The acronym mortgage and Realty show is sponsored by academic mortgage and equal housing lender and[inaudible] and academic Realty advisors, which is a separate company from, but still affiliated with accurate mortgage.
Speaker 2:Welcome to the Acushnet mortgage and Realty show. Getting you inside information on buying, selling, and financing your home with expert advice from Acushnet, mortgage and Realty. And now here's Brian and David Wickers. Well
Speaker 1:Morning and welcome to the active mortgage and Realty show. August 1st edition. I'm Brian liquored, the majority owner of academic mortgage and acting in Realty advisors. Along with my son, David Wicker, who was our chief client experience officer at the mortgage company. If you've got a question or comment you can call or text us on the acronym mortgage talk and text line, which is 8 5 5 6 1 6 1 6 20. Alright, David. So you were there. We celebrated[inaudible] 22nd birthday last week with a picnic lunch in our parking lot under a nice, beautiful tent. And, uh, that was the first time we've gotten the crew or most of the crew together since March of 2020. And we've added a lot of team members thanks to you David this year and last year. Um, so it was the first time a lot of them got to meet face to face, which was cool. Now, one thing I always remind our Acura team members about when we get together is how extremely fortunate we are to work in the mortgage industry because we're normally helping people do happy stuff, like buy their first home, buy their next home for their growing family downsize to get rid of all those bedrooms. They don't want to clean anymore. Maybe tap the equity in their home for that dream remodel project, buy a vacation home. Um, it's, it's a lot of fun and, uh, and so we should be grateful for that. But the reason I bring this up this morning is that by staying in business for a couple of decades, what's happening is that many of our loyal co uh, clients, many of whom have done literally a dozen or more transactions with us over the year. They're introducing us to their children who want to buy homes for the first time. And so that's the story I want to cover in the first segment of the show. Um, staying in business for a couple of decades also gives you time for your then ten-year-old son, David, to grow up and join the company. So I'm glad you decided to do that. David and I, I forgot to point this out to our group assembled. I'll do that maybe at our, in September when we have another get together. Most people don't know that my first mortgage company failed to stay in business more than a year, uh, way back in 1993, when you were just five years old, David, two of our other managing owners also failed at starting their own mortgage companies at about the same time. So we're only successful this time around because we failed. And that gives rise to that old saying that I'm sure you're familiar with, if at first you don't succeed. Try, try again. And that's the story of our first-time home buyer. Uh, Alex, did you want to say something too?
Speaker 3:I was just going to bend your mind that, uh, back in 1993, you were the same age that I am now. So, um, um, I, you know, I'm going to say 32 year old, David. I, I got a leg up on 32 year old Brian, but I won't, I won't pour salt in your wounds. I promise.
Speaker 1:Yeah, it was a, those were the most interesting of times you can't say they're the best of times, but you know what you'll learn from your, from your failures. All right. So back to our first time home buyer, Alex, not his real name. And he was introduced to us by his mother and stepfather who are multi-time clients of accurate. And that happened back in January. I just updated his credit report this last Friday for the third time, because he was going to write yet another offer this weekend. I don't know exactly how many offers he's written. And we did introduce him to a really good buyer's agent that he's been working with. But I think he's probably getting to be around 10 offers and, and not come in first place yet, but he is trying again and I give him credit for that. Uh, and by the way, he is embracing many of our techniques that we recommend. Like he totally gets it. He's writing the offer at one 90, but he's modifying the appraisal contingencies so that he'll still buy it. Even if it appraises out at 180 and we're, you know, writing our pre-approvals saying, Alex can buy at one 90, even if the appraisal is as low as 180. So we're, we, we encouraged him to give gifts from his parents. He did so that he can write the offer with 10% down, which, which looks stronger to the seller, then 5% down, which is probably what he's really going to do, but he's, he hasn't been successful yet. And well,
Speaker 3:The price range that he's in is, is, I mean, you think, you know, 300,000 in TOSA is competitive. What did you say? 180. There's a lot of people who would love to hop on a house at 180 or within earshot of that number. Right? So extra, extra competitive,
Speaker 1:Correct? Yeah. He's looking in the one 70 to one 90 price range in Milwaukee. And according to his real estate agent, who's his blue, smart guy, uh, pat McMann. Um, he's like, there are plenty of investors who are buying homes in this price range from all around the country. Milwaukee has kind of become a hotspot of out-of-state money, uh, because compared to many other parts of the country, like on the coasts, wow, you can buy a single family home for$180,000. So investors are sniffing those up sometimes paying cash. And so that's hard to compete with, you know, when you're saying, Hey, I want to put 10% down. And the other buyer is saying, I'm going to put a hundred percent down. That is a tough, right. That is a tough nut to crack. He also started out wanting to buy a duplex. I'm just going to touch on that when we come back and then finish up where we are with his home search, you're listening to the academic mortgage and Realty show on am six 20 WTMJ
Speaker 2:Home buying advice from a guys who know it best. This is the accurate ed mortgage and Realty show with Brian Wicker on WTMJ
Speaker 1:David and I are looking at each other going, I wonder what song that is, but it's kind of cool. A lot of white pedal there. Anyway, we're talking about our Intrepid first time home buyer, Alex, not his real name. And he's got an offer outstanding where we believe he's going to hear back. And hopefully in the affirmative, uh, after three o'clock today, we'll have to update everybody next week on that. Um, so we're hoping that this is, this is the day, August 1st is his day. I am not exactly sure, but the agent kind of shared, well, it's not in as good condition as some of the other ones, so maybe he's buying himself a project, but maybe that's what it's going to take for him to become a homeowner
Speaker 3:Is to buy something that has got a fixed new coat of paint will do. Right. And you can, you can turn that. Tell me the less ugly. Yeah.
