The Accunet Mortgage and Realty Show

The Accunet Mortgage and Realty Show 1-10-2021

January 11, 2021 Accunet Mortgage
The Accunet Mortgage and Realty Show
The Accunet Mortgage and Realty Show 1-10-2021
Show Notes Transcript


This week’s Highlights:

  • How do current events affect the housing market?
  • Is renovating your home worth the cost?
  • More housing market data for 2020
Speaker 1:

The acronym mortgage and Realty show is sponsored by accurate mortgage and equal housing lender and Ellis IDG five five, three, six, eight, and accident Realty advisors, which is a separate company from, but still affiliated with accurate mortgage.

Speaker 2:

Welcome to the Acushnet mortgage and real to show getting you inside information on buying, selling, and financing your home with expert advice, but accurate that mortgage and Realty. And now here's Brian and David Wicker's car ride. Welcome to the

Speaker 1:

Accurate mortgage and Realty show wild card weekend edition. Uh, nice to be able to watch those other games and not have to be. Yeah, yeah, that's right. That's right. All right. I'm Brian Wichert. Uh, the president and majority owner of active mortgage and academic Realty advisors, along with David, the good looking color guy over there who is Econet mortgages, chief client experience officer. If you've got a question or a comment you can call or text us on the acronym, mortgage talk and text line, which is(855) 616-1620. You can also download today's show or any show, uh, wherever you get your podcasts, because we got those out there because we're cool like that. All right, David. So normally a week like this past one would have pushed stock values and mortgage rates both down. And that's because as we were talking with Luby before the show, the tried and true rule of thumb is that bad news either, you know, economic, political, uh, you name it. If it's bad, it's usually bad for stocks and good for interest rates. And so what are the three things that I could think of this week? We had the insurrection on Wednesday, we had COVID death set, record highs or 4,000 a day. Um, and then to cap it all off, we had a jobs report on Friday that said, Hey, in January, the number of jobs in the U S actually shrank by 140,000, the first time we've seen that since March. Yeah. So normally all that would add up to lower interest rates, but what happened, David? Let's just stick with the facts and then we'll come up with some plausible explanation using the bill, whether 10 year United States treasury the interest rate that uncle Sam pays to borrow money for 10 years. What did it start the weekend?

Speaker 3:

It, yeah, it started the week of floating. It opened on Monday morning, around 0.915%. And by the close 1%, less than 1%. Uh, and by the end of the day on Friday, the U S government was borrowing money to the tune of 1.1, one 9%. So a, uh, piercing that very important, uh, mental threshold of 1%, that's a 22% increase in five calendar days. Wow.

Speaker 1:

Right. So interest rates are up it's for on government debt up 0.2% over the course of a week when they should have come down. Um, mortgage rates also inched up the second half of the week. And just remember when you read that famous Freddie Mac, a rate survey that comes out on Thursdays, that's from where rates were on Tuesday. So this week is absolutely garbage if you're looking at that, you over there with the, uh,

Speaker 3:

The fourth thing yeah. With that pillar of both support and packer gear. But the fourth thing, uh, also, uh, was George's, uh, Senate elections on Tuesday.

Speaker 1:

It was on the election. That's right. It was a whole pots,

Speaker 3:

Uh, you know, still witches brew of information or, uh, for, uh, financial markets to digest. That was the fourth most interesting thing anyway.

Speaker 1:

Okay. That's a good point. I forgot about that. So, um, so normally you'd, you'd think that the stock market, especially on Wednesday would have gone down. I think it set a record every day, this week, and you've got interest rates going up. All right. So now what pundits do, and I guess you and I are pundits of some type, we make up stories to explain why things didn't go the way they normally do. Do you have a plausible explanation, David?

