Speaker 1: 0:00

The following program. The ENT , mortgage and Realty Show is paid for in full by ENT mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8. The advice and opinions expressed during the Academic Mortgage and Realty Show are solely that at the hosts and guests of ENT mortgage, LLC, and not WTMJ or Good Karma Brands.

Speaker 2: 0:20

Welcome to the Accu Net Mortgage and Realty Show, getting you inside information on buying, selling, and financing your home with expert advice from Accu Net Mortgage and Realty. And now here's Brian and David Wickers.

Speaker 1: 0:34

Welcome to the Accu Mortgage and Realty Show. I'm Brian Wicker , licensed real estate broker with ANet Realty Advisors, and also the majority owner of Anette Mortgage, where my individual MLS ID number is 2 5 9 6 1 0. Here today with my son David Wicker, who's the president and managing owner of Anette Mortgage. And his NMLS ID number is 3 2 8 8 4 7. Hey , David, we had a bumper crop of our pre-approved home shoppers. Yes . Turn into home well accepted offers this week, which was nice to see , uh, despite , uh, frigid temperatures and interest rates still, you know, hovering in the high sixes. Yeah . So proof positive that , uh, you can get out there and , uh, become a homeowner win , get that accepted offer depending on who you work with. We'd like to think that we had part , uh, to do with that by being clever and, what do you wanna say? Expert loan advisors. Um ,

Speaker 3: 1:30

Well that, in that, in addition to our clients being strong, who the name that's on your pre-approval letter matters more in 2025, perhaps than any year that came before. 'cause sellers would like you to actually show up at the closing table and to have the ACU net name on your pre-approval letter gives comfort to sellers and listing agents that it will actually come true.

Speaker 1: 1:55

Another thing that I noticed , uh, with last week's , uh, accepted offers were that , uh, half of them , uh, had to pay over the asking price. And , uh, that compares to our number that we reported last week for January close sales. That was at 32% in the five county Milwaukee metro area. And we noted that that tends to climb up to about 50% by March. And I think last week's accepted offers will be ones that are closing in March. So we're, we're right at the, the trend mark. Yeah. Uh, so David, do you wanna start out with , uh, one of your , uh, success stories of the recent , uh, of the recent week?

Speaker 3: 2:32

Oh, absolutely. So, one of my clients as to remind our listeners, Acue is licensed not only in the state of Wisconsin, but also in Illinois, Minnesota, and Florida. Uh, Florida being the most, perhaps random of states that we are licensed in yet, yet purposeful as our clients continue to , um, move on to that next chapter of their lives. And I had a repeat customer of ACU Nets who we had helped back in 2019. They had purchased a home kind of up in the middle of Wisconsin. Mm-hmm . Uh , they were previously down in the Milwaukee area. They , uh, purchased this current property , uh, up in the middle of the state as a second home. They then subsequently had sold their property here in the Milwaukee area and had moved up to the northern part of the state full time ,

Speaker 1: 3:29

Making it their primary residence. Now that's good.

Speaker 3: 3:31

You bet. And , uh, since that time , uh, I won't EI don't even want to tell you the interest rate that they , uh, had on their Wisconsin home. They have since paid it off. I was gonna guess because it was

Speaker 1: 3:43

Don't tell me they paid it off. They did .

Speaker 3: 3:45

Yeah. Well, now it's at zero. But , uh, tale as old as time. They messaged me on a, we , yeah , I think it was Wednesday. Hey, we're thinking about this home in the Tampa area. Oh , can you, the sellers would like a pre-approval letter 'cause I'm considering financing some, if not a lot of the acquisition of this soon to be new second home. Right. 'cause as we said, yeah . Their Wisconsin house is now their primary and they're like, wow, I don't wanna shovel , um, or I don't wanna need to not shovel sunshine Yeah . Down in Florida. And so I was able to prepare. I mean, these clients are absolute rock stars . They , uh, no problem. Uh, qualifying for the financ . Yeah . And yeah. And c and making the monthly payment. So I was able to generate that pre-approval letter. Easy peasy. They then get the accepted offer. Ooh . For this Florida home

