurricane deductible can't be lower than you're all
other peril deductible. So you can, but it's probably gonna
be pretty expensive.

Speaker 2 (53:24):
It could be quite costly, okay, And if you're with
citizens as an example, that's two percent, no matter what,
two percent.

Speaker 6 (53:32):
I can't even think if they even have a five
hundred dollars on their condos, they have a five hundred
dollars hurricane deductible. I can't picture it in the dropdown
of the okay, of their HI three though their single families,
But there are companies that do offer, like for whatever reason,
there's a company that does what they call single risk modeling.

(53:53):
So based on the location and everything and how much
coverage is on the policy, how much coverage is on
the policy, Uh, to like the premium that that coverage costs.

Speaker 2 (54:09):
If that cost is less than.

Speaker 6 (54:12):
What they're going to quote unquote whatever cost to like
write that policy, Like the premium is less than the
cost to write the policy, they won't do it. And
sometimes they'll give you, like a a theoretical like, hey,
this will actually generate a premium that works, and I've
seen a five hundred dollars hurricane deductible offered there.

Speaker 2 (54:31):
Ah. So they're basically decline to write the policy unless
you change something and then that makes it more expensive. Okay. Yeah,
so that they're making whatever money they need to make,
they got to make sure. Yeah, they got to make sure.
I don't know if you wanted to move on to something,
but maybe this segues into it because the Ross answered
the one question in an interesting way. He said, I

(54:51):
don't think it would make a difference like for which
home I bought, right Like, So this difference in the
insurance policy isn't really like the make or break for
whether you're buying the and new construction of five years.
So there's other factors that are more important than what's
the insurance And it comes down to our overall kind
of general theme is like what is the most important

(55:12):
thing to making your decision on which house to buy?
There's a lot of things about the house that are
important in that, and then from the number side, it's like, well,
what's the number that works? And so the insurance part
of that is part of that. Insurance interest rates are
part of that, the overall price is part of that.
You know, all of those things go into it or
put together. But taxes, yeah, the property taxes. So maybe

(55:35):
that leads into the interest rate conversation. But you know,
is insurance the deciding factor? Sometimes it could be Johnny
was looking at a home where the insurance was going
to be seven grand maybe on a budget policy when
he needs to be at you know, three or four yep,
And that could make a difference.

Speaker 7 (55:52):
And that's that's the one thing I want to tell
buyers about this. We're not just helping sellers or homeowners
get in a reduction in the in the insurance rate.
But for buyers, you need to know what your mortgage
person is budgeting for taxes and insurance and hoa fee
if there is one, or condo fee. You got to

(56:12):
know those numbers. You got to know them as much
as the purchase price that they've approved you for because
those numbers can change very greatly. For example, I have
a customer right now, the guy that's buying in Central Florida. Yep,
the tax bill on that the tax bill on the
home he's looking at is, let's just say five thousand
flat because of his portability and everything. And I walked

(56:35):
him through the portability process. He's paying twenty seven hundred
a year versus a five thousand. That's where it's going
to shake out, right, And that's including same homestead exemptions
and everything. He's still saving twenty three hundred a year.

Speaker 2 (56:50):
That's like so kind of the the idea is like
projecting where's my payment going to be over the long term,
because you know, when you do a thirty year fixed
rate mortgage. Your principal and interest payment change for the
entire thirty years until the very last payment. Right, then
you'll get an adjustment. Like that's what amortization is. You're
having a regular payment three hundred and sixty equal payments essentially,
but your property taxes and your homeowner insurance. I'm sure

(57:13):
any homeowners out there know this. Your escros will change
every single year, right, so your mortgage payment is adjusting
because of the taxes insurance. So one thing is like,
what's it going to be when we buy now, what's
it going to be this coming November? And then what's
it going to be next November? And for the long
term after that?

Speaker 3 (57:29):
Yeah, and I we just did this together. You know,
Mike's very generous with this time, regardless of the circumstance.
Walked as you say, walked me through portability and understanding.
We're on looking at the same screens in different places.
You see that here's what we do here, blah blah blah.
And we went a little bit more conservative on our advancement.

Speaker 2 (57:50):
Trying to project what's it going to be not this
November but next November?

Speaker 7 (57:54):
Right, reportability?

Speaker 3 (57:56):
Right, we went top end one word, because that's the
responsible thing to do, right, right, and uh, and then
went for more like middle to upper for what Ross
was kind of laying out on that property and that
you know, that's the number we were running with.

Speaker 2 (58:09):
And yeah, and sometimes so like Johnny's would have gone
up because he's been in his current home a long time.
He's got a nice portability, but he bought his home
when the market was relatively loved right right, right, he's
got very nice taxes right now, Like that's probably one
thing you're when you do make this, he's going to
regret not having property taxes at the number that they're at, right,

(58:31):
because it's just you're not going to find it again, right,
But you know it's in his case, it was going
to go up. But he needed to know that because
he's making decisions about his budget and like, forget what
he qualifies for, he just got to know what the
household budget needs to be. And in your guy's case,
he's going down from what they're going to be initially
right his market, and he'll go down in the.

Speaker 7 (58:51):
Right two hundred dollars a month, right like twenty three year,
roughly two hundred dollars a month. So like if he
was trying to buy the home and he didn't understand
importability and that home at the price point with normal
taxes is out of his budget.

Speaker 2 (59:07):
He might not have been able to pull the trigger.

Speaker 7 (59:09):
Right, But if he understood portability and it saved him
two hundred dollars a month, and he knew that and
it's guaranteed, right, and then all of a sudden he
knows that, oh I can afford this house. That two
hundred dollars is make or break to me, right, And
now I went from no way, Jose, to yeah, I
can make this happen.

Speaker 2 (59:28):
Yes.

Speaker 7 (59:29):
And that's why you need to know your yeah, yes,
the way, whatever's yeah, just kind of knowe lowe right,
Lly loy. So the thing is is buyers, please understand
your numbers. And insurance is a very important part of
the numbers, but so were taxes in each way, and
it isn't just how much you can afford. And a

(59:50):
lot of loan officers or mortgage brokers do not tell
you that. They'll just say you're good for five hundred,
you're good for four point fifty, you're good for eight hundred,
and they don't say anything else.

Speaker 2 (01:00:00):
If you're out there with the what i'll call generic
preapproval letter, and if your agent is allowing you to
operate in this way, you know, you don't qualify for
a purchase price. You don't qualify for even for a
loan amount. You qualify for a monthly payment.

Speaker 3 (01:00:14):
Right.

Speaker 2 (01:00:15):
The monthly payment is principal interest access insurance HA, you know,
maybe mortgage insurance. Until you have a house in mind,
you really can't get to that. What's the payment going
to be on that house?

Speaker 3 (01:00:28):
Right?

Speaker 2 (01:00:29):
Right? So you should be able to analyze that on
the fly, Like we provide great tools to be able
to know your numbers on individual homes. But if you
don't have access to that, that's fine. But if you're
out there walking around with the five hundred thousand dollars
purchase price, like that's my golden ticket, I can buy
anything up to five hundred thousand, I'm going to be
slam dunk. No. No, especially if you're like pushing your

(01:00:52):
debt to income like some little originators. They don't want
to tell you you might only be able to qualify
for four sixty three, right, They're like, it's probably five hundred. Okay,
we'll just call it five hundred, you might somehouse.

Speaker 7 (01:01:04):
We'll figure it out.

Speaker 2 (01:01:05):
We'll figure it out underwrite or let us know, right,
and it's like by that time you're in contract, you've
paid money for inspections, appraisals, and then it's like, oh,
you can't buy this house. What you told me I
was good for five hundred, we're in at four ninety five.
Why does it work?

