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 NT Realty Advisors, and also the majority owner of Acuate Mortgage, where my NMLS license ID number is 2 5 9 6 1 0 here today, along with my son David Wicker, who's president of NT Mortgage, and his individual NMLS ID number is 3 2 8 8 4 7. So David , uh, it was a good week for mortgage interest rates. Uh, how come?

Speaker 3: 1:02

Well , a good couple. Yeah. Good week. Good couple days. Good little run here. I was looking at the chart. You know, it's all about comparison, right? Dad rates are as low as when it was early December.

Speaker 1: 1:15

Right?

Speaker 3: 1:16

So, I mean, which is, it's nice. We'd rather, we'd rather have a nice little , uh, dip in rates rather than continue to slip away from us. But like, you know, it's, it's relief. It's not a rally.

Speaker 1: 1:30

Okay. Uh , on rates . And , and , uh, do you think it was more the stock market getting clobbered that helped , uh, mortgage interest rates or, or the inflation number that came out on Friday? What , what was the , uh, what are you reading to be the , uh, requisite cause of our well improvement in mortgage

Speaker 3: 1:46

Rates? Let's just, let's just say it was stocks. Okay. That that money is leaving equities and is probably trying to go somewhere. If you are cashing out your stocks, be , uh, mortgage investments, which is what we create, what Fannie and Freddy create is the ability to invest in buy the monthly payment that we all make on our mortgages. That is a place where people can park money. So it would Right. If you take from your stock Yep . Money and you put it into mortgages, that will drive mortgage rates lower. 'cause it's, as is always the case supply and demand when there's more people knocking on the door to buy mortgages that rise , the

Speaker 1: 2:30

Price down the rate. Yeah. Yeah .

Speaker 3: 2:32

Uh , but, but my answer as always is I have no idea. I have no idea.

Speaker 1: 2:36

Yeah . We don't really know. We just kind of make, make up things to fill in. Uh, but hey, it's, it's welcome news for anybody who's out there shopping. Now what about that inflation number that we got on Friday? The Fed's preferred measure of inflation?

Speaker 3: 2:49

Yes. Uh , so Friday was core PCE, the personal consumption, expenditure and core is the cool kid way of saying, excluding food and energy, which I always think to myself, well, I need those things to live my

Speaker 1: 3:07

And life need energy to live. Yes . Why would we exclude those? But ,

Speaker 3: 3:09

Uh , unless I'm just walking to the watering hole and only drinking awa . But , uh, core is how the Fed prefers to look at inflation month over month. The forecast was 0.3 . Guess what came in right at 0.3 ? Uh, annual year over year . Core PCE forecast was 2.6. Came in right at 2.6. So markets on Friday, I would say much to my relief, did not give back All that we gained Monday through Thursday, mostly flat-ish on Friday as numbers. But, but I , I don't want anyone to think that we are conquering inflation. We're kind of just treading water. 'cause if we really were conquering inflation, interest rates would be coming down a lot quicker.

Speaker 1: 4:02

And so, just to remind everybody, you know, inflation is the enemy of interest rates. And so we're wanting and watching for that annualized inflation rate to come down closer to 2%, which is the federal reserve's target. It's kind of stuck here at about 2.6. And so if we see that start to ease, or there were also some indications in economic reports. Uh, last week I think , uh, consumer confidence was down a little bit. Also, I read that the weekly , um, new unemployment applications was up a little bit. Uh, that comes out on Thursday. So it's like, oh , maybe the economy is weakening a little bit here. That is also helpful to interest rates. Um , I was gonna say , and then don't forget this coming Friday, we have the all important monthly jobs report that comes out and , uh, new job creation, you're gonna say something.

Speaker 3: 4:53

What is , uh, frightening almost about that , uh, consumer confidence survey is because the American economy is made up of 70% of us, or 70% of the American economy is all of us going out there and spending money. How we feel about the economy then drives and dictates how the economy actually is, which really is the chicken and then the egg.

Speaker 1: 5:22

Hey , by the way, just to say where we ended the week on a $250,000 30 year fixed rate mortgage , uh, with 25% down , um, we could offer 6.75. Haven't been able to say that, like you said, since the beginning of , uh, December or the early part of December and the a PR and that would be just , uh, 6.78. So that's a nice improvement. And I , I think we've seen a little bit of uptick in , um, refinancing too. I talked to somebody whose loan we closed in the summertime when rates were higher at 7.625. And we're gonna be able to get him into a 6.875. There you go. Uh , refi with no cost and that's gonna save him a hundred bucks a month, which is

Speaker 3: 6:07

Worth doing for sure . That's the easiest hundred bucks he's gonna save all year. A hundred bucks.

