The accurate mortgage and Realty show is sponsored by academic mortgage and equal housing lender and MLS ID 2 5 5, 3, 6, 8, and Achan it Realty advisors, which is a separate company from, but still affiliated with Acushnet mortgage.
Speaker 2:Welcome to the accurate mortgage and real to show getting you inside information on buying, selling, and financing your home with expert advice from Aquidneck mortgage and Realty. And now here's Brian and David Wicker's.
Speaker 1:Well, good morning and welcome to the academic mortgage and Realty show. I'm Brian Wicker, the majority owner of Acushnet mortgage and Econet Realty advisors along with my one and only son David, who is our chief client experience officer over at academic mortgage. If you've got a question or a comment you can call or text us on the academic mortgage talk and text line, which is 8 5 5 6 1 6 1 6 20 David. Tomorrow is your namesake uncle's, uh, birthday, my brother David. Yeah, September 20th. Happy birthday David tunes in from green bay. Um, or now the greater little Suamico area, uh, on a weekly basis. All right. So today, uh, let's just start off letting everybody know that opportunity is here to refinance. Rates are fabulous, but the federal reserve open market committee meets on Tuesday and Wednesday. And the anticipation of that meeting already has mortgage rates and rates on us. Government bonds kind of creeping up a little bit. Um, Freddie Mac survey last week, which is gathered on Tuesday, but published on Thursday, put the 30 year fixed at 2.8, 6%. That's if you're willing to pay seven tenths of a percent of the loan balance in points or other lender fees. In addition to the actual closing costs on a$250,000 loan, according to Freddie Mac last week, and a Wisconsin refi, you did pay three grand in closing costs, of course, Eunice closing cost for a similarly situated, um, transaction. Even at the end of the week, when rates were slightly higher would have been just$1,234. Uh, no points, just the regular fees. All right. So, um, let's quickly review though, what the fed actually does and doesn't control. And this is a little bit like the ankle bones connected to the shin bone and the shin bones connected to the five. All right. So the federal David, does the federal reserve directly control mortgage rates? Okay.
Speaker 3:Well, I think people in their minds think that chairman Powell has a big knob on his desk and he just turns it any which way he wants, which is not the case. It's really the ankle bones connected to the ear lobe. Uh, if
Speaker 1:It's indirect. All right. So, so what the fed does control is a thing called the interest on reserves. I bet you didn't hear that because I looked that up this morning, the interest on reserves impacts that that's the rate that they pay banks to deposit money at the federal reserve overnight. So it's the shortest possible duration. And that interest rate by the way, last week was 0.08%. Ooh, ah, but then that affects the federal funds rate, which is what banks charge each other. Think of that as a private market. And it's essentially the same rate. The only thing that the federal funds rate impacts that a consumer pays is the prime rate. That's what impacts your home equity line of credit. What's the primary today, David three and a quarter three and a quarter. And it's been that way since the beginning of COVID, don't forget those as high as five and a quarter, uh, before COVID, uh, cause the fed was trying to cool down the economy by, uh, raising interest rates. Now the fed is not expected to change their foot fed funds rates. So that prime rate is safe until sometime in 2022. Okay. When you hear, if our listeners, when you hear all the federal reserve raised rates today, that means your prime rate went up on your credit cards. And if you have a home equity line of credit on your home equity line of credit, all right, now, the way the fed has been influencing, not controlling, but influencing mortgage rates since the beginning of the pandemic is they're buying 40 Bubba billion with a B a bundled mortgages called mortgage backed securities per month and$80 billion of longer term us treasuries like ten-year bonds. And by creating this extra appetite for these interest rate, bearing investment vehicles, mortgages, and treasuries, they keep the rate low. Okay. Cause they're this big investor pulling up to the table and saying, I got saw, I got a Hanker in here for some 1.3, 7%, 10 year us treasuries pill up my plate. And so that, you know, and the mortgages, by the way, they're getting about 2%. Uh, so it's that issue in, and the federal reserve is expected. Uh, chairman Powell on Wednesday afternoon, a 1:00 PM, uh, fed fed chair. Powell is going to have a news conference and your issue, the statement, and we're all going to be looking for language and comments on will. They start to reduce their monthly purchases of mortgages and long-term treasuries. That's called tapering. Uh, when Ben Bernanke, he did this back in 2013 or 12, there was a taper tantrum and rates shot up like a quarter percent in a single day. Um, so the, the takeaway here is that we don't know what's going to happen on Wednesday. What's your rule of thumb, David, if your rate starts with a
Speaker 3:Mortgage starts with a three it's basically by lunchtime on Wednesday, uh, because we don't know what happens after that.
