The following program. The ENT , mortgage and Realty Show is paid for in full by ENT mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8. The advice and opinions expressed during the Academic Mortgage and Realty Show are solely that at the hosts and guests of ENT mortgage, LLC, and not WTMJ or Good Karma Brands.
Speaker 2:Welcome to the Accu Net Mortgage and Realty Show, getting you inside information on buying, selling, and financing your home with expert advice from Accu Net Mortgage and Realty. And now, here's J Wicker and Tim Holman .
Speaker 3:Good morning and welcome to the Accu Mortgage and Realty Show. I'm David Wicker, senior Loan consultant and Chief Client Experience Officer at Accu Mortgage. Joined today by Brother-in-Law and fellow senior loan consultant Tim Holdman. Tim, a happy playoff Sunday to you. You at , you were on with Brian last week and you're on with me this week. Uh, I appreciate you , uh, being on the air with me today.
Speaker 4:Of course. Happy playoff. Sunday Go Packers. Uh , I am extremely nervous. Yes. Uh , but , uh, you know, we're playing with house money, so it'll, it'll be fun no matter what and hope everyone's staying , uh, warm and dry. 'cause we have finally hit winter. Uh , so
Speaker 3:It feels like winter. Yeah . Yeah. I was telling , okay, we'll come back to this. I was telling some real estate agents , uh, uh, late , uh, on Friday. I was like, you wanna talk about a , a great time to be a buyer? You wanna go to an open house , uh, uh, at 4:00 PM on Sunday and you hope the weather's terrible. Yeah . 'cause no one else is gonna be there. They're gonna be in front of their TVs. Correct . Maybe, you know what it is? All the Bears fans will be out looking at houses later this
Speaker 4:Afternoon. All the , all the Bears and Vikings fans. Yeah . Oof .
Speaker 3:Uh , if you have a question or a comment, you can call our text us on the WTMJ talk and text line 8 5 5 6 1 6 1 6 20. You can always grab a podcast of today's show and any past show, wherever you normally get your podcast. Uh, Tim. So this week , uh, the reports , uh, one report and then the follow-up report that mattered the most was the CPI report on Thursday morning. The Consumer price index report , uh, that came in , uh, at year over year at 3.4%. Okay . Month over month. That number came in at 0.3%. Uh, just as a reminder, the Federal Reserve's mandate is a balance between full employment and price stability, which basically means keep inflation in check. Their bogey is at or around 2%. So we are slightly above,
Speaker 4:Not
Speaker 3:There yet percent run . No . But, but boy, we are less fat than we used to be on inflation , uh, in summer of 22. Uh , we were in like the eights and nines year over year. I
Speaker 4:Remember that.
Speaker 3:So , and , and this has been what, you know, this has been the elevating ingredient for interest rates. And so we continue to get less fat with regards to inflation, but let's not pretend we're skinny yet. And the market, you , what's funny is markets, you know, Monday, Tuesday, Wednesday, the bond market, it was just kind of just like bracing itself, just like hands against Mm-Hmm . <affirmative> the wall. Just like, oh man, what's gonna happen on Thursday? Yeah . And then inflation report came out on Thursday. It was kinda like
Speaker 4:It was a nothing burger. Yeah.
Speaker 3:Yeah. It was like, not bad, not good. Thumbs up. Okay . Markets were mostly glad they just didn't get slaughtered. Um, because , uh, that report came out on Thursday. And as we've said any number of times, Tim , uh, and dad as well, the bond market always is moving in advance of actual changes, particularly with regard to the Fed. The best example of that was when the Fed was raising rates, they tho , you know, those meetings that when the Federal Reserve Open Market Committee would meet, those are scheduled and then they would release their information, you know , their press release on Wednesdays at 1:00 PM and be like, we, the Fed raised rates by a quarter. In this example, in the last few years, well, markets had already gone up to reflect, you know, the anticipated movement. And now it's al it's happening in reverse. Rates have come down from their October highs, not because the, the Fed has, has actually done nothing. Nothing.
