The Accunet Mortgage and Realty Show
The Accunet Mortgage and Realty Show
The Accunet Mortgage & Realty Show 4-7-24
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: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 Wicker.
Speaker 1:Welcome to the Accu Mortgage and Realty Show. I'm Brian Wicker, licensed real estate broker with Kint Realty Advisors and the majority owner of Kint Mortgage. Along with my son David, who is one of our senior loan consultants and our Chief Client Experience Officer and also one of our owners. My individual NMLS ID number is 2 5 9 6 10. And David's NMLS ID number is
Speaker 2:3 2 8 3 2 8 8 4 7 .
Speaker 1:You can say it so much better than I can. If you've got a question or a comment, you can call or text us on the WTMJ talk and text line , which is 8 5 5 6 1 6 1 6 20. You can also get a podcast, today's show and any of our past shows wherever you get your podcast. So kind of a big week. Last week, David, we were waiting on pins and needles for the monthly jobs report, which tells us how many new jobs were created and how many people were looking for work in March. And it turned out that way more , uh, new jobs were created, 303,000 compared to an expectation of just 200,000 mm-Hmm <affirmative> . And by the way, that number comes from a survey of , um, companies and payroll companies, you know, like Paychex and a DP . And , um, the other thing to note about that is February's number was revised downward, just slightly to 270,000. The final version of January's job creation number came in at 2 56. And so you add it all up and the world's largest economy created a whopping 829,000 new jobs in the first three months of the year. That's an average of 276,000. And so we always like to say that good news and economy is generally bad for interest rates. Um, before we get to that punchline, lemme give you a couple of other numbers. Uh, average hourly earnings, which would be inflationary. Remember, inflation is the enemy of long-term interest rates like the 30 year fixed rate. This is for all employees of non-farm. Uh , private payrolls increased a whole 12 cents an hour. That's 0.3% from February. The average hourly wage in America, $34 and 69 cents an hour. And that's 4.1% higher than a year ago. Luckily, that was in line with expectations. And then the average hourly work week was 34.4. That's up slightly if you put a pencil to that and calculate what does the average worker in America earn According to that survey, the answer is just to hear over $62,000. What happened to the unemployment rate? David ,
Speaker 3:Uh, unemployment rate ticked down a little bit , uh, came in expectation was 3.9, came in at 3.8. You know, it , it's a good looking number, but I think the focus is mostly on the raw
Speaker 1:Job
Speaker 3:Creation. Big number . Exactly. Yeah .
Speaker 1:And the other thing I dug into that just a little bit, just a statistical oddity, there was actually almost exactly the same number of people looking for work in America. 6.4 million people. It was actually only 29,000 fewer in March compared to February. But because the population, the working population grew because of all those jobs, the percentage went down, even though the actual raw number of people looking was almost exactly the same in March, as in February. I always like to say we should be counting how many people are working. So if you wanna do that, the actual number's, 161.466 million Americans go to work every day, age 16 or more. And , um, and the labor participation rate actually went up in March to , uh, 62.7. That was up two tenths of 1%. I was watching the CNBC coverage live when this , these numbers came out. And the chief economist , uh, Steve Leeman , said that if the labor participation rate is increasing, which it did, then adding those 303,000 jobs is not as inflationary as it might seem. Does that make sense to you?
Speaker 3:I saw the same thing live. Well, yeah, he's saying it would. What's inflationary? Let's maybe say it in the opposite way. If there were decreasing , uh, population, okay, decreasing population, but then more people were going to work, employers would have to offer higher wages to a smaller pool to get those people to say yes to them. When you have to pay more to a smaller pool of people, that can be inflationary driving up prices. Alright,
Speaker 1:Thanks for explaining that. Oh , so the big question David, is what did this pretty darn good? You know, way better than expected jobs report due to mortgage rates.
Speaker 3:Mortgage rates mostly shrugged. Um, you know, down a , a little bit, but I think it seems to be that bond markets aren't hoping for relief, that they're expecting strong jobs. Numbers like this, the market is expecting, you know, okay, readings on inflation, which is coming this, this upcoming , uh, week is the next consumer price index reading. And so rates and bond markets at large aren't getting ahead of themselves. They've gotten ahead of themselves a couple times. You know, the best example is in October, you know, everyone was like, my God, the fed's gonna cut rates a thousand times in 2024. Uh, and the markets got ahead of themselves. And then so far here in 2024, everyone's taken a breath and gotten back to off the hope and back to the reality. So rates kind of didn't budge on these numbers.
