The Accunet Mortgage & Realty Show 3-30-25

Episode Transcript

Speaker 1 (00:00):
The following program, the ENT , mortgage and
Realty Show is paid for in fullby ENT mortgage, LLC and equal
housing lender consumeraccess.org number 2 5 5 3 6 8.
The advice and opinionsexpressed during the Academic
Mortgage and Realty Show aresolely that at the hosts and
guests of ENT mortgage, LLC,and not WTMJ or Good Karma
Brands.

Speaker 2 (00:21):
Welcome to the Accu Net Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from Accu Net Mortgage
and Realty. And now, here'sBrian and David Wickers.

Speaker 1 (00:36):
Welcome to the Accu Mortgage and Realty Show. I'm
Brian Wicker, licensed realestate broker with ANet Realty
Advisors, and also the majorityowner of Anette Mortgage, where
my individual N ML s ID numberis 2 5 9 6 1 0. And I'm joined
again today by my son, DavidWicker, who's president of
Anette Mortgage, and his NMLSID number is 3 2 8 8 4 7.

(00:56):
Remember, you can get a copy oftoday's show or any of our
previous shows wherever younormally get your broadcast. So
no , your podcast. So , uh,David, kind of a , hmm , a
newsy week. Uh, we had the ,um, personal consumptions
expenditure inflation indexcome out on Friday, which is
important because it's theFederal Reserve's preferred

(01:18):
measure of inflation. Rememberfolks, inflation is the enemy
of interest rates, and the goodold Federal reserve would like
inflation to get down to 2%measuring on this core , uh,
PCE number, where did it comein , uh, for the month of
March, David?

Speaker 3 (01:33):
Uh, so the, if you put everything in the basket,
2.5% year over year personalconsumption expenditure, if you
prefer the more artisanal , uh,measurement, core PCE, which
excludes food and energy, whichis, I always think to myself,
well , but I need those. Yeah .
Anyway , uh, core PCE year overyear forecast was 2.7, came in

(01:58):
at 2.8. The month over month is, uh, what markets pay
attention to more forecast was0.3 , actual was 0.4 . Although
dad, I will, I will tell you ,uh, in case you didn't know,
they don't just do the firstdecimal, the , uh, it goes to
the third decimal. Oh, wow. And, but they round up, if you go

(02:21):
to the third decimal, dad , 0.4sounds so, ugh , it was
actually 0.365 , which seemsso, so much

Speaker 1 (02:30):
Darn , darn, darn , very close to getting rounded
down to 0.3 . Well, that's,that's all very wonky. And so
what really matters is, youknow, how did uh , markets
react? The stock market hatedit on Friday. Well ,

Speaker 3 (02:41):
For whatever this a lesson, as always, if anybody
actually knew which way bondmarkets were going to react to
any one piece of data, youwould be a gazillionaire.
Because let me say this, onFriday, I was expecting the
bond market to not like thatinflation reading, but instead,

(03:03):
for reasons that I am stilltrying to unearth the bond
market was like, eh , it's notthat bad. And, and pricing got
a little bit better. Not likechange the world better, but
it's, I'm glad it got betterinstead of getting worse. How's
about that? I

Speaker 1 (03:16):
Would agree with that. So , uh, low overhead
anette finished the week for a30 year fixed rate with , uh,
25% down to purchase a primaryresidence. Uh, uh, with a
$250,000 loan amount, you couldfetch a 6.75 interest rate. And
, uh, that only had an a PR of6.788. And in case you're

(03:38):
wondering, the total dollaramount it would take to fetch
that , uh, rate is $1,995. Sonot bad. That includes an
appraisal , uh, which we don'talways need. So, hey, we'll
take it. It's a victory that'soh , yeah . Lower than where
rates were a year ago. And ,um, we also got consumer
confidence this week. Are yougonna say something else about
inflation or mortgage rates?

Speaker 3 (03:59):
It's because when Tim and I did the show last
week , uh, what I don't, Ican't even remember what report
it was . Oh, it was the FederalReserve Open Market Committee.
Yeah. Met last week. And as Isaid to Tim, oh, you know, how
many calls I got on Wednesdayafternoon, a couple minutes
into Chair Powell's, you know ,uh, conference , uh, with
reporters. Zero. The same wastrue on early Friday morning

(04:24):
when the bond market, some, forsome reason, reaction enjoyed.
Right. Nobody called, none ofmy clients called me and was
like, David, I'm back in. Yeah, I saw that PCE report and
that's what got me back in.
It's, so, it's, this isheadlines and perhaps they ,
um, become more and moredistant from reality,

(04:45):
especially here in southeasternWisconsin.

