The acronym mortgage and Realty show is sponsored by academic mortgage and equal housing lender.[inaudible] 3, 6, 8, and Realty advisors, which is a separate company from, but still affiliated with accurate mortgage.
Speaker 2:Welcome to the accurate ed mortgage and real to show getting you inside information on buying, selling, and financing your home with expert advice from accurate mortgage and Realty. And now here's David winter and Tim Holtman.
Speaker 3:Welcome to the acronym, mortgage and Realty show. I'm David Wichert, chief client experience officer at Acushnet mortgage and joining me today, ma loan consultant, Mr. Tim Holdman Tim. Good morning. Good morning, David. Happy to be back at good to good to be together again. It's been a minute. Uh, if any of you out there listening, have a question or comment you can call or text us on the accurate mortgage talk and text line 8 5 5 6 1 6 1 6 20. You can also grab a podcast of today's show and all our past shows, not all, not going back years and years, but a lot of past shows wherever you normally get your podcasts. Um, Tim, we're going to start out, today's show with, uh, an amazing headline rates are low shocker, uh, which is, uh, fantastic news. And, um, you know, dad and I have, uh, tried to, it's not boy cries Wolf because it's not like a bad thing, but we continue to note that we are living in an amazing moment with regard to interest rates. It's not
Speaker 1:Really reality, but it is sorta
Speaker 3:Cause we can do it. And, uh, and, and for how much longer nobody knows. And we w we've been blessed that rates have been low for an extended period of time. So, um, because we're humans, we try to, um, you know, come up with reasons why markets move the way that they do. Uh, so this week, you know, the, I would say the number one reason, uh, so the notes came out from a fed meeting, uh, this, uh, that, that kind of like, eh, you know, the economic recovery, maybe it's not as hot as we thought it was. And, and so that led, so the one thing, like I wake up every morning and what I go look at first is what is the 10 year us treasury doing today? Yeah. Because it's a good bellwether for what interest rates are going to do in the rest of the world. And, and so this week, the ten-year treasury, what you and I, as taxpayers via uncle Sam have to pay in order to borrow money. Yep. Dipped as low as 1.2, 5%.
Speaker 1:And just to give people perspective, where was the tenure? I don't know, two, two weeks ago.
Speaker 3:I, I, what I was going to, well, two weeks higher. That's, that's some of the answer, but it, because it's all what it's in, what it's relative to is the ten-year treasury was as high as 1.71 1.77 in the last 52 weeks. Yeah. That's kind of volatile, uh, with regard to interest rates relatively. Yeah. So, so again, we're living in this lovely age where rates are low. And so we're going to kick off today's show with a rate Roundup because, uh, for all those procrastinators out there, I'm one of them I'll confess. Um, I don't, uh, if you're thinking that there's more kicks at the can, it's, it moves from procrastinating to gambling. And so, so let me dive into some numbers. So on a 30 year fixed at the close of business on a Friday for a refinance, a rate and term refinance where you're just leaving your current mortgage as is on a$300,000 loan accurate, could deliver 2.875 with an APR of 2.9. And that is just with$995 in costs.
Speaker 1:Total loan costs, not points, not origination fees. We're talking total loan costs, including everything you need to get the refinance done. Appraisal, maybe not even need an appraisal credit report, fee, title insurance, and closing agent acting. It never charges any of those junk fees. You're going to see at other big banks or mortgage companies like origination fees, underwriting fees, processing fees, et cetera, et cetera. Yep.
Speaker 3:So, so that's white hot, and there's a story after, uh, in our next segment that I want to talk to, that I want to talk about. Uh, but the other crazy white hot numbers. And again, I'm kind of, I'm using a little bit bigger loan amount if only because home values keep going up and people have to take out bigger mortgages. And so you might already have a bigger mortgage,$300,000 loan, 25% equity, uh, and all the other rights stuff. No second mortgage, Hey, you want that 15 year fixed? Oh yeah. 2.375%. And that's the APR cause we could do that at wait for it. No loan costs free mortgage or okay. And now because you know, life's all, you know, it's the good, better, best is what we're doing here. Now, if you are thinking that you want to take out a 10 year fixed rate loan,
Speaker 1:Not for everybody, but okay. Not for everybody will the carrot
Speaker 3:For those who love building up equity in their home, which we'll save that for another time to discuss the pros and cons of that strategy. Yep. 1.9, 9% on a 10 year fixed your APR is 2.2% because you'd have to pay up a little bit to get there about$3,400 in loan costs. But my, my bad joke and it's probably just a joke to myself. Now, these are what I call Swiss rates
Speaker 1:Basically. Yeah. Because
Speaker 3:They're so low, uh, almost free money. It is functionally free is what I've started calling it. Sure. So, so for anyone who's been thinking about, you know, okay honey, we have our mortgage. Is there a way that we can, you know, refinance finance again, this pile of money? The answer is probably, yeah.