Speaker 1: 6:10

That's right. Yeah . And also we're gonna go from escrowing , uh, taxes and insurance to not escrowing for taxes insurance. Alright, David , uh, when we come back, I think you've got a story about somebody looking to buy. We'll cover that. You are listening to the Academic Mortgage and Realty Show on AM six 20 WTMJ

Speaker 2: 6:31

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 1: 6:40

Back and thanks for hanging out with us today. I'm Brian Wicker, the elder. That's David Wicker, the younger over there and , uh, taller, smarter, more handsome as well. Hey, so , um, David, I've, I've got some , uh, the latest numbers. Uh, the realtors came out with pending home sale numbers for , uh, January. And then I also have , uh, Zillow's latest numbers. They, they, for , they have the temerity to actually forecast where they think home values are going. And I've got those latest numbers , uh, coming up later in the show. But, you know, that's all theoretical. You wanna share with us a story about , uh, somebody who's making it real and got an accepted offer this last week, right?

Speaker 3: 7:17

They, they did, and this is one of those stories where I think they weren't expecting , uh, that they would be house hunting . It almost caught them by surprise. You know , they are in, they're in their current home. It's probably perfectly lovely. I think they've had some business success, some career success. Okay . And so I'm sure that has led to be like, well, maybe I, maybe we should get more house. Different house. Yeah . Uh , that whatever that next neighborhood is. So late on Tuesday, their real estate agent got us connected because they had been out to visit a home and were keen to write an offer and the topic for our listeners that I covered. So this client qualified seven ways to Sunday that great down payment, great income will be smooth all the way through. They'll have the pleasure of uploading any number of PDFs, but , uh, they'll , they'll get us eventually all the PDFs that we need. The , the topic that was on top of their mind was, well, David, I don't need to and won't write the offer contingent on the sale of our soon to be old home. But I've got a lot of equity in that home now. 'cause we've owned it for, I think it was like seven years.

Speaker 1: 8:48

Okay, so a lot of equity in the old home,

Speaker 3: 8:51

Right? I would like, or can you help me game plan after I buy the new house and then months from now, you know, let's, let's say Memorial Day, I have then sold my old house and I've got, you know, let's say $200,000 of proceeds from the sale of that home. Can you help me apply that to pay down what I then owe on the new house?

Speaker 1: 9:23

I have an answer for that. The answer is of , of course, we can course but answer as long as we don't . Well, as long as we give you a Fannie Mae Freddie Mac style loan, which means a loan amount of under a hundred, $806,500. Yes. That's the key, right?

Speaker 3: 9:41

Correct. And, and so, right. The answer is yes. Just so long as you're not jumbo, jumbo does not, you can apply a large principle reduction on any , um,

Speaker 1: 9:54

Mortgage. You like

Speaker 3: 9:55

Him loan , right? On any note that acuate creates to lend you the money. Um, there are some limitations to that and I don't want to drag us into those weeds necessarily, but, but this stat is a common theme. We have a lot of repeat clients who are like, Hey, I'm not gonna have access to the equity in my old home on, you know, at the nanosecond I'm buying the new house. But when I get those proceeds, can you help me wield those funds? Maybe paid on the balance, some or not?

Speaker 1: 10:29

And let's, let's be clear it's paid on the balance and enjoy a lower payment without refinancing. That's what we're talking about. That's called recasting or re amortizing the loan after you make a major , uh, principal payment. And I believe that costs $250 to do that, but that's typically way less than the cost of refi. Now, did you also cover with this , uh, person the possibility of doing a piggyback? Yes . Meaning, hey, we'll give you a first mortgage and at the same time we'll give you a home equity line of credit. Um, and then the idea would be after you sell your old home, you just pay down the home equity line of credit , uh, to zero. Still keep it open. Well ,

Speaker 3: 11:09

Exactly. And this is all about, let's begin with the end in mind. When all the dust has settled from this journey to the new home, my client, they were purchasing about an $800,000 house when all the dust was settled. They only want a $400,000 mortgage on the new house. Gotcha . On, on, on the day that they are buying. 'cause they got the accepted offer, they're closing in April, they only have liquid funds available to them of about $200,000. So in, in early April, they're like, can you help me borrow $600,000? Yeah . Yeah . The answer is yes. Do I borrow you $600,000 in one loan or do I borrow you $600,000 in two bits? $400,000 first mortgage, $200,000 second mortgage. Because as you noted, maybe, hey, I sell my old house and pay down that second mortgage to zero.