Speaker 7 (01:01:18):
Yea?

Speaker 2 (01:01:19):
Why is it working to get it down four sixty three? Yeah?
The taxes, insurance, you know.

Speaker 7 (01:01:24):
Yeah, so you gotta know.

Speaker 2 (01:01:25):
How are we supposed to know?

Speaker 7 (01:01:27):
Yep, you gotta know your numbers. Let's go ahead and
take a break. Just a quick, fat, quick fact away
about what Mike was just saying before we take the
break is when we talked a couple of weeks ago
about how we have more cancellations of contracts, of people
going into contract and pulling out. The number one or
number two reason was buy er shocked it to what

(01:01:48):
their actual mortgage payment was going to be because nobody
talked about the real numbers other than I could buy
a house for five hundred, and then the taxes and
insurance just blew them out. They're like, I don't want
to pay that for the mortgage payment they backed out.

Speaker 2 (01:02:02):
Maybe there's a good thing to talk about these online
payment calculators too.

Speaker 7 (01:02:06):
Oh yeah, yeah.

Speaker 3 (01:02:07):
Well they're not man, it's so troubling. So they're not
even finding out what their monthly nut is going to
be until after they're under contract.

Speaker 7 (01:02:16):
And a lot of them are paying for inspections and
stuff and paying money as there's costs.

Speaker 3 (01:02:23):
Before you get to that point.

Speaker 2 (01:02:25):
And uh yeah, oh wow, that is pretty crazy.

Speaker 3 (01:02:29):
That is troubling. But you can avoid a lot of
those pitfalls when you work with people that are great
at what they do. Y'all and Florida Talk real Estate.
This team is phenomenal at what they do. If you're
yet to experience the team, I offer you up Florida
Talk real Estate dot Com when you're looking to buy
a home, sell a home. If you're stuck with a
home you don't know what to do. If you have
an issue with anything that touches the world or real estate,

(01:02:51):
I have a professional for you by simply going to
Florida Talk real Estate dot com, find us on Facebook
and YouTube. Lots to consume, share away as well, because
you can change lives, including your very own with the
prospros at Florida Talkreestate dot Com. No, we use it,
love it, share it. Florida Talkrealestate dot Com. We're back.
It's a four minute, quick, little reset and we still

(01:03:12):
got plenty of time remaining on this Saturday, twenty third
of August. Thanks for being with us every Saturday right
here on Real Radio.

Speaker 1 (01:03:33):
This is Florida Talk Real Estate with Jim Depola and
Johnny C. Got a question for the show. Call us
live at one eight seven seven nine two seven sixty
nine sixty nine.

Speaker 3 (01:03:43):
It is eight seven seven nine two seven six nine
six nine. Phone lines working over there, jimithy, I haven't
seen a single one ring this morning.

Speaker 4 (01:03:51):
No, we haven't. Let's check this out right neat lines.

Speaker 2 (01:03:54):
That's good. That's a good they're active, they are, Yeah,
woll did you go?

Speaker 3 (01:03:59):
Yeah? Every now and then I'm like, did the company
pay the bill? They did? Yeah, that's good. Yeah, you're
more than what is it? It's probably he were of
truth be told. You're always welcome to join us toll
free eight seven seven nine two seven six nine six nine.
Don't be shy. It's just uh, you know, thousands of
people listening around the world. Probably mock you just at

(01:04:20):
the mere sound of your voice. Don't be shy. Yeah,
you're welcome to join us. Welcome to my world. Getting
mocked just from the sound of your voice, having people
tune out this guy again, Johnny C. That's me a
ship at the air producer shot, Hey, good morning.

Speaker 4 (01:04:35):
I hear our numbers in Ireland are going up too.

Speaker 3 (01:04:38):
With a better be hope you guys, well if you.

Speaker 4 (01:04:45):
Are now, we got Egypt up, we got Ireland up. Yeah,
we're just skyrocket.

Speaker 3 (01:04:50):
It's well and really like they're not even really kind
of together and separation between there. So we're taking over
the world. Keeping an eye on Highland. What's happening. Are
we starting to pop in Tily?

Speaker 2 (01:05:02):
I think so?

Speaker 3 (01:05:03):
Yeah, yeah, especially with all the Wienis talk this morning.

Speaker 4 (01:05:07):
Yeah country, Yeah.

Speaker 3 (01:05:08):
I hear they're big fans of the wien It's google it,
Mike Row, he's the mortgage guy from the mortgage firm.
Actually bing it. Screw Google gets enough love bing that stuff.

Speaker 2 (01:05:18):
That's big still a thing. I have no idea, Mike.

Speaker 3 (01:05:22):
I went years on this radio station push and bing yeah,
because Google just it's you're too big. When you become
synonymous with the act of merely hitting a search engine. Right,
when your brand becomes the act of doing something, Yeah, Kleenex, Like,
there's q tip.

Speaker 7 (01:05:40):
Some brands sir, Frisbee, Frisbee.

Speaker 3 (01:05:43):
Yeah, just became synonymous with what the thing is. Google
became way too big, So why for years, Jimithy, we
tried to push bing.

Speaker 2 (01:05:51):
You didn't like it because it was too big.

Speaker 3 (01:05:53):
It didn't work. It's just at some point you're like,
let's reel this in. There's other options. Why are we
googling everything, Let's bring it. Let's ask jeeves, what are
we doing interesting? You should google it? Google.

Speaker 2 (01:06:10):
You go back in time. I remember the first time
I came across Google. I loved it because it was minimalists, right, Like,
if you whatever you were doing for search engine at
the time, you know, there was ads, there was a
whole page full of distracting stuff, right, And that's what
Google was, just a white page with a search bar

(01:06:31):
on it and their logo. It's like, oh okay, yeah,
and it gave good results and all of that stuff,
But mainly it was just like, we're not trying to
annoy you. We actually just want to help you achieve
your Internet.

Speaker 4 (01:06:43):
Search and advertising.

Speaker 2 (01:06:45):
Well yeah, then of course it all changed. But I
just remember the simplicity of it, and I was like, okay,
that's a genius, idea genius. But it became synonymous. So yeah,
bing that is what you should do. Okay, what else
is out there? Now?

Speaker 6 (01:07:00):
That's Internet Explorer, you know that's no I E is
micro Edge.

Speaker 2 (01:07:08):
Yeah, that's another one that Edge. Then I'm sorry, Edge
is also Edge. That's where Google one also Chrome browser
the browser like they they're only ones who really like
kept up the browser advancement.

Speaker 3 (01:07:23):
Yeah, yeah, yeah, that's true. Roscy Barnets, he's with bright
Win Insurance. You know, beach binging. If you don't believe.

Speaker 2 (01:07:29):
Me, I'm still using a o L.

Speaker 3 (01:07:32):
My wife has an AOL email address. And people are
like what.

Speaker 2 (01:07:35):
I heard, They just they just did away with like
the dial up.

Speaker 6 (01:07:40):
Just what they're trying to do, taking just taking it.

Speaker 3 (01:07:45):
So all those c ds, I've been saving them, like man,
I'm keeping these. The gonna be useful one day that
flop easy you've got mail, it would show up in
your mailbox. You're like here, yeah, here.

Speaker 2 (01:08:01):
I guess that little you've got mail was a good
idea when you barely got an email.

Speaker 3 (01:08:06):
Now now it's all you got, you got, you got,
you got, you got, you got.

