The academic mortgage and Realty show is sponsored by academic mortgage and equal housing lender and MLS ID 2 5 5 3 6 8, and academic Realty advisors, which is a separate company from, but still affiliated with accurate mortgage.
Speaker 2:Welcome to the Acura mortgage and real to 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.
Speaker 1:Well, good morning and welcome to the active mortgage in Realty show. I'm Brian, the majority owner bank cadet mortgage inaccurate Realty advisors, along with David, my son, who's our chief client experience officer at academic mortgage. 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 8 5 5 6 1 6 1 6 20. Don't forget, you can grab the podcast. Today's show. If you hear a segment that you like, and you want a relative to hear it, you can get that on podcast wherever you normally get your podcasts. All right. So, uh, I want to start out the show, uh, talking about, um, gift money and in the context of that first time home buyer, who we've mentioned for many weeks, kind of like a serial drama, uh, this is the fellow who, uh, did actually successfully close this last Thursday on this who, who on this his seventh offer since January lucky, number seven. And, um, you may or may not recall from previous iterations of the story, um, that his father and mother were both willing to give$5,000 gifts and the buyer's father attended the closing, which is what reminded me to tie together the theme of the gifts here. And initially I really wanted to include the$10,000 of gift money he's in the transaction, at least for preapproval purposes, because that 10 grand along with the home buyers, um, savings. And he was a really excellent home buyer, by the way, you know, just did everything we needed him to do right away and, uh, excellent, uh, home buyer. And anyway, I wanted the 10 grand plus his savings because then we could show on the rock-solid pre-approval 10% now, cause 10% down is better than 5% down. Well, as it turned out, we didn't need the gift money. And there was a point just by the way where the dad said well, but, um, Alex, not his real name. Why don't you put the$10,000 down towards your mortgage? Cause that'll lower your payment. And I then replied, it'll only lower your payment by$41 and 50 cents a month. And it turned out during the course of the transaction, that there was a major repair that needed to happen, like to the tune of 10 grand. And so he said, save your gift money and give it to Alex after closing. Cause he's going to need it to make these repairs, uh, that came up on the inspection. Uh, there was subsequently a small price reduction and the seller, uh, decided to pay for what was it?$5,500, I think was the maximum allowable, uh, closing costs that they could pay for. So all that to say that gifts are as common as dirt when it comes to helping sons and daughters, granddaughters and grandsons buy homes. David, did we ever help you with a gift?
Speaker 3:Yeah. Oh, of course, absolutely. And it's the right next to your own savings gift. It's one B if your own savings is one, a gift is one B for best easiest, most awesome source of down payment
Speaker 1:And parents and grandparents love to help first time home buyers. It's great. In fact, uh, now your mother thinks it was her parents. I think it was my parents that helped us with a gift for our first home back in 1985. Let's just say maybe they both helped us out. But, um, so here are a couple of reminders about gifts. Uh, first of all, the gift has to be from a family member or a significant other who actually resides with the borrower buyer. So let's say that another way, where can not a gift come from David
Speaker 3:Can't come from the, uh, well, the seller, obviously it can't come from your boss. It can't come from, you know, your buddy, uh, generally blood relative or as you noted significant other kind of the smell test for that is if you've both resided at the same place for maybe the last year, uh, or honestly I think we've even gathered like wedding announcements, you know, if a fiance is going to give a gift to their, you know, soon to be patrolled.
Speaker 1:Yep. Yep. All right. And then another thing is this is kind of detailed oriented, but did I mention details matter matter the account from which the gift can come, cannot be titled in the name of a living trust. So when your mother and I gave your sister and brother-in-law money for the purchase of their home, uh, in 2020 while your mother and I, our checking account is titled in the name of our living trust. So your mom literally had to open up an account in her name only as a human being and then give the gift from that account. Okay. So, so, you know, I mean, I know that's a sweaty detail, but it can't come from a trust. If it comes from, let's say your grandparents trust, uh, you know, then, then meaning that, that you as the home buyer, actually the beneficiary of the trust meeting, okay, I can get money from this thing, not as a gift, but as I have a right to it all, then we have to get a copy of the trust. We have to get a letter from the trustee, but in general, the thing to remember is that gifts have to come from humans more on this excellent topic of gift giving and receiving. When we come back, you're listening to the acronym, mortgage and Realty show on am six 20 WTMJ home
Speaker 2:Buying advice from the guys who know it best. This is the accurate ed mortgage and wheel to show with Brian Wichert on WTMJ
Speaker 1:All right. A little shake your body down to the ground by Michael Jackson. Hey, I asked Isaac to find that, thank you, Isaac. We had our company picnic on Friday, out here at the house and we had the extra crispy brass band is our entertainment. And they played a awesome version of that tune. So a lot of good breasts there and your brother-in-law Tim, of course, a part-time member. And he actually jammed, he played his lip, his back up, uh, very talented, uh, trumpet player. And sometimes co-host all right, so we're talking about gift and gifts for down payment and closing costs. And, uh, one thing you gotta do is you got to sign a gift letter. It's a form letter that the lender provides and it's signed by both the donors and the recipients. And it says a couple of things on there. Like it's a true gift and not alone. All right. And by the way, though, nobody ever said you couldn't re gift a gift, right?
