The Accunet Mortgage and Realty Show

The Accunet Mortgage and Realty Show 10-3-2021

October 04, 2021 Accunet Mortgage
The Accunet Mortgage and Realty Show
The Accunet Mortgage and Realty Show 10-3-2021
Transcript
Speaker 1:

The academic 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 be accurate at 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 3:

[inaudible]

Speaker 1:

Welcome to the acronym, mortgage and Realty show. I'm Brian Wicker, the majority owner of backing up mortgage and accurate Realty advisors. Along with my son, David who's our chief client experience officer at academic mortgage. If you've got a question or a comment you can call or Texas on the accident, mortgage talk and text line, which is 8 5 5 6 1 6 1 6 20. You can also grab a podcast of today's show or any of our past show past shows, wherever you normally get your podcasts. So David mortgage rates are up from a week ago. We had five bad days in a row for United States, treasuries and mortgage rates starting on Thursday, the 23rd of September, the day after the federal reserve meeting the headline for Freddie Mac's weekly rate survey, which was released on Thursday, the 30th based on data collected the prior Monday and Tuesday was that quote, mortgage rates jump above 3%. How much higher above 3% did they go? Date 0.01. Oh my gosh. So rates jumped to 3.0 left. Yes. On a 30 year fixed. How many points did you have to pay? Was that included in the many articles you read about the Freddy survey, but it was in the survey it's 0.7% fees slash points, which would be$1,400 extra on a$200,000 loan, not including things like an appraisal title, credit report, all that good jazz to put it into context the week before, uh, the pretty survey said the rate was 2.88 with seven tenths of a point. So, yeah, so the rate was really only up about one eighth of a percent. So 0.1, two, five, uh, reach to get a little worse again on Wednesday, but then came down a smidgen on Thursday and Friday. And now another interest rate that's interesting to look at is the ten-year treasury yield. And that went from about 1.3, 1% before the fed meeting, Steve essentially is same on the day of the fed meeting. Uh, but then on Thursday started to climb and got as high as 1.55 last Wednesday. That's almost a quarter point higher. Why, why did, uh, treasuries increase more than mortgages? What's the theory? Well, we think the narrative was because, uh, Congress was jockeying

Speaker 4:

With itself about the debt ceiling, which is a story that's been told many times before, but they figured it out. Um, and punted once again to December's.

Speaker 1:

Oh, is that what it was? Yeah. And I don't know if it was the debt ceiling or the funding mechanism, the continuing resolution, but nonetheless, we were about to run out of money and possibly then not be able to pay the interest and everything else that the federal government spends. And, you know, if you default as a borrower, do you generally pay a higher rate? Yes. So just the idea that we could possibly, you know, once again, default on our,

Speaker 4:

I was just, yeah, it might be some of that. That might be one, you know, ingredient in the recipe of movement on ten-year treasury. For example, I'll tell you, I was also reading, uh, quotes from asset managers who kind of, who said, you know what, we're going to take a little off the table, you know, that, that there were more sellers who came to market. Okay. So

Speaker 1:

I want to, all these, we don't want to own these ultra low rate

Speaker 4:

And another third ingredient too, has been a decline in COVID cases. Exactly. So, okay. So we just need three things that might all be included in the, why did move? Why movement of rates? Yeah.

Speaker 1:

It's not one thing it's kind of this confluence. And then we

Speaker 4:

Assign a narrative that says, here's why

Speaker 1:

It happened. Here's why it happened. So I've been reading this guy, Matthew Graham, who is the chief operating officer of mortgage news daily. And his other thing was, there's talking to all of a COVID vaccine for kids under 12. Yeah. So that would a pill to, oh really? I didn't know that. So he, and he's shown charts of the correlation between daily new COVID cases and interest rates because folks remember the reason why interest rates are so low is because of the COVID pandemic. Uh, you know, central banks around the world, lowered rates to zero, tried to do lots of things to stimulate their economy. The fed, you know, started buying$120 billion of mortgages and us treasury securities to force rates down to stimulate the economy. And that's all because of COVID. So as COVID cases come down and then you have, oh, now we're going to vaccinate the little German bombs called children. Yeah. You know, from spreading this stuff around. And, you know, as that comes down, then the central banks will stop their extraordinary support. And that's what chairman Powell said a week ago. The last thing you didn't mention though, is inflation because remember the inflation inflation is the enemy of interest rates. If you've got inflation cooking at two and a half, and you're holding onto a one year tenure United States, treasury, that's yielding you one and a half, you are losing, you are losing money. And so, you know, we've seen why we think it's transitory, meaning temp temporary, uh, that inflation is high

Speaker 4:

Chair. Powell was testifying before Congress and it was mowing a little bit about a term inflation, just it's real. I think it's painful in very specific slices of the economy and

Speaker 1:

By a car or a house postcard, extremely short supply. All right. So when we come back, why don't we, uh, talk about where we ended the week mortgage rate wise? Because it was not horrible. And to give you some other examples of people I'm looking to borrow money right now and what we're able to do, you're listening to the accurate 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 mortgage and wheel to show with Brian Wicker on WTF.