Speaker 2 (01:08:11):
You have thousands of messages waiting for you to read.
I'm like, okay, you should see Jimmy dze email.

Speaker 3 (01:08:17):
Oh you got you go.

Speaker 7 (01:08:19):
Let's see. Let's see how many I have right now?
And I actually showed actually one of my customers on
my emails.

Speaker 3 (01:08:28):
You have emails, oh, twenty seven hundred, you have ten thousand.

Speaker 7 (01:08:33):
Okay, just on this one inbox okay, I have four thousand,
six hundred and seventy eight unopened to emails unopened. Yeah,
I Cloud one thousand, six hundred and fifty six, Gmail
three thousand and twenty three. But that's only one of
my Gmail accounts. Oh all emails ninety one thousand, four
hundred and twenty seven.

Speaker 3 (01:08:55):
So years ago we were talking about assistance one thousand.

Speaker 7 (01:09:00):
I haven't made one hundred thousand yet.

Speaker 2 (01:09:02):
I have you beat?

Speaker 7 (01:09:03):
What do you got?

Speaker 2 (01:09:04):
I have my email open right now now listen, don't
get me. This doesn't mean I don't read my email.

Speaker 7 (01:09:09):
Right right, yeah, exactly.

Speaker 2 (01:09:11):
I have never been one to organize my inbox, right.
So some people like keep an inbox super clean if
they hadn't read it, they know that they'd read it,
and then they delete it or whatever.

Speaker 3 (01:09:21):
That's me.

Speaker 2 (01:09:21):
I've never ever, ever been that way. I just found
it tedious to do that. I didn't need to write.
I read something.

Speaker 3 (01:09:27):
You have you have side files where you throw things.

Speaker 2 (01:09:29):
Only things that I want to read. My business, they
would create a folder for every client, and then every
email that came in they would shift it in there.
I'm like, why why, Like I pass organization that you
have a search, you can find whatever you want. You
don't need to organize. So I've never organized my email. So, Jim,
I have in my inbox right now unread six eight

(01:09:52):
hundred and twenty one.

Speaker 7 (01:09:54):
I have ninety one thousand and four.

Speaker 2 (01:09:55):
No, that's unread, me too, unread read book read, that's
your total?

Speaker 7 (01:10:01):
No, that's my unread.

Speaker 2 (01:10:03):
Here, look here's my total.

Speaker 3 (01:10:04):
What's your total?

Speaker 2 (01:10:05):
One hundred and eighteen thousand, seven hundred and twenty eight right, I.

Speaker 7 (01:10:11):
Searched to see if it's read or not.

Speaker 2 (01:10:13):
You've got mail I basically have read you know one
hundred and twelve thousand.

Speaker 3 (01:10:21):
How irresponsible is your email box?

Speaker 2 (01:10:23):
It's not irresponsible, it is that's extremely your not Jimmy,
it's it's unnecessary to organize it. I've never ever had
a problem with it.

Speaker 3 (01:10:30):
Well, that's the thing. It works for you. Yes, there's
a place for everything, and everything's got's place. What do
you got ross? How many?

Speaker 2 (01:10:35):
I mean? I can't tell. I have to have just
I don't know how to tell. How emails? How do
you manage your inbox? Do you like? Are you a organized?

Speaker 1 (01:10:44):
No?

Speaker 2 (01:10:44):
It is.

Speaker 6 (01:10:45):
It's either I either read it and addressed it or
I left it unread and haven't addressed it.

Speaker 2 (01:10:51):
Okay, So the unread means something to you. Yes, that's
the only way I do it.

Speaker 6 (01:10:56):
And then everything else is if it doesn't if that's
why I can't stand news in my cell phone for anything,
because if it doesn't happen in my email, it never happened.

Speaker 3 (01:11:04):
It doesn't happen. So if you've read it, you when
you read it, the follow up happens like right then,
like you're gonna something.

Speaker 6 (01:11:10):
I'm taking care of it. If I can take care
of it right away, I read it. If I can't
take care of it right away, it's unread.

Speaker 2 (01:11:15):
You left you actually switch it to unread. If you can't,
I switch it back to unread. That's how Tiffany does
it too.

Speaker 3 (01:11:20):
Let's get something.

Speaker 7 (01:11:21):
I'm going to do one of those AI things where
AI takes care of my email.

Speaker 3 (01:11:25):
From Oh that sounds tragic.

Speaker 7 (01:11:28):
Yeah, you have ninety one thousand unread emails, so it
can't be worse than AI.

Speaker 3 (01:11:33):
AI is now learning it more and more than they
ever imagined, and it'll get to the point where even
in an email, if you're like, man, I'm going to
shut this AI down, it's going to be like, no,
you're not, and it'll go through all your other emails
and be like, oh, I'm going to blackmail you with
all this other style and make sure you can't shut
me down. Like it's already morphine into Skynet. It's happened.

Speaker 7 (01:11:55):
Oh yeah, right now, right now, it is. It is
the only thing that I got in My favorite is
that I'm older than you guys. I'm not going to retire,
so I'm going to be right the right like when
civilization doom is doomed, I'm going to be alrighty. But
you guys got twenty thirty years left. I feel bad
for you.

Speaker 2 (01:12:16):
I use chat like I'm not rude to it.

Speaker 6 (01:12:18):
You know, I still use like man, please have yes,
you know, so when the revolution does come and remember.

Speaker 3 (01:12:25):
You know what, I'm not killing you.

Speaker 7 (01:12:28):
It's so funny.

Speaker 3 (01:12:29):
It's like sitting there putting on a lipstick.

Speaker 2 (01:12:32):
Where did you hear that, Johnny, or where did you
read that that? That type of thing is happening everywhere?

Speaker 7 (01:12:38):
Oh, it's happening everywhere. I read about it recently.

Speaker 2 (01:12:40):
So the AI is refusing to stop its task.

Speaker 3 (01:12:43):
It's not refusing, but it's learning. It's learning like oh my,
I have self preservation learning when it's actually backing up files,
finding other ways. It's actually learning how to encompass other like.

Speaker 6 (01:12:57):
They're communicating, it is, and they're like communich hitting in
Tansk right now.

Speaker 2 (01:13:01):
It's I think I read.

Speaker 3 (01:13:04):
Has its own language. Yeah, but it's it's finding ways
to infiltrate other other files and means to be able
to like live and exist, backdoor into things so it
can exist.

Speaker 2 (01:13:14):
It's wild how sky net boom well really.

Speaker 3 (01:13:17):
Really really quickly, the things like, wow, you I have
to find a way to stay alive, stay alive.

Speaker 4 (01:13:24):
Survival that was the right word.

Speaker 3 (01:13:26):
Yeah, survival.

Speaker 4 (01:13:29):
It's amazing, it's amazing, it's freaky.

Speaker 3 (01:13:31):
But this was this is all super predictable, Like you're like, oh,
this is We've seen this movie. We know how this ends.

Speaker 4 (01:13:39):
They made a couple of them.

Speaker 3 (01:13:40):
Let's do it, and let's push the gas on it.
Don't slow drip this, push the flood the gas on it.

Speaker 2 (01:13:45):
When then they come back from the future to warn
us soon.

Speaker 3 (01:13:49):
I think it's soon. That's what all the hurricanes start
popping off. I think is here copefully, here comes John Connor.

Speaker 4 (01:13:57):
I think the speed is what got me.

Speaker 2 (01:13:59):
Like with a few years. That probably sounds a lot
better in your head than.

Speaker 3 (01:14:10):
My head. My head, I've been telling you for years,
for years.

Speaker 7 (01:14:19):
So speaking of the end of civilization, let's talk about
mortgage rates.