Speaker 1: 12:03

Right. But you can keep it open if it's a home equity line of credit. So, you know, that's what we're good at. We're good at , uh, coming up with different ways to get to the end point that our clients actually want to get to. Alright, David , uh, when we come back, let's take a look at , uh, Zillow's latest forecasts for home prices, because they did dial 'em back a little bit. We'll cover that right after this. You are listening to the Accident Mortgage and Realty Show on AM six 20 WTMJ,

Speaker 2: 12:31

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

Speaker 1: 12:39

Mj. Thanks for , uh, joining us today. I'm Brian Wicker, majority owner of Accu Mortgage and also licensed real estate broker, and that's David Wicker over there, the president of Nette Mortgage. So , uh, David , uh, one of the other numbers that came out last, late last week, the National Association of Realtors came out with their pending home sales index for January, and that actually slumped , um, 4.6% , uh, and all time low. Wow. Last year. Cyclical low point. It was <inaudible> Okay , blah, blah, blah. So yeah, so an all time low for January. That's interesting. And , um, and it was , this

Speaker 3: 13:19

Is nationally.

Speaker 1: 13:20

Yeah, this was nationally, but it , but it was also the Midwest , south and west experienced month over month losses in transactions , uh, with the most significant drop in the south. So it was only the northeast that went up a little bit. So obviously we'd be in the Midwest Yeah . For most of our markets. So nationwide, kind of a , and depending home sales means what number of homes went under contract in January, which will portend the actual closed sales mostly in February. Yeah . Now, you know, that's a national number. I do not have a local number. Uh, but then the other thing that came up that I thought was really interesting last week was Zillows for forecast for home values. And , uh, they are now projecting that a year from January, so in January, 2026 home values will increase by just 0.9% on a nationwide average. Previously they were forecasting a 2.9%. What

Speaker 3: 14:20

Are you just trying, are you just trying to get me going by giving a national number? Well , or do you just wanna say the,

Speaker 1: 14:26

I mean, it's a number that people are gonna read about or have read about. Um, and the reasoning that they're giving for their reduction is something you mentioned earlier in the show. Good old supply and demand. They're noting that new listings were higher than expected out of the gate this year. So more supply in general is putting downward pressure on Zillow's home value forecast. And , you know, now good news is it's still thought to go up. It doesn't mean it's gonna go up everywhere. In fact, I do have their forecast for various markets within Wisconsin, but just a couple of other nuggets from their latest forecast. They're seeing the same number of homes selling nationwide at 4.11 million in 2025 as what sold in 2024. Mm-hmm <affirmative> . Um, they're also saying that they expect a decline near term in sales may be related to that pending home sales number that came out before the spring home buying season kicks in. Well,

Speaker 3: 15:26

The reason why is hard to close if you don't go under contract first. Exactly . So that's why they use that leading indicator.

Speaker 1: 15:34

Yep . Um, interestingly, they're seeing rental , uh, costs going up by 3.7% nationwide in 2025. That's for single family rents. If you're in a multi-family, you know, like an apartment building, they're forecasting a 3.1% increase in , um, rental costs . Couple of other quick nuggets. 23% of listings Zillow says reduced their price in January. That's the largest portion for any January since 2018. Question for you, David, I can't quite replicate that number, but I did some number crunching on about 2000 listings current listings as of the end of last week in the five county Milwaukee metro area. Do you think our local number, do you think more than 23% or less than 23% of active listings have cut their price?

Speaker 3: 16:21

In your, in your statistics, you're taking 2000 listings that might also be currently under contract? That's right. Or not under contract.

Speaker 1: 16:29

I'm just, I'm looking at under contract across the ,

Speaker 3: 16:32

Across the board. So you basically have three buckets. You are waiting for an offer , uh, or you're under contract, or you just cut your pre Well , uh, I'm gonna say more than the 20 some percent. I'm gonna say like 31%. Whoa.