Speaker 3:Can I tell you my version of that is it's America and whatever you decide to do after you buy the house is no longer Brian or David's business.
Speaker 1:That's right. However, on the letter it says, this is a true gift and does not need to be paid back. It is not a requirement to pay back the gift and you also get the signed and acknowledged that it is a federal crime punishable by both imprisonment and fine to lie on anything related to federal mortgage application. Okay. So, so you know enough said about that. The other though thing, it states the amount and it states the relationship between the donors and the recipients. And remember we said, it's human to human. Uh, we add somebody on a refinance, interestingly, need to bring or wanted to pay down a chunk of principle and the significant other whipped out his business checking account pork. Nope, can't sorry. I can't do that. And now luckily on a refinance of a primary residence, you have three days right. Of rescission. So it wasn't an emergency that he had to go and get his personal checking account, you know, right away. Cause we had the three-day rescission period, but yeah. Get money a gift from a business, know a gift from a living trust, very common, right. That older people especially have titled. Nope. Nope. It's gotta be human to human. All right. Then how does the money get to the closing table? Well, if it's a VA or an FHA loan, the gift actually has to be made and deposited into the home buyer's bank account before closing. And that's a bit of a hassle because then we have to get verification that the check was actually deposited into the recipient's bank account. All give me your deposit slipper, show me an account history and then check this out. We also have to get verification that it was actually the donor's check that was deposited. In other words, Hey grandma, give me the front and of the check after it's cleared your bank account, a hassle or a transaction history, showing that it was check 1, 2, 3, 4, that cleared in the amount of$10,000 or whatever the gift amount is. So big hassle factor. All right. Luckily, most of our businesses, conventional loans, it just means there's not FHA or VA. And what we like to do there is have the gift made at the closing table either by cashier's check made payable to the title company. Well, wait, I thought I was giving a gift to my son. Yeah, you are. And you can put gift to my son, Fred on the cashier's check, but it's going to be payable. And plus you'll have the gift letter saying that you're making this gift, but by giving it right to the title company, we don't have to hassle with it getting deposited into the recipient's bank account or proving L by the way, though, one of the things on the gift letter says what's the remitter or the donors bank's name. So let's say it's a, you know, BMO Harris and what are the last four digits of the account from which the gift is coming that has got to tie out to the cashier's check or the wire, the incoming wire to the title company. Cause that's another way if the amounts over 25 grand or in some states, all money for closing has to come via a wire. So that's all got to check out. All right, we got one more thing to cover because nine out of 10 humans think that there's a$15,000 gift limit and there's not. We'll remind you of those details. When we come back, you're listening to the acronym, mortgage and Realty show on am six 20. WTMJ
Speaker 2:Getting you into the home of your dreams. Here's more of an accurate ed mortgage and Realty show with Brian Wicker. WTMJ
Speaker 1:I'm not familiar with that. Get back song, but, uh, it sounds funky and cool. All right. So we're talking about what about the gift limit? Everybody knows there's a$15,000 annual gift limit, but the gift tax I'm so afraid of the gift tax gift tax. What there really is ladies and gentlemen, listening in there is a$15,000 exemption every year, um, where you can give anybody, you want 15 grand and you don't have to report it to the IRS. If you give somebody more than$15,000 in a gift in a particular year, then you have to fill out a form. Uh, with that year's tax returns to say, Hey, I gave a hundred thousand dollars to my son and then they would say, okay, a hundred thousand minus 15, oh there's$85,000 that we're going to count against your lifetime gift exemption, which is currently how many million David 11.7 million per person right now the truth of the matter is a lot of people think that's going to come back down to 5 million per person, but there are still very few of our listeners that are going to end up having to worry about even a$5 million gift, lifetime gift
Speaker 3:Decision. If you're married, it's twice as much.