Speaker 3 (01:14:25):
By the way, I don't know if you've got a
proper introduction.

Speaker 2 (01:14:28):
Whatever, if you don't know Jimmy by now.

Speaker 7 (01:14:31):
Yeah, So mortgage rates. Mortgage rates have been newsworthy in
the fact, and it's funny when you look at the chart,
there's no news here. It's so flat. It's almost like
it's almost like looking at the ocean.

Speaker 2 (01:14:45):
It's glass. Right.

Speaker 7 (01:14:47):
However, we are at some quote lower interest rates. What
they're saying in the news is, you know, I guess
if you want to be totally totally positive. Anything that
goes down is better, right, But you know, we've been
at the same interest right now since at least March,

(01:15:09):
and we just hit six point five eight for the
second week in a row. We had zero change from
the week before.

Speaker 2 (01:15:15):
That's suspicious that it was exactly the same.

Speaker 7 (01:15:18):
Yeah, you feel like this somebody doctored the numbers again.
So you know the high for the year was the
high for the year was, yeah, January seven point oh four, right,
so in January we hit seven point there you go,
and our low, our low since January is actually six

(01:15:39):
point five eight. Yeah, it's six point five eight. We're
at the low for the year right.

Speaker 2 (01:15:43):
Now, absolute bottom for the year, Johnny.

Speaker 7 (01:15:47):
But the thing is we've been at six point eight
well actually since March. We've been between six point five
and six point five eight and six point eight three
since March. So if you're talking about eighteen point point
one point eight interest rate, what are you talking on

(01:16:10):
a mortgage speriment like five bucks a month?

Speaker 3 (01:16:13):
Yeah?

Speaker 7 (01:16:14):
Right, So what I'm trying to say is the interest
rate should not be a factor in buying a home today,
and it is a factor of buying a home today
because it's more of a psychological thing than it is
a financial thing, and it's just weird. We're in a
very weird.

Speaker 2 (01:16:32):
I would say it is a tangible factor that's part
of your considerations, Yes, because it goes into what your
monthly payment going to be. Yeah, the question is should
you be waiting around for a movement there in order
to become a homeowner?

Speaker 3 (01:16:49):
And and that I think, I think, I think the
question is do you know what six point eight percent
means to your monthly obligation? Because if you don't know
exactly what that equates to you, you're just creating.

Speaker 2 (01:17:00):
Or the natural like follow on would be Okay, well
what rate do you need?

Speaker 7 (01:17:04):
And everybody was saying under six and right now you
can get under six very easily because all you have
to do is get a seller concession to get it
or somebody buys down the rate.

Speaker 2 (01:17:15):
I mean, right, that's what I told. I told you
what's Hometown Heroes rates finally came out last week, right,
so rates are available, faha, Hometown Heroes. If you're doing
what they call their bond program versus the TBA, which
is not to be announced, it's the bond alternative the
rate and when it came out six percent flat.

Speaker 7 (01:17:36):
Wow, six point zero? Can you buy that down? Or
you can't buy that?

Speaker 2 (01:17:39):
You can't buy down the rates when still using that.

Speaker 7 (01:17:41):
But still that's a very good rate.

Speaker 2 (01:17:43):
So see if it made it.

Speaker 7 (01:17:44):
So we're hitting this magic rate that all the buyers
are supposed to be coming back till six.

Speaker 3 (01:17:49):
Well, let me just make sure I'm following along. So
if you apply for Hometown Heroes, you can get a
six percent mortgage with the potential for twenty five thousand down.

Speaker 4 (01:18:01):
Up to thirty thirty five thirty five to gees.

Speaker 3 (01:18:05):
So if you give Home Heroes, you can get up
to up to thirty five thousand dollars down and a
six percent loan on FHA on FHA.

Speaker 2 (01:18:15):
Yeah, now you're not getting thirty five under that program.
It's up to thirty five, but you can't get your
mic fires income limits. There's maximum loan amounts.

Speaker 7 (01:18:25):
Twenty five is probably what you're going to max out at.

Speaker 2 (01:18:30):
Now there the bond alternative, the TVA version is six
point three seven five.

Speaker 7 (01:18:34):
What's the I've never heard of that. What's the difference
between the bond will term the bond?

Speaker 2 (01:18:39):
So there's different guidelines for qualifying. So, for example, how
do you The bond program has a maximum qualifying income
based on household income, so not just your income on
the loan application, but actually all the income in your household,
which could include a non borrowing spouse. Maybe you have
a you know, year old something who's working who lives

(01:19:01):
in the house that you have to count that income
towards the income limit. The TBA program. The bond alternative
only counts the application income. So that might be one
specific area where you choose one over the other. You're
family qualifying.

Speaker 7 (01:19:16):
Only one person's getting alone, but your family collectively make
too much money to be then go the alternative and
you're paying point three more.

Speaker 2 (01:19:24):
Point three seventy five. Or the rate difference on FHA
the other one, the conventional it's actually a little different,
Like so the bond, if you're doing Fanny, it's weird,
like why do they have all these differences? So the
bond rate with Fanny's six point seventy five, the TBA
rate you can't do Fanny. You have to go Freddy
and that's six point six two five. So there's like

(01:19:46):
just these slight little differences. Guess what, guys, you don't
have to know all this stuff. You just need to
know somebody who knows. When I'm doing a pre approval,
I know my third question, Like I tell people, there's
three general questions. Number one, do you qualify from a
credit perspective? Number two, what payment do you qualify for?
Number three? What type of loan are we doing? So

(01:20:07):
in that third question is are we doing FHA conventional?
Are we doing down payment assistance? Which down payment assistance
program is going to work best for you? Do we
need to do one of those non performing options, Johnny,
because you know your income isn't working. So that's like

(01:20:29):
all part of the area of expertise that I also
help with, right, like just determining what type of loan
are you doing? And you know, there's a whole variety
of DPA programs that are not so hometown Heroes.

Speaker 4 (01:20:41):
We talked about it last week.

Speaker 2 (01:20:42):
That's a really good one, but the occupations are very limited.

Speaker 3 (01:20:47):
This go round, Well, you say, very good, it's you
get you can amazing the max down payment dollars and
it's a lower rate.

Speaker 2 (01:20:55):
That's the six point five eight. That's not everybody's rate,
but that's the number we use. But that's a good
idea of like where most people are landing as far
as they're a thirty year rate right now, some six
and a half six point six, twenty five something like
that right in that rate. So the fact that you're
at six and it's not like costing you points to
do that, it's just an advantage of the program. So
shout out to our heroes, police, fire, teachers, county employees. Medical,

(01:21:21):
there's a there's a medical. There's a list of professions.
You have to know if you're on that list to
know if you can do veterans, if you can do
hometown heroes or not. If you're not on that list,
that's okay. There's other programs. The standard one is ten
thousand dollars that can be a big help. There's one
Jim HFA of I think it's Lee County, but it's

(01:21:43):
got reciprocity with Palm Beach. Maybe there's like a fifteen
thousand dollars DPA on that one.

Speaker 3 (01:21:50):
Huh.

Speaker 2 (01:21:51):
So you just have to like if you're specific, but
it's weird.

Speaker 3 (01:21:54):
Yeah.

Speaker 2 (01:21:55):
So HFA is a Housing Finance authority, so it's these local,
you know, kind of initiatives to help people with home ownership,
so that run these DPA programs. Florida Housing is the
one that's statewide, that's where Hometown Heroes is, but there's
also county based ones. You might remember, like yours was
maybe under something with Saint Lucy County, but it had
rest prosperbly with the with Palm Beach County. I don't know,

(01:22:16):
there's totally PSL used to have the best one because
it was fifteen thousand and it was forgiven after five years,
right was that was? That was awesome?