Speaker 1:

And we're back. Thanks for tuning in today. So David, where did we end the week mortgage rate wise at low overhead accurate? So

Speaker 4:

I'm on a 30 year fixed. We could, we're hanging on to 2.9, 9% on a$250,000 loan. It would take you a quarter point to get there. So that's$1,800 in costs. Total

Speaker 1:

Costs a hundred

Speaker 4:

Bucks. The APR is 3.03, you know, size matters when it comes to mortgage lending. So on a$300,000 loan, again, 25% equity, you're just keeping the loan amount, you know, basically the same. You're not taking any extra cash out. We can do that for$995 in cost. Oh,

Speaker 1:

All right. Remember that the Freddie Mac rate on a$300,000 lawn was 3.01. So we're rates a little lower and the closing costs on that would have been about 3,300 bucks. Yeah. So again, we're$1,200 less for a second.

Speaker 4:

All right. So I'm going to, I think I'm going to set you up for a story that we're going to tell later in the show. So 15 year, Hey,$250,000, 15 year just kind of leaving the loan amount, the same 2.37, 5%. And if we get that awesome appraisal waiver from the computer system, we could do that for zero loan costs. Wow. All right. So, but that, that's just a regular refi cash out refi on a 15 year fixed. Hey honey, let's finally do that bathroom remodel 2.5% on a 15 year fixed with just$800 in cost APR is 2.54. And as you said in the first segment of the show, you can borrow money at 2.5% and inflation runs at three you're making money. We just did your bathroom remodel for free yeah.

Speaker 1:

Or closed roasters here. Right. You're paying back the money with a deflated dollars, basically inflated

Speaker 4:

For a blog, deflated dollars deflated

Speaker 1:

Down. Okay. Uh, so you know, the other popular thing, I just recorded a new 62nd radio ad. And, and so folks, I mean, this is a very minor increase in interest rates that we're talking about from week to week, but still it, the natural human emotion as well. I think I'll just wait. Right. Maybe they'll come back down. That is pretty much wishful thinking, right? Because preponderance of evidence now something could come up, right. Something could happen, uh COVID cases could spike or a new variant or who knows whatever. And we could see rates come back down a chunk. But right now the preponderance that's the word I was looking for. The ponderance of evidence in influencing factors is for rates to keep creeping up or not go down. Yeah. So I say resist that urge to, oh man, we missed the boat. You didn't miss the boat. Uh, but you know, you, you played in the band. I played in a disco band and saw two and 3:00 AM on my watch a lot of times. Yeah. And so, you know, the thing of last call. Okay. So I'm not saying the party's over, but it might be last

Speaker 4:

Call, but the bouncer might be turning on the lights in a couple of minutes. There

Speaker 1:

Was one bar we played at in Illinois, uh, where they would turn on a full blown, like a fire engine siren to get people to care. We're not there yet. We're not clear in the room. Yeah. But it's not going the right way. Yeah. All right. So I want to segue into a story, uh, about a cashout refinance. Yeah. So there's the bathroom remodeling.

Speaker 4:

Oh, well, because home values are up. I mean, like, as we explored last week, it's the double awesomeness of likely rising home values plus rates. It's it's 1:30 AM. It's not 2:00 AM on rates. Yeah.

Speaker 1:

Yeah. Right, right. So home prices are up. So this is a story from Jim, Wiszniak a financial advisor at RBC wealth management. And he's working with a recently widowed retirement age, uh, client and taking a look at the whole picture and realizing boy with the amount of retirement assets she has, she's going to be paying some hefty income taxes in the future relative to that thing called required minimum distributions. Right. And so,

Speaker 4:

Oh, because the retirement money is pre-tax right. Qualified retirement. I have not yet sent my check to uncle Sam.