Speaker 1:Well, let's talk about that. So if you have a, let's say grandma and grandpa, and by the way, I just, I thought of while we were on, on the break, um, I remember having a well-to-do grandfather who meticulously donated to his grandson and his wife,$15,000 each over like a period of five years. And so now it's time that they were going to buy their home and he wanted to give me all the documentation of that gift giving over those 15 years. Here's the good news because it happened more than two months earlier before the home purchase. I don't have to care about it because it's already in the recipient's checking account and it just looks like their money. So that was an interesting one where, oh, the gift was given a long time ago or in a series of gifts long time, I don't have to worry, but the truth of the matter is grandma and grandpa can donate to grandson and grandson's wife, 60 grand. Cause it's grandpa, the grandson, there's 15 grandpa to the wife of the grandson. There's 15 grand. Then grandma can give 15 to the grandson and grandma can give 15 to the grandson's wife. There's your 60 grand without reporting anything to the IRS. So that takes care of a lot of gifts. But if you wanted to give a hundred grand again in this scenario, it's like, okay, 60 grand is fine. That fits under your annual exemption. But then the other 40 grand, all you got to do is report to the IRS. Hey, I gave 40 grand more to my grandson this year than the annual limits. So don't be afraid of giving big gifts or asking for them. Right? Dan,
Speaker 3:We always remind home buyers of that right around the holiday in, in either radio ads that you run or when we do email blast, it's like, by the way, when you're sitting around the Thanksgiving or Christmas table, don't forget to soak mom, dad, grandma, grandpa, for a gift because grandma, I want to buy a house this year. Can you help me do that? And every gram on earth will say, oh yeah,
Speaker 1:Absolutely. Yeah, yeah. That's called crowdfunding. Right? That's the new word for that? Hey, one other thing before we move on from guests here, before the news, when you're, if you are a parent, a grandparent or you want to sell yours son, daughter, or grandchild, your family home call, I get it mortgage. We're really good at this. The number one mistake that people make there is, Hey, the house is worth 200 grand. We're going to sell it to grandson, Fred for just one 50. We want to give them a smoking hot deal. Okay. The problem with that is now the son or grandson and Mike Fred still has to come up with a down payment. The minimum is 3%. And here's what people don't realize. The whole lending world bases the value of the home, not on the appraisal in this example of 200, but on the lower of the appraisal or purchase price in this case one 50. So Fred is going to have to pay private mortgage insurance because he's, doesn't have 20% equity. On the other hand, if you set the purchase price at 200,000 and then gift the equity to the buyer. Oh my gosh. Now, and it appraises out a two 50, oh my gosh. Now, now you're putting 25% down. Where did it come from? Right. Gift of equity. And now you don't have to pay PMI and you're going to get a better deal on the money too. So lots of time,
Speaker 3:I feel like, I feel like this is the part of the show where I, you know, stand on my chair and now on a weekly basis. And I say, why would you ever want to do this by yourself? Either standing in the living room of grandma's house, trying to talk about, you know, gift to buy grandma's house or whatnot, because it's, as you said, the story that you shared over many weeks now, you know, the dad was going to give the gift, Hey, just put that to your mortgage. It's not just about winning. It's also about the, the smartest way to either keep your home purchase together, or just be smart about how you get to the closing table. It's both of those parts. And why do that by yourself
Speaker 1:In that spirit? After the, uh, news coming up here, I've got a story about, um, one friend buying a nice home from another friend and they did the contract for sale by owner. And now we're talking about, do it alone for about 1.1 million to finance this. We'll give you the details on that. When we come back. Now it's time for the news with Tony bedrock,
Speaker 2:Break the bank to get into a house back to the acronym, mortgage and Realty show with Brian Wichert on Delavan TMJ.