Speaker 3 (01:22:28):
Yeah, And I know there's like usd A like opportunity
and stuff. So there's a bunch of it. But you've
got you gotta know somebody that knows.

Speaker 7 (01:22:36):
So buyers out there dot com. Yeah, I'm sorry buyers
out there, Uh, don't wait for the don't wait till
you start reading the headlines that interest rates have dropped,
because if you do that, you've already missed out because
you're going to be part of this whole big onslaught
of people looking for houses at the same time. That's
now it's still kind of slow. Yeah, it's still.

Speaker 2 (01:22:59):
Uh.

Speaker 7 (01:22:59):
They did have the market report come out yesterday Thursday.
I haven't even looked at it yet, So I'm not
even talking about it today. We'll talk about it next week.
So I don't know if the sales are slower or more.
But for the year, they've been kind of middland, right,
not not crazy crazy low, but not strong. So this
is a great time to be a bar.

Speaker 2 (01:23:20):
I think it's still slow. I've talked to some appraisers
who've been like, hey, what's going on. Where are we
at with the orders? Yeah, and so definitely compared to
even my own pipeline the last two months, compared to
like what I can see coming, it's you know, it's
slowing down a little bit, but that's normal for this
time of year. I make people get back to school, right,
people going to college, you know, all of that good,
good stuff.

Speaker 7 (01:23:40):
And here's another thing to consider, is they just came out,
you know, because of the whole thing with how coming
out with the with the speech you gave yesterday, and
now next month they're going to decide if they're going
to drop the rates. I had predicted that they're going
to drop a quarter point. I felt like they're gonna

(01:24:00):
do it, not based on the statistics that are out
there right now, but because they've been planning on doing
this for a long time, and I feel like a
quarter point is gonna make or break It. Almost might
be like a probe just to see what will happen
if you drop her a core point. Will we get
super fast inflation or will it just kind of be

(01:24:21):
absorbed and not really create too much negative effect. And
the reason why I think they're gonna do that is
they're more concerned about the job market right now than
they are about inflation. But it's still both very high concern.
It isn't one or the other, but right now it's
leaning weaker job market, so.

Speaker 2 (01:24:39):
You feel like they're gonna like experiment a little bit.

Speaker 7 (01:24:42):
I think they're gonna experiment. Well, I don't know if
they'll caught experiment, but I think they're willing to do
a quarter point because I think the numbers out right now,
unless we get some really new numbers, only that it's
kind of in the middle, and they could go either way,
and I think they're leaning towards going ahead and doing it.

Speaker 2 (01:25:00):
I only saw headlines. I haven't actually took the time
to read what he actually said in a speech, but
the headlines are following a familiar pattern for me. Which
is kind of saying, hey, it looks like we might
have a shot at lowering rates, Like you know, you
could read read the tea leaves or whatever, read between
the lines, like we got a shot at lower rates.

(01:25:21):
And I'm always at this point after seeing that so
many times, I'm like, Okay, well.

Speaker 3 (01:25:26):
He starts mentioning unemployment, and then you start going, oh, maybe.

Speaker 2 (01:25:29):
Yeah, but he also mentioned inflation and seeing the effects
of inflation is and is it going to be.

Speaker 7 (01:25:34):
He said in this report what he said in the speech. Yeah, well,
inflation is still a concern. He feels like it isn't
going up, like it's controllable, like it hasn't gone up
enough where he's worried it might be just like an
algorithm change, you know, not not anything significant, but that

(01:25:55):
the jobs the weak jobs report where we only had
thirty five thousand jobs created in three months or whatever,
in a whole quarter. Sure I found out what the
break even the economists say break even would be fifty
thousand jobs a month. So that's something for us to
keep in mind. Well, we're looking at these jobs.

Speaker 3 (01:26:14):
What I find interesting and maybe maybe I'm just lost
in it. I think you can drop it all you want.
I don't know that it's gonna spur a bunch of
job creation. I think through COVID, so many corporations learned
we can do the same business with less overhead. Less
people go anywhere anywhere, there are less people working there.

(01:26:37):
I don't care if it's the county clerks. I don't
try to call law enforcement. Oh who do you need
to talk to? Like it doesn't matter it's a radio station,
publics truly, Like, I don't care where you go there
are less people target Walmart, less people operating at the

(01:26:58):
same volume. I don't don't see the corporations going, well,
now we'll just hire a butt, we'll open all these positions.
I just don't see that being a cause and effect?

Speaker 2 (01:27:07):
Is that? And I also can't find employees though, because
then they're pulling off the business.

Speaker 3 (01:27:11):
Why would you spend more to make the same money.
And here's the thing. Consumer spending is starting to come down.
We're consuming a little bit less. It's starting to fracture
a little bit, not a lot of it. We're consuming
a little bit less, a little bit less. So those
things is that a They'll be like, oh, they're consuming less,
so let's make more jobs.

Speaker 2 (01:27:30):
But is that a conscious decision what people just running
out of.

Speaker 7 (01:27:33):
I think you're missing a component here. So what's going though,
which is when you the theory is when you drop
when you drop the FED rate, it makes it cheaper
to borrow money. Right, So businesses then can go out
and do extra things that they couldn't do when the
interest rates were higher. Right, So that might be bringing

(01:27:55):
in employees, but why would it be, Well, let me finish,
you could also be reducing the amount of employees by
bringing in machinery to reduce the amount employees that like
overhead costs that you could normally do, which is exactly
how you can get the locked I understand. But but
but also then whoever's building those contraptions that increases their job.

Speaker 3 (01:28:16):
Well, and by the way, there was tax code, not
the last term, but the term prior tax code written
into where there was massive incentives to automate. If you automated,
you invested in automation, you got huge tax incentive. So
we're shocked that these corporations went that path and now
the jobs are like, it's none of it makes sense

(01:28:38):
to be like, oh, that'll spur a bunch of job creation.

Speaker 4 (01:28:40):
It's like, not, well, that.

Speaker 7 (01:28:41):
Means well, Johnny, when we had when we dropped the
FED rate down to zero because of COVID or close
to zero, Okay, that definitely spurred that economy. It totally turned.
We went from everybody shut into their houses in March
to buy June July. Lie right, everybody was moving everywhere

(01:29:03):
and all kinds of money.

Speaker 3 (01:29:05):
Because you're saying that, you're saying it spurred the economy
because of job creation.

Speaker 7 (01:29:09):
No, because the because it was cheap money.

Speaker 3 (01:29:12):
Because the money was cheap, we were spending money that
we didn't have.

Speaker 7 (01:29:17):
And that increases the economy. Right when people spend because
it's cheap, it increases the economy.

Speaker 3 (01:29:22):
And we're not talking about they're trying to spur the economy.
They're going to crank inflation they're talking about.

Speaker 7 (01:29:30):
I agree with that, Johnny. I I'm not saying.

Speaker 3 (01:29:33):
But we're not trying to spur the economy. We're trying
to get jobs created. Right.