Speaker 1:The time is now though, you know, the economy is going to recover. Eventually David and I are in the same room, not wearing masks and recording. So it's a sign of the times, like things are getting better.
Speaker 3:And our next segment, we've got a couple that is exploring this exact thing and it's kind of choose your own adventure. So let's dive into that. After this first break, you're listening to the acronym, mortgage and Realty show on am six 20. WTMJ getting
Speaker 2:You into the home of your dreams. Here's more of an accurate ed mortgage and Realty show with Brian Wicker on WTMJ
Speaker 3:Welcome back to the accurate mortgage and Realty show. I'm
Speaker 1:David that's Tim. Hello.
Speaker 3:Uh, we started out the show today, talking about rates are crazy low and they are yes. And they are. And ultimately, uh, we're glad that rates are low, but then anyone listening or anyone who reaches out to us at Acushnet, they're like, okay, David, Tim, Brian, tell me how this applies to me. What does this mean for me? Yeah. So we have many past customers having been in business now 22 years.
Speaker 1:I don't know about you, but I'm feeling 22. Yeah.
Speaker 3:Oh, that hurts. But, uh, so you know, we have past customers who, um, come back and ask us either as rates improve or their lives evolve and continue to, they come back to us and they're like, Hey, so this mortgage thing, is there any way that I can, you know, do anything about that and, okay, so we have some past customers or your, your past customers who reached out and they did, they purchase their home. So they refinanced.
Speaker 1:Yeah. So I helped them refinance in 2019, a mere short two years ago, but feels like an eternity ago because of COVID. And at the time they got a great deal in 2019, it was a great deal. I refinance them into a 25 year fixed rate mortgage because they want a custom amortization at 3.6, two 5%, which sounds ugly. Sounds terrible now. But at the time they were just like, thank you. That sounds amazing. And it was so we got them into that. So now fast forward two years, they're at roughly coming up on 23 years, left in their mortgage. Not quite a couple of months short, but just use round numbers. So, you know, you know, the answer to this already, they can get a lower rate, no matter what game plan they decided to move forward with. Right. In 20, 21 interest rate environment. Yes. So it's a question of what particular game plan makes the most sense for their current lives and maybe their financial goals going forward over the next X number of years.
Speaker 3:So this brings us to the theme that I want to talk about, which is there's no wrong answer, correct. Because they're okay. They're at 23 years. And so I think either you and or Brian prepared our, the proposals that we put in front of them, and it's kind of, is this a Dungeons and dragons reference? It's like, choose your own adventure because
Speaker 1:Of book series or something like that. Yeah. Perfect.
Speaker 3:So, okay. Proposal one. Okay. You're at 23 years, if you're looking for maximum savings, maybe you do the unmuted Western thing and you stretch back out to 30 years. Not because it's evil, but because you want, that would save them$236 a month.
Speaker 1:It maximizes their cash flow. Now they exactly maximize their monthly savings.
Speaker 3:Or if they, you know, scratch their Midwestern itch and they're like, oh, you know, what I would love to do is actually trim. I know we got 23 years left, let's trim it down to 20 years. Lop those three years off their payment would go up by 53 bucks
Speaker 1:A month, basically nothing. So they're there, that's the eating your vegetables version, which is you take the savings on the backend by paying off the mortgage three plus year sooner and eliminating those three plus years worth of mortgage. Right. Okay. Is eliminating both
Speaker 3:The extra couple of years and lowering the rate, the interest savings as the real Hm. Vegetables, like you said, the brussel sprouts of mortgage. Yeah. The Brussels sprouts vegetable. Yeah. Okay. Sure. Or, okay. Again, there's no wrong answer there. Home has continued,
Speaker 1:Which I don't know if you mentioned this, both those options. We just mentioned. David had rates under 3% at 2.99 and 2.8, seven, five respectively. So, wow. They're getting a lower rate, no matter how they slice it with either of those two options proceed.