Speaker 1:

Okay. And so the opportunity exists and this year after he consulted with some other experts to convert that IRA, the regular IRA into a Roth IRA, giddy up. Yeah. Which triggers the income tax to be paid this year. Right. And, um, and the other thing that's true about that though, is because her husband had happened to pass away this year. She still gets to file a joint return,

Speaker 4:

Which means getting relief on the tax

Speaker 1:

Bracket right. On the marginal tax bracket and kicks in at a higher level. Yeah. So now he's looking at converting maybe like a million dollars of IRA assets into Roth smart, and that's going to create a income tax bill for this year only. And so what we're looking

Speaker 4:

At doing, you got to pay that bill somehow.

Speaker 1:

Well, exactly. And so we're looking at doing a cash out refi on her primary residence, which she currently owns free and clear. And the choices that I just sent over to him, uh, late last week were door number one, a 3.1, 2, 5 30 year fixed rate, uh, with$634 in closing costs. This is at a loan amount of$337,000. Um, that's what, 25% equity and all the other rights stuff payment on that would be about 1446 a month. Okay.

Speaker 4:

Yeah. With a payment almost isn't even the point. It's about, it's about paying Congress, their bill today so that you don't have to pay them the bill tomorrow,

Speaker 1:

Correct? Correct. Uh, door number two, I showed them was three and a quarter with no costs. Oh, by the way you want under the payment difference between those 2 23 bucks. Okay. Okay. So it's just about, Hey, do you want a completely painless option here? I can do three and a quarter and a cash out. No cost. And then what you mentioned was the, um, uh, 15 year, two and a half. No loan costs whatsoever. Awesome. Oh, by the way, the APR, the first two or 3.1 3 6, 3 0.25. And now 2.5. Oh, all right. So lots of options. Uh, we're here to help you, whatever stage, buy a home, save money, remodel,

Speaker 4:

Converter, IRA, convert,

Speaker 1:

A Roth IRA. We can help you. All right. That's all we have time for this segment. We'll be right back. And we're going to talk about, uh, helping a borrower, buy their house before, buy their new house without selling their old one. First you're listening to the academic 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 the accurate ed mortgage and Realty show with Brian record on WTMJ.

Speaker 1:

All right. We're back. And we would like to talk now about a client that a dealer and I tag team done this week. And it's a referral for a long time, a client let's call it the dad. And so this is his adult daughter and son-in-law who want to, um, buy their next home, um, in the Brookfield Elm Grove area, before they sell their existing in

Speaker 4:

Wauwatosa would hail his oldest time.

Speaker 1:

I'd say it was all the time. And David, this is what percentage of, uh, home buyers or move up buyers roughly

Speaker 4:

Two thirds, 60% or so. Okay.

Speaker 1:

Yeah. So about a

Speaker 4:

Third, most, I think is what a statistician would

Speaker 1:

Call a third to 40% are first time buyers, depending on what market segment you're talking about it. Yeah. I would say in this price range where they're looking, you know, in the low six hundreds or so, um,

Speaker 4:

What's interesting is, uh, I am now coming to that age, myself where, uh, you know, people who might've bought their first home that starter home are now trying to be like, oh, how can we segue into a bigger home? Because maybe we only had a two month old when we bought this house. And now we have two kids, you know, under the age of five and it's, it can be sticky, you know, figuring out how to segue to that next house. Well,

Speaker 1:

Luckily we've got options. And so, uh, you know, gather all the information and, and what, what are the three structures that you came up with? Uh, David for helping him buy up to a$650,000.

Speaker 4:

Okay. So they have, uh, a lot of equity in their soon to be old home. And, you know, they, I think ultimately they want to use a lot of that built up equity. That's right. And, and so, uh, the one that we've talked about for a ton of times is a bridge loan, you know, Hey, let's, uh, original deal. It's a temporary cash out refi built to free up the money you're gonna get when you sell your house, but let's get you that money before having to sell it to.

Speaker 1:

And so we've got several options, several lenders that we work with for, uh, that help us do bridge loans. And, uh, the one did you select the one where there are no payments?

Speaker 4:

I was just freeing up. I was doing the math on the numbers, but I like it. That's, that's an option. You have one payment, well, deferred payments.

Speaker 1:

Well, that's right. You eventually have to pay the interest rate. Right. And the thing folks about bridge loans is the interest rates are higher or the fees are higher because it's temporary. The lending institution knows you're going to pay this off in five minutes or five weeks. And so they're not going to have a chance to really make any interest, but it's again, so short term that the interest rate doesn't matter. So the one I'm thinking of as a rate of 4.99. Great.