Speaker 1: 4:52

Single family or condo. David ,

Speaker 3: 4:54

This is so excellent leading question. A condominium. Ah, and the analysis then turns as we often, you know , uh, uh, uh, begin when consulting with a client that like, well, you are acquiring this Florida condo property. What is the most savvy, least aggravating way that I can lend you the amount of money that you want to show up at the closing table with a suitcase of cash and give it to the seller. And you want , do you want to guess? You you wanna try to, well forecast the analysis that I began to do. Sure .

Speaker 1: 5:40

Well, let me just say a couple of things about financing in Florida. One is there are, because Florida doesn't have any state income tax, they came up with a mortgage tax. So if you borrow money in Florida, you get to pay a tax. And then also the title insurance fees are much more expensive on Florida transactions than they are in , uh, Wisconsin. Say Yes . So this reminds me of somebody I helped a year or two ago, similar situation where rather than putting the mortgage on the , uh, Florida property, we opted to do a cash out refi Yes . On their Wisconsin property. Is that what you suggested?

Speaker 3: 6:19

Well, so let me kind of get into a couple more of the follow-up questions that my client had, right? Because I kind of, they said vanilla and I said chocolate. And we kind of talked about the flavors of both. So let's dive into that after this break. You are listening to the ACU Net Mortgage and Realty Show on AM six 20 WTMJ

Speaker 2: 6:41

Home buying advice from the guys who know it best. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ. Welcome

Speaker 3: 6:50

Back to the ANet Mortgage and Realty Show. I'm David Wicker, president and managing owner. That's Brian Wicker, the Chief Honesty Officer and chairman of ACU Net Mortgage Dad , uh, telling you the story of a repeat ACU net customer. This is what happens when you're in business for staring at 26 years . Yeah , yeah , yeah. People, we helped this client with the, you know, chapter five of their life, I guess maybe we'll call it a couple years ago. And now they're thinking about chapter six. Hey, let's spend more time in Florida where the sun shines and I don't have to wear pants so much. Even

Speaker 1: 7:29

In February. Yeah .

Speaker 3: 7:30

Yes. So this client , uh, w wrote an offer and got it accepted on a condominium in and around the Tampa area. Um, they got it from below list price.

Speaker 1: 7:43

I was gonna ask you, do you , do you think that they were competing against any other offers in the much different Florida market? Much, much different than , uh, Wisconsin.

Speaker 3: 7:53

They were not. Uh, and, and so they, neither were they competing, nor did they need to , uh, pay the list price in order to acquire or get the house under contract, get the condo under contract. So my client accepted offer price around $600,000. They already, in their mind, were ready to make a down payment of close to three 50 . Whoa . And so bar borrowing only $250,000. Okay . Which I can't, I can't help as the son of a mortgage banker, I very, I very gently, I'm just like, why? What? You know? Yeah . I will .

Speaker 1: 8:31

Why do you want to use up your money and Well, because they want a small mortgage

Speaker 3: 8:35

Payment . You want I know. It is like , got it . If you want your filet mignon hockey puck, I I will do it. I just want ask you, why can I tell you the chef's recommendation? He just doesn't want a mortgage.

Speaker 1: 8:48

Right?

Speaker 3: 8:48

Right. He's, he's more comfortable, which is not a financial answer. That is an emotional answer. Which is, okay. Well ,

Speaker 1: 8:55

I mean all , although you are essentially the more you put down, you're kind of earning the mortgage rate, you know, by, by avoiding interest at whatever, 6.875 Yeah . It's kinda like earning 6.875. So that's a pretty good fixed rate return. But anyway, go on.

Speaker 3: 9:11

So and so, given the large down payment and relative size that they were considering borrowing about $250,000, as always, any ACU loan consultant is gonna be like, where's the smartest least aggravating place where we can borrow you this money lend you And so lend

Speaker 1: 9:31

You the money Yeah.