Speaker 3:So door number three, Hey, your home value has continued to rise. And um, unless you sell your home or borrow against the equity in your home, that money is use
Speaker 1:That value mean to you. Nothing. Yeah.
Speaker 3:And so this third option Brian laid out or you laid out, Hey, would you, do you want to consider a cash out refinance? And w we'll put$50,000 in your pocket? Yes. We're going to raise your loan amount. Right. But you're still going to have equity leftover when we do so. And did I mention that you're going to borrow, you're going to get an extra$50,000. The APR is 3.05, which is below the below current inflation. And then you could go use that$50,000 cash out for literally anything you want. And, and
Speaker 1:I can fill in the gaps. Cause I spoke with them since they reviewed these numbers and they were considering, uh, remodeling two of their bathrooms. So, you know, maybe we can cover this on the next side of the break. I want to hear more about this conversation. Absolutely.
Speaker 3:Yeah. Uh, sometimes he, I would say everyone comes to this conversation about purchasing or refinancing with their box of life, for sure. And I think it's our job as loan consultants and mortgage professionals to hear that. And we're not trying to offer a game plan that makes anyone uncomfortable, but definitely considering like, have you thought about, yeah, you brought X and we're going to suggest Y and Z. Right? So let's talk more about Y and Z after this break. Sounds good. You're listening to the acronym, mortgage and Realty show on am six 20 to be a TMJ.
Speaker 2:Don't break the bank to get into a house back to the accurate ed mortgage and Realty show with Brian Wichert on w T M J.
Speaker 3:All right. So, uh, we are talking about the, choose your own adventure options when it comes to refinancing. And, and again, there's no wrong answer. We're, we're talking about a couple repeat customer of Tim and Brian's help them refinance two years ago. Hey, we thought that was, you know, the last time they ever would refinance, how could res possibly go any lower, low and behold here we are. And when you, you know, I don't want to take for granted, but you know, they're in a position of strength. You know, their home has appreciated in value. They have, they've been in it for a while to build up that equity, uh, and continue to pay down their loan. But now, you know, a dad always says, is that a mortgage should and can be used as a financial tool and, and how that then fits into the rest of your life, which is both a financial answer and a life answer. Does that make sense? Because,
Speaker 1:Okay, so best of both worlds. Exactly. Well,
Speaker 3:Because what we, what you talked about in your followup conversation was, Hey, door, number three, do you guys want to consider, because you have the equity doing a cash out refinance, because you said they're thinking about doing a remodel or improving their home.
Speaker 1:So they had been in the home for a while while, because I refinanced them two years ago. So they already owned the home even before that. And, uh, they, you know, in the middle of COVID realized, yeah, we, we like it here. We're not, we're spending a lot of time in their house. We don't really want to move. You know, maybe we won't make change. Some things improve some things, but we like the house. Yeah. So they, they mentioned to me like, yeah, you know, it's funny, you should mention talking about Castro. Cause we've been like playing around with the idea of remodeling, our two bathrooms that we have in the house. We have no idea how much it's going to cost. We don't, we haven't talked to anybody yet. And what I showed them was amazing because being roughly seven years into their 30 year mortgage or two years into a 25, however you want to view it. Uh, if we stretch them back out to a third year and also dropped their rate because their rate would have been 2.99, even on a cash out refi. Wow. So dropping it five eights of a percent from their current loan, getting 50,000 cash out, their monthly payment almost didn't change at all compared to their car.
Speaker 3:Yeah. Was I looking at, is like, it's going to go up by like four
Speaker 1:Bucks, which is going to put$50,000 in
Speaker 3:Your pocket and your payment goes up$4. Yeah. And there are to your point that there's more to it.