Speaker 1: 16:46

Okay. You're a little more pessimistic. I I thought it was gonna be lower than the national average. Right? Yeah . Because we kind of have , um, you know, less supply in my opinion here. Yeah. When you look at the number of months supply, but the actual answer is we were at 23.8% by my calculation. So 23.8% of single family and condo listings in the southeastern Wisconsin have reduced their price. What do you think your , your ,

Speaker 3: 17:12

Your scratch here these , but these are the difficulties of statistics because we're taking, or your sample is taking listings at a million and above and , and putting it into the same cauldron with the $300,000

Speaker 1: 17:28

Bundle below . I should , one other footnote, I only looked at Holmes listed for one 50 to 700,000, so I did kind of narrow it down to the middle. Um, one other nugget in that, you know, price range, the average price reduction. What do, what do you think the average price reduction is? Dollar

Speaker 3: 17:42

Amount or percentage?

Speaker 1: 17:43

Yeah. Dollar. Well , let's go

Speaker 3: 17:44

With dollar amount . Uh , $10,000 ,

Speaker 1: 17:48

$19,850 , you know. Okay. 'cause some people, I , some people came out and then like lowered their price by a hundred grand. You know, that skews the average up. Um, and on a percentage basis it was 5%. So obviously you have some people going out there and thinking that , um, hey , I just came outta the gates too high. I , you know, obviously I'm not getting any action. I gotta cut my price. So, you know, the percentage of , uh, price reduction is always about where you started. Yep . Obviously, and maybe people were a little bit too aggressive. By the way, by my count , there's about 2,600 active listings out there right now. And if you apply the 1200 home sales that we had in March of , uh, 2024, that's just a little over a two month supply. So I think it's still a seller's market in southeastern Wisconsin. I do have the Zillow forecast, we'll get to that later in the show. But right now for, for markets within Wisconsin. But right now it's time to turn it over to the WTMJ Breaking News Center.

Speaker 2: 18:48

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

Speaker 1: 18:55

Welcome back and thanks for joining us , uh, to hear about the latest in mortgage and real estate trends. David , uh, right before the break I was talking about , uh, Zillow's latest forecast for home value increases. And , uh, here are some of the numbers for , uh, Wisconsin. 'cause they go down to the , uh, metropolitan statistical area, which I think is very bold and, and , uh, awesome. So , uh, here's multiple guess , uh, question for you. Which of these three major cities, the three largest metropolitan areas in Wisconsin, I believe are Milwaukee, Madison, and Green Bay? Which of those do you think Zillow predicts we'll have the greatest home value increase in 2025?

Speaker 3: 19:37

I want to say Madison, but Green Bay is lurking there in the background. So , but I'll stick with Madison as my

Speaker 1: 19:43

Choice. Oh , you should have gone with your gut. So they're predicting a 3.3% , uh, home value increase for Green Bay , uh, 1.9% for Madison. And , uh, only 1.4% value increase , uh, for the Milwaukee Metro area. Uh, some of the other hotter , uh, appreciation markets that they're Zillow. This is again, Zillow forecasting. What do we think the change in home value is gonna be between January of 25 and January of 26? Manitowoc leads the list at 4.6 followed by Marinette at 4.3, Shawano at 3.8, and Sheboygan at 3.4. So, I mean, what they're looking at is supply and demand. Obviously they're just saying the ,

Speaker 3: 20:24

The other difficulty in all of this in just like Madison versus Green Bay, I'm , I'm pulling this from the sky, but I'm gonna say the Green Bay median home values like two 20 and the median Madison home value is three 70 .

Speaker 1: 20:42

Yeah . Mm-hmm

Speaker 3: 20:42

<affirmative> . And so on a percentage basis, yes, congratulations to Green Bay, but for Madison buyers, the raw dollar amount will be more meaningful. Yeah. Both for buyers and sellers possibly . Um, of course you're , and if you're in Manitowoc, it's like, congratulations on your 10%, you know, home , uh, value upside. You started at one 50.

Speaker 1: 21:07

No, it's not that low.

Speaker 3: 21:08

And now you're at 1 65. No , it is up that way . It's a different threshold for median . Yeah . Home

Speaker 1: 21:15

Values, median sales price. So , um, you remember, there's only two times where you really know the value of your house. You know, one is, hey, you're doing a refinance and you get an appraiser that estimates the value of your home. Yes . But the only time you really know is when David

Speaker 3: 21:31

Is, when you buy and when you sell.