Speaker 1:That's right. So click on the blue button tonight today, tomorrow morning and let's get that done. In fact, we sent out an email this last week to our client base, um, reminding them of all the things they could do with the refinance. Let's talk about some of those real life examples. When we come back of how people are saving or take an equity out, you're listening to the acronym, mortgage and Realty show on Wisconsin's radio station am six 20 WTMJ
Speaker 2:Home-buying advice from[inaudible] no at best. This is the accurate mortgage and wheel to show with Brian Wicker on WTMJ.
Speaker 1:I love Chicago bring us back. Do you know what the song's about? I don't. Hey. Um, so, uh, we sent out this email to all of our clients and prospects or anybody who clicked on the blue button and gave us permission to send them an email and just reminded them, Hey, um, you know, rates are still really good and everybody, by the way, Fannie Mae's forecast is for rates to creep up to from 2.8 to 2.9, by the end of the year, not bad, Freddie Mac is last. Uh, and then by the way, they have the 30 year fixed rate going from three to 3.2, by the end of 2022, Freddie Mac's forecast was for the 30 year fixed rate to get all the way up to 3.8, by the end of 2022, that was back in July. It'll be interesting to see if they revise their forecast. The bottom line is nobody's expecting mortgage rates to go down. Yeah. Right. Everybody's kind of think they're going up. Um, so we sent out this email and said, you know, there's kind of four things you can do. Do you remember what we said in the email, David it's like, you can lower your rate.
Speaker 3:Well, lower your rate. You can shorten your term. You could take cash out or the favorite among recent home buyers remove or reduce that pesky monthly PMI.
Speaker 1:All right. So let's go back and forth. You what's one that you came across,
Speaker 3:I'm stealing one from a substitute host to the acronym, mortgage and Realty show Tim Holdman, who's working with one of his repeat customers. They're kind of, they're getting like the two and a half reasons why they're taking advantage of refinancing. So there, uh, this is a larger loan amount. So north of$400,000, they're going to lower their payment by 150 bucks because, uh, they're lowering the interest rate by a half percent awesome. That, that has a real benefit on big loan amount from 3, 3, 7, 5 down to 2 8, 7, 5. They're also, uh, stretching. They're just stretching back out just a little bit because they refinanced previously in spring of 2020. So even stretching it back out from 29 to 30, uh, benefit there. And then the last one, they can't quite get rid of their monthly PMI, but they're dropping down into a lower, cheaper bucket because they used to have 10% equity. And with home values, continuing to rise. Now they have 15% equity. So those two and a half things get them to 150 bucks a month in
Speaker 1:150 bucks. All right. I got one for ya. Um, these folks, uh, 2012, they had a loan for three and a half percent. Um, they're taken out$60,000 cash for home improvements and lowering the rate from three and a half down to 2.875 seems to be the popular rate this week on a new 30 year, fixed with no points and wait for it. No loan costs on a loan amount of$336,000 payment is actually going down$96. I like that. I get 60 grand right now. It's going down for two reasons, the rates going down, but we are stretching back out to 30 years. Well, I'm going to double dip you here and go with this one. Um, two years ago,$300,000 loan at a 3.75. That was the going rate two years ago this week. Um, so three choices. This person hasn't quite made up their mind yet. Uh, door number one, they could, uh, lower their rate down to 2.8, seven, five and stretch back out to 30 years that would knock down their payment by$136 a month and still save them$26,500 of interest compared to doing nothing. I'll be like that. That's pretty amazing. Uh, door number two is we could say, oh, do you want to stay on track into a 28 year long? Because a lot of people don't like the idea of going back to a 30. In fact, that was the subject of your, of our email. I was about a 28 year loan. So we could write their loan for 28 years at 2.875, they would still enjoy$79 reduction in payment and a whopping$37,600 of interest savings. That's vegetables
Speaker 3:Compared to
Speaker 1:That's right. Or if they just, I want to make the same payment, actually, I made it so that they would only go down 13 bucks a that would give them a 26 year loan. So it's like, Hey, you're at 28. Now I'll shave off another two years, keep your payment the same. And that would save them$48,600 compared to doing nothing. So there's a smorgasbord of opportunity if you want to do any more of these women come back.
Speaker 3:Oh yeah, I got a couple more.