Speaker 4:

Um, it's way more about freeing up the tens of thousands of dollars, correct? The down payment on the next house. You just got to plug your nose. So how much do

Speaker 1:

We liberate equity for?

Speaker 4:

I think we're going to live. We could liberate up to like$90,000. Okay. If we're doing the bridge loan piece. And, and so then, you know, the other thing, because I just, you know, like putting together multiple options. Yeah. It's how much of a down payment do these borrowers want to make on the next house?

Speaker 1:

The percent down on 60$650,000 would be$130,000. You're going to fill the gap with a$90,000 bridge loan cash out. Where are they going to get the other 40,

Speaker 4:

Uh, have shared with us that they've got some other liquid accounts, maybe some stock accounts, otherwise checking money market, what store number two? So door number two is the son of a mortgage banker option. That sounds dirty when you're sick, which is well more that, uh, money is cheap and we've got a, uh, outlet. That'll do a jumbo loan. So are here in 2021, a jumbo loan is any loan greater than$548,250. So you could put these, these folks could buy a house for six 50 and only have to put 5%. What is that in dollars, dude, it's about total money needed to buy, including, you know, setting aside taxes and stuff, 40,000 bucks.

Speaker 1:

And I'm looking at your worksheet here, which we give to people. Folks, we lay out these options, side-by-side in a very nice format. That's proprietary. We invented it. And then we go over that either in a screen-sharing session with your spouse and you see, you're like, wow, okay. Because the first option putting 20% down with setting aside money for taxes and insurance and all that stuff, 1 37. So you're like darn near a hundred grand difference,$97,000 difference in cash out of pocket. What's the difference in the monthly,

Speaker 4:

It's about$650 difference in the monthly payment, but I don't want to

Speaker 1:

Pay PMI.

Speaker 4:

This is why I call it the, the, the David option. I would like$97,000 please. And the$650 payment difference is immaterial. And, and liquidity is helpful, especially when you're buying, not just for, you know, uh, life in general, but when you buy that new house, you might want to do something stuff that goes with it. Not just that, but like, maybe you want to spruce that house up a little bit.

Speaker 1:

All right. That's all the time we have for that excellent story. We're going to be back with more stories from the front lines of real estate and mortgage lending, right after the news. And now we turn it over to the 24 hour news desk.

Speaker 2:

Don't break the bank to get into a house back to the accurate mortgage and Realty show with Brian Wicker on Delta D TMZ.

Speaker 1:

Welcome back we're before the news, David, we were talking about helping this move up buyer with, uh, either putting 5% down on a jumble loan in order to finance the purchase of their next home before selling their old home, uh, working on a purchase price of$650,000. The other option that you started with was putting 20% down

Speaker 4:

And here he thought I only had two options, but wait, there's more, there's more what I realized too on, you know, okay. Maybe they want to put 20% down pivoting to only 5% down. Maybe, maybe a bridge too far. Um, because, okay. So for option number three, um, what a lot of home buyers are allergic to for not a particularly good reason. Yeah. Is a monthly evil P M I P private mortgage insurance. And it's a tool. I personally think it's the greatest invention in the history of home ownership. There you go. Okay. So we have, uh, an option door. Number three is what I, I call it like the backdoor bridge. And so where we could do both

Speaker 1:

The bridge and this

Speaker 4:

Option. Yes. So this is an option where we're going to put on the new house. We're going to put two mortgages on that house, the F often all at the same time.

Speaker 1:

Yep. And that's a, in the old language, cause we used to do a ton of these. That's called a piggyback. Yeah. Cause we're going to put one loan on the back of the other. How are you going to divide that up, to get the best pricing

Speaker 4:

For the we're going to draw the first mortgage for 75% of the purchase price. Cause, cause that's the best pricing on the first mortgage. And then we're going to put that simultaneous second or piggyback mortgage for another 15% of the money needed at the closing table, 75 plus 15 equals 90%. And then our borrower needs to come up with a 10% down payment, which is about

Speaker 1:

$65,000 plus putting money aside. And we can get that 65 grand

Speaker 4:

Either from a branch loan

Speaker 1:

On their phones, which is a cash out refinance on the old house. That's the triple play, the triple play. So, so now I gotta go back to this client and kind of go over the,

Speaker 4:

Yeah, there's a lot of moving parts. What I was going to say is when we do that, piggyback, the PMI only cares about what is the loan to value on the first mortgage. So that, that 75. So, so for anybody, there's no PMI on that. I know, but that, but that's what I'm saying. You're borrowing 90% of the money that you need. But because the first mortgage is, is 75% of that Fannie Mae and Freddie Mac say no PMI needed on that one. Okay.