Speaker 3: 9:32

Lend you this money. Sorry. So, no, it's not , you know, verbs who needs them ? Uh, so one , um, nerdy database that the acuate team has access to is a , what do I wanna call this? The condo naughty list.

Speaker 1: 9:53

Oh, yeah. Or, or

Speaker 3: 9:54

The Good list. And Fannie Mae or the Good List. Fannie Mae keeps track of, Hey, we buy lots of loans from lots of different places and lots of condo associations, so we know who's doing a good job of managing their condo structure budget, and we know who's not. And when Jason Hanson, director of operations at Academic Mortgage and managing owner ran the address of Yeah . Our client's new condo through that Fannie Mae system, the , um, words back were not , uh, cautionary. That's the way that I'll describe it. Hey ,

Speaker 1: 10:34

The words that came back were cautionary,

Speaker 3: 10:36

Were cautionary like, Hey, there's some weather related , um, you know , uh, elements or, or concerns about this condo project, probably, you know, as an after effect from the hurricanes, was that , uh, September and October ? Yeah .

Speaker 1: 10:52

Yeah . This last fall. This last fall. They had Milton and Helene I think were the two

Speaker 3: 10:56

And the other one. Right. So , uh, that was like , uh, you know,

Speaker 1: 11:02

Yeah . Do we were at try to fight through that.

Speaker 3: 11:04

Right. We were at the top of the, we were at the top of the first inning of possibly directly financing the purchase of this Florida home. But with this feedback about the condo structure itself, like we kind of almost knew what the bottom of the eighth inning was gonna look like. Yeah . At the start of the game. Right. And so I shared with the client, I was like , they had paid off their Wisconsin property. Correct . And I said, look, look, if you want the smoothest path to just show up with money and acquire this condo, let me lend you the money on the Wisconsin Home cash out refinance. It will get you the money two weeks before you actually have to wire it to the closing for Florida. And then you just show up and pay what feels like cash to the seller. Yeah .

Speaker 1: 11:55

And , and are they, they're obviously okay with whatever the condo project conditions are.

Speaker 3: 12:00

Well, this, I , I also relayed, I was like, you need to go in eyes wide open about the health of this current condo and the association. And, and I, if you, I would advise you to get involved with the board because you , in X number of years, when you might decide that you want to sell this home, you don't want to ignore or you don't wanna exclude people who might be considering financing.

Speaker 1: 12:30

Well, sure. Well, and you know , you gotta be aware, Hey , are they all okay from these latest , um, you know , uh, repair ?

Speaker 3: 12:37

Or what does it take to get 'em fixed? Yeah.

Speaker 1: 12:39

Correct. You know, are they looking at a special assessment, which is common, you know , along the Florida coast where, hey, we didn't have enough money saved up to do all these repairs. Yes. We had insurance. Oh, the other thing that's going up like crazy for condo associations is the cost to insure the building. Yeah . 'cause remember, as the owner, you only insure the inside the condo association gets to insure the building. Alright . What do you wanna talk about next, David?

Speaker 3: 13:03

After this, I want to talk about a Wisconsin client. 'cause guess what? People are getting out there and doing it. And you had some notes , uh, on some January data from the National Association of Realtors. Let's compare that with, you know, the active home shoppers that we are working with. And then I want to talk about VA versus conventional for a real life buyer who I spoke with this week after this break. AC uh , you are listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ,

Speaker 2: 13:32

Getting you into the home of your dreams. Here's more of the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 13:40