Speaker 1:That's possible. Exactly. You know, people would say, oh, well, I'm stretching out the loan. I'm going to pay more interest over time. That that is true. And again, it's all about what your personal financial goals are. Yes. If you want to be debt free and have no mortgage at all, we talked about talking about, you're talking about the 10 to 15 year fixed. That is for you a hundred percent. If you want to pull some equity out of your home, because the only other time you're going to get equity out of your home is to your point when you're going to sell it and they weren't going to do that. And then you have the problem of you don't live there anymore. I don't have a house. Right. So I gotta go get another house. Uh, so they really liked that idea. And the way we ended the conversation was, uh, acting it. We're, we're all about giving you the options and then truly going with whatever you think is best for you and your family. Honestly, we're not going to shove any one option down your throat. I don't know if this is how other companies do it, but I can't remember a single time where I've just given one option to a customer and said, do this. Well, it's all about choices. So they, they were like, you know, we love the cash idea. We don't know how much we want. Is that okay? Absolutely. Yeah.
Speaker 3:You only need 40,000 back. We
Speaker 1:Can adjust your cash out. And loan amounts up until a week before closing in most cases. And we locked in the entire menu of options. So I said, you can even change your mind to a no cash out option. Let's say you talk to a contractor and it's an outrageous quote because they're booked out until 20, 24 and they don't have time for you. Right. Then we can still secure. Great. And just maybe just save them. And then just the payment back to just refinancing their current mortgage and saving the money. That way, all those are on the table, still for them. And we can change that as they move forward, but they took the action of at least securing rates, which I think is crucial for our listeners to know, because a lot of people, I think they, they perceive that well, I'm waiting for a life event to happen in the next couple of months, or maybe I'm doing a cash up, but I don't know how much I want yet. So I'm not going to do anything right now. That's not the right play in my opinion, because rates may be worse than a month or two. Right. And we can secure rates for up to 75 days in most instances, which gives you two and a half months of time to figure out what exact game plan you want, but not miss out on the record, low rates that we happen to be blessed with. You know, this week
Speaker 3:I was gonna a comment that this is why we call them loan consultants,
Speaker 1:Not just play loan officers at accurate
Speaker 3:Consultants, not interest rate regurgitators if only because you know what, w w uh, I know this makes me sound, you know, uh, mushy, but like, what we're really talking about is how you want to live your life. And a mortgage is just a tool to be used. I have Lord knows. We've spent, all of us have spent a lot of time in our homes and we will continue to do so. And, and I think that's the opportunity to examine and advance the conversation like you did with these past customers of yours to consider door, not just door number one, but door number two, and door.
Speaker 1:Yeah. And in the next segment, we can actually talk about, uh, maybe people who are hunting out there for their next home, and, uh, what that means for people who aren't refinancing and hunting for the next one,
Speaker 3:Coming up next on the acronym mortgage and Realty show you've been listening on am six 20 WTMJ
Speaker 2:Important home buying questions and answers you can count on is the accurate mortgage and Realty show with Brian wicked on WTMJ
Speaker 3:Welcome back to the academic mortgage and Realty show. I'm David Wicker, tan joining me today, Mr. Tim. Holdman good morning, everybody. Um, so, uh, talking about, um, refinance, uh, at the first half of the show and, and kind of the I, dad, and I have talked about this, you know, for people kind of looking to improve the home that they're already in, you know, um, if buying a home is stressful, well then hopefully doing a cash out refinance to improve the home that you're already in know love, love, and hate. Maybe that reduces the stress a little bit, just a different kind of stress contractor stress. Okay. But there are a lot of people out there who want to go out and buy a home. And so, uh, there's a wall street journal article from this past week that continues to, um, highlight a theme that we've, that we've talked about for weeks and months now, which, uh, and Tim, I'm sure you've heard this from pre-approved rock solid. Pre-approved borrowers that you have Tim, you know, it's really competitive out there. I think we're just going to hold off until things calm down until, you know, uh, prices cool off until there's not so much competition. Yeah. And, um, none of those things are going to come true anytime soon. No, there, the headline more than 9 million Americans said in may that they wanted jobs and couldn't find them. And companies said they had more than 9 million jobs that weren't filled the most recent jobs report from the first Friday, uh, here in July, put the unemployment rate at 5.9%. But that included north of 9 million people who are actively looking for a job. Okay. But
Speaker 1:How can this be? If there's 9 million people looking for jobs and 9 million plus job openings, why can't we just throw all those people into those open jobs?