Speaker 1:Your mother and I are trying to pick out a shade of gray to repaint the interior of more than one. Okay. Oh my God. There's more than 50 shades of gray. And so I've been slapping paints on different portions of our wall or walls to see which one goes best with our trim. Anyway, so this, uh, Alex started out looking for a duplex, which is in age old first-time home buyer tradition, especially in Milwaukee. I don't know if this is everywhere, but our own accurate co-owner owner, Jerry[inaudible] the first home that he bought was a duplex. You live in it for a year or two. Then you move out and you keep it as a rental. And, uh, uh, are your mother and my first neighbors on 48th street, they did the same thing. They bought a duplex down the street, then they kept it, rented it out and then moved just down the block and bought a beautiful single family home. So this is a fairly common old technique. However, it's not the same in 2020. Well, let's say this up until 2020, you could still put 5% down on a regular 30 year fixed rate duplex if it was owner occupied. But now our good friends at Fannie Mae and Freddie Mac require a minimum of 15% down to buy a duplex. Fannie Mae makes it even harder. And they say, oh, you know what? In addition to that, you've got to have extra money leftover after you close equal to six months of payments. So, you know, there's another gap of money, right? If your payment's a$1,500 a month, you've got to come up with another nine grand just to look at after closing, in addition to the big 15% down payment. Um, the other thing that's true about duplex financing is FHA allows three and a half percent down, but a lot of sellers don't like FHA financing because why David
Speaker 3:Well FHA has, is, um, it's not worse. It's just fussy because FHA cares about things like chipping paint and properly installed railing. And, and just, I would say, uh, something more attuned to the health of the property, not just a blind eye that sure is their four walls and a roof you can move right in FHA wants things to be a little bit squared away.
Speaker 1:Yep. And the reason they don't want chipping or peeling paint is because of lead paint hazards. And then they have the trip hazard is the one that covers the hand railings or uneven pavement. You know, if you've got uneven payment, you're gonna have to mud Jack that, uh, you know, you can kind of walk up and down some streets and TOSA and Milwaukee, you know, those that have sort of the six steps to go up to the house. And you can tell if it's got a hand railing, it's probably at least one set an FHA loan on it. If it doesn't have a hand railing go up and up those six steps from the sidewalk to the front door. Well, it's probably only a had conventional financing cause FHA would require you to put in those stairs. So that is still an option for duplex financing. It's just going to be not as it's not going to be received as warmly, uh, by, by sellers yet. And I did look in the, in the MLS this morning, there were 615 duplexes sold from a hundred thousand dollars in op in the city of Milwaukee this year, which was a surprisingly large number. I don't know if that surprises you, but I thought, wow, that's, that's a lot of duplexes. And a quarter of them did have FHA financing. So it is getting done. And that is a possibility. All right. So that's your little trip down duplex lane. When we come back, let's talk about, uh, email and a phone conversation. I had this week with a multi-time client looking to refinance in connection with the federal reserve meeting that just happened this last week and where mortgage rates are likely to head. You're listening to the acronym, mortgage and Realty show on Wisconsin's radio station am six 20. WTMJ
Speaker 2:Getting you into the home of your dreams. Here's more of an accurate mortgage and real to show with Brian record on WTMJ.