Speaker 4:Yeah. They've
Speaker 3:Said, they've said different words.
Speaker 4:Well, and they've announced that they are expecting to do rate cuts later on this year. Right. And that news has caused rates to come down now. 'cause they are, rate mortgage rates are future facing . They are forward facing in the , in the way that they move. Uh, real quick, David, I just want to share an anecdote . 'cause I , I'm having a lot of customers having the conversation of, oh, if I buy now, you know, when , where do you think rates are gonna go? Should I pay points, not pay points. Oh, when can I refinance? And I'm trying to tell folks, like, listen, if you're seeing your Google News headline, talk about the rate Fed cut or the Fed rate cuts, that's actually not directly affecting mortgage rates. If you wanna keep a pulse on where mortgage rates are going, look up the news on inflation, because that is the thing that is going to have more , a more immediate effect on mortgage rates. The , the Fed's announcement, or really the Fed's actual rate cuts aren't gonna move the needle on mortgage rates at all unless they do something that is way unexpected or way different than what they said they were going to do. Yes. The , the , the Fed's indication of their future rate policy is actually more having an immediate effect on mortgage rates. Not when they actually do the, the cut or the raise or, you know, whenever they have the actual meeting.
Speaker 3:True. So that inflation report came out on Thursday, like we said, was kind of an nothing sandwich. Or like, Hey, you know, we're, we're conquering infl . We continue to conquer inflation, but let's not pretend we are all the way there yet.
Speaker 4:Yeah . We're not, we're not all the way in the end zone. Yeah.
Speaker 3:Well, and as you and I work with clients here at the start of the year, I don't wanna say rates don't matter, but man, a lot of folks are just deciding 2024 is the year's I want to get into .
Speaker 4:It's not stopping people from buying homes at this point.
Speaker 3:No. So I want to get into a couple of those clients that we've been talking to here this last week. Uh, you are listening to the ATE Mortgage and Realty Show on AM six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Welcome back to the Acuate Mortgage and Realty Show. I'm David, that's Tim over there. Uh ,
Speaker 4:Good morning
Speaker 3:Tim. I've got clients who wanna buy houses in 2024 'cause they're like, it is time to keep moving on with life. Yeah.
Speaker 4:We're, we're done waiting for the new normal at the nor the new normal is here, so Exactly . Let's just get it done. Yeah .
Speaker 3:So these folks , uh, were referred to me by their financial advisor and Okay . What I , you , I just love when there's a lot of moving pieces. Dad has described that being , working in mortgage is a lot about solving puzzles. Mm-Hmm. <affirmative> . And , um, we also like to say it's, you know , mostly it's about problem solving. Call it whatever you want. Yeah. Well, I mean, it's always fun when there's more puzzle pieces 'cause that's, yeah . You know, that's what makes me tick.
Speaker 4:We've been doing this a long time now and it's like the, the super easy, super boring scenarios are honestly kind of boring at this point. <laugh> , I like, I
Speaker 3:Like it Good . Not that we don't dislike boring. Yeah,
Speaker 4:No, not at all. But like, yeah, it , it, it adds, it gives us more value, basically. Like otherwise, like, we're not McDonald's mortgage. We're not just being like, would you like fries with that? Okay, here's your mortgage. It's like we , wow . We are consultants. We like putting together really complicated game plans, choosing the best execution of the game plan for the client. You know, all those things. So , sorry, go on with your, with your story .
Speaker 3:So these folks, these, guess what, these folks live currently live up north and they would like to move closer to the Madison area. Tim, my clients are in their sixties. Would you like to take a wild guess what, what do you think is the center of gravity in their life? Maybe pulling them to the Madison area.
Speaker 4:Hmm . I'm gonna guess grandkids. David,
Speaker 3:Ding, ding, ding, ding, ding. Grandkids. Yeah . Shocker. Not rates, not home values, grandkids. No .