Speaker 3:

Well, uh, I was going to say, uh, sure. My, my version of this is that wall street looks beyond just one week's worth of events. And so I think what they're trying to digest is what might the world look like in six, 12, 18 months? Um, and in particular with a debt, you know, with a Democrat controlled Congress and white house, they might be passing a lot of stimulus bills and selling a lot of us treasuries. And when you flood supply, that's going to drive up interest rates across the board. Uh,

Speaker 1:

Okay. So the theory being that trillions, that when, uh, the, the Biden administration gets ignored aerated, they got, uh, a democratic house and Senate they're going to pass this$600 that a, a lot of Americans just, God is just an appetizer. So we think that the Biden administration is going to come through with lots more fiscal stimulus. They call that, uh, where the government is going to spend a lot more money, whether it's direct payments to, uh, citizens to help stimulate the economy, whether it's infrastructure programs that we've been talking about seemingly forever, you know, there's going to be better economic days ahead because of additional government spending that'll blunt, this sort of temporary, you know, they got more shutdowns in California, you got more Corona virus, the vaccine rollout, isn't going very well. We forgot to mention that as more bad news, but the, the stock market is looking through all that and saying, you know what we think good economic news is going to happen in 2021. And therefore interest rates went up a little bit. We'll tell you by how much, when we come back, you're listening to the Acushnet mortgage and Realty show on am six 20 w T M J wind advice

Speaker 2:

From a guys who know it best. This is the accurate mortgage and real Realty show with Brian record on WTMJ.

Speaker 1:

All right. So it's been an interesting week a week that normally would have seen interest rates go down instead, they went up slightly. And I'm going to tell you that on a$250,000 mortgage to purchase a home, um, on a 30 year fixed rate, we could have offered at accurate 2.75. Um, and that's, if you were willing to pay a grand total of$1,862 of loan costs to get that loan. And that's, if you had 25% equity and all the other rights stuff, um, or we could have offered 2.875, um, the, with only$488 of loan costs. And so I would say that's roughly one eighth of 1% higher than they were a week ago. Now, before you think this is going to be a big problem and really clamped down on the appetite of home buyers, if what's the monthly payment difference of one eighth of 1% of the 30 year fixed rate

Speaker 3:

On a$250,000. Yeah. On a$250,000 loan, it's a grand total of$16 and 67 cents. So a promise you're still gonna have some excellent savings despite the 16, and by the way,

Speaker 1:

The annual percentage rate on those to raise 2.7, five translates into 2.78, seven. And that's because I'm the annual percentage rate folks. You'd just take some of the upfront loan cost. Not all of them don't have to count the appraisal, don't have to count the title. Um, and you slather that out over the whole 30 years and then add it to the interest rate. So the APR and the 2.75 is 2.78 and the APR and the 2.875 is 2.89. All right. What about a refi, David? Where would we be on a refund? Cause we've been educating our listeners. There is a difference.

Speaker 3:

Yes. Uh, so on a refinance,$250,000 loan escrowing for your taxes, uh, with no second mortgage. I, I don't know if we're going to get around to a story like that later, but that's a key note for good or having the best pricing, but, uh, 2.875%, the APR is 2.9 with just$995 in costs. Um, you know, I was gonna, I was gonna, I was looking at the Freddy survey, the Freddie Mac survey. So they, you know, broadcast or pick, pick your verb. Oh, now it's declare on Thursday that, and this Thursday to mortgage rates hit a new, a new record low the first week of 2021. And unfortunately by the time it goes to press on Thursday, it is already outdated. It's like buying Saturday's newspaper and it's already Sunday, uh, or pick, pick your metaphor. And I just, I just wonder if the folks at Freddie Mac, you know, they're trying to provide a service, but at the same time, it's like they, unfortunately the mortgage world can move like it did on Wednesday and suddenly, you know, your, your numbers are an eighth or a quarter worse. It's not a huge deal, but, um, there's a delay. And so by the time it reaches you it's outdated.