Speaker 1:All right. And then we'll get to some purchase stories as well. 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 the accurate ed mortgage and Realty show with Brian record on WTMJ.
Speaker 1:All right. We're telling stories from this last week on how people are saving gobs of money on refinances. David, do you want to give us another one? Yeah.
Speaker 3:Yeah, because this is a past customer of yours that you helped buy a home. They closed in April of 2020. And so, uh, Tim was able to get some numbers to them at that time that you helped them buy the house. Is this, does this sound familiar? 3, 3, 7, 5. Uh, and, and, and now dropping them down to 2 8, 7, 5 for free and saving at least 105 bucks a month. And, and the opportunity that's, that's the no-cost option. We're asking. It gives a lender credit and we pick up, uh, any costs to manufacture the mortgage. If, and we've said this before, and you've said this before, if you believe that Wednesday will be the, is it the name dear saved the word, the neighbor, uh, the, yeah, the Ralph Nader of interest rates. Now's the time to pay points maybe to buy down the rate. Uh, so we'll see what this is. This home buyer does, but you at least get a half, uh, th these folks at least would you like to lower your interest rate by half percent for free? I'm just, I just need you to, e-sign some things,
Speaker 1:Do you do that? Yeah. Yeah. And a lot of times we're getting a lot of appraisal waivers, not always, but when we put the information through the Fannie Mae or Freddie Mac computer, a lot of times the same, don't even an appraisal because it's already got all the data and it's kind of figured in the home price appreciation and then academics loan costs are only$759 on a typical refi. Alright. I have one, uh, went to the doctor this week, had a good checkup by the way. And, um, I remembered that the doctor a year ago was bragging about his 2.5% 15 year that he got elsewhere. And so I'm a mortgage guy. I remember that. So I say, Hey, by the way, you know, at the end of the appointment, you know, I remember he had a 2.5. Oh yeah, yeah. I said, you know, I might be able to get you a 1.9, 9% sell the sizzle on a new 15 year. And now this folks is on a large loan amount,$535,000. Um, so two and a new 15 year, he's going to chop off$363 a month off of his mortgage payment. That's, that's a big number. Wow. Holy cow. And we were able to do that with no points. Now, if you have a smaller loan amount and less equity than he has, you probably have to maybe pay some interest in advance to get that trophy rate. And we always lay out side by side for people. Hey, here's what it is, you know, like, uh, with, with costs or without, um, well you got another one or, or do you want me to go?
Speaker 3:No, I was just going to look because at that rate, I was just going to go look, uh, so much of the first payment is going towards principal that, uh, it, it's almost 74% of the first payment on a big loan amount, like that is going to principal. That is you're paying almost no interest. That's okay.
Speaker 1:I'll tell you too. I told you the two that, uh, aren't as sexy. I had somebody call and say, Hey, Brandon got the email. And it seems like maybe I could lower my 20 year fixed rate, which is at 2.75 that we provided a year ago. You know, maybe I can, um, you know, get that down to around 2% on a 15 year. And probably my payment won't change well on is$335,000 loan amount. The payment would go up a$296. So lopping off for years is, is a, um, you know, it just, it depends on how much you're, you're moving the interest rate. So it's, you know, that's one, right. I'm going to say, okay, Hey, and you will save a ton of money. And then I always compare it to making that same higher payment on your current loan, right? It's like, Hey, to be fair, let's see if you, if you want to step up and pay an extra$296 a month on a new 15 year fixed at, let's say 208th with no loan costs, you know, let's compare that to making the same payment at your 2.75. And it turns out you would save like 19 grand of interest. Okay. But the downside is you gotta be willing to make that higher payment. And if some people want to do that and find that very attractive and, uh, other people don't, you know, they, they don't want their payment to go up. I'd say that's the most common thing is, Hey, can you do something for me? Not having my payment go up a lot. Yeah, we can, we can do a lot. So, um, the other one, you already mentioned this, but, uh, getting rid of the PMI, the lady who was putting the little pads on my chest for my annual stress test thing, you know, she mentioned this, oh yeah, I hear you on, you know, such and such a radio station. And, and, you know, we bought a house two years ago. And so I said, you know, your home is probably up because they bought a new Berlin. Uh, oh, probably 20%. Ah, yeah. You know, we were just talking about that the other day. Cause we're paying$150 a month in PMI. So yeah, that's, that's a layup if you bought any time in the last year or three and you're paying PMI, uh, click on the blue button and let's see if we can reduce that cost or probably get rid of it all whilst lowering your rate. All right. When we come back after the news, we're going to talk about a couple of real life, uh, purchase stories that we have going on. And right now it's time to turn it over to the 24 hour news desk.