Speaker 4:Always about the grandkids. So
Speaker 3:They have , uh, been living in this current home up north for less than two years. So we got a couple things going. Um , we should say , uh, here at AUM Mortgage, we do not provide tax advice. We know how to log onto the irs.gov websites.
Speaker 4:We are not licensed tax advisors. We are .
Speaker 3:Exactly. But we know how to read. Yeah . And so these folks have an interesting timing element to their next home purchase. They, if they sell their current home before July of this year, 2024, they are likely to incur capital gains on this residence as they will not meet prior to July. They will not meet the two year primary residency requirement. Timeline requirement
Speaker 4:Yeah , sure. For the IRS to avoid the capital gains tax anyways .
Speaker 3:Indeed. And what's interesting is they've actually owned this property for more than 20 years. They've been Oh . Working on this , uh, home improving it. I , it might've been dirt, you know, when they bought it 20 some years ago.
Speaker 4:<laugh> , it's an old hunting shack or something like that. Well,
Speaker 3:And so they previously owned a primary residence in the Milwaukee area. Sure . Sold that, then moved , moved up
Speaker 4:North
Speaker 3:Full time , moved up north. And as we said, you know, I was telling them, you know, it's probably not wise to play chicken with the IRS. And so our, our timing of like, when did this become your primary residence was when did you start receiving mail? Yeah . Uh , at your up north place. And the answer to that was July of 22.
Speaker 4:Okay.
Speaker 3:And so the , if they were to sell , uh, uh, we've done this, I had a story the other week with dad about turning the lights on and pointing at the boogeyman. Right. Because you say, you say something squishy about capital gains on the sale of my home. It's like, oh, the sky is falling. Yeah. It's like, well,
Speaker 4:Let's, let's
Speaker 3:Quantify this.
Speaker 4:No, I like it. I always wanna find out, hey, let's what's the worst case scenario, quote unquote . Yes . And , and then let's talk more about that. 'cause to your point, maybe it's actually not as scary as, you know, as you think it is .
Speaker 3:So for them, and we did that and you know, I , I gave as many disclosures as I possibly could. Like I am not your tax advisor. You know, please do not consider this advice, but I know how to do math. They have done their best to , um, document all of their basis , uh, for this home. 'cause that reduces then the taxable amount. Okay . So if they sell, they probably will have about $200,000 worth of taxable gains, I'm gonna call it. Okay . If they then have to pay capital gains on that at 15%, they're talking about a $30,000 bogey. If they sold this home before they met before July two year . Yeah. Before they met their two year window. It's a $30,000 decision. It's a $30,000. Like , uh, do we sell, do we not sell? What does that timing look like? It's
Speaker 4:A , it's, I call it the , the , we'll call it the $30,000 accelerator cost. Right. There you go. Exactly . You wanna accelerate your, your move timeline. You gotta pay the piper.
Speaker 3:Exactly. Let me detail you how we're gonna help them not incur that $30,000 of capital gains Mm-Hmm . <affirmative> possibly by crafting how they purchase this next home in the Madison area. More details on that. Helping grandparents move closer to their grandkids at Anette Mortgage <laugh> . You're listening to the Anette Mortgage and Realty Show on AM six 20 WTMJ getting you
Speaker 2:Into the home of your dreams. Here's more of the Accu Net Mortgage and Realty Show with Brian Wicker on wtmj.
Speaker 3:Thanks for hanging with us here on Playoff Sunday. This is the Anette Mortgage and Realty show. Tim telling a story about a retired couple, who should we just rename, you know , a portion of ANet grandparent mortgage? You know, 'cause that's, that's the best reason there is anyway. Uh , it ,
Speaker 4:It's , it's definitely a big one. Yeah.
Speaker 3:So, so these folks are juggling a couple , uh, important, you know, financial decisions. And they , uh, as we described in the previous segment, if they sell this current home up north before July, they're , they're likely to incur some capital gains. So what I crafted for them was to u to classify this new home in the Madison area as a secondary residence.