Speaker 1:All right. So got an email. I think it was long about Thursday from a client who we first helped 16 years ago, snare the trophy read on their 30 year fixed rate of, are you ready? 5.875. Yeah. Baby
Speaker 3:Sub six. Yep.
Speaker 1:Sub six. Those were the days a couple of homes later. You know, the email now asks here in 2021. Hey, we're thinking about paying down our jumble mortgage, which is currently at a loan amount of hundred and$70,000 down to the maximum Fannie Freddie limit, which is 548,250 bucks. And the reason this person's in the financial industry. So she has noticed that rates are way low. David,
Speaker 3:Wait, let me just make sure I heard you correctly. That borrower said I have$120,000 and I have nothing else that I would rather do with that money, except I would love to pay down my loan from six 70 to 5 48. Is that what you just said?
Speaker 1:Yes. And I did let the record show, I did give them two choices. I said, we can do that at a rate of, are you ready? Two and a half percent because it's a giant size loan or, you know, the top of the, uh, and she's got a ton of equity, um, or I said, I can give you 2.6, two, five, and a simultaneous second mortgage at like 3.4, 8%, uh, that you could then, then that rate would be locked in for five years on that second mortgage. And then you could like decide, pick some time, maybe dollar cost average, your, your, uh, paid out of that hundred and twenty-five thousand dollars ish of principal. But you know what you've said, this a million times, we're not here to impose our view of the world.
Speaker 3:Uh, I've done Sunday mornings at 10:07 AM,
Speaker 1:But go on. There you go. Well, we can share. And they're like, Nope, I'm getting a gift from my parents. And we're going to use that gifted money to pay down the balance. It's like, okay, that's great. Okay. So, and so the reason she's doing that is she sees how low rates are, and she's also financially savvy that she knows this ain't likely gonna last. And so here's that part of the story? The why ain't it going to last? The federal reserve met this last week on a Wednesday and, uh, to no one's surprise, they left their ultra short interest rates alone. The only interest rate that they directly control is a thing called the fed funds rate, which is the rate banks lend money to each other overnight. And that is sitting there still at 0% or they set a range actually. So it's between zero and a quarter. And the only consumer facing rate that that impacts is the prime rate. The prime rate is only used for credit cards and almost every home equity line of credit in America is tied to the prime rate. Okay. So they said we're leaving that alone. And the current forecast is they're not going to touch the fed funds rate, which moves in lock step then with the prime rate, which will affect your home equity line of credit and credit cards until the end of 2022. Oh, okay. Well that's good news. So what about the big knob that they have in their office that controls 30 year fixed rates? Do they have such a knob David there no
Speaker 3:Knob such exists, but they have this, uh, voracious appetite that they keep talking about.
Speaker 1:That's right. So since March of 2020, the fed has said, you know what? We have a huge appetite for low rate mortgages. And so every month, since then they are wheeling up to the mortgage buffet table and they are saying, we would like to buy 40 Bubba billion with a B dollars of mortgages. And you know what, we're good with the rate on those mortgages of, you know, between two and a half and 3% on a 30 year fixed rate in between two and two and a half percent on a 15 year fixed, we have like almost an unlimited appetite for that. The problem, the, what happened at the news conference is the fed chairman. Powell said, you know, we're going to come up with a plan to buy fewer mortgages and also ten-year treasury bonds, but we are, we're probably going to announce in September, which is their next meeting or November how we are gonna stop buying. You know, we're not going to go cold Turkey, but you know, maybe that he didn't say these details, but they're going to say, you know, are we going from 40 billion a month to then 30, for how many months then down to 20, then, you know, how long are we going to take to taper are voracious appetite. And, um, and then on Friday, the St. Louis federal reserve, president James Bellard told reporters, I think we should actually start tapering this fall and have it all wrapped up and down to zero by very early 20, 22. Okay. So folks, what I, what I'm telling you, and we're going to, we're going to give you the latest forecast on, uh, from Fannie Mae Freddie Mac and the mortgage bankers association on when and by how much rates are going to increase. But as David likes to say, we don't offer in the bottom of the ninth inning, or are we an extra innings here on these low rates, but we are a lot closer to seeing rates go up, uh, than we've ever been. I think it's about time to go to the news. Is that correct? We'll see you on the other side of the news break over to you in that 24 hour newsroom
Speaker 2:Don't break, the bank did get into a house back to the accurate mortgage and Realty show with Brian Wicker on WTMJ
Speaker 1:Endless. I forget about the younger, more handsome and taller Wicker. David Wichert, our chief client experience officer. All right. So before the news, we were talking about how, Hey, the federal reserve is going to reduce its purchases of low rate mortgages. And then the real question is, well, who's going to take up that spot at the buffet table and are they going to want to eat mortgages at 2%? Or might they say, you know what, that's too lower rate. I don't want to fill up on mortgages unless I can get two and a half for, you know, um, three or three and a half. That's the big question is who's the next buyer going to be? That's going to take up all that, um, mortgage money that needs to be purchased. All right, we're going to get back to the story about our longtime customer who emailed me, but before we do that, Freddie Mac said that the 30 year fixed rate this last week on average was 2.8%. That's if you were willing to pay seven tenths of a point, in addition to other closing costs, which would be 1,750 extra dollars on a$250,000 mortgage David, where did low overhead accurate and the week.