Speaker 1 (04:47):
By the way, later on , uh, in the show, I do have
the latest predictions from theNational Association of
Realtors and Fannie Mae as tohome sales and mortgage rates
for the rest of 2025 and 2026.
But as you pointed out, realhome buyers are like, they're
in it to win it now, or they'rein it, you know, they're not,
most of 'em are not thinkingabout, oh, where are rates

(05:08):
headed from here?

Speaker 3 (05:10):
Uh , and I had a client this week, just again,
if this is headline world as welike to do to open a lot of our
shows, the the other headline ,um, bifurcation almost is in
the regional differences inwhat's happening in housing.
Oh, you're in the southeastpart of America, you're in

(05:30):
Florida. That is a whole otherdynamic that is, that is
Jupiter, that's Neptune, andthen over here in southeastern
Wisconsin, it remains aseller's market. And so you
just have to always be mindfulof what headline am I reading
and what does it apply to?
Yeah. I, I sent you an articlefrom the Wall Street Journal

(05:52):
this last week , uh, because asI noted to you in my text, this
article is the headline iswater is wet because it was
comparing New Jersey toFlorida. And it's like, well,
yeah, it's different dependingon where you are.

Speaker 1 (06:06):
It's way different that , that's probably as as
contrasty as you can go. It's adefinitely in most of Florida
and definitely southwesternFlorida where we have a lot of
Wisconsinites hang out , youknow, Naples and Fort Myers .
It's definitely a buyer'smarket. There's lots of supply.
Homes aren't moving, you know,marketing times are long and
you're getting it for underasking that is different.
Alright , when we come back,let's talk, follow up on a

(06:28):
story that you and Tim had fromlast week about Yeah . A home
buyer who offered $50,000 morethan the asking price, which
was in the low three hundreds.
We'll give you the rest of thestory when we come back. You're
listening to the Aced Mortgageand Realty Show on AM six 20
WTMJ

Speaker 2 (06:46):
Home buying advice from the guys who know it best.
This is the Accu Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (06:55):
Welcome back and thanks again for joining us
today. I'm Brian Wicker, theelder. That's David Wicker, the
younger, taller , more handsomeof the wicker men over there.
And , uh, so David, thanks toyou and Tim for doing the show
last week. Sure. Where Timshared a story about a client
who happens also to be thedaughter of a , uh, friend of ,
uh, of mine and a first timehome buyer looking to buy in

(07:18):
Milwaukee County. And , uh, TimHoldman , uh, my son-in-law,
your brother-in-law was theloan consultant , uh, working
with her, although I think youhad some contact with her as
well, kind of tag team. You

Speaker 3 (07:28):
Yes . It's , it's a team effort. Come on. Whatever,
whatever it takes to make themagic happen. Right. That's the
acuate mortgage way.

Speaker 1 (07:34):
That's right. And so she was , uh, looking at a home
that was listed in the lowthree hundreds and , uh, and
ended up winning. And how manyother offers were there? 10,
11.

Speaker 3 (07:45):
Uh, it was a double digit number. I know that for
sure.

Speaker 1 (07:49):
And, and so because you and Tim were very good at
educating her about what allthe numbers would mean , um,
she offered $50,000 overasking, and on top of that,
that was 16% over the askingprice, by the way. And , uh,
and , and then she put in theoffer with the help of her

(08:09):
excellent buyer's agent aswell, that, Hey, you know what,
I'll still buy it at this highprice even if it appraises out
$50,000 low. Wow. Yes . That'sgutsy. And go ahead.

Speaker 3 (08:24):
It this, as we know mortgage , uh, masquerades as a
numbers business, but reallywhat you're describing is the
psychology business. 'cause onthat Saturday when I was on the
phone with our client and shewas prepared to make, I, I
enjoy you must be a journalismmajor back in the day. 'cause
you're writing that headline toget this segment started ,

(08:46):
$50,000 over the list price.
Well, but dad, what is thehouse actually worth? It's
worth what the seller says yesto, and the buyer is willing to
pay. They just happen to beginat a particular, you know, low
point for the bidding war ,possibly

Speaker 1 (09:04):
Lower number. Right.
And then, and then, you know,the way it goes is we try to
educate people on, okay, what'sthe worst thing that could
happen here? Yeah . What hapwhat's the difference in your
payment and your money outtayour pocket if the appraisal
comes back exactly at whatyou're offering? $50,000 what
we're asking Yep . Versus itcomes in at the worst possible.
That's basically the exercise.