Speaker 3:I think, I think, uh, the employment situation will continue to heal and people will find the jobs that they want. And we're going to talk into, we're going to talk about, you know, mobility, remote work, how that's going to impact yeah. You know, how, uh, the competition for available homes, but the, but the way that the economics are going to work here is okay, those 9 million plus people are probably gonna keep hustling to find the job that they want. They're going to earn an income. They're gonna want to go then having earned that income, turn around and go spend that money and live somewhere, which in turn, that's a nice way of saying there's 9 million people who might become your competition in shopping for a home when they find the work that they want, because the openings are
Speaker 1:Absolutely. And this article mentions that I think over half, I think it was 55% of people, of those 9 million people who are job hunting said that the ability to work remote is a key factor in them deciding what jobs they want to even apply for. Yes. And if people don't have to worry about where they have to physically work, because they can work from home, then that's going to shape their home shopping habits. Yes. Because they're going to look for homes that are independent of their commute time, which was normally a huge factor in deciding where to buy a house. Right? Yes. It's not a big factor anymore. So now it's, uh, w how big of a yard do I want, how close, uh, to restaurants do I want to be, what school district do I want to be in, for sure. You know, all those things are going to drastically, I think, shape the home shopping landscape once they do find those work remote jobs. Cause they're out there.
Speaker 3:Of course. And so, um, there's a, I think, uh, can I call it a rule of thumb? There's an idea that we have perpetuated, I think on the show that I don't think is true, which is, or it's not true anymore in a post COVID world. Hey, you know, if I really, you know, couldn't find what I was looking for. I'll just look at homes more rural I'll move. You know what, I'll just I'll look at homes and key wasp com or, um, Westlake Geneva, I dunno, but just like further out than like, I want to find a bungalow on Wallatosa and that in a remote first world, uh, I think is no longer true because there are, um, lots of jobs that can be independent of location. Absolutely. And so, especially when you get out to non-metropolitan areas, the inventory is less, it matches the number of people that actually live there. Okay. So you have like on a percentage basis, it's equally as competitive and now you have more people who can live nearly wherever they
Speaker 1:Are. Yeah. It's going to make it even harder to get an accepted offer in the burbs. I think,
Speaker 3:Is it called the excerpts? Is that what they call when you're outside suburbs? Sure. We'll look that up on the next break. But, um, I, the theme again is that there is no, I keep calling it breath, but there is no economic data that suggests that home values are going to go anywhere, but,
Speaker 1:Or that competition is going to decrease or that inventory is going to increase rapidly. I mean, it might be a five plus year correction period. So unless you're willing to wait that long for people I'm talking to are just like, let's make you the most competitive, because if you want to buy a house now, unless you're willing to wait five years waiting until next year, probably isn't going to do anything for it.
Speaker 3:Yeah. Well, dad and I talked about that last week on, uh, and you can catch that conversation on the accurate podcast, wherever you find those, um, on that exact advice waiting till next year does not make it less painful. Uh, speaking of that, I want to talk about a new, um, jumbo loan program that we've got handy. Uh, after this next break, you are listening to the accurate mortgage and Realty show on am six 20 WTMJ five.
Speaker 2:I need a place to call home without the headache. This is the accurate mortgage and Realty show with Brian Wickers on WTMJ.
Speaker 3:All right. So, uh, back here on the acronym mortgage and Realty show, um, I guess I don't want to be know Debbie downer, which we kind of were about, you know, competition we're realistic. We have to have insurance. Uh, so what I wanted to talk about though, was, um, new jumbo, uh, mortgage option that I think just rolled out this last week. So jumbo, isn't
Speaker 1:A scary thing. Uh, everybody, it is literally any loan amount above$548,250, two 50 minutes of important, two 50, uh, you know, that is the maximum loan size that Fannie Mae and Freddie Mac will purchase on a single family on a single family home. Uh, but you can still borrow above that. It just becomes what's then classified as a jumbo loan, which means it's just a portfolio product that won't be ultimately owned by Fannie Mae or Freddie
Speaker 3:Mac. So, um, what is awesome because we're nerds about working with net is we are a mortgage banker. And so we can place loans at we've got about a half dozen different places where we can place loans, depending upon what's the best execution on, on helping you get into your house. Right? And so this past week, uh, one of our outlets came out with this revised, um, criteria for this jumbo loan. And they say, Hey, for loan amounts up to$650,000,
Speaker 1:Basically a hundred grand over the foreman,
Speaker 3:Right? You only need to put 5% down nice, which is, uh, for the, for Tim and Brian and me is like, woo,
Speaker 1:It's kind of a game changer, really 5%
Speaker 3:Out. I think a lot of times, if I was to pull out a rule of thumb jumbo loans, a lot of times, 10% down, in fact, I think this same investor says, Hey, we'll do a, a million dollar loan, but you got to put 10%. Yeah.