Speaker 1:

Well, and I in fact, got a call from a client who saw that headline and said, Hey, we had already locked him in. Um, plus I was actually doing a loan for her dad where rates had gotten better from when I last quoted her father rates at the beginning of December. And then I locked in her rate on Monday, sorry, his rate, the dad's rate on Monday. Okay. So this goes to your point. Exactly. It's like I was, she was in her mind applying the fact that the quotes I gave her dad got better, which was from like December 7th compared to January 8th. Right. So two specific days in the life of a market. And then she was trying to apply that to her situation, but I had locked her rate on December 15th and then she was asking me on Thursday, right. When rates had gone up. So it's like, actually, no, ma'am, um, racer worst snow. And, you know, you just happen to lock in at a better time than I quoted your dad, you know, back in December. And then your dad got lucky and so on and so forth. And we'll talk about that.

Speaker 3:

I just, I don't want to, uh, although everyone wants to, you know, buy Apple stock at$10 or, you know, get that lowest interest rate again, to focus on, Oh, if we missed that eighth in rate, you know, we're talking like 15,$20 in terms of the difference in that rate, like everything's going to be okay if we're not grabbing the absolute level.

Speaker 1:

And I don't blame people for asking, they just, you know, they don't know. And then she was totally cool with it. Right. They're like, Oh, okay. I just wanted to ask, you know, no big problem. Hey, by the way, if you want her to take cash out on a 30 year fixed rate and you still have 25% equity remaining, uh, we could do 2.9, 9% on that. Um, but you'd have to pay like three eighths of a point. Um, so, so not a huge difference, uh, between purchases and refinances, but still some difference, uh, between those different flavors. When we come back, let's talk about that. Um, dad who had just mentioned, because he's doing a 15 year fixed rate and I laid out a very sexy looking 1.8, seven, five 15 year fixed rate, a 15 year fixed rate with a one handle. Should he take it or shouldn't, he will give the answer. When we come back, you're listening to the acronym, mortgage and Realty show on am six 20 w T M J

Speaker 2:

Getting you into the home of your dreams. Here's more of an accurate mortgage and Realty show with Brian Wicker. WTMJ all right. A little Prince they're back from 1999 happens to be the year that academic mortgage opened its stores. And, uh, I

Speaker 1:

Dunno when the song came out, but it was part of our disco bands, best power set that we did the old magic back in the day. This one all's brought the people out on the dance floor. Anyway, we were talking about, uh, uh, dad, uh, they were also helping his daughter a refinance at the current time. And so, um, originally as I think back about this, the originally inquiry was, Hey, I'm thinking about taking some cash out to remodel my basement, but only will I do that if I get to count

Speaker 3:

The remodeled basement area

Speaker 1:

In my overall square footage. And so my email back to him was you will never get the money out on that Revi, no,

Speaker 3:

Either way. You'll never get, you'll never get the return on value for what you put into the basement.

Speaker 1:

Yeah. Or you spend a hundred grand remodeling that basement, you'll be lucky to get an extra 25 or 30 grand value on the appraisal. And that's just the way it is because it's, even though it is finished square foot livable. And even if it has an eagerness window door or whatever, appraisers only value finished square feet below grade at about 25 to 30 bucks a square foot, I don't care if it costs you 200. So first of all, I had to kind of point that out to him. He'll never get that money back. Your value's not going to go up anywhere, close to what you spend to remodel that space. But then,

Speaker 3:

You know what we had done as loan

Speaker 1:

Earlier this year, and this goes back to a lot of people, right? Anyway, Brian, you know, you just gave me 2.75 in spring on a 15 year fixed. So then of course you said, well, if I'm not gonna take cash out, you know, should I look at refinancing? And I said, well, let me shoot you some numbers and door number one was an, an incredibly sexy looking 1.8, seven, 5% on a 15 year fixed. But, uh, that came with five. Yeah, but that came with$6,180 of loan costs, otherwise known as Quicken sized or rocket mortgage size closing costs. Well, um,

Speaker 3:

And, and what most people would do, they would never write

Speaker 1:

A check for that. So we would plop that on top of his loan balance, that has an EPR, by the way of 2.1, three, five door number two, uh, was two and a quarter with$634 of total loan costs. So now the interesting thing is, and I, and I put that$634 on top of his loan balance as well. Uh, so then the question, really, everybody should ask us, well, what's the difference in the payment? Do you want to ask that question, David,

Speaker 3:

What is the difference in the payment between that unbelievable 1.87, five, and the hideous looking two to five can compare

Speaker 1:

That's right. And we're talking about loan amounts right around 39. So as either, do you want to borrow three 39 or do you want to borrow three 33? Right. Cause we're plopping the loan amounts, the payment difference is only$22 and 64 cents. So the super simple Simon way to answer, what should I do is to take the difference in the transaction costs, which was$5,546 between those two divided by the payment difference and ask yourself, how long will it take me to recoup the cost? The answer is 244 months, which is more than 20 years that I mentioned at the beginning of this was a 15 year mortgage. Yeah. So it's like, and you can look at this math a couple of different ways

Speaker 3:

I was going to say, but Brian, I'm going to save so much more interest aren't I, cause you know, I got that one eight, seven, five, I'm going to save like way more. Right?

Speaker 1:

Well, the APR tells the truth. There, you, I did a different way of looking at this. You would actually make$4,000 less than payments, but the break even point is so far in the future. That it's ridiculous. So I said, really, you know what, uh, I can't really look you in the eye and say, spend the$5,421, because what if he sells the house in five years, right. And decides to down, cause he's kind of retirement age, you know, what if he decides to retire and move to Florida or something, he'll never make that money back. So we're here to give options and then do math for people. And then ultimately the decision is up to the home owner. And in this case he did take the two and a quarter, which is a hell of a deal. Let's go save them$127 in monthly payments by the way. Wow. Paradigm is 2.75 mortgage. Part of that has to do with the loan balance. Alright, when we come back, we are going to talk about the article in CNBC, talking about all the parties over for home buyers that are really pulling back demand is in the tank. Let's put that to the test. It's now time for the news over to the 24 hour news center,

Speaker 2:

Don't break. The back, did get into a house back to the accurate mortgage and Realty show with Brian Wicker on WTMJ high rise. So on Wednesday morning, there was an article by Diana

Speaker 1:

Of CNBC. She kind of covers the housing and mortgage beat for that, uh, financial news network and the headline, which she's not responsible for. Writing said mortgage demand from home buyers pulled back sharply, even as rates ended 2020 near record lows, then the three bullet points were mortgage applications to purchase a home fell by 0.8% in the two weeks ended January one to which I said to myself, that's sharply less than a 1% pullback compared to the second week of December. And this, these numbers are from the mortgage bankers association of America. A more telling though, was that the purchase volume was just 3% higher than the same period a year earlier. Okay. That's of note. And then the third bullet point was mortgage applications to purchase a home fell 0.8%. Uh, but this is what was important about this sentence, who seasonally adjusted index took into account the Christmas and new year holidays. So my first beef with this article, as I read the headline was well it's Christmas and new year's of course it's going to fall back. Oh. But then it said it seasonally adjusted. So I went all right. More respect there. And then the, the real tell that I think wasn't as evident, but turns out to be true is that if you kind of look at fall, right. Um, home purchase applications have been running 20% hotter year over year. Okay. So if you compare purchase applications in October versus of 2020 versus 2019, they're up 20%. So now here at the end of the year, seasonally adjusted, we're only 3% higher. So that is actually a sharp pullback. It just wasn't as obvious. Now the question is what's causing that sharp pullback. And the theory in the article is that it's, it's the high prices, uh, buyers just are throwing up their hands and say, I can't afford the prices. What do you say, David?

Speaker 3:

I don't think that's true though. B w well, uh, piecing this together on the fly, you know, home sales are, uh, strong. And so, you know, home buyers are ripping through inventory. It's like, is that house for sale? Somebody going to buy it? And so the appetite is still there. So affordability, peop people are looking at affordability in the face and to being like, I don't care. Like I want to buy a house. It's not just because this house in Greendale last year would have sold for two 50 and now it's going to sell for two 70 home buyers are just saying, okay, I don't, I don't think that.