(09:25):
And what I'm here to share withour listeners today is, you
know, where did it actuallyturn out? Oh . And the answer
to that is that , uh, you know,'cause then, then the appraiser
gets the offer, including thesales price. That's $50,000
over asking. And then theappraiser's job is to find at
least three closed comparablesales , uh, for the subject

(09:46):
property and say, based onthose sales, here's where I
think the value is. And, and,and that appraiser came in
$22,000 less than the acceptedoffer price. So in the end ,
uh, our home buyer client , uh,you know, paid is willingly
paying. She hasn't closed yet,but we've got her loan all

(10:07):
approved, willingly paid$22,000 , uh, over the
appraised value, not 50 22. And, and so that happens to come
out to about 6.4% over theappraised value, which, you
know what I call that nextyear's value

Speaker 3 (10:24):
. Right .
Because well, hey, call, callthe 10 people who didn't get
the accepted offer next year,they'd be willing to take that
off your hands, no problem.
Right?

Speaker 1 (10:33):
Absolutely. Um , so , uh, you know, can I , in , in
, go ahead.

Speaker 3 (10:38):
So the conversation that we had in the day before
she got the accepted offer, asI like to say, because great
down payment and you had to becompetitive. I said, if I could
hide the appraised value fromyou. No. Now here's what I
said. Do you care what astranger thinks this house is

(10:58):
worth someone you'll never meet? Well,

Speaker 1 (11:00):
Not a stranger, but an

Speaker 3 (11:00):
It is a stranger. No , an appraiser professional
stranger. Yeah . Okay. But do ,why do you care what they
think? If it's worth it to you,then it , then that's what the
value is. And I, I have begunto share with clients in my
tongue in cheek way, if I couldhide, if I could put a bag over
the appraised value and justtell you that it's okay. Yeah .

Speaker 1 (11:23):
Is it good

Speaker 3 (11:23):
Enough? Is that good enough? Would you go forward
with life and just be, be glad?
You would never need to know.
But

Speaker 1 (11:30):
But humans don't operate that way. They , they
like , you

Speaker 3 (11:33):
Know, no , it was no, but it unlocked for our
client that like, you're right,I want this house more than I
care what this strangerappraiser thinks that the house
is worth. I just want it tocome in at a number that allows
me to get to the closing table.
Yeah.

Speaker 1 (11:49):
Well, but there are real life consequences. And ,
and so the question I think forany buyer is, well, what does
this mean if the appraiser, ifthe appraisal comes in low? And
so I happen to have the answerin this particular case, the ,
um, because what did it do tomy cash needed to close? And,
and what did it do to mymonthly payment? Did I have to
bring in $22,000 more becausenow the appraisal was lower?

(12:10):
No, no . This particularclient, I think smartly decided
she would bring in $1,500 morejust so that we would be
lending her exactly 90% of theappraised value. 'cause the PMI
is a little cheaper if we lendsomebody. And her original
intention was to put , uh, 15%down. I'm pretty sure we gave

(12:31):
her a pre-approval letter'cause she had the money saying
she could make 20% down whythat looks better to the
seller. Yep . Um, and , and soshe just decided , uh, you
know, for a little nuancedreason, she was gonna bring
$1,500 more to the closingtable. Uh, and the bottom line
result is that changed herpayment. Are you ready? Drum
roll. If we had one $7 and 88cents more per month, you,

Speaker 3 (12:54):
You can't call that consequences. You gotta , we
gotta call it something so muchless than that. I don't, I
don't , I , let me get mythesaurus on the break. Get
that . But it's notconsequences that

Speaker 1 (13:03):
When we come back, either you have another story
or I know I've got anotherstory . We'll cover those when
we come back. You werelistening to the Accu Mortgage
and Realty Show on Wisconsin'sradio station. AM six 20 WTMJ,
getting

Speaker 2 (13:15):
You into the home of your dreams. Here's more of the
Accu Mortgage and Realty Showwith Brian Weer on WTMJ.