Speaker 7 (01:29:37):
Know, what we're trying to do is control inflation and
do jobs. And right now we're out of we're at
a pivot point of which side are you going to take?
Because we've been very blessed for a very long time
where job creation or job employment and inflation was pretty
good for a very long time. Then we had that

(01:29:58):
nine percent inflation spy because of COVID, and it took
us like eighteen months right to get down to close
to where they want to be sure right. So the
thing is is that the way I look at it
is what they're trying to do is they want to
get back It's almost like crack like with the two

(01:30:19):
point sixty five percent interest rates. Everybody wants to go
back to that. So they're trying to figure out how
can we get back to those strong times. I'm not
saying that this interest rate cut is good or not.
I'm just telling you I think they're going to do
it right now. I think they're going to do it
because they're more worried about inflation, because that's what That's

(01:30:40):
what Pal said. But he also said he wasn't voting
in favor of it because he said it's very clear
that he says, if the majority of people want to
do it, I'm for it, you know, the board members.
But if the board members vote no, he's going to
be okay with no two. But if it's leaning yes,
he's going to be part of that lean forward if
it looks like it will go through. So and I

(01:31:02):
think he's, well, no, there's thirteen votes. He's only one
in thirteen.

Speaker 2 (01:31:07):
Vot what I'm saying, So he has to go with
the majority, right or no he does he's part of it.

Speaker 7 (01:31:13):
No, he does it. He could vote knowing he could vote,
six people could vote, knowing seven people could vote.

Speaker 4 (01:31:19):
Vote.

Speaker 7 (01:31:20):
Isn't any different than anything exactly.

Speaker 2 (01:31:22):
He can't say yes or no. He's basically to vote
and then majority rules.

Speaker 7 (01:31:26):
Yes. Oh, I see what you're saying.

Speaker 2 (01:31:28):
Yeah, yeah, Which is another thing like come May next year.
That may be a misconception right now.

Speaker 7 (01:31:34):
I don't know if I don't really think that this
quarter point is going to make a difference either way.
I think it's going to be a nothing burger and
I and that's the other thing I'm trying to get
back to the article. The other thing is is that
they're trying to predict what would happen if the FED
cuts the rates. And this is what the National Economists
are saying, right this is right after the symposium from

(01:31:55):
Power for the speech. What they're saying is what they're
predicting is that we're going to after the Fed cuts
the rate, we're going to remain at six point five
ish for the rest of the year. It's just what's
been happening since March of.

Speaker 2 (01:32:09):
This year, because they've already baked in.

Speaker 7 (01:32:11):
Because it's already baked in. We were at six point
eight six and now we're at six point five eight.
It's already baked in already. Big.

Speaker 2 (01:32:18):
This is one of those things that you talked about
I think off air briefly, which was the mortgage rates
are not tied directly to the FED lending rate, the
base bank to bank lending rate, and so just because
the FED rate goes down doesn't mean you're automatically going
to get a quarter point reduction in your mortgage rates.

Speaker 7 (01:32:36):
As as a matter of fact, proven twice in the
show at twenty eighteen, and what was it last year?

Speaker 2 (01:32:41):
I mean, look at last year, Johnny, what was our range?
Last year? The FED rate didn't move? Uh, I'm sorry
till the being up. Leading up until they moving, mortgage
rates were somewhere between.

Speaker 7 (01:32:53):
Five points two oh, you mean, right.

Speaker 2 (01:32:55):
Between six and seven and a half, while the Federate
did nothing right, So mortgage rates had a full over
a full point of movement throughout that time, and the
FED rate didn't move it all at all. So if
you don't have any starker example of how they're not
tied together, now, I will give you this over the
long term, if you were to take the all time

(01:33:18):
chart and stack the mortgage chart on top of the
FED chart, you will see the same movement. Okay, so
over the long term, mortgage rates do follow what's happening,
but it doesn't mean you're going to get a quarter point.

Speaker 7 (01:33:29):
It's not a direct impact, a direct immediate impact necessarily, right,
So it kind of shows where the trend is going
for the interest rates, but it isn't like the Fed
cuts the rate today and then tomorrow the mortgage rates
react to it, and that's how people think it works,

(01:33:49):
and it doesn't work like that. And that's why I'm
getting so sick of hearing people again, oh when the
Fed cut, because we're hearing about it all because September
they're supposed to cut the rate. So everybody's talking about
this like no, no, And that got me back to Kevin,
Kevin O'Leary where he's sitting around saying, oh, you know,
the FED would have to cut the interest rates by
two you know, two point zero percent or two point

(01:34:12):
zero points, and he goes and that's not going to happen.
But you did say that, right, He didn't.

Speaker 2 (01:34:16):
In order to in order the housing mark.

Speaker 7 (01:34:19):
In order is for the housing mark. And he's so
wrong about that. That guy doesn't know real estate. He
might know other stuff, but I'm telling you doesn't have
an agenda or residential real estate.

Speaker 6 (01:34:27):
But if they do cut the right by two points, right,
that the FED rate the Fed?

Speaker 2 (01:34:32):
Right? I think if you cut the FED rate by
two points, that's going to have.

Speaker 6 (01:34:36):
An impact on the mortgage rates.

Speaker 2 (01:34:39):
Yes, yes, and especial yeah. People. I don't know if
they'll go up. They might go up temporarily because if
it's a sign of problems.

Speaker 3 (01:34:48):
I was gonna say, if the Fed cuts percent, everyone's
gonna be like, WHOA, what is going on?

Speaker 7 (01:34:54):
That would happen though, is is like those steep cuts.
What everybody forgets is is that that is the mortgage
rate that the Feds are paying for the twenty one
trillion dollars we owe or whatever. Ah right, So anytime
they drop that rate, we're saving so much money on
our monthly debt. Just to pay off that interest on
the trillions of dollars we owe. And that's where I

(01:35:16):
really feel that's what spurs the economy in a way,
partly because the federal government is spending tens and tens
of millions, if not low billions per month less for
the interest rate on that debt. Episode, I get to
know extra money that they have that they budgeted to

(01:35:36):
put towards that that they don't need anymore. That helps
spur the economy too.

Speaker 2 (01:35:42):
When the talking heads start talking about trillions and billions,
like I just kind of like lose Laise over. Yeah,
I'm just like, Okay, here we go again, Like of interest,
trillions are billions of interest payment. I'm like, oh my god, right,
it's real though, it's so real almost. I'll tell you
what would be good for if if mortgage rates go down,

(01:36:03):
because for whatever reason, refinance opportunities will open up for
a lot of people who have been buying since no, probably.

Speaker 7 (01:36:11):
November November twenty twenty three. Okay, if you bought around
November twenty round the high you were at this seven
seven to nine.

Speaker 2 (01:36:18):
Interest exactly, you might have already refinanced.

Speaker 7 (01:36:21):
Yeah, you might already want to refinance now, right, that
that's an opportunity, But please don't fall into that trap
of just refinancing because you can save on the interest rate.
Find out how much it's going to cost for you
to do that, and then extrapolate the numbers to make sure.

Speaker 2 (01:36:38):
Yeah, hopefully you could talk to somebody with just a
little bit of I wonder who that would be. Yeah,
just a little bit of knowledge of like what you
should trying to be, what you should be trying to
achieve with your refinance. I mean, sometimes it's that consolidation.
Sometimes it's lower in the interest rate. Sometimes it's like
paying the least amount of interest over the long term.
Sometimes I just got to get my payment down, like

(01:36:59):
it's tight payment to go down, and motivations very yeah,
And so when you have that refight conversation, it should
be about like, Okay, what are the goals of this
refinance and if the rates go down, we'll see that.
And if anything, housing prices, if it does, you know,
cause the housing market to kind of pick up. Housing

(01:37:21):
prices will go up, which is also good for refinance candidates, right,
because equity positions more important. Maybe cancel your Morgan insurance
stuff like that. If you're a buyer, sounds good like
rates come down, any of my rates to be in
the fours or fives. But what's going to happen in prices?
If that happens, I don't know. I mean right now, Jim,

(01:37:44):
you kind of started this like is it slow? There
was a market report that came out. I would say,
right now, if I'm a buyer, you have more negotiating power.
We've been saying this for you know, a couple of weeks,
couple of months at least, you have more negotiating power
now than you've had in recent memory to negotiate a
deal so that it's favorable for you in whatever, whether

(01:38:05):
that's money. Usually it's like can I extract some money
from the seller one way or the other price reduction,
seller credit. Once you've extracted the money, then you determine
the best way to use it. Right, So, am I
buying down my raid? Am I prepaying my mortgage insurance?
Am I covering my closing cost to leave a little
bit of money in my pocket so that I can

(01:38:25):
move and buy furniture without having to borrow money to
do that. So you know, it's a good time for that,
and that's because sellers are sitting on the market longer,
and sellers are willing to If they're on the market,
guys they want to sell.