Welcome back and thanks again for joining us. Uh , here on the Academic Mortgage and Realty Show. David, the National Association of Realtors came out on Friday with their existing home sales report for the month of January. And a couple of interesting things about the way they and others reported the headline that the Association of Realtors themselves, their headline was, existing home sales decreased 4.9% in January, but increased year over year for the fourth consecutive month. Hmm . Interesting. And then , uh, CNBC picked that up and made it even worse. They said home sales dropped sharply as prices hit all time high for January. And so in unbundling that what, what the Association of Realtors does is they take any given month and then they adjust it to be seasonally adjusted. Meaning that they try to make January's number, which are typically the lowest number of sales for the year. And they say, well, if it wasn't January, if it was the average month , uh, what would that be? And so then they can compare that to any other month. And so sure enough, if you take the seasonally adjusted average for January versus the seasonally adjusted number for December, it is down 4.9%, which is not good. Uh, but if you look at it January to January, hey, it's up 2%. So if I was writing the headline, I would've emphasized the , uh, positive of of being up 2%. Uh , all that said, you know, I always like to compare, Hey, so you're hearing all these national numbers, how does that compare to the local? And so if you were listening to last week's show, you heard Tim and I report that for the five county Metro Milwaukee area, January single family and condo sales were actually up 12.4% compared to a year earlier. So that compares to the national number of 2% of January to January. So we're doing better nationally, the realtors reported a 4.8% year over year increase in the median sales price, which nationally was $396,900 in January. The Southeast Wisconsin median sales price was lower in January at 3 0 9. Uh, but that number was up 14% from a year earlier. So once again, southeastern Wisconsin is outperforming the national numbers over on the supply side of things nationally, the inventory of existing homes for sale increased 17% , uh, compared to a year earlier. According to the National Association of Realtors, that's a three and a half month supply. Okay . That's where you take the inventory divided by the rate of sales per month. Three and a half . Tim and I reported last week that in southeastern Wisconsin, we have more like a 2.6 month supply. Um, and it's always interesting going , Hey, what are we going to use as the number of sales if you actually use March sales in divided by available inventory, it's more like two. So we are significantly tighter inventory , uh, here in southeastern Wisconsin than the national numbers. The last couple of tidbits before we get to your next story , uh, nationwide, only 15% of buyers in January paid over the listing price in Southeast in southeastern Wisconsin. The five county metro area, 32% paid over asking in January. And again, we see that going up seasonally. That should probably hit 50% locally here by March. And the last nugget I have is 24% of sales in Southeast Wisconsin paid cash nationally. That number was way up there at 29%. So how , how does that in general, you know, supply and demand, David, what are your home shopping clients telling you here in , mostly in southeastern Wisconsin, notwithstanding the fact that Florida, what you just told the story on is a much different animal. Definitely a seller's. Mark . I'm definitely a buyer's market in Florida seller's market in Wisconsin. Yeah . I think

Speaker 3: 17:21

My , yeah , my clients are hungry and would like there to be more to pick from. You know, I think it , it may be a matter of, I don't know how to quantify settling , um, that okay, we want more space, right? The a client decides, Hey, we, we want a bigger house. They might be, I would tell you in this story that I'm gonna share with you next is deciding to wait to hopefully, you know, have other homes come on the market Yeah . In the future might not be worth it to some of the clients that I am talking to. And so they're , they're trying to balance immediacy versus quality. Right ? Right . Does that make sense? Yeah .

Speaker 1: 18:13

Oh , I'll tell you , I got a call from a client who did not succeed last year, had to re-up her lease, but is now back at it. Her lease is up, I think in May, May 1st. So she's like, okay, I'm getting back out there . And her comment where she's looking like in the three to three 50 price range in Southern Milwaukee County, she thought that the inventory was better , uh, this right now than what she had seen, you know, last summer. So it all depends on the micro market , you know, in which you're looking Oh , she thought in terms of quality of the properties and, and so on. So

Speaker 3: 18:47

I wanna , well, I wanna piggyback it . I'm gonna call it, it's the, it continues to be the bifurcation of the good ones are going faster and the homely ones are going slower. That's what I'll declare. Alright .

Speaker 1: 19:00

We'll cover that when we come back . But right now it's time to turn it over to the WTMJ Breaking News Center.