Speaker 1 (13:23):
Welcome back and thanks again for hanging out
with us. Uh , David , uh, I ,I've been working this , uh,
past week with a , uh, clientwe started talking to a year
ago. This is a retired , uh,pastor and his wife. And they
were thinking, okay, you know ,uh, they're renting a town home
right now. And , uh, turns outthey really like it. Uh, and

(13:47):
back in the fall , uh, wetalked to him . He said, you
know what? We're gonna re-upour, our lease. So, you know,
we're kind of off the marketfor another year. Well, lo and
behold, he reaches out onMonday of last week and says,
oh, you're not gonna believethis. We gotta call from our
landlord. And , uh, they havean , they have a cash offer to
buy our town home that we'rerenting, and they wanted to

(14:09):
know if we wanted to buy itinstead. And so, I

Speaker 3 (14:13):
I I can believe that actually. Yeah,

Speaker 1 (14:15):
You can believe that.

Speaker 3 (14:16):
Okay. Yes .

Speaker 1 (14:17):
And, and so, you know, we talked for just a
little bit. It's like, well,okay, if you don't buy it, you
are gonna be moving at the endof 2025 ,

Speaker 3 (14:28):
Because is it

Speaker 1 (14:30):
Presumably because the person buying it, I think
wanted to ultimately live init. But, oh , I don't think you
can kick somebody out. 'causethey had a signed lease for a
year. So unless there's aclause in the lease that says,
you know Yeah .

Speaker 3 (14:42):
Check the language of your lease contract. Yeah .

Speaker 1 (14:44):
Yeah . Yep . So, so one thing is, do you wanna
move? And the kinda answer isno. Um, and , and then it kind
of turned around to, well, youknow, what do we have to do to
win this? And they were talkingwith , uh, the seller or
actually the seller's father,and the answer was, well, if
you could give us $5,000 morethan what this cash offer is,

(15:05):
we'll we'd take your offer.
'cause we like you, you're ourrenters. Yeah. Okay . So
apparently there's no emotionalconnection to the other buyers
is what I read between thelines.

Speaker 3 (15:13):
I'm sure that they're glad that they got the
phone call in the first place.
Right? I they , yeah . Theseller as opposed

Speaker 1 (15:20):
To notice Yeah .

Speaker 3 (15:21):
Yeah. The , the owner, the landlord I don't
think is obligated to do so,but that good Midwestern spirit
is just like, how's it bad ? Icall you and see if we can
figure this out between us.

Speaker 1 (15:33):
That's absolutely right. So , um, so we, we
started running the numbers,gathering their information,
you know, on income and downpayment. I don't think we
actually ever even had gottentheir credit report before,
which was excellent. And lo andbehold, we do what we always
do, which is put all thatinformation through Fannie Mae
and Freddie Mac , um, automatedunderwriting system. And what

(15:54):
do you know? Much to ourdelight, we get a approval at
$5,000 over what the otherpeople were willing to pay cash
for. And we don't need anappraisal

Speaker 3 (16:07):
Za

Speaker 1 (16:08):
Za , which meant that we could give 'em a
preapproval letter. And thensince there are no realtors
involved, we connected themwith a , uh, sharp, low cost
real estate attorney whodrafted up the offer Yeah . For
like 350 bucks. Yep . Um , andby the way, they'd been working
with a real estate agent tolook at other properties. And

(16:29):
at first they were thinkinglike, oh, we're just gonna use
the real estate agent, but thenthe real estate agent was gonna
want, you know, a couple ofpercent. Yeah . And so they
quickly came around to, youknow what, give us the name of
that attorney. Okay . And , uh,so wrote up the offer at $5,000
over with the preapprovalletter that said, no appraisal
required for this propertyaddress at this value. And ,

(16:51):
uh, their offer got accepted.

Speaker 3 (16:53):
Yeah . Come on.

Speaker 1 (16:54):
Awesome. And we're able to collect all the
information that we needed fromtheir financial advisor. And ,
uh, we're off , uh, to theraces. We're gonna close at the
end of April. You have aquestion or comment there?