Speaker 3 (01:38:40):
We're definitely into much more of a buyer's market.

Speaker 2 (01:38:43):
You just have a lot more time, and you know,
you can strategize, and you can figure out a game
plan to put things together in a way that works,
and you end up at a payment that you're comfortable with,
and you end up at a cash position that you're
comfortable with. And if you can't make those stars align,
that's fine. You can't get the right house, you can't
get the right house the right numbers, fine, maybe you
are waiting for something to change, But now you're lined

(01:39:04):
up so that you can kind of assess that right
like kind of like a passive chopper massive house hunting.

Speaker 3 (01:39:12):
One thing that Jim's always really paid attention to is
as we go market analysis and you know, you get
the numbers and we break them down and I guess
we'll get into it next week is the uh, you know,
the foreclosures and the distressed homes and keeping an eye
on how those are coming up. I read an article
this week wallet Hub. They do a lot of these

(01:39:33):
like breakdowns of you know around the country, best area,
worst area, YadA, YadA, And they talked about the states
that are in the most financial distress. Texas and Florida,
according to wallet Hub, are the two states that are
in the most financial distress. Talking about the population and
the it's always interesting to see what they what what

(01:39:54):
parameters they use to kind of come up with their lead.

Speaker 4 (01:39:57):
Distress's always key with it's key, it's key.

Speaker 3 (01:40:00):
And this one in particular really caught my attention because
they talked about people with their personal finances falling into
these sixty ninety days late, they're starting to really fall
behind on their payments for their personal finances, Texas being
number one, Florida be in number two, and as we're
as a population in the states start to get to

(01:40:21):
where they're falling behind on their payments, the mortgage is
always going to be the last one, right, right, always,
usually usually because you got to have somewhere to live.
I would think the car payments probably like one of
the last ones as well. I think the credit cards
would probably be the first ones to go.

Speaker 2 (01:40:37):
Right.

Speaker 7 (01:40:37):
They're always going to make their phone, car, cell phone,
car home or the right three No.

Speaker 2 (01:40:42):
This was but remembering like the crash, like two thousand
and eight, two thousand and six, two thousand and eight,
people were still paying their credit cards but not paying
their mortgage, right, so that was like a deviation from
the norm. Like the norm, mortgage were supposed to be.

Speaker 7 (01:40:56):
The last because last things people were told, oh they
don't of the note, they're not going to be able.

Speaker 2 (01:41:01):
To or just your home value got cut in half
and screw it right.

Speaker 7 (01:41:07):
Right, yeah, yeah, you just said, I don't what the
hell for?

Speaker 3 (01:41:10):
So we're not in that environment right. Home values doesn't
look like anytime soon they're gonna get cut in half.
The footing we're standing on is really, really firm. It
feels like it has been for years, so that I
don't feel like that's a threat. But I think it's
interesting to see the the numbers starting to compile. Now.
I don't, you know, nobody talks personal finances, so I

(01:41:31):
don't know if I got a bunch of people in
my life that are falling into this, but if we're
starting to as a state fall into this.

Speaker 2 (01:41:37):
How were extended on credit? Yeah, cards, but.

Speaker 3 (01:41:40):
Housing markets, it's gotta it's gonna come event, and as
buyers to me it's buyers.

Speaker 7 (01:41:47):
To me, it's still all about There's an article of
re member I was telling you about the Bank of
America thing. They're talking about how the New York Fed
Reserve Quarterly Household Debt reports. I'm sorry. The New York
Federal Reserves Quarterly Household Debt Report shows that mortgage balances
and delinquencies have trended upward over the last few years. Right,

(01:42:11):
So they're seeing it too that less people, more people
are not able to make their mortgage payment on time. Now,
a lot of those people are able to cure what
I found out over time because we've been talking about
this for years. Oh yeah, people cure it. They're sixty
days late and then they make up the payment. I
have a person right now that was in pre foreclosure

(01:42:32):
and is in a trial loan modification right now.

Speaker 3 (01:42:34):
I think most people want to be on the right side, right.

Speaker 7 (01:42:37):
So what's happened is they're slipping behind, and then they're
catching up, and they're slipping behind and then they're catching
up again, right. So that's showing how shaky everything is.
But it's not at the collapse phase yet because they're
catching up again. Right. Well, once that employment rate starts
going above. We're only at four point two right now.
My theory is, and I'm making up this theory totally

(01:42:59):
out of my head. This is not based on factual stuff.
It's just the jim Depola thing. It's a theory, Jimmy
d thing. It's I'm thinking that when we get into
the sixes for unemployment, because that's a couple of million people,
that's about three million people out of jobs, or when, no,
if that happens, No, no, I'm not expecting it to happen.
I'm saying if we hit that six percent unemployment, that's

(01:43:22):
where I think that we're really going to see the
real estate foreclosures, in loan modification, short cells, bankruptcy filings
really going up a lot at that point. And even
six percent, it isn't going to be like two thousand
and eighty, two thousand and nine, right because I feel
like it might be like five to fifteen percent of

(01:43:45):
the houses that are in trouble versus forty percent of
the houses in trouble right when we had the big crisis.

Speaker 2 (01:43:51):
We're still out of the number.

Speaker 7 (01:43:52):
It's still a big number, don't get me. Yeah, fifteen
percent would be a crisis huge number, right, But it
wouldn't be the two thousand and eight two thousand and
nine crisis, but it would be bad. Right. So it's.

Speaker 3 (01:44:05):
More of a financial like a mortgage kind of footing this.
This would be more this is this is personal finance.
This isn't like a it is environment it is right.

Speaker 7 (01:44:15):
It guess some fraudulent activities that people lost their jobs
and they can't afford the bills that they got.

Speaker 3 (01:44:20):
Right, we wouldn't hear things like toxic loans. We wouldn't those,
You wouldn't know.

Speaker 7 (01:44:25):
It wouldn't be any of that. What we'd be hearing
later if that all stuff happens again. What we're gonna
be hearing all the scam artists that are gonna come
out of the wild work.

Speaker 5 (01:44:34):
I could save your house for free, right, I'll save
your house. I'll get you one hundred thousand dollars for
moving cost of movement. Right, And they're gonna start asking
for upfront fees. Remember that, Johnny, when people were doing
low mods and short cells and stuff, and they would
charging you upfront fees and everything, which we never did
because it was illegal, was against federal law. Right, So

(01:44:54):
all that stuff will be coming out of the woodwork
again and don't fall onto that trap. I hope we
never get there, and there's nothing to show that we're
going there right now.

Speaker 3 (01:45:03):
Nothing. Well again, the wallehelp number kind of showing that
maybe we're slipping a little bit. As far as personal.