Speaker 1:

All right. So you're sorry. I'm with you. By the way. I don't think it's a high home prices now, baby. It is in California, right. Which is a whole different market than here in the Midwest. And I've got some numbers to share here in the next segment, I looked at 20, 20 versus 2019 in the five County Metro Milwaukee area. You know, how much is the median price up? How much are home sales up? I think it's an inventory problem. There just aren't enough homes for people to write offers on. And so that's, what's crimping. The, um, application numbers for home purchases is there's just nothing to buy. And I think that's exacerbated. Go ahead.

Speaker 3:

Uh, I was going to say the other, the other side of that, and, and I'm sorry that this is a little anecdotal, but there are some home sellers asking price is that I think are too high, that there is some portion I live on the North shore and there are some houses that I look at. I'm just like, there is no way anyone is going to pay, you know, that dollar amount

Speaker 1:

For that house. So I should, I should really have more data to support that, but that, that's your we're, we're going to get to here yet in the rest of this show, a segment, did you want her to do on it? Ain't about the numbers. It's about the emotion, right? Yeah. And we've talked about that before the mortgages investing all this stuff, it's about what makes you feel good, which is why in that we were just talking before about the gentleman who I offered 1.8, seven, five, it's like that has a lot of emotional appeal. Really. I can tell all my friends, I have a mortgage rate that starts with the number one. It's unbelievable. And there's no question. Yeah. Right. What'd you pay to get that. Right. So, uh, all right. So, so let's, let me give you a, when we come back from this next break, let me give you a little, uh, taste of where we are here. It is January 10th. So I looked at the MLS numbers for Southeastern Wisconsin. Um, I've got a little update on that. Um, and then let's talk about the emotional part of financing and buy. You're listening to the accurate mortgage and Realty show on am six 20 WTMJ

Speaker 2:

Important home buying questions and answers you can count on. This is the accurate mortgage and Realty show with Brian Wichert on WTMJ.

Speaker 1:

Well, let's not forget about the handsome, taller and the younger Wichert. David Wichert, our chief client experience officer at academic mortgage. So, uh, these next numbers come to us from the greater Milwaukee association of realtors, multiple listing system of which I am a proud card, carrying dues, paying member better, make sure I did pay my dues now for January. And, uh, looking at 2020, uh, we have set an all time record for the five County Metro area. It can only improve for here if there are late data enterers. But as of this morning, 23,197, single-family detached homes and condos changed hands in 2020 with the help of a member of the national association of realtors that is 1,486 more than the year earlier. So a 6.8% increase the dollar value of all those properties was almost a billion with a B more in 20, 20 than the year before totaling 6.75 billion. That is an increase in dollars of 17%. Okay. Wholly, if you break that up, that's a lot. So if you break it up by single family versus condo similar, except the median sales price for a single family last year was two, six Oh 260,000 that's 8.4% higher, or$20,000 more than the two 40 median price in 2019. I just did the math on that while we were on break to debunk this idea, I was getting unaffordable. Nope. The 1% decrease in rate makes it a tie. So if you look at the monthly payment on a two 60 purchase right now versus a two 40 last year with 20% down and the interest differential year within$12 of each other. So that is not material. So at least in Southeastern Wisconsin, it's not the higher prices. That's holding people back. But check this out, David,

Speaker 4:

Go ahead.

Speaker 3:

I was going to say, and that's what makes it impossible to write an article with a headline that speaks nationwide? You know, it's like describing, like what is the crime rate in Savannah, Georgia? It's like, it doesn't matter. It doesn't apply to Milwaukee because Milwaukee as a real estate market, that's different than everywhere else. Yeah.