Speaker 1: 21:33

That's right.

Speaker 3: 21:34

I start , I've started to call that Schrodinger's cat's house. Right. Because Schrodinger's cat, if the cat is in the box, it is both alive and dead at the same time. Come on. Philosophy 1 0 1. Whoa. And so the house is worth, right? I I am living in my house. Me, David, right now it is worth something, but right now it is also worth zero because no one is writing me a check. Correct . It is both values at the same time.

Speaker 1: 22:02

Wow. That's deeper than I ever

Speaker 3: 22:04

Expected. Philosophy mortgage.

Speaker 1: 22:06

Yeah . So , um, David, I got a , a call from somebody this week who , um, was restarting their home search . They tried last spring and summer didn't succeed, released their apartment. Now their lease is coming back up , uh, in May. So now they're motivated to get back out there. And she said , um, that she's actually finding more selection and better quality, which was nice to hear. Okay . In the areas where she's looking. So , um, in the course of our conversation and re-verifying her income, the good news is that her income was under the $102,100 annual threshold to qualify for Wisconsin's special first time home buyer, 30 year fixed rate loan, which has a below market rate of like 6.125 right now. And , uh, but then in the course of our conversation, she started to use the word we, we, when we, when we move in or when we find that house or whatever. So what do you think?

Speaker 3: 23:12

And , and not in a way where it's like you got a mouse in your pocket. Yeah, yeah . <laugh> me , me plus my person.

Speaker 1: 23:18

Right? So what's, so it turns out she , you know, I said, you know what? You mentioned we will there be someone else living in the home that you buy? And she said, yes, my fiance. And so what's the issue there, David?

Speaker 3: 23:33

The rule book for the special Wisconsin home buyer program that you were eyeing has a limit on the amount of income, not just for the people who are on the application to borrow the mortgage money, but a limit for all of the people who will be residing in the home, even if you are not a borrower. And , and Right . So for her, it's her fiance. If it was , uh, uh, client, fiance and grandma also, you know, moving in into the other bedroom and she's drawn Social security and a pension, you

Speaker 1: 24:11

Get to count that. Yeah. Gotta

Speaker 3: 24:12

Count that too, even though grandma's not on the mortgage.

Speaker 1: 24:15

Yep . So devil is in the details. Now, luckily, she's also , um, still underneath that 100% of area median income threshold Yes . Per actual income is, which is good because then we're gonna escape any , uh, pricing adjustments that Fannie Mae or Freddie Mac would otherwise impose. Because wouldn't, you know, since last year , uh, one of her credit cards reported her late, and so her credit score , uh, dropped from like 7 85 down to 7 31. And so the good news is that's not gonna affect her loan pricing. Mm-hmm . But it, it will affect the monthly cost of her PMI private mortgage insurance. And there's really just nothing we can do about that. Alright . Why don't we come back, David, you've got a divorce related refinance story. Yeah . We'll cover that Next. You are listening to the ENT Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2: 25:06

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

Speaker 3: 25:16

Back to the ENT Mortgage and Realty Show. I'm David, that's Brian over there. Dad, we like to describe the start of some people's home buying journey when they're looking and they're on the house hunt and they're starting that next chapter. Well, we also , uh, get to help some clients who are then starting a different next chapter, which is divorce and what do I do with this home that we own in our marriage? And so I took a call from a repeat client who I had helped by their home in 20 18 20 19, which okay , feels like what I say 2018, I'm saying 1888, but that's just, you know,

Speaker 1: 26:01

Yeah, yeah. It seems like forever ago.

Speaker 3: 26:04

So , yes. So they, like many Milwaukee homeowners have had a tremendous amount of home appreciation, and they are utilizing a mediator to , um, handle their divorce proceedings. And they have already agreed upon the equity payout , uh, for dividing their marital assets. And so my client, wow , smart, smart guy and is thinking to himself, okay, well, do I want to keep the house or do I not? And I, and with divorcing clients, it is pieces of the puzzle and well, you know what it is, it's tools on the workbench. Okay, I got 'em all in front of me. Which one should I use? Should I use a combo of these? Should I use none of these at all? Do I need to go to Menards and get a whole different tool than the ones that are in front of me?