Speaker 2: 19:07

Don't break the bank to get into a house. Back to the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3: 19:15

Welcome back to the ACU Mortgage and Realty Show. I'm David the younger, taller , more handsome wicker. That's Brian Wicker, the wiser of all Wicker's. Mm . Thank you. Um, dad . You're welcome. Dad, I , uh, was referred to a new client who is the sibling of the real estate agent who is going to help them go and find their new Wisconsin home.

Speaker 1: 19:41

That's the highest of praise. You know, Hey, not only am I giving you my client, but that client is my sister or sibling or brother or

Speaker 3: 19:46

Whatever. And , and we'll see if, we'll see if we get to this story. But , uh, I had a another , uh, client this past week and I copied you on the email saying thanks to the dad who had referred in his son, which I know is your , uh, highest , uh,

Speaker 1: 20:02

Compliment. Yes.

Speaker 3: 20:03

Yeah. Compliment. What you love the most is when we can help the next, in the next generation. But I , what , what I always say to people is like, I love the accountability. Like, bring it on. This is, I want to help you get into your next home. I wanna make your relative who sent you our way also make them look good. And if they are also your real estate agent, it's like, bring on the pressure. No problem. Yeah . It's like, is it the fourth quarter and I need to hit both free throws? I'm ready. So , uh, these , uh, clients are originally from Wisconsin. They had gone out west , uh, for some jobs out in Oregon. They then have now returned to Wisconsin because guess what? Who's the new addition in their house? Oh , okay. Oh , oh. The six month old who , uh, wakes us up in the middle of the night. Sure, sure. Amazing. It's, it's, I am not telling the story of Brian and Becky in 1989. Yeah . This is, these are real people in 2025. Right , right . So we were

Speaker 1: 21:04

Real people in 1989, just by the way.

Speaker 3: 21:07

Okay. Yes. You were wanting to

Speaker 1: 21:09

Come back to Wisconsin to be closer to grandparents, blah, blah , blah.

Speaker 3: 21:12

Exactly. Hey, hey Marge, can you come be a babysitter? Yeah. Uh , so they're back and they ha they actually sold a home that they had owned out west. And so they've got, financially speaking dad, they have jobs and they have down payment. They are a slam dunk. A and

Speaker 1: 21:34

Nothing to sell. That's good.

Speaker 3: 21:35

And nothing to sell. They are , they're ready. They are a seller's dream. The interesting part of our conversation was Mr. Borrower is a military veteran. Oh . And so has the VA mortgage benefit available to him?

Speaker 1: 21:51

Has he ever used it before?

Speaker 3: 21:54

Uh, he has not. Oh , okay . When they were out's the first time use , first time cheapest.

Speaker 1: 21:58

Right .

Speaker 3: 21:59

And cherry on top, he is exempt from the VA funding fee normally. So, so for anyone who has served in the armed forces, you likely become eligible for a VA mortgage benefit. The VA permits a , uh, service member to put as little as 0% down on a home purchase. The way that the VA goes about , um, creating the , um, fallback for allowing for that low down payment is they charge a funding fee for a first time use that is just a little bit over 2% of the mortgage amount. So, you know, on a, if you're borrowing $400,000, you are talking about something that could be as much as 8,000 bucks that you pay to the VA if you have to pay that funding fee. Yeah. You do not have to bring that out of pocket necessarily. But then it's like, okay, and I'm lending you four Oh , I'm not legislating you a 0% down payment. And that I can also tack it on to the, on the total balance as well. We can

Speaker 1: 23:02

Lend you more than the purchase price if that's what you want to do.

Speaker 3: 23:05

Exactly. But , but for, for anyone, I just

Speaker 1: 23:08

Say this , the other good thing about VA loans is there is no monthly VA mortgage insurance, which is different than if you get an FHA loan, you play monthly government mortgage insurance in addition to an upfront fee. And then of course, if you get a regular 30 year fixed rate loan , uh, you get to, you don't pay anything upfront , but you get to pay monthly. PMI. So at the VA loan, you don't have to do that. So what are they deciding? Are they, how, what percentage are they gonna put down? And you said he was exempt anyway.