Speaker 2:Don't break the bank to get into a house back to me, accurate and mortgage and Realty show with Brian wicked on WTMJ
Speaker 3:Welcome back to the academic mortgage and Realty show. Good pick Isaac on the Dave Matthews band. Um, we're going to kick off the second half of the show here, uh, with, uh, purchase story, someone that I'm working with and actually an act unit, a team member who is, has an accepted offer on their first home. And, uh, I always enjoy when I get to flex my loan consultant muscle, uh, and for, for, uh, Jacob, uh, who we're helping buy his first home, this is a story of, I sometimes say there's real life and then there's mortgage life. And so in, uh, in the case of real life, uh, our, uh, uh, accurate team members going to be buying this home with their significant other, they together are going to be, um, you know, working to make their monthly mortgage payment. And, and that is over here on the right side of my, of my story on the left side of my story is what I always enjoy when we get to do, which is a, a refined approach to figuring out the best game plan for the lowest interest rate and the best terms for someone to help buy their home. So, so the tip of the spear of this story is we are going to line up a game plan to help them buy the home in just the borrower's name, rather than both of them together. Because with both of them together, we would be stuck using because mortgage bankers were conservative and Fannie Mae and Freddie Mac are meanies. And they say, anytime you have two borrowers on a loan, you must use the lower of the two middle scores for both pricing the loan, and also the PMI companies factor in both scores. And so when we had both
Speaker 1:The lower two, don't they? Yeah, they, they take the little one as well
Speaker 3:Blend or cause they also include things like the DTI. Uh, and so
Speaker 1:We income ratio, how much of the borrower's income we're using to service all of their monthly deaths translation.
Speaker 3:And, and so by, uh, having both borrowers together, their mortgage payment would have been 171 more dollars per month.
Speaker 1:Ooh. In other words, by being smart about it, by being smart about it, we lowered their monthly payment by a hundred, 771
Speaker 3:By difference. And so, and so the other awesome thing is by having just one borrower on this mortgage, we also were able to sprinkle the magic pixie dust of Fannie Mae's home ready program, which is based upon, Hey, if you make below 80% of the area median income, and that's, what's listed on your mortgage application, you get better interest rate pricing and better PMI pricing cheap and so cheaper PMI pricing. And so while on, so there's this, there's this, uh, it's not funny, but it's what it shows on the mortgage application is man, this new house that you're buying is, you know, a lot of your income is yeah, is right. Is stretchy. If it was just you, but because we know that it's two people together. It's, I mean, we can approve them
Speaker 1:Psychologically. We can, we can rationalize that this is going to be okay. It's not really a risky loan because we know there's somebody else who's going to be making the payment. What is absolutely stupid by the way about what you're describing, but it's our job to thread the needle, right? And so if both borrowers were on there, they'd make too much money to qualify for the special 30 year fixed rate, Fannie Mae loan program called home. So by leaving one of the borrowers off, we get to fit into that box of all a special program, a lower rate, lower cost of private mortgage insurance. Um, and overall it's, it's way better for the, for the borrower, but yes, it's stupid that Fannie Mae wouldn't want the second borrower on the loan. Do you see what I'm saying? It? Yeah.
Speaker 3:Oh, a hundred percent. Well, cause Hey, two heads are better than one or at least on paper. Right.
Speaker 1:That's right. But anyway, so our, our job is to manipulate the system. You know, if you will, or find it on the game board, find the best spot on the game board.
Speaker 3:I heard verb. Yeah. Uh, uh, streamline or some, some other buzzy word like that.
Speaker 1:Optimize let's go with that. Is that because you know, your circumstances,
Speaker 3:The cause you know the other true thing, when you go buy a house, um, you're going to want to buy things to go fill that house. And if you can save an extra, nearly$2,000 a year, because we lined up the mortgage just a little smarter, that's real money. That's a nice couch. Let me put it that way. Um, so w uh, we're bumping up here, uh, for our first break. What I want to, the second part of this story is a theme we've, we've talked about for a couple of weeks now, which is getting the accepted offer is step one. But keeping that purchase going, if there are any speed bumps along the way is equally important. I want to talk about that speed bump and how we overcame that when we come back, you all are listening to the acronym, mortgage and Realty show on am six 20 WTMJ
Speaker 2:Important home buying questions and answers you can count on base is the accurate mortgage and Realty show with Brian wicked on WTMJ,
Speaker 3:You're jamming along to this. Do you even know who this is? Because it's hollow
Speaker 1:Notes. I can't go to that. Okay.