Speaker 3:So, uh, we, uh, could have offered 2.75% with just cost of$995, not the extra what'd you say, 1700 bucks, just
Speaker 1:Some 200 plus. Let's see, let's see your regular costs are we know in Wisconsin, thankfully low 1,250. So you're looking at the average closing costs of three grand. And what did you say ours were again, David
Speaker 3:N on that on 2.75 was going to be 995 bucks.
Speaker 1:I'd say that's$2,000 less than the other guy is. Yeah. Well,
Speaker 3:All right. What about a four? Well, I was going to say, or 2 8, 7, 5 is my favorite word for free. Cause the APR is also 2.875 because acting, that's able to pick up the cost of all of your loan costs or if you would like to, I, um, I am humored as to how low rates are. Uh, so a 15 year is at 2.25%. And if we got that appraisal waiver, which we get more and more, that would, the APR would also be 2.2, 5%. Cause we could do that for no cost
Speaker 1:That, wow, Hey, what's I mean, what's the APR on the 2.75, so we stay legal to 30 or fixed. Okay. So when they APR and the note rate are really tight, you know, that you're not paying much in closing costs. Um, all right, so rates are fantastically low, but you know, the federal reserve has just told us on Wednesday, you know what, we're going to announce this probably in September, how are going to buy less mortgages, which should have the effect of rates going up. So I took a look at what the latest forecast were from Freddie Mac Fannie Mae and the mortgage bankers association, Freddie Mac forecasts that the 30 year fixed will be at not 2.8 anymore, but 3.3 by the last three months of this year. And then they say, you know what? And we think they're going to keep climbing to 3.8% by the end of 2022, Fannie Mae's forecast is a little more sanguine. And they think that, uh, the 30 year fixed rate is only going to rise to 3.1 by the end of this year and 3.3, by the end of 2022, the mortgage bankers association is the most pessimistic calling for the 30 year to rise to 3.4, by the end of the year and 4.3% by the end of 2022, who knows if they're right? But they all point in the same direction, which is down it's up. So our we've been ringing the dinner bell. The
Speaker 3:Conversation was, it goes back to the conversation you had with the repeat customer that it was like, okay, Brian, well is if this is the bottom and we, and we can see where the story is heading, like, how much should I invest? Did he get my trophy rate? I think that was the crux of your story.
Speaker 1:Correct. And also she, well, my husband is also checking with this other lender that he found online by, okay, well, why don't you send me that quote? Right? And so, and because this is a big loan with a lot of equity, and that's one of the things that influences the rate we can provide is the size of the loan. So, you know, 540,002 50 is the biggest loan to get the best rate because that's the maximum loan amount that can be sold to Fannie Freddie. And then these people have like 40 or 50% equity in their home, no second mortgage. And so that's why I was able to offer 2.5. And so thankfully she sent me the code from the other lender. All right. And I'm going to tell you what that quote was when we come back and how you should be looking at all the details. 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 wheel G show with Brian wicked on WTMJ
Speaker 1:There's your classic little pink Floyd, right. Money. Yeah. Okay. So talking about this, a client who says, you know what, I'm getting this quote from, uh, somebody my husband found online and it's two and a half percent with no points. I'm like, wow, that's pretty good. Well, please send me the quote to things that she didn't notice. And, you know, people just go for the headline. Sometimes I get that there was an$1,895 origination fee. That's the same as points. It's not no points. They're jabbing your$1,895 just for cause you know, and then the other thing was you have to ask her for your taxes, what we don't want to ask her for our taxes. So I, you know, I'm like, okay. So when you go back to them and you say, I don't want to ask her for taxes. You know, that's gonna increase your closing costs because, um, mortgage servicers like it when you escrow for taxes, because they get to sit on your money all year long and not pay you an interest now in today's market. That really doesn't matter because you're not making any interest in your bank account anyway. But nonetheless, I pointed those things out. She's very grateful and we're going to be able to get her that two and a half percent rate without escrows. And we're going to save her at least a thousand dollars versus the other guys, maybe up to two, but they're moving ahead and we're hoping that we're going to get that appraisal waiver. I didn't ask the senior loan consultant yet if we got the appraisal waiver. Yes.