Speaker 4:Sure.
Speaker 3:Uh, because then they can with a straight face be like, Nope, our primary residents remained up north Mm-Hmm . <affirmative> until summertime. And then we moved to this additional secondary residence that we financed , um, you know, in the Madison area. Yeah. So that tackle and they just have to tackles their concern.
Speaker 4:Yeah. Well, and I'm , and I'm sure they brought this up, but secondary mortgage rates are slightly higher than primary residence mortgages. But the extra interest they're gonna pay on that for a couple months. Uh, you know, until it is their true primary residence. And then they probably refinance. Yeah . That is gonna be way less than a $30,000 capital gain tax, which is what we ified in the previous segment. So it's Yeah . They're still coming out on top <laugh>.
Speaker 3:Right. And so, so that was success. So we kind of tackled the concern about capital gains. The other piece that these folks wanted to , um, reduce was, was actually the interest expense. So they're actually proceeding with a 15 year fixed on the secondary home to further reduce that interest expense.
Speaker 4:And if they, if they can swing it on the monthly payment side of things, why not? Yeah.
Speaker 3:In addition to that, in working with their financial advisor, I've had a string of these and it's been great. ACU net mortgage is absolute pros at helping retired folks turn their IRA assets into monthly income that we can put on the mortgage application. Yeah. And , and that while down payment is important in mortgage lending. The other third of the formula is income. Mm-Hmm . <affirmative> . And when we help convert on paper that asset into income, it's literally the same as if you're working a W2 salary job at Kohl's corporate. It's the same thing in the eyes of mortgage lending.
Speaker 4:It's, it's an amazing tool that, like, it almost sounds too good to be true, but I mean, it , it is one of those sweet spots where it , it's an asset. But if you're over the age of 59 and a half and it's a personally controlled IRA, we get to actually call that a qualifiable income source Yes . In the mortgage world and tap into it, even if you're not gonna actually use it continuing as an income source going forward after closing.
Speaker 3:So I've saved my best. So, I mean, come on. Puzzle pieces . Mortgage <laugh> , thank you for calling Puzzle mortgage. How can we put this together for you? My last piece of the puzzle though, Tim, was, so my clients had on their up north home, they have no mortgage. Okay . Got a ton of equity, let's call it like $400,000 of equity. They also happen to have $200,000 of cash. Okay . And so they were deciding how should we assemble our down payment for this
Speaker 4:Purchase? What price range are they shopping in in the Madison area?
Speaker 3:Uh, it's the, it's like north of $600,000.
Speaker 4:Okay. So it's
Speaker 3:A chunk of change. Um, and they would like to do a strong down payment both to get the better rate on the 15 year fixed. And because it's a secondary home, it , it gets them better pricing. Right. My, what I was proud of was I said, I, 'cause at some point when they sell, they're up north house , they're gonna get this flood of money.
Speaker 4:Yeah. This, this windfall of cash. So
Speaker 3:Yeah . So , so it's, it's about bridging , uh, from when they close here in January to when they get a bunch of this cash in
Speaker 4:Bridging. Bridging. Yeah . Okay. <laugh> .
Speaker 3:So I told them, here's what I want you to do. I want you to use all the cash or nearly all the cash in your savings account for your down payment. Yeah .
Speaker 4:'cause you're gonna give it back
Speaker 3:'cause you're paying because well, because you're paying 0% interest on that cash. Right. Then I'm gonna help you set up a home equity line of credit on your primary home that on the day you get it is a zero balance. Then what I want you to do, I want you to pay bills by pulling only what you need. Yeah . From that home equity line of credit. So let's say they got $10,000 a month in bills, it's better that they pay interest on the smaller $10,000 than maybe as they incur thousand dollars the next month. Right. As they incur it . Maybe $30,000 the next month so that the , they're not paying interest on the big chunk, which I would say is maybe more the regular bridge loan advice. Yeah . I was particularly proud
Speaker 4:This was a , a flavor of bridge loan though. I I like that. That's good advice. I actually, I it
Speaker 3:Was self bridge .