Speaker 1:All right, welcome back. So I'm got a call a couple of weeks ago, uh, or maybe it was an email. It was an email from, uh, our attorney. Uh, who's also a customer saying, Hey, I met somebody and they need help, uh, with a jumble loan, uh, buying a really nice lake property here in Southeastern Wisconsin. And so we connect and, and it turns out that, um, there are no professional real estate agents involved and, um, they ended up putting the deal together. And, uh, so I said, well, send me the offer, right? Because they did use the standard. Wisconsin offered a real estate forum. But so far I've only seen the counter offer, which is a one-page document. But I already know that it's messed up. And from a lending standpoint, because in, it was included like a boat and a paddleboard and something else otherwise known in our industry as chattel, not real estate. And so I know for one thing, Hey, we're going to have to do an amendment or you're you guys are going to have to do amendment, but I've seen this happen before. Hopefully I'll get a look at the rest of the offer soon. Uh, cause I asked, well, did you have an appraisal contingency? I don't know. Cause cause the home buyer's worried. It's how are we overpaying? Is this thing, the right price, blah, blah, blah. I'm like, I don't know. But do you have an appraisal contingency? I don't know. So if you're going to do a for sale by owner transaction, we've helped facilitate a lot of those and have the resources to put you in touch with, for example, uh, we have a very capable attorney that for just a few hundred dollars, not thousands of dollars, we'll help facilitate this whole contract drafting. I remember one, uh, that closed a year ago where they just tore it up and started again. And which is fine. You can do that
Speaker 3:For sale by owner does not mean alone. It just means you're not necessarily engaging a real tour, which is a trademark of the national association of realtors. And, but you can still have counsel, you can still have help, you know, it's I always talk in metaphor. You know, these people decided I'm going to be a plumber. Oh eight. I know a guy who did that recently. I want to be a plumber and I'm just going to try to do my own plumbing. It's like, well, no, you can like, you know, have some help or watch some YouTube videos. And so to your point, there, maybe there would have been less heartburn from the very get, go with a little bit of help
Speaker 1:Perhaps. And so, so now it's time to, um, you know, talk about financing. And so for this level of purchase where, um, you know, we're talking about over a million dollar home, uh, between 1,000,002 million. And so the loan amount, we want 30% down. Okay. Which turns out to be like 1.1 million. Okay, well they don't have the 30% down, but they own their property free and clear their current primary residence free and clear and they own five other rental properties free and clear. So, you know, wow. Maybe I can take a home equity loan on one of the rental properties. No people, banks do not enjoy giving people home equity lines of credit on their rental properties, but we can help get you a special purpose home equity line of credit on your primary residence called a bridge loan. Okay. Well then she says, okay, well I need to make sure that, you know, you're giving me a good deal. And by the way, what I had offered her, uh, was 2.75 on a jumbo 30 year fixed rate at 1.1 million, a 2.75 that's. If she wanted to pay a fraction of a point, uh,$4,410 to get that trophy rate, the other alternative was 2.8, seven five with not just no points, but no loan costs whatsoever. But you know, she just met me, says, Hey, I think I got a chaperone. Okay. So then she emails me here over the weekend, a quote for a VA loan. And we talked about this because her husband is ex military. And I said, well, you know, another possibility is we could do a jumble VA loan. Uh, that's a real thing. Um, and there's a formula for determining what that maximum loan amount is. So sure enough, she sends me a loan estimate from a different lender with a VA loan quote at 2.75. And what she really, really liked about it is she would only need about$140,000 at closing, which she has instead of the$470,000, uh, that I was talking about for a regular jumble loan. So that was the attraction. But David, can you predict the problem with the VA loan for the drawback plus column?