Speaker 3:So, so, uh, did your, uh, converse cause you, when you, you started talking about the proposals you had kind of, you had talked about the, um, split knit and to idea D did that have any appetite on their part or
Speaker 1:I thought it would, I thought it was like, Hey, this is even better. Now we're getting this, you know, they're getting to get from there. I think it's her parents. And so they're just want to use it to buckle in this ultra low rate, you know, on their mortgage for the rest of their natural lives, which is fine. Yeah. Um, I did lock somebody in this week at 1.9, 9% on a 15 year fixed rate, they're paying a, some small amount of points, uh, which is very attractive. And, um, you know, so, so the, you know, so folks, if the takeaway I'm sure you've already caught on is, uh, low rates and this show was going to end probably by the end, not, not a radio show, this little rate feast is, is going to wind up here, um, as the fed, because remember even when the fed announces, you know, we're going to start, it's the fact that they say the words out loud. In fact, I'm surprised that rates didn't go up just based on fed chair. Powell was like, you know, we're coming up, we're going to announce how we're going to start to buy less
Speaker 3:Mortgage already baked in. I think, I think markets already foresaw that, uh, especially there's been reasonable unemployment readings as well as GDP numbers that have come out. And so the fed, uh, I think this started with, um, chairman Greenspan kind of communicating in advance, what the fed is going to do to try to create smooth markets, mortgage markets and treasury markets kind of knew that this was coming, they were talking about talking about, and they've been, and they've been talking about that for weeks and weeks. And so I think everybody just shrugged at the news on Wednesday and said, ah, you're doing exactly what we thought. And you said, and kind of winked that you were going to do, but, but now, okay. But now it comes to the second part of that act, right. Which is well, how fast and
Speaker 1:You know, to help. Exactly. And who is, uh, uh, former fed chair, Al green span, married to famous reporter
Speaker 3:MSN MSNBC reporter, Andrea Mitchell.
Speaker 1:Sure. I was going to say NBC, but that's good. I thought it was going to catch you on that. Okay. So, um, so let's take a look at affordability. So remember we said, uh, before the news, you've got Freddie Mac saying by the end of this year, they think the 30 year fixed rates can arise from 2.8 to 3.3. And by the end of 2022, it's going to go to 3.8. You are there.
Speaker 3:Yeah. Brian surely this half percent rise in rates is going to just, you know, decimate every homeowner out there. And they'll just decide to be on the sidelines and quit looking. Right.