Speaker 1:

State is local, the median sale selling price for a condo, by the way. So remember, I just told you that it was two 60 for a single family detached home. What do you think it is for a condo? Any wild guesstimate,

Speaker 3:

One 82,

Speaker 1:

One 95. Pretty good guests. Now that's, that's only up 5.4%. Okay. So remember I said, single-family prices were up 8.4, the condos are only up 5.4, but here's why, or here's my theory listings for condos were actually eight and a half percent high you're in 2020 than in 2019. And that's different than the supply side on single families, which is actually lower by 4.5. So we act, and I think the reason is you have more new kind of developments coming online, right? People are building condos, developers are building more new condos than they are building single family detached homes. That's my theory. All right. So, so the message there is we, we think, or Brian thinks it's about inventory. I can barely see a little bit like I, you know, if I'm looking at the MLS, right. It kinda gives me how many homes have been listed through January 10th this year versus last year and we're way off. So, but, but I'm not really sure that's accurate data because of the delay it takes in. And staff had real estate brokerages to put that data in there. So it shall be revealed, um, as to how we start the year. But I would tell you that if you are a seller looking to sell, now's a great time because people want to buy. And you, your theory, David though, you were talking off the air is what, that, there's a certain percentage of the market that's overpriced. Well,

Speaker 3:

I was just going to say that, okay, if you've got a hundred percent of available, you know, homes, inventory, let's say the first 85% of those homes are going to get gobbled up because they're good looking homes, great pictures there where people want to be at a, at a reasonable place market price. Yeah, yeah, exactly. But the, and then, so you've got the leftovers. And so, you know, uh, I think people are allergic and growing more allergic to projects, you know, Hey, I got to put a lot into this house to make it what I want, but then there's a percentage of, uh, uh, of the available inventory that's priced wrong. And, and I think it's too high priced, too high. And so if that, in my example is, Hey, if there's 15% leftover of the available inventory, but 6% of that it's priced too high. It kind of double hurts trying to find available homes. Um, because sellers, maybe they've been listening to us every Sunday and they're like, yeah, we should sell. But then they try to ask for a price that isn't, you know, next to it,

Speaker 1:

Unrealistically high. Yeah. Now contrast that to, I had a talk to a client yesterday, um, uh, socially and he was happy to tell me, Oh, you know what? I just sold my home in Waukesha County for over a million dollars because somebody stuck a note in my mailbox and said, would you like to sell your home? And they happened to, we helped them buy a Florida second home. And so it's not like they're going to be homeless, but they're closing the end of the month. Uh, that's how hot the market is. You know, people are just sticking notes and other people's mailboxes saying, would you like to sell? So anyway, well, let's talk a little bit more about where emotion meets fact, uh, when we come back, you're listening to the academic mortgage and real T show on the biggest stick in the state am six 20 WTMJ

Speaker 2:

W two 77 CV WTMJ Milwaukee, or the annex wealth management studio. This is news radio WGM J helping you find a place to call home. This is the accurate mortgage and Realty show with Brian Wichert on WTMJ. All right. We talked before

Speaker 1:

On the show or talk about it at this time. Cause we've got some concrete reason examples of when it comes to real estate and mortgages. It's not just about the math and numbers. It is about emotion. And so, um, I've got some clients, uh, who are looking to actually in this case, refinancing construction loan. And the question was, should we, well, first of all, like a lot of high net worth high income people, they kind of like, Oh, I don't even really know if I want to have a mortgage. Okay. And by the way, yes, I've already paid off the mortgage on my existing home. Okay. Got it. Um, and, and, and then I said, well, you know what, let's look at a 15 year then. Okay. I like that because I like to point out to people that at these crazy low rates, and we were talking about making them the maximum$548,250 loan amount, which when we were talking earlier in the week was 2.1, two, 5% with no points that was probably up to two and a quarter, but let's just stick with that 2.1, two, five 70% of your very first payment is going towards principal 70%. Wow. You're not paying that much interest even on the first payment, you know? So, um, so we took a look at that versus a 30 year at 2.6, two five. And the payment difference between those two options was$1,347 and 50 cents. So we ended up having a quick conference call with their annex wealth management, financial advisor, and other sponsor here at WTMJ. So it was kind of like the WTMJ, you know, radio show gets together. Yeah. Get, get both sides. We'll take her to the liabilities annex on the assets. And I said, you know, let's do the math for us if instead, cause really the choice for those people is do they want to be locked in to a forced savings plan where they have to make basically a$3,560 payment that's the 15 year, do you want to be locked into that? And for sure your loan will be paid off or do you want the option of making the lower monthly payment,$1,347 less per month? And then, you know, you could do give the money to annex and let them invest it over the next 15 years. And so the question was how much money would they accumulate? You know, what rate of return would you assume? The answer was 6% after taxes and expenses would be the assumed rate of return over 15 years seems pretty safe to me. And the answer is they would have 50 grand more accumulated in that theoretical annex investment account than what their mortgage balance would be at the end of 15 years. In other words, Hey, we can get you to the same place, but with more optionality, we can, we can either build up equity inside your house called a 15 year fixed, or we can build it outside of your house and give the option of which payment you need to make. Because you know, what if one of you gets sick or disabled or dies, do you want to be wed to that higher payment? And so the annex wealth management man said it faster than I could, but this isn't all about the math, because if it was just the math you'd for sure do the third year, right? Because it gives you flexibility, which has an emotional appeal to guys like me, not to everybody, but there's just a lot of America. Maybe it's a Midwestern thing who loves to see that mortgage balance go down, down, down, down, down aggressively. I'll even admit it. When I look and I have a 30 year fixed rate, I like to see my principal balance going down kind of fall. I don't know why, but anyway, so that's one example. Do you have an example of an emotion meets Smith?

Speaker 3:

Well, yes, but I just, I want to highlight that that is the powerful piece on the math is being able to say, I have my house paid off that has to do with emotion way more than it does to have to do with math. You know, they want to be able to, to your earlier, uh, example, Hey, uh, I got a one eight, seven, five on my 15 year fixed it's so that you can tell people that you got, I have, I have my house paid off. I have this interest rate. Um, and the example that I, uh, that we've noted a number of times is for home buyers it's, um, down payment. And the, the great example that I enjoy is the difference between putting 20% down or 15% down. If you're buying a$300,000 house, you could keep, you know, if you put 15 versus 20, you could keep$15,000 in your pocket today. And the payment,

Speaker 1:

Then I'd have to pay PMI way. Whoa, Whoa, I don't want to[inaudible] the evil PMI

Speaker 3:

And, and all of life is a give and take. And so the give is hideous, ugly PMI and a payment. That's 104 more dollars per month, but I can do your mortgage for a thousand dollars less in cost. And you get to keep$15,000 in your pocket. But, but for home,

Speaker 1:

They, I want to be able to tell my

Speaker 3:

Brother-in-law, who's a real son of a gun that we were able to put 20% down on our house, uh, as opposed to understanding what the math is. And here at Acushnet mortgage, we're going to meet you where the math is and we'll meet you where the emotion is. And, and it

Speaker 1:

Was like, yeah. And then, Hey, you're better off writing that offer with 20% down. Cause that's more than impressing your brother-in-law. You want to impress the seller, but then when it comes down to it, maybe you do want to consider putting the 15% down to have that money leftover to make those little fixes in the property or by the riding lawnmower and snowblower that you need to survive in Wisconsin. All right. Well, I think we'll probably still have a show next for you, right David? Yeah. Regardless. I mean, they're not playing any noon games, are they? All right. So, uh, we'll see you back here next week to talk more and, uh, have a great week. Everybody you've been listening to the academic mortgage and Realty show on am six 20 WTMJ. The proceeding was a paid program. Advice and opinions expressed during the accurate mortgage and Realty show are solely that of the hosts or guests of academe mortgage and accurate Realty advisors and not WTMJ radio or good karma brands, Milwaukee LLC.