Speaker 3: 23:36

So when you're exempt, if you have a service related disability, it's right there on your certificate of eligibility available@va.com. Or I don't EI don't recall the name of the website, but we can up for you. Yeah . A more , we can look that up. And it says exempt, which means you can do as little as 0% down. You don't have a funding fee and you don't have monthly PMI, so dad, they were ready to make a 20% down payment on a conventional because

Speaker 1: 24:03

They have the money from the sale of their house.

Speaker 3: 24:05

'cause they, 'cause they have the money, but they also have this VA benefit. And so as we always do, we just talk about what's possible because the mortgage banker in me is like, wow, you could keep all the cash that you have earmarked in your bank account and get a screaming good rate on a VA loan and not have any funding fee and not have any monthly mortgage insurance. That is if , if, if that is not available to me. 'cause I did not serve in any of the armed forces, but if it was, man, that's what I would be reaching for as a Mortgage Pro.

Speaker 1: 24:46

Would they be possibly able to write their offer, however, with a bigger down payment to look better to the seller so that their seller's now like, oh man, they're only putting 0% down . So

Speaker 3: 24:56

Let's get into this. I wanna , I wanna talk about this after our next break because Right. This now turns to, and , and how can I go win out in the real world? Yeah. So let me, let's get into that after this break. You are listening to the Acuate Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2: 25:15

Important home buying questions and answers you can count on. This is the Acura Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3: 25:24

Welcome back. Thanks for hanging out with us here on Sunday morning, dad telling the story of a client , uh, army veteran who is considering, Hey, should I use my VA mortgage benefit or should I consider a conventional loan? We, I pre-approved him for both. I was like, I'm not gonna run out of electrons. So I'm gonna give you, I I have started to do this more and more. I send people like three or four pre-approvals. Sure . It's like, here's what, here's what you wanted. Here's your maximum, here's a third option that you can consider. 'cause it's like my computer is strong. I can get you all these different versions and then you pick which tool to pair with your offer so that you , this gets us Go

Speaker 1: 26:05

Ahead. You and your agent. You and your agent. Yeah . And then, you know, hopefully you're having a conversation with the agent as well as to, Hey, what do you want to accompany , uh, this offer that you're writing? 'cause we can easily customize it, you know, as the real estate agent and the home shopper are writing the offer. But

Speaker 3: 26:22

Go on. So the question, so the question that my client posed was, if we write an offer with a VA mortgage in our contract, does that make us stronger or weaker? Because they had been previously told, and I I got really irked about this. They had previously been told , uh, this was out west. Uh , if you write with a VA loan in your offer, you're not gonna be as strong as a conventional buyer. Ah , I disagree. And I did not like that. Oh, same because I said your agent, who is your family member, can turn that around and just be like, whatever your concerns are regarding VA financing, are you saying seller, that you don't think that your home is in sufficient condition to meet the bare minimum? Almost, you know , uh, little stuff about the , there's nothing but the

Speaker 1: 27:17

VA loan isn't , uh, nitpicky like an FHA loan ? Is it a

Speaker 3: 27:21

Little bit more? It can be. It can be. Okay . It can be.

Speaker 1: 27:24

That's why people, some sellers are leery of FHA financing because of the, you know, no trip hazards , uh, no peeling paint and uh , no broken glass.

Speaker 3: 27:33

No broken glass. Yeah.

Speaker 1: 27:35

But, but I didn't think that the VA was as particular. And then they have the advantage of they can write it with a 20% down payment. I would , I would that that might be the knock on VA financing is that it's oftentimes with 0% down.

Speaker 3: 27:49

But the , but they could do , uh, Hey, here's my VA pre-approval letter with 20% down.