Speaker 4:We'll, we'll swap stories 'cause after the break I've got a customer with an equally fun little puzzle , uh, mortgage scenario that I helped put together for him . So, we'll, we'll talk about that next after the break.
Speaker 3:Now it's time to turn it over to the 24 hour newsroom.
Speaker 2:Don't break the fact to get into a house. Back to the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 4:Alright . Welcome back to the Anette Mortgage and Realty Show. We're having a good time , uh, anxiously awaiting kickoff <laugh> . Uh , and in the meantime, you know, just to calm our nerves, swapping some mortgage stories , uh, David, you reminded me of a customer I spoke to earlier this week, very similar to, to your grandparents in the sense that they kind of had a sense, they knew they could do something to accomplish their goal, but there's a lot of moving parts and it's like, Tim, how do we figure out the best way to, to get this done? So yeah , my customer's scenario , uh, him and his wife both retired. Uh, the , the grand , the grandkids did not come into play, at least <laugh> from, from what I know so far. Uh, but they're retired and they own a , a beautiful home worth north of 500 K in the , uh, Racine County area. So, you know, south side of, of Milwaukee , um, free and clear, no mortgage on it whatsoever. Okay . And they go down to Florida a couple months every winter , uh, to beat the snow. And they've been renting and they're like, ah , it'd be really great to find a place that we could own as a more permanent landing spot, you know, for us down there. Yeah . 'cause we see ourselves going down there every year until we, you know, literally can't travel anymore
Speaker 3:On there on a day like today. I understand that more or this weekend. Yeah , I understand that more than ever.
Speaker 4:No kidding. Um, but then the other twist is that he's like, well Tim, simultaneously we're realizing we got kind of too much house for ourselves at this point in our lives. Like it's just the two of us. We're empty nesters now. We don't need this really big house that we have. We love it, but we're probably looking to downsize into either , uh, a condo and they were actually looking at some new construction condos, which we can talk about that later on. Uh , or maybe a single family. Okay . So they're like, we don't know which is gonna come first, but in all likelihood, you know, a we want to be ready to snatch up a Florida home if one comes available at a good price, they're kind of shopping in the Fort Myers area, but b we might be talking within a couple months about actually moving primary residences as well. So like Tim, how do we figure out That's a lot the best way. Yeah, that's a lot. And you know , I , the nice thing is, at least about the way we operate is that we can keep things relatively fluid, relatively flexible. Right. So what I did is I gave him a pre-approval just for the peace of mind. I gave him a pre-approval letter on if you wanted to go and , and get a mortgage against a secondary home, a vacation home in Florida. Sure. Because I said, this is your, this is your green light, your assurance that financially you can qualify for a loan. You know, we've accessed this credit, we looked at income , uh, and they also by the way, have some IRAs that they're not tapping into. And I said, awesome, that's great. Because if we're in this weird in between period where you own more properties than you're actually gonna own when the dust settles. Yeah . We can tap into that. IRA as a, a sort of shot in the arm income boost temporarily. Ooh . Until I like that . Until , until you offload a property. Yes. Um, but I said, you know, Mr. Customer, the reality is you're sitting on this amazing tool that not a lot of people have, which is you have a , a property, your primary residence that is free and clear, massive amount of equity that you are , to your point, paying 0% interest on. Right? Yes. So I've heard you say this many , uh, yeah , go ahead.
Speaker 3:Uh , well I was gonna say equity is like a hundred dollars bills on your roof. It's up there, but it's like I , how do I get a ladder <laugh> so that I can use that money? Right.