Speaker 3:Oh yeah. Okay.
Speaker 1:You might've done that with the old magic pen. It might've been on the playlist.
Speaker 3:All right. Uh, well, going back to the mortgage. Yeah. We're talking about a home buying story, um, of a, an accurate colleague. And so story number one was, uh, optimizing that's the verb that we've chosen on. Hey, you know, sometimes it's not, there are smarter ways that we can line up your mortgage and that can save in this case, these talks 171 bucks a month, uh, for lining up a smarter, cheaper, better mortgage. Step. Number two is keeping that deal together because you know, proposing to the seller is great, but ultimately you want to keep it together to get to the wedding closing date, uh, at the end of the contract. And so what came up or what came up in this case reminds me that many buyers have felt that needed to waive the inspection contingency in order to win. I think that has been made perhaps that was anecdotal, but more prevalent than ever before. Right. And it's just that it's dangerous. Scary. It's. Yeah, because when, when big things go bad on a house, it's not like a quick trip to home Depot to fix things. It's like contractors in the home doing big things. And when you discover, so what they discovered in this case, the home buyer had been, or excuse me, the seller owner had lived in the home for decades and decades, and the roof had a third layer of shingles on it, which I'm not a rough, but I've been told, ah, that third layer is one layer too many. And so may present obviously a risk of the roof, not doing its job and, or the, maybe the homeowner's insurance company might poopoo that kind of third layer. And the, before anybody had started negotiations, obviously our home buyer had gone out and tried to get some opinions about, Hey, what does a new roof cost? And that number was a, uh, frightening$20,000 to start. And who knows, uh, how much, you know, more or less, you could find somebody to do a rough
Speaker 1:Flush shopping around. Right. Okay. But yeah,
Speaker 3:But, uh, ultimately, uh, either from smart agent work or a seller who gets it, the seller said, you know what? I will replace the roof before the closing date, uh, at my own expense. Okay. Which I was delighted that that was the case because so many sellers are intractable. Is that the word about what are you talking about? My roof is fine and it's never[inaudible].
Speaker 1:No, it wasn't leaking. Okay. But, but it was the inspector kind of saying it's at the end of his life, or just the fact that it had a third layer. Wasn't good.
Speaker 3:It was the presence. Yeah. It was the presence of the third layer. And, and they had follow-up diagnosis of like, you know, it might last a little while, but this isn't, this is not the way a roof is supposed to be done was the
Speaker 1:Non-standard. So they could claim a defect and get out of the contract. That's the whole purpose of the home inspection contingency is to say, Hey, I'm going to have a license, Wisconsin home inspector. Or if you're an Illinois licensed Illinois home inspector, come through the house and identify anything that might have a materially negative, uh, impact on the health, safety, or value of this thing called the house, David.
Speaker 3:Yeah. But see, but see what is, what's crummy about that? You know, so in, in contract world, it's good to keep that protection, right? That you aren't going to be forced to buy a lemon home because it's got a bad roof, but in the real world, man, they really still want to buy this house. And because getting a house under contract, it's like your kitchen or whatever, affordable, and it's cute and, and all that. And so, um, you know, buyers can feel helpless when sellers aren't willing to not be nice, but just like,
Speaker 1:Well, right. And so luckily, most people are reasonable, you know, and I can see, I have no idea if this is the case, but you know, maybe if it's somebody with a ton of equity in their home, right. They're going okay. I don't want to saddle this nice young couple buying their first home with this future problem. I'm going to take care of it. I mean, that's, and, and, and just one other comment on this and talking with a very veteran agent a week ago at a closing and the deal there was, yeah. If you've lived in your home for two decades or even one decade, you know, you should really consider getting that home inspection, done yourself and fixing the stuff before you put it on the market. In fact, that's her, um, new rule is, Hey, I'm, I'm really pushing or recommending that my sellers get a home inspection prior to listing your mother. And I did that, uh, our lake home and found lots of stuff that we fixed. We had to ended up bracing the wall in the basement, you know? And so we delayed our listing. All right, when we come back, I've got a story about a condo buyer, um, and how we're saving that again, getting, you know, getting the proposal is one thing, keeping it together is another, we'll tell you that story. When we come back, you're listening to the acronym, mortgage and Realty show on Wisconsin's radio station am six 20 w T M
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 1:Yes, it is the acronym bargain Realty show. All right. So, um, we have a home buyer, um, who listens to us because he has a job that involves driving. And so I happened to talk to him cause he left me a message, uh, this week. And I said, well, how'd you find out about us? Cause I didn't, I hadn't looked it up. He goes, well, I've only heard like a thousand of your radio commercials. I'm like, all right, thank you for listening. And so, uh, buying a condo in Wisconsin and wanted to put 5% down. And so what is, um, Hm, interesting is the Fannie Mae Freddie Mac rule book says if you put less than 10% down, a Fannie Mae and Freddie Mac wants to do a more thorough review of the health and wellness and details of that condo project and association. So we've got to look at the budget of the association. We have to look at the legal documents, you know, the bylaws. We want to look at all the insurance coverages. Well in looking at insurance coverages, if a condo project has 20 or more units, uh, Fannie Mae and Freddie Mac want the association to carry an insurance coverage called fidelity insurance. David, what is fidelity insurance?