Speaker 1:Alright, when we come back, let's kind of tell you where rates finished the week . And then David, you said you had a good story about helping somebody with variable income , uh, pitch their story to the mortgage world in a more positive fashion so they could buy a nicer home. Hey, thanks for uh , tuning in today and we'll be right back. You are listening to the Acade Mortgage and Realty Show on AM six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the ACU Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back and thanks again for tuning in today. Uh , before David, you get to your story about , um, how you're helping somebody , uh, put their best foot forward from an income standpoint , uh, just to say where rates have finished the week , uh, the third year fixed rate. And I'm gonna tell you in another segment here coming up that the median sales price in the five county Milwaukee area was $310,000 in March. And so if you were putting 25% down and you had seven 80 credit or better in all the other right stuff, you could snag a 6.99 rate , um, as of Friday. And that's on a 45 day or rate lock . And , uh, let's see, your total loan cost would be $1,996 to get that. Um, not bad. The a PR is 7.03, so that's, like you said, not much different than it was a week earlier. But , um, what's the lowest rate you're quoting for people to chew on these days? Are you going down as far as six and a quarter
Speaker 3:Or? I, I am. Well 'cause as we always do here is the whole pantheon of choices, right? It's like if you want to pay points, if you want to invest to get the lower rate, we can show you what that looks like, but then we're gonna talk about it, right? We're gonna, hey, let's compare if you spend the money on to get the low rate, let's compare it to if you don't, you know, which is sometimes I turn , you know, if a client asks, Hey, you know , what's your rate? I , my response is, well, how much do you wanna spend on the rate? Right ? Because it's
Speaker 1:Like , what , no, I , I don't wanna spend anything on the rate
Speaker 3:That , or maybe we do that . That's an , that's an acceptable answer, right? But it's just, if you want to spend nothing that is going to be a higher rate.
Speaker 1:And just to say it loud , the , um, if you wanted to pay instead of that 1996 that I just said, to get the 6, 9 9 rate, if you wanted to up that and to get the lowest rate, which would be 6.375, that sounds so much better. You'd have to fork over an extra $4,564 at the closing table. And my little example here where you're borrowing 232,500 bucks, that would lower your payment by 95 bucks a month and it would only take you four years. And I'm doing the only in air quotes to make back that upfront . Can
Speaker 3:Can 4,005
Speaker 1:$64 investment
Speaker 3:Go . My my punchline on on that example, I try to frame it if people have kids or if, you know, just to put it in the context of time, four years, you said, okay, that means that not one day before Memorial Day weekend of 2028, then and only then could you call me and be like, David, Brian , it's your customer. I finally broke Happy Memorial Day 2028, I finally broke even and I am now saving 90 some bucks a month,
Speaker 1:95 bucks a month. Well, and yeah , so I'm gonna say the mirror of that, paying those points to get the 6 3 7 5 rate means that you don't think rates are gonna come down to 6.375 anytime in the next four years. Exactly. Wow . So that's another way to say it. Now that said, you know, in the big jumbo loan we've been talking about on the show or what was our loan about 1.525 million in Florida. I did tell 'em to pay points , uh, because the cost of refinancing in Florida is so high, they have a mortgage tax 'cause they don't have a state income tax and title insurance is really ungodly expensive. So it also depends on where you live. Because in Wisconsin and Illinois, for example, refinancing is cheap.
Speaker 3:Yeah.
Speaker 1:Alright . So there you go. We can't , we can't preach that sermon enough, but we'll do whatever you want. You wanna pay the points. We're happy to do that. Well
Speaker 3:'cause right, you just ultimately you're, you are our client. You have to be able to sleep at night. That's , we at least want to tell you what the mattress is gonna feel like. But you are the one who has to sleep at night.