Speaker 4:I like that. Um, and I said, so, you know, if, if we know this is all gonna be borrowed money, at the end of the day, the , if you want to go out and buy a Florida property, I would actually recommend that we do a cash out refinance on your primary home. Yeah . At a lower rate than if you were to go get the mortgage secured against the Florida home. 'cause that would be a vacation home, a secondary residence. Yes . Yes. He really liked the sound of that. Uh, and and he's like, well
Speaker 3:Tim , he's also in more, he's in more control then too. 'cause then it's only about him and getting the cash out refinance on . Yes . And like then he's got the pile of money. He's not, he
Speaker 4:You just show up to your
Speaker 3:Florida purchase with a bag of money. You're not even Go
Speaker 4:Ahead. Yes. And well, and no, and I , I'm glad you led me down that road 'cause it also makes him more desirable in the eyes of the seller of the Florida property. 'cause he's a cash buyer. So if he's needing to beat off other offers or other buyers, then it's like he's presenting himself as a cash buyer. Which as we all know that the seller's gonna like that more than those other folks are coming with a pre-approval saying, oh yeah, I do need to get a go a mortgage. You know, on this second home , uh,
Speaker 3:In , down in Florida, are they looking in the 400, 500 range or what's their price?
Speaker 4:Yeah. Uh, yeah, upper, I think he said 500 would be, would be their max. I'm just saying they also in ,
Speaker 3:There's a lot of people who can stroke a check for that much in Florida, which means Correct . You really do need to figure out how to be as cash-like as possible.
Speaker 4:Yeah. Just to be in the conversation of getting your offer accepted. Right . You need to be a cash buyer. That's a good point. And they also have about 200 k of assets that they are prepared to part with in some way, shape or form in the future, you know, for a house down payment. So after the break, I'll bring us back because there's more meat on the bone for this story too. Yeah . 'cause there's an update on the Florida property and an update on when they want to buy their new primary downsize home in Wisconsin. You're listening to the Anette Mortgage and Realty Show. WTMJ,
Speaker 2:Important home buying questions and answers you can count on. This is the Acura Mortgage and Realty Show with Brian Wicker on wtmj.
Speaker 4:Alright . Welcome to the Akin at Mortgage and Realty Show. Thanks for listening with us. Uh, David, just to , to put a bow on my story of my Florida slash Wisconsin Home shoppers , um, they actually ended up on Friday getting an accepted offer on their Florida Dream home. Oh, okay . So I said, all right , let's, let's giddy up and get going on your cash out refi. 'cause he wants to do that. And we're having a meeting on Monday, so maybe I'll , if I'm co-hosting with you or you or Brian next week, I'll give an update on this. Because the other thing he's considering is, well, I might want to buy a new construction condo. I know these builders are being building a couple niche condos , uh, you know, small HOA Yeah . But seems like really high quality something I'm interested in. And I said, okay, well maybe what we do is actually pull as much cash equity out of your current primary home as possible. Mm-Hmm . <affirmative> so that after you buy your home , you might have some leftover cash to then at least put a very sizable down payment or maybe even be able to buy the condo in cash as well, depending on what that final purchase price ends up being. Yeah. Um, because, you know, you can draw up to 80% of your homes appraised value on a cash out refinance of a single home primary residence. So it makes sense to do that. And then the reality is, it's , you know, after that new condo is built, which will probably be six or seven months down the road, I mean, it's, the snow has fallen . They haven't even broken ground <laugh> . So we're gonna be look maybe even fall of 2024. Yeah, yeah, yeah. At that point you can move in and then you can sell your current primary home, pay off our mortgage in full and, you know, even , uh, then get the rest of your proceeds out. I I did talk last week with Brian about this scenario, but it's developed even a little bit further since then. So I kind of wanted to give that update.
Speaker 3:So you're saying that if they, they might add one time own three homes. Yes . Because it's, you've got your primary home in Wisconsin, this Florida
Speaker 4:House , Florida
Speaker 3:Vacation home, and you're saying Right. And you're saying, let's buy the new condo before you've sold the old house here in w <inaudible> and I'm with you . Exactly . Okay. Interesting. Yeah.