Speaker 3 (17:06):
We're , uh, I'm always mindful on a town home ,
were they making a downpayment? You know, you got the
appraisal waiver. So I wouldimagine that the down payment
was substantial. Where yougreater than you get a nice
break on a town home or a condoif you make greater than a 25%
down payment? Did they getthere? Well ,

Speaker 1 (17:29):
A couple of things true here. They wanna put 20%
down. Okay . But they're firsttime home buyers and their
qualifying income is less thana hundred percent of area
median income. Oh . So all ,uh, of those potential , um,
price hits for being a town.
Yeah . Which, although in thiscase it's not a condo, it's a,

(17:50):
they own the dirt underneaththe , um, building,

Speaker 3 (17:54):
Ah ,

Speaker 1 (17:54):
The , the , the unit . So it's, it's called single
family attached. It's not acondo

Speaker 3 (17:59):
Attached. Yeah.
That's the one I was gonna say, do you share a wall

Speaker 1 (18:02):
Detached? You share two walls in this particular
case. Okay. And it's a littleter than that. Then , you know,
it turns out in this particularcase that the HOA insures the
exterior, even though it'sowned by

Speaker 3 (18:14):
T were , were they really first time home buyers
or did they just recapture thatstatus? 'cause they haven't
owned a home in the last threeyears.

Speaker 1 (18:22):
B they captured that status.

Speaker 3 (18:24):
I mean , they could have been living in a
parsonage, I mean, which

Speaker 1 (18:27):
Well, and that, that

Speaker 3 (18:28):
Sounds old fashioned .

Speaker 1 (18:29):
It might've been the case in their, in their last,
but in on their credit report,they had had a mortgage at some
point in the past. Oh, okay.
But it's been way more thanthree years. So, so we are on
our way, you know, to a , uh,happy closing at the end, end
of April.

Speaker 3 (18:45):
And as is always the case, and just in my, our brief
comment about rates and whatnot, like these are all the
ingredients that go into therecipe. Right. And so it's not
just, Hey Brian , what rates doyou have? It's like, well, I
have about seven and a halfother ingredients we need to be
mindful of. That's a goodmortgage practitioner right
there.

Speaker 1 (19:03):
That's right. Thank you very much. Alright , it's ,
um, time for our news break andwhen we come back, let's , uh,
take a look at the Fannie Maeand Annie and National
Association of Realtors latestforecast, but

Speaker 2 (19:14):
Don't break the bank to get into a house. Back to
the Accu Net Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (19:22):
Welcome back and thanks again for joining us.
Uh, for today's show. Uh ,David, the , uh, Fannie Mae's
Economic Research Departmentcomes out with a monthly
forecast every , every monthabout where they think home
sales are gonna end up. Whatabout interest rates, mortgage
rates, and then also , uh, homeprice appreciation. And then

(19:42):
wouldn't, you know, theNational Association of
Realtors also came out withtheir latest forecast. And ,
uh, here's what we've got. TheNational Association of
Realtors predicts a 6% increasein the number of homes sold in
2025, and then 11% on top ofthat for 2026. Oh, what does
Fannie Mae think? Well, they'rea little less optimistic. 4.4%

(20:05):
increase in the number of homessold for 2025. And , uh, then ,
uh, another 7% increase in2026, which by the way, amounts
to 4.24 million homes soldnationwide. These are existing
homes, only not newconstruction. And then they're
saying, Hey, you know what? Andin 2026, there'll be another
300,000 bringing it up to fourpoint , uh, five 4 million. Uh,

(20:29):
in terms of interest rates,national Association sees a
6.4% average. When you look at2025 overall and then going
down to 6.1 by the, for 2026,Fannie Mae is a little less
optimistic. They say, Hey, wethink things are gonna drift
down from about 6.8% right now.
Remember early in the show wesaid 6.75 with a 6.78 a PR and

(20:52):
a third of year fixed ratecurrently at Acue . And they
see that going down to 6.3 bythe end of this year, pretty
much in , in line with the ,uh, realtors and then drifting
down to 6.2 by the end of 2026.
I hope they're right. .
And then in terms of homevalues, Fannie Mace's a 3.5%
value increase in 2025, andthen another only a 1.7

(21:13):
increase for 2026 NAR. Theyhave a little different
measurement. The median salesprice, they think it's gonna go
up 3% this year. So pretty muchin line with Fannie Mae's home
price index prediction, butthen the realtors think it's
gonna go up another 4% in 2026.
Any comments on that? Except itkind of doesn't matter,

Speaker 3 (21:31):
You know.

Speaker 1 (21:32):
Interesting. At least it's not going up
in terms of rates .

Speaker 3 (21:36):
You shine that turd, Mr. Wicker. Yeah. Uh, as I note
to my clients, like as ratescome down, what do you, what
dynamic do you think that willbring to the market that you
are looking at ? If it getscheaper to borrow money, do you
think it's gonna get morecompetitive or less

(21:57):
competitive?