Speaker 1:

That's right. But they do impose a risk penalty or risk penalty called the loan level price adjustment for there being only 10% equity. So in this example that I see you cooked up the rate on that first mortgage because of the presence of a second mortgage would be 3.1, two five, uh, with no points. Whereas if they put 20% down, um, it would only be 2.99. So again, this is all,

Speaker 4:

But again, that's the difference between 20% down and possibly 10% down.

Speaker 1:

Exactly. That's a$65,000 money out of pockets swing for not that much interest. Then there's also something to think about is, well, what kind of terms do you want on that piggyback second mortgage? So, you know, probably the easiest one is a home equity line of credit

Speaker 4:

Because then you could pay it down or reuse it

Speaker 1:

Or anything, but what's the downside.

Speaker 4:

Well, it's tied to the prime rate and as the fed has begun jockeying for the future of interest rates that is going to go up

Speaker 1:

That's right. So it's currently a three and a quarter. Yeah. Um, although, you know what, at 10% that's probably going to be higher. It's probably going to be like prime.

Speaker 4:

Yes. But it's such a small loan amount that the rate doesn't really swing that much,

Speaker 1:

But we have other options for simultaneous second mortgages with many of our partners, you can do a 20 year fixed rate, a 15 year fixed rate. Those payments are going to be higher because you're paying them off faster. Uh, but still, uh, excellent, uh, turn options.

Speaker 4:

Sure. So what I'm super curious about is, as we might be able to tell this story in the weeks to come, cause we've laid out a lot of options and as a broken record, so much of this really doesn't have all that much to do with rates or with money. A lot of it has to do with emotion. Like, do I want monthly PMI? Do I want a lot of equity in my home? How do I want to use the money from the sale of my home going forward? You know, particularly, you know, we've um, helped borrowers, obviously who are buying a home that clearly looks like it needs some love. Sure. And so that takes cash. And so maybe, you know what, it might totally depend on the, the house that they find that's true.

Speaker 1:

Yeah. As to how much money they want to

Speaker 4:

Write. Cause maybe they're like, I'm gonna, man. I want to hold all the cash back that I possibly can because we love this house. We just want to spruce it up and that's,

Speaker 1:

Hey, even just sprucing it up by cost 50 grand. Right. You know, things are not cheap. Right. Right now in the remodeling world, you know? And then

Speaker 4:

There's the default though, is Brian. I want to put 20%.

Speaker 1:

Exactly. Exactly. And then I've had people and I'm sure you've had to, yeah. I want to put 20% down. And then, and then can I get a loan to do all this, you know, sprucing up. It's like, wait, why don't we just take care of

Speaker 4:

The money in your pocket to quote my grandmother. You only know what, you know,

Speaker 1:

I only know what, you know, Hey, the other thing that just came out, I read in the news though, is that that jumble demarcation, which is currently at$548,250, the difference between Fannie Mae, Freddie Mac and then jumble, that's going to move on next year. And the prediction is that based on data we have so far, it's going to be$625,000 or more. Wow. That's crazy. I can remember 417,000.

Speaker 4:

Is that what was that number for 10 years? Yeah.

Speaker 1:

All right. You're listening to the academic mortgage in Realty show on am six 20 WTMJ we'll be right back

Speaker 2:

Important home buying questions and answers. You can count on base. Here is the accurate mortgage and Realty show with Brian Wicker on WTMJ.

Speaker 1:

Alright, we're back. And uh, I think you talked a little bit about this situation in the last show, which is a repeat client of ours.

Speaker 4:

You say situation like it's like the situation room. It's a, it's a fun next chapter in people's lives

Speaker 1:

Fund, next chapter. And as we said, many times, this has to do not with where interest rates are. This has to do with, Hey, I want to move a little closer, uh, to my grandchildren because Hey, as I'm getting older and older, I want to just spend more time with those that I love and not have to drive a half an hour or 45 minutes or whatever it is currently. Uh, these folks have, uh, two homes right now, uh, both in Walworth county. They have a lake home and they have a primary residence. And so they thought they fell in love with a$800,000 home that is closer to the kids and grandkids. Yeah.