Speaker 4:So we'll, we'll figure out ultimately how much they want to borrow. Uh, but the primary goal , uh, the media goal is obviously to, to get this , uh, uh, cash hand so he can, he can buy the Florida property and then maybe revisit what the next step is from there.
Speaker 3:What I was going to , you know, circle back to with you was, as you described, I I sometimes say we're not gonna run out of electrons, you know, in No , you know , putting together scenarios. And so as you were describing, it was like these clients weren't sure, hey, what's gonna come first is, is the Florida secondary home gonna happen, you know, first or is the new primary in Wisconsin home gonna happen first? And it's like, I can give you more than one pre-approval. I can give you more than one scenario. Mm-Hmm . <affirmative> Exactly. As we, as we like to tell customers, we wanna give you the confidence that there is a plan, no kind of no matter what the timing is. Mm-Hmm . <affirmative> so that when the right house pops up, you're ready. You're not wondering, you know, I , I tell customers, it's like, do you like less stress <laugh> ? And every single one of 'em says Yes. And so nobody wakes up in the morning what I want today a mortgage. Well, maybe you and me and Brian, we wake up and we're like, you know Yeah .
Speaker 4:But no one wakes up and says, I want to be, I want to be more stressed. No one wakes up and has exactly
Speaker 3:Thought . Exactly . Well you a and so when you're buying a house, what you actually want is the house. And so for your client, what you empowered them to do was pivot the decision, not from can we do this financially? You pivoted it to do we want to buy this house? Right. Which is a much more personal decision.
Speaker 4:Absolutely. And you wanna answer that first question first before we go deeper. Right. So the , because
Speaker 3:It's more stressful if you fall in love with the house and then you find out that you can't put together financially more stressful.
Speaker 4:That's the worst. Yeah. And you know, this time of year when I'm talking to, to new, you know, potential customers and they're like, ah , should I get pre-approved? My answer, my question is back is, well, are you looking? And if they say yes, right . Even if it's casually, it's like, then we should really, you know, I promise it won't be any more painful than it needs to be. But I do want to gather some of your financial info. 'cause it's like, and if you're a brand new customer of mine and not a past customer, I don't know anything about you financially. Yeah . I can't in all good conscience recommend you look at homes or even look at listings. 'cause if you're out there, you're probably gonna find something that you like. And then that's I that scenario. I just wanna do everything that possible to avoid, which is you go see a house, you love it, then you come back to me and want to get pre-approved and then for whatever reason it's not possible. Or maybe that particular price range is impossible. Right? So spend the five, 10 minutes with me or David, or or another consultant at Anette Mortgage and put together the game plan so that you don't go break your heart, you know, fall in love with a house that you can't actually buy.
Speaker 3:I've got one more tail , uh, another retired person, but I liked your income shot in the arm, especially if you have to own two homes , uh, for a short period of time. Let me tell you that story on the last segment. You are listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 2:Find a place to call home without the headache. This is the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Thanks for hanging with us. I'm David Wicker. That's Tim Holdman over there. Hey Tim, I'm gonna be wearing my Clay Matthews jersey later today. What jersey are you gonna be wearing ? You have a Donald Driver, right?
Speaker 4:Donald Driver, which number 80 with Bow Melton at , you know , is giving me Oh yeah. Super big Double D vibes. So I'm proud , proud to rock the driver , uh, jersey again,
Speaker 3:There is going to Lambo and seeing just the history of Jerseys is an amazing, you see like a Frank Winters jersey, those are the
Speaker 4:Things you see . Yeah . Antonio Freeman. Exactly. Yeah. Okay . Dorsey Levins. Ah , geez .