Speaker 1 (21:59):
Well, I would say the answer that the realtors ,
uh, uh, chief Economist putothers , it would take a more
substantial decrease in ratesto, to get more existing
homeowners to list their homeper sale. The lock in effect as
it's called,

Speaker 3 (22:14):
We Yes. But even then you're, you're saying it
would need to be a one for one, uh, uh, uh, buyer back in the
market to seller get ready to ,um, list rather when they ,
when they weren't going tobefore. You know, I know this
sounds , uh, uh, contrarian,but if you're a buyer and you

(22:37):
want less competition for thebest houses, you want rates to
be a little ugly to keep Yeah .
Maybe Yeah . Other homeshoppers

Speaker 1 (22:44):
Less competition.
Yeah,

Speaker 3 (22:45):
Well, exactly. Uh, because if rates, and as you
noted, God willing, if interestrates moderate a little bit,
you, you'll just have, insteadof having seven other people
walking through that openhouse, you'll have nine people
walking through the open house

Speaker 1 (23:01):
Probably. Yeah. And you know how many more people
will listen. That's all wedon't

Speaker 3 (23:06):
Know . Well , dad, the other thing too , uh, for
our client whose story we weresharing earlier in the show,
okay, yeah. You're paying 6%above what the ultimate , uh,
appraised value was, which youcould just call, oh, that's the
2026 price for the home inWisconsin because refinancing
is cheap.

Speaker 1 (23:27):
Yep .

Speaker 3 (23:28):
You can , uh, buy the house today and then, you
know, what if Fannie Mae andthe National Association of
Realtors is right and rates domoderate, let's just get you
that lower interest rate whenit arrives. You're not stuck
necessarily. Yeah . No

Speaker 1 (23:45):
Refinancing the house is never, never
guaranteed. It's neverguaranteed guaranteed, never
guaranteed. But you know, aslong as you have this similar
income and keep your goodcredit and that kind of stuff.
Right.

Speaker 3 (23:53):
But that's, but that's the ,

Speaker 1 (23:55):
It's to be inexpensive.

Speaker 3 (23:56):
Well, versus as we note, oftentimes with Florida
clients, like it's a differentanalysis. Um, even I have a
client, and I don't think we'llhave time for this story, but I
have a client buying a home inChicago proper. Yeah . Oh, well
guess what title costs for ,uh, Illinois purchase higher ,
uh, city of Chicago transfertax on a purchase Higher .

(24:18):
Well, but the refinance costIllinois is pretty cheap.
Lower,

Speaker 1 (24:22):
Substantially lower.
Yeah,

Speaker 3 (24:24):
Exactly. And so a good mortgage practitioner will
advise you that is, you know,get into the house now. 'cause
I think too often peopleapproach a home like it's an
investment and really it's conconsumption and you get to
enjoy living in the house. Andthen if the Fannie Mae is right
and rates moderate, we can grabthat for you.

Speaker 1 (24:46):
And as we always do, with the retired pasture that
we're helping by the for saleby Owner Town Home , I showed
him , uh, a 6.625 rate withhigher closing costs , a 6.75
in the middle and a 6.875 withlower closing costs . And of
course, at first they wereattracted to the 6.625, the
lower rate. Yeah. And then Ipointed out it's gonna take you

(25:07):
five years of lower monthlypayments. Right . Just to get
to break even . Exactly. Andthey went, oh, okay. And so we
ended up going with the middleroad 'cause we don't know what
rates are gonna do. So we wentwith the 6.75 in the middle of
the road. All right . When wecome back, David's got a story
to share. You are listening tothe Acade Mortgage and Realty
Show on AM six 20 WTMJ.

Speaker 2 (25:27):
Important home buying questions and answers
you can count on. This is theAcuate Mortgage and Realty Show
with Brian Wicker on WTMJ.

Speaker 3 (25:38):
Welcome back to the Accu Net Mortgage and Realty
Show. I'm David, that's Brianover there. Uh , dad , uh, in
working with our clients, Ilike to note that, you know,
just closing on the home is notthe end of the story. You
continue to live in the homeand as opportunity presents
itself to refinance, we talkabout that. And I connected

(26:01):
with a client who had closed ontheir home a year ago , uh, and
to do an annual review becausetime goes by and let's check in
and see what's what they'vehad. You'll appreciate this.
They've had a lot of homeappreciation in the last year.
Yeah . 'cause they bought in amunicipality. There are not

(26:21):
enough homes for all the peoplewho wanna live in this Ozaki
County , um, municipality. Andthey've, so they've got, you
know, even more equity thanwhen they started. They did a
3% down payment when theybought. They're probably
looking at closer to 10%equity. Now, given that
appreciation and paying downthe loan a little bit,

Speaker 1 (26:41):
What does that mean in terms of, of a refinance
opportunity going from 3%equity, David to 10?