Speaker 1:Cause the, the, the logic is you want to borrow more money. Okay. That's fine. You have to have more skin in the game. Right.
Speaker 3:The minimum credit score is 700. I should also. Yeah. And we also need to document some reserves, but, uh, what is, what's fantastic about that. Um, my version of this is your income. When you're thinking about buying that much house, you probably rightly so believed that you have the income to swing it. If you're going to borrow that much money, you know, Hey, I make X dollars, you know, we can't afford this, but having the liquid assets. Yeah.
Speaker 1:Sometimes that's the harder piece of the puzzle to put together, I would say so. Yeah.
Speaker 3:So having just that little bit more, instead of having to put 10% down, now you can put 5% down, literally half as much. And, and, okay. So if you're thinking about, you know, buying a, uh,$650,000 house, you don't need 65,000 bucks anymore. Exactly. And I think that's, um, you made a note, we were getting ready to do this segment that now at that 5% down, that really matches when you are a repeat home buyer, you have to put at least 5% down the matches Fannie
Speaker 1:And Freddie Fannie, and Freddie would make you put down if you ha, if you've already owned a home in the last three years. And I think this is important in this current market where everyone is bemoaning the rising property values that are a result of all this compensation feeling priced out. Yeah. So you and now have this ability to borrow above the Fannie and Freddie limits still at a very reasonable rate. Might I add, I mean, jumbo loans are slightly higher rates than conforming, but not by much. And you can tap into because it's more money, you can tap into more borrowing power and now not have to worry about needing to bring more money to the table. So this is another, the rules are changing all the time. Cause w did we mentioned this just came out a week ago. So yeah. Things are changing all the time, but we are really up to date on these changes. And
Speaker 3:We want to have all the tools in our toolbox to
Speaker 1:Help you want to be armed with as many options as possible to help you accomplish your goal. Uh, so this is just another example of what we're constantly on the lookout for. And our loan consultants are constantly researching and coming up with these new tools in the tool belt to possibly help you accomplish your goal. You know, sometimes it may not work, but in a lot of times it does work because we have all these different options at our disposal word.
Speaker 3:All right. In our last segment, we're going to talk about how Tim helped one of his borrowers, not, not, not go with their bank, but, uh, think critically about the difference between what, how Econet could help and how their bank could help. You're listening to the acronym, mortgage and Realty show on am six 20 WTMJ WTMJ
Speaker 2:W2, 77 CV and w KTI HD to Milwaukee from the annex wealth management studio. This is news radio WTMJ expert advice on buying a home. Here's more of the accurate mortgage and Realty show with Brian Wicker on WTMJ
Speaker 3:Welcome back to the last segment of the acronym, mortgage and Realty show. I'm David that's. Tim. This has been young guns, mortgage radio hour. Uh, dad is taking a well earned vacation, so good to be here. And we're going to talk about Tim. I think, I think, did you say it to me this way? So this was a referral and, um, you, you had gotten this borrower rocks out pre-approved and then we did our standard, you know, check in how's the house hunt going, you know, how can we help? And then from there?
Speaker 1:Yeah. So my, one of our fantastic, uh, colleagues, uh, was checking up on my borrower on my behalf a one month check-in Hey, how how's the house? And going? And the, the nice, uh, customer pickup phone said, oh, thanks for checking in. I actually already went with my local bank, you know? Thanks. Thanks anyways. Yeah. And I was like, whoa, whoa, whoa, whoa. I thought
Speaker 3:We had this great thing going. And then you just leave me.