Speaker 1: 26:55

He laid out . So how much , how much, how much does she have? Does he, if he retains the home, what, what have they agreed upon on how much money he has to give her for her equity interest? Uh ,

Speaker 3: 27:04

Yeah, about $40,000 is the

Speaker 1: 27:06

Number. Okay.

Speaker 3: 27:08

And so the question, or that's kind of the bogey, right? It's like, okay, how do I come up with $40,000 door number one, you could do cash, you know, instead of dipping into the bank account called your home equity, you could instead use cash and or retirement to be like, oh, here is $40,000 instead of pulling it out of the house. What ,

Speaker 1: 27:35

For goodness sakes, I'm not a tax advisor, but I know a lot of 'em , I think the worst place to get the money would be out of a retirement account.

Speaker 3: 27:44

I , I agree, but I'm just declaring these are the things that are , are

Speaker 1: 27:47

Possible, but people think I know what people think about that. It's like, yeah, I'll just, I'll just take money out of the IRA to a use it for, well , you

Speaker 3: 27:54

Could do a quadro , a qualified domestic relations order. You can slice a retirement in half without enduring the tax bill.

Speaker 1: 28:02

Okay. But that's, that's one thing if you're dividing up that, okay , uh,

Speaker 3: 28:08

Retirement

Speaker 1: 28:09

Account, but it's another thing to then take money out of it to

Speaker 3: 28:12

Agreed but

Speaker 1: 28:13

Hand to somebody for the equity. But go on,

Speaker 3: 28:15

The whole point is, Hey, maybe we just leave the mortgage alone. If you could drum up the $40,000 someplace

Speaker 1: 28:22

Else, okay , so let's call that door number one,

Speaker 3: 28:24

Door number one door number two, take out a second mortgage, leave the first mortgage in place. You got a lot of equity. Take out a $40,000 second mortgage and be like, here you are. The monthly payment on that second mortgage wasn't all that appetizing for my client. Uh, but it's possible. Okay . The other thing that would be required is that your soon to be ex would need, 'cause that that implies that you will both remain on the first mortgage even though you're divorced.

Speaker 1: 28:54

Oh, are they both on the first

Speaker 3: 28:56

Mortgage? Yes. They are both on the first mortgage. So you would need to have a cooperating ex to be like, we're gonna leave the first mortgage alone. I the, i, your, I will , um, waive your liability in our marital settlement agreement of your responsibility to pay the mortgage and the ongoing maintenance. No , but the problem is , but if your , if your ex says, no way, get me off the mortgage, then door number two's not an option.

Speaker 1: 29:22

Which is what they would likely do if they had an attorney because Yeah . At least from my experience, because you know, the , the problem is even though you have a court document as I understand it, that says, Hey, this person isn't responsible. If there is a foreclosure, I believe that stain and, you know , or , or even delinquencies or late

Speaker 3: 29:42

Payments.

Speaker 1: 29:43

Yeah . Yeah. Late payments goes against that , um, former spouse who decided to stay on the mortgage .

Speaker 3: 29:49

But let's look at all the tools. I know, I know it's a bandsaw, but like, if we don't want to use it, it's still available to us. What

Speaker 1: 29:56

About selling the property?

Speaker 3: 29:58

Well, so that was door number four. And , uh, you know , sell it, pay off your , uh, x or get them their equity payout and then you walk away with the rest and start your next chapter of life. I , I wanna touch on that. The third option, the third door was we could refinance the entire mortgage balance and your equity payout to your ex. The tough part about that is they got such a smoking good rate on their first mortgage.

Speaker 1: 30:25

Yeah. They'd be trade .

Speaker 3: 30:26

You must be trading in three a 3% rate for double that on the whole pile of money. Um, it's

Speaker 1: 30:33

Possible. Right . So it's time for us to take a , our last break. Okay . Uh , let's, let's find out what this customer's thinking about doing when we come back. You're listening to the Acade Mortgage and Realty Show on Wisconsin's radio station AM six 20 WTMJ.

Speaker 2: 30:46

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

Speaker 3: 30:54

Thanks for being with us here on Sunday morning on the Academic Mortgage and Realty Show. By the way, you can catch every academic mortgage and realty show wherever you get your podcasts. Uh, in case you can't be with us here on Sunday mornings Live. Dad, I was describing to you a client , um, just trying to puzzle solve the divorce element of okay, I owe my spouse, my ex, soon to be ex $40,000 to divide our marital equity. How , where are all the places that I could reach for that $40,000? So , so the last thing , recap. Yeah, the quick ,

Speaker 1: 31:31

The last thing we Go ahead.