Speaker 3 (26:46):
Well, so the rate , uh, right now they are not in
the money for a refinance giventhe rate that they have. Okay .
But it's funny you should saythat. I noted to them that the
benefit of refinancing might beputting two improvements
together into one bigimprovement, which is can we

(27:08):
lower your interest rate, youknow, straight up on the
refinance And , uh, can welower the cost of the monthly
PMI? Because monthly PMI getscheaper the more equity you
have. And let's say that in inwords or in uh, numbers, if you

(27:28):
only have 3% equity in yourhome, the monthly PMI is the
most expensive. Yep . If youhave 19% equity, gosh darn it ,
we're not quite there at 20%,but at the 19% equity, that is
the cheapest that the monthlyPMI could be, the, the interim
refinance opportunity might be,ah , you know what, we're not

(27:51):
quite all the way there to 20%equity, but can we pair a rate
savings plus a monthly PMIsavings into something? The
number that I gave them, it's,we could save you $2,000 a year
if we pair. Oh my goodness .
Both of those improvementstogether. Oh , not yet, but
that , that's their strikepoint as a family when , uh, we

(28:12):
get to a rate that makes sense.

Speaker 1 (28:14):
Okay. That's interesting. And then, and then
you can also do with that, didyou already talk about the
stealth cash out refinanceopportunity with them?

Speaker 3 (28:24):
Uh, we hadn't yet.
But funny you should note that,because with their , um, they
bought in spring of last year,and guess what? The property
tax man cometh and said, knock,knock, knock your property
taxes are gonna go up a littlebit. Yeah. And so because they
have an escrow account, thatmonthly payment gets adjusted

(28:45):
here in the spring to make surethat they've got enough money
being salted away. So that comeChristmas here of 2025, they've
got the money sufficient forthe now increased property tax
bill. And I'm always mindfulfor clients that nobody enjoys
it when their mortgage paymentgoes up. And as I point out to
clients, the principle andinterest ain't changing. That

(29:08):
is the same. But if the priceof poker for your property
taxes living in your town goesup, then yes, the monthly
payment needs to adjust toreflect setting aside enough
money so that you're on trackto pay that.

Speaker 1 (29:23):
And then what mortgage servicers do is they
offer you options as ahomeowner. They say, Hey, would
you like to make up thatdeficit in a lump sum all at
once or would you like to kindof just have it reflected in an
increased , uh, monthly paymentthat'll get us caught up.

Speaker 3 (29:37):
But here's the other , uh, real life element that I
think you'll appreciate. Myclient works for the Department
of Veterans Affairs. Oh my .
And currently is waiting andexperiencing the heartburn of
like, well, am I going to be ,uh, he , they live in
Milwaukee, he's workingvirtually. Is he about to be ,

(30:01):
um, instructed that he needs toshow up to an office in Chicago
or DC you know, five days aweek? Oh my. And so that's the
thing. That's the real lifeelement that's on their mind.
Yes, of course they would liketo save money on their
mortgage, maybe reduce oreliminate their monthly PMI,
but for them they're navigatingthis , uh, job uncertainty.

(30:24):
Yeah. Uncertainty. And what Iwas glad to be able to share
with them was if he wasinstructed, you gotta show up
to an office, they've had somenice home appreciation that
they could get out fromunderneath this home, probably
walk away with some proceeds.
And that that does not need tobe a stress point if they

(30:46):
decide to follow the job, if itgoes elsewhere in the country.
Mm-hmm . Okay .
That was the kind of real lifenews that I was glad to be able
to share with them, catching upwith them. So , uh, when we
come back, I want to tell oneother story about a move up
buyer and kind of the fun , um,tall ceiling that we were able
to put together on. You can buyas much house as you dare.

(31:08):
Let's tell that story afterthis break. You listening to
the Acuate Mortgage and RealtyShow on AM six 20 WTMJ.