Speaker 3:Sterling Sharp or Yeah. Yeah. <laugh> . Uh , okay. So , uh, on last Friday, so not this past Friday. The previous Friday, we got a referral from a past customer who's also a financial advisor because her sister is moving from the East Coast back to Wisconsin to be, guess what? Closer to family. Shocker. And
Speaker 4:Yeah, this is my surprise face <laugh>,
Speaker 3:She is of retirement age and had just listed her home for sale and is gonna make some nice proceeds from the sale of that, you know, soon to be old house.
Speaker 4:Yeah .
Speaker 3:That sale will not close before she gets the, before she gets to closing on the new Wisconsin home.
Speaker 4:Sure. So for a short period of time, she's gonna own both properties.
Speaker 3:Indeed. Simultaneously and in and in mortgage lending. If on the day you are buying the new next house and you also own another property, let's just call it your old house mortgage lending wants to make sure that you can swing both of those payments and all your other monthly debts for the foreseeable future.
Speaker 4:No . The end until the end of time for forever. Yeah . Yes. Yeah. That , and trust me, in real life , I , I sort of disagree with that on premise , but mortgage lending always thinks of, of the worst case scenario. So the way I describe it to my customers is whatever your financial reality is on the day we close on our new loan. Yeah . Yep . That's how we have to treat it as if it's never gonna get better. Yep . From now until the end of time. So if, if on the day we close on your new loan, if you sell, if you own another property, even if you're gonna sell it the very next day, doesn't matter. The full cost of owning that property has to be included in the overall financial calculation.
Speaker 3:And, and so in real life, does my client moving from the east coast, does she wanna own two homes and have two mortgages? No, no. She's gonna have one mortgage payment on her new place here in southeastern Wisconsin. Mm-Hmm. <affirmative>. But for the time being for the interim, we need a shot in the arm for income. Yeah. And so once again, we reached for this amazing tool. She has retirement assets and we are awesome helping to turn that into mortgage qualifying income. Mm-Hmm. <affirmative> not because she's gonna need this income. I mean, I think literally she's gonna buy her new place by the end of January. She told me at the end of last week, she has a cash offer on her East coast house. She doesn't have that cash in hand yet. I mean, they're gonna , it's a strong offer . Have to show up . That's a strong offer. They're gonna have to show up with a bag of money , uh, you know, in February. But as you said, it's a snapshot in time. So she's not gonna need this shot in the arm of additional income. Uh, but at least to get to the end zone , uh, here in for her Wisconsin purchase, we're gonna need that. Mm-Hmm. <affirmative>. The other, the other nugget on this that we've done for a lot of clients is when she sells this East Coast house, she's gonna have a chunk of money in those from those proceeds. Yeah . Let's just call it a hundred thousand dollars. If she would like to apply that to her new loan, we can help do that. That's, that's not called refinance, that's called,
Speaker 4:Doesn't have to be.
Speaker 3:Yeah . Doesn't have to be. Most times that's called recast, which allows you to lower the new loan amount and stretch the payment out as if that was the plan from the word go. A
Speaker 4:Lot of clients , the fancy word is that they , they ream amateurize the remaining payments based off of the lower loan balance after factoring in that big principle payment. Yeah. So it's, yeah, a lot of people like that. 'cause to your point, it's as if that was the starting loan balance.
Speaker 3:That's where they wanted , if they could wave a magic wand, that's what they would've wanted from the word go. Maybe we gotta do the Texas two step in order to get there. Yeah . These are the puzzles that the loan consultants at Acuate Mortgage are putting together and solving every single day. Rates are reasonable. Uh, if you would
Speaker 4:Like to , our rates are really good.
Speaker 3:Our rates are the best. You not ,
Speaker 4:Not on top, on top of really good advice. We also have really good rates. I just wanna point
Speaker 3:That out . If you would like both great rates and great advice, all you gotta do to get started is click on the blue button@acunet.com. That's A-C-C-U-N-E t.com. Go. Packers . Packers . You've been listening to the Accu Net Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 1:The proceeding was a paid program. Advice and opinions expressed during the Accu Net Mortgage and Realty Show are solely that of the host or guests of Accu Net Mortgage and ANet Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.