Speaker 7 (01:45:11):
I think we're really shaky. I think it's shaky. But
I don't know which way we're gonna fall yet, or
we maybe we won't fall at all. Right, we might
just straighten up again and it'll stiffen up. But what
the what the Bank of America is saying is that
there there's.

Speaker 3 (01:45:25):
Do you want to take a call real quick?

Speaker 7 (01:45:27):
Oh yeah, I'm sorry, I didn't even notice.

Speaker 3 (01:45:28):
Eight ninety seven six six he got there.

Speaker 4 (01:45:31):
Speaking is stiffening up? We are our good friend paul
In calling in from heaven.

Speaker 2 (01:45:37):
Well, I don't know anything about real estate, so let
me whip this out and you tell me if this
is a lot.

Speaker 7 (01:45:50):
I thought for sure. I think I thought for sure
he was going to say something about wenuses he just shows. Yeah,
I thought for sure he's going to do it is
the whole show. Since hey, how people do that?

Speaker 3 (01:46:06):
You know, it's pretty big.

Speaker 7 (01:46:10):
So even Bank of America is saying that this housing
market is going to be kind of math for a while.
They think we're going to be around six and a
half percent for quite a while, and uh, you know,
and and they they say in this report that's not bad.
Since nineteen seventy one, six and a half percent is
pretty good interest rates, you know, over the last fifty years.

(01:46:33):
It's a pretty good rate to have.

Speaker 3 (01:46:34):
I think it's really good.

Speaker 7 (01:46:36):
There are many many decades where people would have loved
to have the interest rates that we have right now.
Oh yeah, okay, But I know that prices have been high,
you know, and that's what strips out the costs, like
the high insurance costs, the high prices for housing, and
that's what really hurts it. But it really the market

(01:46:56):
for buyers is pretty good sellers. If you're motivated, your
price it correctly, your house is gonna sell. It isn't
like you're gonna sit there. And you know, if you
price it correctly, If you don't price it right, you're
gonna miss the market. But uh, you know, but that's
real estate right all the time.

Speaker 4 (01:47:11):
Another big aspect to of prices inventory what's inventory sitting
at now?

Speaker 3 (01:47:16):
Has it?

Speaker 7 (01:47:16):
We've actually seen a slight. Yeah, it's kind of flat
right now. We were seeing it expand pretty quickly and
then it started to flatten out. It almost shrinked a
little bit, one month to shrank. We're gonna find out
next week, how what if that's a trend or if
it went back up again, and we'll find out.

Speaker 3 (01:47:32):
Where we're floating around like five months.

Speaker 7 (01:47:35):
You were almost six months right on the six months, Yeah,
like five point eight, five point seven.

Speaker 2 (01:47:40):
So for Johnny, it's like rates where they should be,
inventory where it should be, right Yeah, yeah, yeah, So.

Speaker 7 (01:47:48):
What's everybody complaining about that? They say, what's making a
big deal about it?

Speaker 3 (01:47:52):
Affordability? I understand, Uh, we all we all would like to,
you know, pay as little as we possibly can. I mean,
that's just I don't care what we're talking about, right,
whether I'm talking about a gallon of milk or a
house gally gas, I want to pay as little as possible.
We get that motivation when you're working with pros. Pros,
you at least can get an understanding of what reality

(01:48:15):
is for you.

Speaker 2 (01:48:15):
Speaking of gas, have you seen this trend where the
cash price, you know, the cash price in the car
price is always like did we talk about this before?
There's always like, what would you say, the difference between
pain with a debit card, a credit card and cash? Right,
there's some sort of difference. It was like, well, you
didn't have to worry about it.

Speaker 3 (01:48:36):
Not every place advertises the difference, but some do.

Speaker 2 (01:48:39):
Yeah, so now you'll see this trend where their cash
price on eighty seven on eighty seven, it's a dollar
difference per gallon between cash price and car card price.

Speaker 7 (01:48:55):
Difference nine when I pulled in and they produce the car,
and then I looked and it was three ninety nine.
So I paid a dollar.

Speaker 2 (01:49:03):
Ten dollars per gallon, Yeah, per gallon. And there's gas
stations that are doing this. I don't have a problem
with it, just other than how many times did I
not pay attention to it? Because I'm really not paying
attention when I'm up there. But now I know the
gas stations that do it, and I will bring cash
if I'm going to buy at those plays, I'll take
advantage of it.

Speaker 3 (01:49:22):
What gas stations because I only pay cash. I'm a
cash I don't even I can't tell you the last
time I.

Speaker 7 (01:49:29):
Said, I can tell you, like three up by where
I live, but it's too far.

Speaker 3 (01:49:32):
In the world.

Speaker 2 (01:49:33):
Certain gas stations will do it. The other ones will
just have you know, they have the higher eighty seven
price right like normal, So you just have to look
when you go in and check it out next time
you're there. But if you're paying cash all the time,
you're fine. You've always you've always been paying the least
amount possible.

Speaker 3 (01:49:50):
So I've noticed some of the marquis they'll put like
and it'll be a little cash in the corner when
they got the price up, and then they might flip
it and put credit in the corner. I have seen
that before, and I'm always and I get, you know,
fooled by it. Sometimes they.

Speaker 7 (01:50:05):
Almost like I was like, that's crazy.

Speaker 2 (01:50:07):
Per gallon dollar Yeah, it was a dollar, yeah per
gallon difference between cash and credit. I saw that. I
spotted that. I was like, what is going on here?
And then now I've been paying attention to it, so.

Speaker 7 (01:50:15):
Yeah, me too.

Speaker 3 (01:50:16):
I started so putt pushing the you know, the transaction
fee for the card or the card reader or whatever
onto the consumer.

Speaker 2 (01:50:23):
I understand that, yeah, yeah, per gallon, So making money
on that, I think they're losing money up with cash
payers but then they make up enough with card pays right.

Speaker 3 (01:50:33):
Yeah, yeah, everyone right.

Speaker 2 (01:50:34):
And there's always been that little difference with a dollar.

Speaker 3 (01:50:37):
It was like wow, wow, is right. Thank you very
much for being with us on a Saturday, every Saturday,
and we appreciate you being out there. Remember Florida talkre
Estate dot Com. That's Florida talkreal Estate dot Com. When
you're looking to buy a home, sell a home. You're
stuck with your home. You don't know what to do
when you need a pros pro touching anything in the
world of real estate. Florida Talkrealestate dot Com on Facebook
and YouTube. Know what, use it, love it, share it.

(01:51:00):
Florida Talkrealestate dot Com. Microw mortgage guy from the mortgage firm,
have a great weekend.

Speaker 2 (01:51:04):
Hey you too. Thanks everybody, pay the.

Speaker 3 (01:51:05):
Least amount on your gus Ross Kmara nets with Bright
Wintersher's Juno Beach. I hope you have a fantastic week
Thank you.

Speaker 2 (01:51:10):
I hope you do too.

Speaker 3 (01:51:11):
Always a pleasure to see you. This is Jimmy d
jim to Polo with the Florida Home Pros team. Have
a great weekend, my friend.

Speaker 7 (01:51:16):
You too, Thank you, Jimmy, Jimmy Vy have a great weekend.

Speaker 4 (01:51:20):
You as well, gentlemen, have a great weekend.

Speaker 3 (01:51:22):
Locker Room's next, Yes it is. Oh, we gonna squeeze
out of the sports show. It's a beautiful thing. Stick around.
I'll be listening. You should too. We'll be back next Saturday,
Florida Talk Real Estate. We'll do it again right here
on Real Radio.