Speaker 1:She did the Irish goodbye. She's just gone or tried to try it through. So I gave her a nice call and I just said, Hey, I absolutely respect your decision. I'd love to find out where you are in the process and happy to provide a second opinion. Of course, just to see if we can win back your business. Cause we've already got you. The Rocksaw pre-approval we already got your income and asset doctor. She got an accepted offer. Well, so I called her, I said, and that's the first thing I can call her. And she's like, yeah, I did. So my logical followup question is, okay, well, when are you closing? Because if you're closing next week, I would just say, God bless, you know, go out. And I hope it goes smooth. Absolutely. There's no way I'd recommend switching over at, uh, there's just, there's a point of no return. Obviously I'm not closing until end of August. I was like, oh, fantastic. Well, let, let me, uh, you know, put some numbers together. So I, um, did a, a go-to meeting on our computer where she literally brought up her computer. I shared my screen onto her screen. So we looked at the numbers and real time with a complete breakdown of everything. And, uh, she had her loan estimate from her bank. So I was able to direct her on how to interpret the loan estimate to even see the exact loan cost. Cause there that's a tricky document to read if you're not in the mortgage business. Um, and it's confusing. So we flushed out, uh, her exact rate and loan costs. And then I made my local bank. Yes. And I made my scenario apples to apples, meaning same exact loan amounts, same loan terms, same closing date, same everything. Yeah. Right. Yep. And it came out that we could do a quarter of a percent lower interest rate. And, and also at the same time deliver that quarter percent lower rate for a thousand dollars cheaper in loan costs. That's it, that's it. Uh,
Speaker 3:What, uh, and I, and I liked her a counter argument to that
Speaker 1:And I let that sink in. I said, and I gave it to her in writing. I gave her our own loan estimate and she could hold up that loan estimate to her other one from her bank. And, uh, and, and look at the numbers. And yeah, you know, Brian says this all the time on his ads and I'm sure you said it on the radio show. You know, this person was about to lay Sully and crazily go with their local bank
Speaker 3:Because the local bank is evil, but just no, not at all. We're better than
Speaker 1:Them. One in her life was like, uh, they're your local. They know you, they're in your town, all this stuff, you know, and none of that is invalid. That that's all a valid thing to say. But the bottom line is we beat almost every local bank out there with our lower operating costs and more streamlined delivery of the loan to where we can beat them on rate and closing costs one or the other, or in the case of this customer, we'd beat them on both. Wow. Um, and
Speaker 3:Thousand dollars. It's like, by the way, you know, buying a home,
Speaker 1:You're going to end up wanting to, you know, it was real money. Like I said, couch, well, that's what I said. Lower rate is almost the cherry on top because she has a first time home buyer and the loan, wasn't a massive jumbo loan. It was a modestly sized loan. So that lowered her monthly payment a little bit. But I was like, the real kicker is the thousand dollars cheaper and costs that is money in your bank account that it would otherwise not be in your bank account if you went with your bank and that's a whole bedroom set or that's a nice couch come on at Ikea. That's like an entire upstairs. Yeah. And Ikea that's your whole house basically. Yeah. So, uh, yeah, so it, it worked out great obviously, but it's, it's just another cautionary tale of like I told her up front, if, if it's clear that we're not as good, or even if we're the same, I would just be like, absolutely go with your bank. But more often than not, we are clearly better than the competition. And if we're not, we're man enough to admit that and say, you know, we're not going to win them all, but we are going to win. Most of them,
Speaker 3:We're at least willing to be the second opinion, even if it's just like, I think you should run with them. Cause they got told
Speaker 1:Customers flat out, you should go with another lender. And a lot of time that makes them like me or then if we would have even done the business with
Speaker 3:Them. Well, that's why Brian's the chief honesty officer, which makes you an I deputy honesty officers or something like that. Yeah. To get started on your rock, solid pre-approval to buy because it's competitive out there or to take advantage of these awesome leads, low rates. All you gotta do to get started is click on the blue button@accunet.com. That's all the time we have today. You've been listening to the net mortgage and Realty show on am six 20 WTMJ.
Speaker 1:The proceeding was a paid program at and opinions expressed during the academic mortgage and Realty show are solely that of the hosts or guests of academic mortgage and accurate Realty advisors and not WTMJ radio or good karma brands, Milwaukee LLC.