Speaker 3:Well, the VA, I mean, it's an amazing program, but the VA doesn't do it for free. And so the VA almost always, unless you have a service related, either injury or disability, you have a funding fee, which is a percentage of the amount of money that you're going to borrow. So it's not, it's not free and on a big loan amount, like you're talking about,
Speaker 1:It's going to be extra, don't say the number. Yeah, let's do. When we come back under the category of the rate is the bait and the closing cost is the hook. And I even mentioned that to this, a home buyer when I talked to her on Friday, don't forget the rate is the bait. The closing costs are the hook. We're going to tell you just how high the closing costs are. When we come back on a VA jumbo loan, you're listening to the academic 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:All right. So the theme of the story is the rate is the bait and the closing costs are the hook trying to help, um, a home buyer purchase a dream home lake property. And, uh, the contest here is, Hey, I can make you a$1.1 million, uh, loan, uh, on a conventional loan, not guaranteed by anybody just going to go on a bank's portfolio. And, uh, and the alternative which I talked about is you could get a jumbo, VA loan. And so she shopped around this weekend and came back and shared with me, Hey, okay, here's this VA loan. I got an offer on for 1.4, three, 5 million. So the benefit is she has to bring$335,000 less to the closing table. Keeping in mind though, David, that they're going to sell their existing primary residence, which they own free and clear. Go ahead. Aren't you just keeping us,
Speaker 3:You gonna say saying that they're going to bring less, doesn't take into account how you're not going to in your proposals, setting up the bridge loan. They're not going to be cash poor. In fact, they're probably going to be in a stronger,
Speaker 1:But you know, so, so the bottom line here, we teased it before the break, the VA funding fee alone on this size of a loan is$19,845 with the other loan cost quoted by the VA lender. And we may be able to do the jumble VA loan for less. I just am not an expert at that. So I was going to have somebody else help me with it. Monday, the total loan costs are$23,507 with this competing VA alternative. And so in my email to her this morning, I said, you really need to apply the difference between our two proposals because she's looking at 2.75 on a VA with 23,500. My competing alternative is 2.75 on a conventional loan with like$5,500,$5,900 in loan cost. So the difference between the loan cost is a cool 17,500. You really need to apply that cost to the marginal difference, the extra$335,000 that you can, that you're going to be able to borrow. That's the way I think this should be analyzed. Like you are paying a ton$17,500 in order to get at that extra$335,000 that literally equals five and a quarter percent of that marginal$335 that she can borrow. That is ridiculous. And so I'm saying, you know, I can get you a bridge loan for maybe$2,000 for that 335 grand that beats the snot out of what you're proposing. Plus the other alternative is I can give you two and a half on the jumbo money. A only in Eric, well it's$18,500 in costs compared to the 23 5 that you're staring at there from the VA alternative. So even if we can do the VA loan for less, it's still, I mean, you're lightened a lot of money on fire for the privilege of coming with less down payment. And by the way, these folks own all their properties free and clear. So it's not like they're used to embracing large amounts of mortgage debt. Anyway, go ahead, David, you have a comment.
Speaker 3:I was going to say the more that we keep doing this mortgage thing, the more there's a lot of numbers here, but man, do I, I see other emotional conversations going on behind these numbers, Hey, you know, help us put less down because we're buying a much bigger house and maybe they're going to want to do improvements to that house. And so having cash on hand is driving so much of this. There you go. And so it, um, I, I hope that they, you know, I hope that they decide to learn about maybe a thing. They hadn't considered called a bridge loan that you're talking about, but
Speaker 1:Because it's just a scary term. Ooh,
Speaker 3:Scary. You talked about, you talked about, um, Alex, you're, you're a first time home buyer being a great student. If you're a move up buyer, but not willing to learn or consider an alternative that as you've pointed out, the numbers lay out is a better execution. It kind of doesn't matter what the numbers are. If you're not willing to understand the alternative.
Speaker 1:And I think this person, these buyers who were, I'm going to talk to on Monday in the afternoon, you know, to her credit, she says, it appears the VA is a better choice for us. Not sure. So, you know, she's smart enough savvy enough to say, well, this looks like a better choice, but I'm not sure. So that's good. You know, uh, I think they're open to understanding other alternatives, but in the end we better be ready with a VA loan in case, you know, if like you like to say, or you want to, you you'd like your steak, you know, like charcoal I'll burn your steak anyway. You want it right. Cause we're, we're that good? All right. So when we come back, uh, we ended last week show with a story that I didn't have time to tell about some friends of ours looking to buy their retirement home up north. And we'll tell you the rest of that story. When we come back, you're listening to the acronym, mortgage and Realty show on Wisconsin's radio station am six 20 WTMJ
Speaker 2:WTMJ W2, 77 CV and w KTI HD to Milwaukee from the annex wealth management studio. This is news radio. WTMJ find a place to call home without the headache. This is the accurate mortgage and Realty show with Brian Wickers on WTMJ
Speaker 3:Top three Doobie brothers