Speaker 3: 31:32

Go ahead. <laugh> . Uh , one, one was , uh, you could , uh, cash two second mortgage, three refinance the whole first mortgage and four sell the house. My counsel to this client was, look, houses are not, you can always buy another house and to tether yourself to a particular property, maybe seven months from now you decide, you know what? I wanna go live in, you know, Tokyo for two years Hmm . To just whatever comes next. Yeah. Boy, it would be nice to have that house sold and the lot of money you're gonna make walking away from having sold that home to free yourself up to have whatever that next chapter is, which kinda is more than mortgage advice, but mortgages are just a reflection of real life. And so sometimes we talk about real life. Uh, so my client, at the end of our conversation, we reviewed all of these options, was leaning towards, I'm just gonna sell the house. He looped back with me about a week later and said, as I am looking at rental properties to get me what I want, the cost , and this is I think some of what you alluded to before in , uh, one of the National Association of Realtors reports about rents.

Speaker 1: 32:53

Yeah . It was Zillow, Zillow's reporting ,

Speaker 3: 32:55

Zillow rents , it's

Speaker 1: 32:56

Rent prices . Yeah . Rent .

Speaker 3: 32:57

Uh , I'd be spending, my client was like, I'd be spending $1,800 on rent. Remind me again what it would cost to keep the house and do the equity payout. That answer would be about $2,000 a month to do the payout, keep the house. So he is not that far removed from an equivalent to the cost of rent if he decides to move on. He doesn't have an answer yet, but it's as he went out and got more data about, okay, if I do sell, if I do rent, what does that cost for him for what he wants for a rental property? It's not that far removed if he just keeps the house. The crummy part about keeping the house though is all the equity is still stuck in the house, which is of no use to you. That's ,

Speaker 1: 33:42

Yeah . Let's see . Lots of competing interests there. Yes. And sometimes it's the very practical thing of, Hey, you know what? I know I might give up my, my awesome rate on my first mortgage, but maybe refinancing the whole thing and taking the cash out. Which by the way, if you're taking cash out for a divorce , um, and that money gets paid directly to your ex-spouse, it doesn't get priced like a cash out refi. Right. It just gets priced like a regular refi. Which is nice because cash out refinancing is considered riskier and therefore rates are closing costs are a little higher. So, you know, he would, it's all , it's all about the very practical thing. Hey, what do I want for a monthly payment and where do I wanna live for

Speaker 3: 34:20

Now , I haven't come up with the right way to call this, but it's, you know, our home shoppers need the rock solid pre-approval. Our divorce clients need the rock solid divorce game plan. I gotta come up with it . Game plan . Right . Better plan . Right. Because that's what it is. It's do I keep the house? Do I sell it? And we, I just rattled off like four and a half ways you can look at that. It's a puzzle.

Speaker 1: 34:41

One of the other, I'm working with a , uh, person who's at toward the end of their divorce, but it's kind of getting out there, would like to write an offer on a house, but we can't really approve their loan until their divorce is finalized and their next court date is the end of April. So in that particular case, the question is, you know, can I get somebody to an accept an offer? This is the equivalent of they've already sold their marital home. Right. Oh . But now it's like they would have to write their offer with a really long financing contingency. Yeah . Because we can't actually give 'em the loan until after they have their division of marital property settled. Who owes what, you know, in terms of the liabilities, who gets the car loan? Who gets the car lease? We need that approved and signed off on by the court, which isn't gonna happen until late April. So that's an interesting one. That's evolving. Alright, well that's all the time we have for today's show. We appreciate you spending some time with us. Uh, we love what we do and we'd love to help you or someone you know, either with a refin 'cause rates are lower than they were the lowest they've been since , uh, early December. Or to make themselves the most competitive buyer they can be in the eyes of that seller with a rock solid guaranteed pre-approval. All you gotta do is click on that blue button@accu.com to get started. You've been listening to the Acuate Mortgage and Realty Show on AM six 20 WTMJ. The

Speaker 4: 36:05

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 Acuate Mortgage and Acuate Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.