Speaker 1: 27:57

Yeah, that's what I was thinking.

Speaker 3: 27:58

They they could do that. Yeah. And then if they say, well, 'cause then the other element they're trying to manage is, well, what do we want our monthly payment to be? They decide they'd wanna make a 10% down payment. Okay. The seller doesn't care how much money you end up borrowing. If you show up at the closing table, they will take your bag of money. That's right. No matter who puts it

Speaker 1: 28:16

In there . But I don't think , I don't think sellers and listing agents, I think it's not good if you write your offer with conventional and then go via . Correct . That's not good. Uh ,

Speaker 3: 28:26

A hundred percent. Well, and here's the other element too. Hey, you know, depending on the house, I can run that home through the software as a conventional loan to see if we get an appraisal waiver. Yeah.

Speaker 1: 28:40

You're not gonna get that on a VA loan.

Speaker 3: 28:42

You're not gonna get that on a VA loan. And, and ultimately, if that's what matters most to the seller to get them to say yes, maybe you as the buyer need to prioritize winning over using the VA monthly payment VA benefit. Yeah. Well, and and we it's in

Speaker 1: 29:01

Consideration. Yeah.

Speaker 3: 29:02

Well, but this is why we're really good about consulting. It's not just like, yeah , here it is. It's like, well, as we saw this week with many of our clients who are winning offers, it's not just good enough to be like, here's your pre-approval letter. Good luck to you. It's like Right . That's, that is or has become relatively straightforward. It's then how can the ac unit team assist you in getting out there and actually winning? 'cause walking through houses and losing doesn't help anything really. Right, right.

Speaker 1: 29:34

Right. How, how can we, oh , just like we're talking about with this client, Hey, if we say, you know what, go with the va, but, but say you're putting 20% down 'cause there's nothing preventing you from putting 10% down. That's cool. Exactly. Um , you know, it's, it's it's advice or ideas like that in consultation with, with the , um, buyer's agent. Yes . Yeah . But you're right. The, the , um, appraisal waivers only available on conventional loans. And now the minimum down payment for that is 10%. Correct. Yes . To be eligible for an appraisal waiver, it used to be 20%. So now you, it's possible to get an appraisal waiver with as little as 10% down. Uh , if the computer believes the value that we feed it all Big data.

Speaker 3: 30:15

All big data. Well, so, and this, you know, this was one of those examples of what I really enjoy is like working with clients. I, I have begun to say more so than ever that we try to be the mortgage company that we would call that Brian or David would call if we weren't mortgage people. Well , that's right . That's the advice that we try to give to our clients. Like a , like a helpful uncle who's got less opinions and just good words of wisdom. That's what we try . Uncle ANet , that's who we are . There

Speaker 1: 30:46

You go. Uncle ANet . That's what we've got. Hey, when we come back, you said you had a , uh, story about a , um, a uh , grandma who's uh , what , moving back to Milwaukee.

Speaker 3: 30:56

Coming to Milwaukee because coming what? Coming to Milwaukee ? What? The grandchildren. The granddaughter's on the scene.

Speaker 1: 31:02

Okay, cool. And tell us all this time , got a quick update on what Fannie Mae thinks is gonna happen with interest rates. We'll cover that when we come back. You are listening to the Academic Mortgage and Realty Show on Wisconsin's radio station. A six 20 WTMJ.

Speaker 2: 31:15

Find a place to call home without the headache. This is the Acura Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 31:23