Speaker 1:Right there. Yeah, they did this once on Saturday night live and butchered it. Cause I think they were out of maybe a little messed up on weed or something. But anyway, um, uh, talking about some good friends of ours that we known since high school, can you believe that? And uh, so, um, she is retired teacher and he is a business, small business owner, but because of COVID did not have a good year in 2020, and that's going to be the pivotal year for using any of his self-employed income. So we are skipping over that and just ignoring his business income and instead using our favorite basket because they are 60 a. And so once you're over 59 and a half, we can use IRA income as a, as qualifying income. So by putting that together, we came up with a oh and by the way, the original game plan was, Hey, let's help you buy this new home, which is going to be on a lake somewhere up north to be determined. Um, and they want to know, can we buy like a 500 up to$500,000 home? Great. So we line up a bridge loan on their existing home here in Southeastern Wisconsin. All they've had to pay so far to line that up as$475 on an appraisal. So they are set to go, my rock solid preapproval for them says that does not make any mention of the bridge loan because it's already approved. It says you do not have to sell your home. It's not subject to approval of Aboriginal cause we already got that taken care of in writing. Right? Well now the circumstance that comes along, they haven't been able to find anything they want and they learn that their son and new daughter-in-law may be moving back to Southeastern Wisconsin with a chance of Sunday, perhaps providing the thing called grandchildren. And now they don't want to be living so far up north. So now they've moved their search area down to more like middle of Wisconsin. And guess what homes are more expensive on lakes because it's closer to the population. And so then the question was posed to me and over dinner, Hey, if we sold our home and then rented, would we be able to afford Mo Morehouse? And I said, well, let me run the math on that. You know what I'm back? And the answer is decidedly. Yes. We want to know if they could afford five 50. And so that the answer is all day long, because when you're buying before selling, you have to carry the principal interest taxes and insurance on both homes. Okay. And so that was causing an affordable that that limits how much you can buy on that next home. Right? If we now sell the old home and you go become a renter for awhile, uh, now we don't have to count your rent, you know, because maybe you're probably going to sign a six month lease tops, or maybe you can find a month to month. And now that doesn't count as part of your debt picture. So helping people achieve their goals is what it's all about. You go ahead.
Speaker 3:I was going to say, not, not that you're trying to be a life coach either, but you know, the, the benefit of doing the, uh, the double Dutch, you know, Hey, let's, let's sell rent and then figure out maybe where we want to be. Cause what if their son, and daughter-in-law decided they want to live in like, you know, Janesville, like they have lakes out that way too. And so suddenly maybe they recalibrate again where they want to be to be closer to grandchild. And you're, you know, looking for a home down in rock county, right. It allows them, it allows them to, to pivot
Speaker 1:Or more likely what if it's Cedarburg, you know, that the, that their son and daughter-in-law buy-in well, then you might be kind of up the mannitol, walkway and random lake and kind of that, you know, Fox valley area for a lake instead of, oh, they decided to buy and Walker Shaw, well then, then you'll kind of want to be west or, you know, kind of that way. So good point. Um, so, so my recommendation was, and maybe you want to sell now while the market is still really strong. Cause you don't know what cause their inclination over dinner was. Yeah, we we'll sell next spring. It's like, why not sell now? And by the way, you're all teed up. You could get a home equity line of credit either through the bridge loan lender that we lined up or somewhere else. Cause they have some repairs they could do to the home to get it ready to sell. So that was just another thing. Like maybe you should move ahead with kind of getting things gussied up and go ahead and get that home equity line of credit. Maybe you need to borrow 25 grand or 50 to do what you want to do, um, and sell while, while you're certain of what market conditions are. All right. So that's what we're doing there. Uh, in general, David, how are rates still at the end of the week?
Speaker 3:Hot? Uh, my, my rule of thumb is if your mortgage starts with a three let's talk, uh, on a 30 year fixed 2.875, and that's the APR cause that's with zero loan costs on a$300,000 loan with 25% equity and all the other rights stuff, or 2.2, 5%, two and a quarter. And that's the APR as well because of no loan costs on a$300,000 loan that's on a 15 year fixed. So if your mortgage starts with a three time to click on that blue button, that action at the time,
Speaker 1:Uh, and, but the bigger, the loan amount, just to remind people, that's not a$300,000 loan amount. If your loan amount is$50,000, if it just doesn't have that much impact, what's your interest rate is. And by the way, I got a call from somebody who we're refinancing at 2.6, two five on a 30 year. Cause he saw an ad on TV, was vacationing in Denver for two and a quarter. And the rate is the bait people. Don't people just fill in what they think, oh, that must be with no points and no closing costs. No. And we'll always line up, you know, those really trophy, low rates for you and we'll show you what that is versus the no point are they even the no closing cost deal. So you can make your own decision. That's all the time we have for today's show. We'll see you again. Next week 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 academic mortgage and accurate Realty advisors and not WTMJ radio or good karma brands, Milwaukee LLC,