Speaker 1:Well, that is the fear. And I've actually gone to the trouble to quantify that, um, by taking a look at it, I'm going to use Freddie Mac cause they were in the middle of the number of Fannie Mae was a little more optimistic. The mortgage bankers association, much more pessimistic, but I'm taking a look here at a$260,000 single family home, which is the median sales price for 2020 in the five county and Milwaukee area. So if you bought that with 20% down, I'll say in the end of December, uh, your monthly mortgage payment would be 1,350 bucks a month. And you have had to come out of pocket with about$56,000 for down payment and closing costs. I'm going to tell you where that ends up, where when you bake in the home price appreciation forecast from the big guys, plus the rate increase. When we come back, how high is that payment and down stroke going to go. I'll give you the answer. When we come back, you're listening to the academic mortgage and Realty show on am six 20 WTMJ WTMJ
Speaker 2:W2, 77 CV and WK T I 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 1:Love that song. That's um, Rosanna by something. Okay. So, um, how much is your payment in downstairs? Go up. Let's say you're you bought this a medium price house in the five county area for two 60, with 20% down 1350 is your total monthly payment, including taxes. If you, uh, closed in December of last year, when the 30 year fixed rate was at 2.625 and I'm$56,000 total cash out of pocket. Great. So the big guys, Freddie Mac, and all those folks think that by the end of 2022, that home price is going to go up. Are you ready? 10%. So instead of two 60, you're going to be a 2 86, um, and change. And then they're saying, Hey, you know what? The rate's going to go up to 3.4. So if you delayed that purchase, you found a similar home, but she's not going to pay more. I got to borrow more and the rates higher, your payment's going to go up by$175 a month. And the cash to close is going to increase by five grand. So instead of 56,061, by the end of 2022, the big smart guys think that values are up another 8.4% by December of 22. And that the rates going to be 3.875 means that your payment will be$326 higher than it was for the person who bought the end of 20, 20, and 10 grand more out of pocket. All right. So I'm the fear migrant. Yeah, man, this is going to be bad for home buying, but David using the power of math
Speaker 3:Using the power of my online calculator, I, uh, to go back, we talked about this two weeks ago, uh, when you were off, but you know, home values are still tied to income. And so in your, in your calculation, you're saying you got to pay more for this house as if your income hasn't improved or grown along with your, you know, the rise in home values. So you said 1 75, okay. Times 12, that's 2100 more dollars per year in pay per year. Well there's well, yeah, there's yeah. There's 2080 work hours in a year. If you can make one more dollar per hour, you can afford both the rise in rate that you described and the home appreciation$1 an hour. So if you were making$24 an hour, if you can figure out how to make$25 an hour, it is a wash for a rise in rates and a rise in home values. Your income is not a static.
Speaker 1:That's right. I feel better. I feel better. So, so, you know, two ways to look at that, if you're thinking I'm gonna wait, you know, to buy a house. Well, first of all, you know, the theme from today's show is if you've, you've got a lot more equity in your home than you did, uh, in fact, David, how much more equity do you have in your home since you bought in what month March? Or was it may of 2020?
Speaker 3:Yeah, I mean, so Christie and I bought our home in March of 20, 20, like five minutes before the pandemic started and we put 3% down cause I'm the son of a mortgage banker and Cassius king. And, um, I just got, I just, uh, I'm refinancing and we just got the appraisal lever and Shizam, um, we have 25% equity, like 16 months later. And, and you know, we're doing some things, but it, the computer system doesn't know that we've done anything. The computer system, if we had just left, you know, ugly paint colors, the same, the computers wouldn't know. Uh, and so that shies
Speaker 1:In value, this is Fanny me, his computer going, you know, this homeowners, we know this property because we bought the loan. We meaning Fannie Mae bought the loan on your home. And it's like, okay, we know the square footage, the bedrooms, the bathrooms. And so now just based on all the other sales in the Milwaukee Metro area, we're believing this higher value that have put into the computer. And so now Dave and Chrissy, aren't only going to get a lower rate. Their PMI is gone, private mortgage insurance. And so that's what we call the double whammy. And then what we're seeing a lot of people do with that much equity is take some cash out, uh, to pay for that remodel. You know, cause you know what, I don't want to move. I would rather make the place where I live better and more habitable. Now you can't typically add a lot of square footage for, uh, you know, a reasonable amount of money, but you can make the inside nicer of your Heights. So a great opportunity to do that. So the message for anybody who wants to take out equity, who wants to enjoy the increased value of their home and maybe get rid of the PMI, our message is now is better than waiting. And then relative to home buying, you know, should you wait, do you think the market's going to get less fevers? Maybe you over there with the gray shirt?
Speaker 3:Well, I was just going to say it's, you know, okay. So if you want to wait, just because you're not willing to pay more for that same house in your example, Hey, if it's two 60 and Fannie Mae and Freddie Mac predict, it's going to be a 10% rise. And now that home is 2 86, just because you're not willing to pay for that higher home value doesn't mean that someone else isn't still willing to pay more for that same home. So you are, it it's a triangle of, um, appetite, right? There's you the buyer, there's the seller and then there's other buyers. And if other buyers are still willing, even if you're not today, next year, the year after, you're still going to be waiting.
Speaker 1:Try this out though. Hey, if home prices are going to be up six or 8% in a year, why not buy at 5% over the asking price now and at least lock in the low rate rather than a wait a year, pay 8% more and suffer the higher rate. Boom, I like that. All right, folks, that's all we have for today's show. Thanks for tuning in. You've been listening to the accident mortgage and Realty show on the biggest stick in the state 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 academic mortgage and accurate Realty advisors and not WTMJ radio or good karma brands, Milwaukee LLC.