Welcome back and thanks again for , uh, joining us. Uh, so , uh, David Fannie Mae came out late last week with their latest forecast for interest rates and home sales , uh, for 2025 and 2026. And guess what? They inched up their interest rate forecast a little bit. Their most recent forecast had been for 6.5% on the 30 year fixed rate by the end of 2025. And they adjusted that upwards of smidgen to 6.6%. But then they also increased their forecast for the end of , uh, 2026 saying, we think it's only gonna come down a smidgen to six and a half . Now folks remember that not too long ago, just in August , uh, the fine folks at Fannie Mae were predicting 5.9% on the 30 year fixed rate by the end of 2025. So they object that up. Uh, um, seven tenths of a percent. Uh, and it's all because of inflation. And um, you know, they're just seeing that inflation is gonna be stickier. And, and so that is the prime driver of , um, interest rates these days is what's happening with inflation. So interest rates are gonna kind of stay where they are. Hey, good news is , uh, academic could offer a 6.875 , uh, 30 year fixed rate on a $250,000 loan as of the end of this past week. That's with 25% equity and all the other Right. Stuff. And the a PR 6.9, that's again with 6.875 with no points. That's a pretty good deal. Uh, and then if you wanna pay a little bit extra to get a lower rate, you, you can. And you know, there's an argument for doing that given the latest forecast. 'cause maybe they're not, maybe rates aren't gonna come down that much, but yeah. Anyway. Alright . So do you have time to just , uh, give us a little Yeah . On the grandma moving back where she'll moving from?

Speaker 3: 33:05

Uh, she's from Illinois. And do you know who doesn't care what interest rates are? Grandma's? Grandma's, grandma's don't care because , uh, granddaughter is on the scene and that is the only thing that matters. And so grandma's coming to town and she is , um, she owns a home in Illinois. Uh, I think, I don't know if she's got plans to sell it anytime soon, but she's coming to Milwaukee.

Speaker 1: 33:29

So does she , uh, does she need to sell it for the down payment?

Speaker 3: 33:31

No.

Speaker 1: 33:32

Oh, okay. She's got money for down payment.

Speaker 3: 33:34

She's got money, but , uh, the real life element to this. So she is about to be darn near full-time, you know, taking care of granddaughter Oh . For her son and daughter-in-law. But, so that money is real. I just want to say that out loud. Stand on my chair and be like, will grandma, you know, be cashing a check or Venmo from son and daughter-in-law for taking care of granddaughter? Okay . Yes. Can your friendly mortgage lender point at that? No . To qualify you for a monthly payment? No.

Speaker 1: 34:11

No. 'cause she's newly self-employed. She hasn't been a self-employed nanny before and exactly doubtful that they're gonna put her on a W2 or anything like that. They're just gonna give her the money and she's gonna have to report it. So yeah, that's ineligible downfield. So what are you left for as income sources? So,

Speaker 3: 34:28

So we , uh, she is of retirement age and so we are simply reaching for different tools in our toolbox. She's got a pension slam dunk, she's got social security. Okay . Slam dunk. Easy peasy. And we, we might reach for our favorite, turn the IRA account into income on the application, something we do every week.

Speaker 1: 34:52

What about the , uh, sun perhaps co-signing? That would be another thing you could take a look at. If , if they could stand . It's

Speaker 3: 35:00

Okay . It's available to us. I don't think it would be, it would, it would be down the list of , uh, implementable plans, but it's at least it , it could be on the list. I think we're gonna get there just with what we've got. It's just as is always the case. Clients bring to us, Hey, here's my bag of life. And, and, and you know, David, this money is real. I understand. Yeah.

Speaker 1: 35:23

We can't use it,

Speaker 3: 35:24

But , but the rule book says I can't use it, so we just have to, if mortgage lending is like basketball, it's like we only gotta win by one. And then in real life you are go , you will figure it out on how to make your monthly payment. I'm not worried about that. My goal is to just get you to the winner circle. Yeah.

Speaker 1: 35:43

According to the rule book, the rules that we have to play by. Well, we'd love to help you or your loved one, or your friend or neighbor or coworker . Become a homeowner in 2025. And all they gotta do to get started, just click on that blue button@accu.com. Hey, thanks for joining us today. You've been listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ. The

Speaker 4: 36:04

Proceeding was a paid program. Advice and opinions expressed during the Accu Net Mortgage and Realty Show are solely that of the host or guests of Accu Mortgage and Acuate Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.