Speaker 3:Uh, fidelity insurance is in case anybody who's managing the money on behalf of the association and the condo owners absconds or takes the money that will be refunded or returned with the
Speaker 1:Yeah. Insurance. And so this association I looked has like an$82,000 annual budget and like 17 granted reserves. Um, and the project is more than 20 units. So we contact the insurance agent says, Hey, uh, does your policy here for liability everything and include fidelity. Nope. And we're not getting it because no other mortgage lender has ever asked for it. And I've had this come up before. And one other instance, and the coverage is, was, is ridiculously cheap, like three to$500. And I'm thinking that if he gathered all the 32 owners in a room and you said, Hey, you know, you're using this management company here or, or maybe, you know, Bob and Sally or your treasurer and president of the association, do you think we should make, have this protection call, fidelity insurance it's really cheap, you know, probably cost us a dollar per person per month. Yeah. Uh, they probably would say yes, but everybody who buys a condo thinks well, everything's cool. Right. You know, somebody is taking care of this. I'm kind of glad I don't have to, but somebody looked at all this stuff. So the cure in this case is to go to 10% down. And luckily our buyers had extra cash that we'd already verified so that they could go from 5% to 10% down. But now it's kind of squeaking. Right? Cause they thought they were putting 5% down. So maybe they went out and bought a couch. Or so now the game plan, the original game plan was that it was going to take like nine grand between the, um, uh, down payment. Let's call it$9,400 between the down payment and closing costs. Closing costs are around$2,200 for putting away money for, uh, property taxes for next year and paying the first year of homeowner's insurance. Uh, and all that kind of thing. Closing costs are$1,163 on this loan. And so the total money needed to buy. It was 9,400 bucks. Well that's at 5% down. If we just switched over to 10% down, now they need say$15,600 total money and that's dangerously close. So the super innovative idea that, uh, Michelle Jefferson or senior loan consultant came up with because she noticed the condo appraised for four grand, more than the agreed upon purchase price. Oh, and she's already contacted the agents and floated the idea. Then we check this out with underwriting kid, could the buyer and seller negotiate the price up two grand because we got four grand, a wiggle room. And then the seller is going to pay for two grand of closing costs. And prepaids, it's a barrier. Any real estate agents always use the word closing costs. And prepaids when you're getting a seller credit, because that allows them to pay for things like interest and the homeowners insurance and stuff like that. And so then that would knock the cash requirement down by about 13, on a note to grant in an academic way. Now actually it's 13,$1,500 further because you do have the higher loan amounts. So bottom line is this deal is going to hold together one way or the other. But, um, you know, it takes a little creative thinking, just like, you know, luckily in the case of your story with our team member, that that required cooperation from the seller, uh, to keep it together. But sometimes it's about this, uh, clever problem solving, uh, that helps a deal stick together
Speaker 3:Once again or whatever, buying a condo, uh, uh, caution is the second word after you say, I want to buy a condo with caution because you're joining a family and you're hoping that it's a functional family yeah. On its own.
Speaker 1:And you know, when you get there the comeback, well, nobody else has ever asked for this. I can tell you the reason why probably the people have never bought the condos in their project with less than 10% down. So there you go. All right. That's all we have time for. Remember rates are low and expected to go higher. So now's a great time to click on the blue button at[inaudible] dot com for a no-hassle refi checkup. You can actually apply and get rates. The whole thing. Do it. Now, before the fed a meeting at one o'clock on a Wednesday, 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.