Speaker 2 (31:16):
Find a place to call home without the headache. This
is the Acuate Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 3 (31:25):
Welcome back to this last segment of the Acuate
Mortgage and Realty Show. Uh ,dad, I connected with a repeat
client of mine who I had helpedbuy her home in 2017, which Oh
wow . Feels like I just said Ihelped her buy the house in
1887. It feels long ago . Yeah. That seems like forever ago.
Yeah. She is the daughter of a, um, many time client. And as

(31:48):
I always note, if I start doingthe loans of my client's
children, I will have a , Iwill have achieved Brian's
status. There you go . And theywill melt my mind. Yeah . When
the time comes. So, 'cause inthe , uh, interim years she got
married. Okay . And the homethat they're living in, Taylor

(32:09):
is old as time that they wouldlike more house and they are
ready to trade in their , theirmortgage. They got a 4%
mortgage Oh boy. And like an$1,100 monthly payment, but as
is always the case, you'd likea little bit more house. Yeah .
And you , or maybe a lot morehouse or a lot more house. So

(32:30):
as we do, we gather all of thefacts , uh, I gather her
husband's information and theirincome information, you know,
it's been a while . Where areyou working? Talk me through
your income, because they ownthis home right now. So the
number one thing, and they'vegot a ton of equity

Speaker 1 (32:49):
Of course. Yeah.
That's a lot of appreciation.
They probably more than doubledtheir home value, you think.
Yes.

Speaker 3 (32:55):
Uh, close. But , uh, what they want to confirm is,
can I buy my new homeuncorrelated to selling my old
house? Yeah . And the answer

Speaker 1 (33:06):
Yep ,

Speaker 3 (33:06):
Go ahead. The the answer was quickly. Absolutely.
Not only can you buy your nexthouse untethered to what
happens in the timeline withthe old house, if you really
wanted to, you could buy a newhome up to $1 million. Whoa.
Because their income and theavailable liquid funds that

(33:28):
they have right now , uh,calculates out that you can
have that much house if you sochoose. Wanna guess the Well
, do they want a

Speaker 1 (33:38):
Mortgage payment that large

Speaker 3 (33:39):
This , they, they don't. But I think a good
mortgage lender de declares, asI note, I'm not gonna run out
of electrons so I can generatemore than one preapproval
letter for you. Sure. So here,let's, let's say if you wanna
be house poor , you can buy amillion dollar home, take that

(34:02):
PDF Oh. But you then anyindividual client or married
couple can then decide well ,but what's most comfortable?
And they're , they're probablygonna be in the more like 600,
700 range.

Speaker 1 (34:16):
Oh , that's still a lot of house in southeastern
Wisconsin. They're looking tobuy

Speaker 3 (34:19):
It is a lot of house. But I, if they wanted to
as I homes and their pricesdon't make them equal. A
$600,000 ugly house can be moreexpensive than a $700,000
nicely redone home. Sure.
'cause it's not just about thecost to acquire the home. It

(34:41):
might also be, and how muchwill I have to spend to make
this home as nice as I want itto be.

Speaker 1 (34:48):
And to your point, you remember in earlier in the
show, we were talking about myretired pastors buying the town
home Yes . That they wererenting. Wouldn't, you know,
there was a competing unit.
There was a unit exactly liketheirs for sale for less money.
So they did go to see it withtheir agent, but it wasn't
nearly as nicely redone. Yes.
And let's say the difference inprice was 30 grand. Right. And

(35:11):
it's like, yes , you wouldspend all of that and more.

Speaker 3 (35:15):
Well, and that's

Speaker 1 (35:16):
The analysis and , and that's a perfect analysis.
'cause it's literally the sameunit, the same floor plan.
'cause it's a town home . It's

Speaker 3 (35:22):
Not just the purchase price, it's also, and
what might you have to outlayin order to make it what you
want? So for my client, amillion dollars is a
preposterous number, but Ithink it gives them the
flexibility to look at thehome, not the new next home.
Not just through the lens ofwhat will it cost to get to the
closing table, but you know,you're almost doing a backdoor

(35:47):
financing of someone else'sremodel. If you can buy a ,
that's exactly what you'redoing. If you can buy a home
that's nicely redone ratherthan the cost of cash, if
you're buying a home where youneed to take it from ugly
duckling too . Is that a swan?
Is that the metaphor?

Speaker 1 (36:03):
Oh , that is, yes.
Yes . A beautiful swan. Alright, well that's all the time we
have for today's show, folks.
We love it . We do At AcuateMortgage, all of our loan
consultants are passionateprofessionals and we'd love to
help you or your loved ones.