Speaker 4:

That's where you left off last week. It kinda was hurry up. Okay. Hey, we found something.

Speaker 1:

And so we, we, we gathered all the necessary documentation, you know, retired people that means social security award letters. Sure. They do take some IRA income and then the challenge is okay, can we stress test them now to handle three properties at once? And the cool thing that we have, I call it the magic income box is these folks have IRAs. And so what we're allowed to do in mortgage lending, even if you've only been taking out$2,000 a month for your living expenses. Yeah. We can say, okay, now guess what? You want to handle a lot more debt at once. Yeah. Uh, we can back into a number. And so in this case, it was, you have to take out an extra$9,500 a month and that's not a small number. That's not a small number, but we're talking about adding a big mortgage and then also doing a bridge loan on their existing home to extract some of the equity to use for the down payment and a, that was the necessary number to make it all carry the day. How many times, how many months does the person have to take that out? Is it six months that they have to take that out? Or

Speaker 4:

We must show that one time and then you can close on your purchase. And then if you so choose, and then it is none of our business, what you continue to do or not do after you

Speaker 1:

Close that's. Right. So that's a little, very fascinating wrinkle in our mortgage qualification world and ability to repay.

Speaker 4:

This is the part of the show where I stand on my chair and say, you can't do this standing in the living room of the$800,000 house. You just fell in love with, on your smartphone, on your smartphone when you're trying to get a third house and a bridge loan, because it it's totally doable. You just have to be organized. It's like walking into the Amazon jungle. You can do that on your own, but

Speaker 1:

A snake will swallow you maybe, or,

Speaker 4:

Uh, or, uh, something will eat you. Or you can walk into the Amazon forest with jungle, accurate,

Speaker 1:

Trusted guide. Yeah. Machete in hand and bug spray, literally. That's right. So, so we put together the plan to make it all happen. You know, verified all their assets, got new documentation from their financial advisor. Uh, John Augustine with Augustine financial great guy. Um, and we're making it happen. Right. We're ready. Except them. They had a change of heart. This wasn't the perfect home. Ah, okay. And I had, I had kind of emailed them that early on. I said, you know, this is going to be a

Speaker 4:

Lot of things. They fell in love on the first date that they went on.

Speaker 1:

And remember, that's a negotiation between spouses in this case too. I think the Mrs really, really liked the property and the husband wasn't so sure. Okay. So they have now proceeded to list their property.

Speaker 4:

One of the houses, the primary

Speaker 1:

Residence, but the backup plan are kind of like, well, you know what, let's see how that goes for a while. And if we get an offer right away and we haven't found the house that we love, they can put their storage. So, you know, I suggested, you know, you could put your furniture in storage. And so this very smart, retired, I think farmer teacher, you know, she contacted a moving company, come and get a quote. I mean like that's awesome. Quantify, you know, what is my alternative? What furniture would I put in, get a quote, how long does it store to take, you know, what does it cost per month to store a Cuba furniture? You're

Speaker 4:

Telling me is that grandkids are very motivational.

Speaker 1:

I can attest to that.

Speaker 4:

And it's true. Like it, cause they want to make this happen. And I'm just curious without revealing what their current primary is it in a affordable range that like they're very likely to. Okay.

Speaker 1:

And it's a bit of a farm at oh, it's of it's got some,

Speaker 4:

Well, it won't be the near instantaneous expectation. That's so many sellers.

Speaker 1:

It might take a while to sell or they may, you know, who knows if they got the price. Right. I don't know. Yeah. All right. So, so that one is either gonna we're ready. We're ready to pounce. Right? They got their racks out guaranteed. Pre-approval the only pre-approval that comes with a$2,000 guarantee that says, Hey, if we can't make good on this, pre-approval uh, we'll write you a check Mr. Seller for a grand and we'll write you a check for a grand, but

Speaker 4:

I call that the Brian's side of the coin, the David's side of the coin is they're not going to be stressed about figuring out the mortgage for the next house because that's the emotional side too. Right? It's not just about strategy. It's about when they walk into the next$800,000 house, they're not going to be worried because they know they got Brian and[inaudible] in there.

Speaker 1:

Yeah, that's right. And we're giving confidence to the seller too. So we're giving everybody emotional comfort to both parties. That's all we have time for today. We'll see you back here next week. At the same time, 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 Acushnet mortgage and Realty show are solely that of the hosts or guests of academic mortgage and academic Realty advisors and not WTMJ radio or good karma brands, Milwaukee LLC.