Speaker 1:Oh wow. Getting into the bed story. All right . Alright . So hey, set , set up this , uh, this story you're gonna tell us. We're gonna set it up and then we'll come back and tell the rest of the story after this next break. But what's the setup ? So ,
Speaker 3:So referral from a great realtor and they are, they currently own a home , uh, that is up for sale, likely , uh, I'll have to check in. But they have every expectation that they'll be getting an accepted offer on the sale of their current home. 'cause guess what? They need more space. Not, not, oh man. I mean like, yes, we've bemoaned. I was like, yep , you're gonna have to give up your 3% rate, but you know, your kids are getting bigger and you need more space. So there it goes. And so they're gonna have a nice amount of proceeds from the sale of their home, a nice rise in the value of their property since they purchased it. My client has some consistent variable income as well that we're gonna use or that we would want to use for qualifying. And the story for variable income, which can include overtime. Commission bonus, is that the mortgage world doesn't want to qualify you based on your best month nor on your worst month. And so we try to come up with some kind of average, like in the average month, what could mortgage underwriting expect for this part of your income in addition to your base salary? So let me, after this next break, I want to tell you how narrating that story about the income can have a huge impact on the budget for these clients. More on that after this break, you are listening to the Accu Mortgage and Realty Show on AM six 20 to be TMJ getting you into the home
Speaker 2:Of your dreams. Here's more of the ACU Net Mortgage and Realty Show with Brian Wicker on wg mj,
Speaker 1:Thanks for tuning into today's show. I'm Brian Wicker, the elder. That's David Wicker, the younger, taller, more handsome of the Wickeds. And um , David , we've been talking about variable income a lot on the show the last several weeks. And, and it's kinda like the hottest topic in mortgage underwriting right now. And the reason is because Fannie Mae and Freddie Mac are making lenders buy back loans 'cause they're like, sure you were too
Speaker 3:Aggressive from previous years. Yeah, yeah,
Speaker 1:Yeah. From previous years you were too aggressive in how you calculated this person's income. So when it comes to variable income, which includes overtime, commission bonus , um, it's gotten, you know, more sticky I guess. And what we can do as mortgage practitioners is help craft the story. We wanna, we're like attorneys. We want to represent our client and put the best foot forward and give the underwriting people which are still humans, a, a case, a story to follow to say, yeah, I agree with that. How did you do that for these clients?
Speaker 3:So the good news is my client has a two plus year history of variable income. So kind
Speaker 1:Of required, right?
Speaker 3:Kind of required it is, it is the strongest footing to have for variable income. He started in 2022 and then man got better got, you know, more income in 2023 increase . And , and gosh darn it, if he's not gonna make even more money in 2024, the issue that, hey, it's April right? And his year to date income was under what the average would have been of his previous two years.
Speaker 1:Well why is that David? Is there an explanation that we could
Speaker 3:Offer? There is an explanation. His job is particularly seasonal. Oh. Or at least the sails are seasonal. Quieter in winter. Higher in the summertime. So is
Speaker 1:He a loan officer?
Speaker 3:Right? Exactly. <laugh>. So, alright , go on . And, and so with this explanation, as soon as he kind of cracked that open , I was like, okay, well we have to narrate the seasonality of your job, right? If we narrate nothing, then we're just praying that the underwriter hopefully sees the world. The we, the way that we didn't explain it,
Speaker 1:There's no way that would look like declining variable income, which is kind of a kiss of death.
Speaker 3:And so this is why having excellent mortgage practitioners matter. If we narrated nothing, I would, I forecasted that their maximum budget for a new house would be 250,000. But if we narrate everything and do it all and
Speaker 1:Verify
Speaker 3:Document, of course , and I I wanna tell you how we're gonna verify, wow . It, it could, that narration could increase their purchase price up to $400,000.
Speaker 1:That's a big difference in the neighborhood or quality or size of the house you can buy, it's
Speaker 3:A huge d and they have a great agent, but nobody wakes up in the morning and is like, you know, what if I pick the wrong mortgage lender that could swing how much house we get qualified for? Mm-Hmm . <affirmative> by $150,000.
Speaker 1:Yeah, that's, yeah . Yeah . People, yeah, go
Speaker 3:Ahead. So, so here's the torturous thing that I asked my client to do. I asked him to upload every pay stub he got in 22 and 23 and so far in 2024. There you go. I haven't cracked, I haven't cracked it open yet. I , it might be a hundred PDFs because , well , it would
Speaker 1:Be 20 every two weeks. 20,
Speaker 3:He might get paid weekly 52 actually <laugh> . Oh my god. But, but this is it. It's, we, we have to show the seasonality, right? If it looks like waves, you know, first year, oh, little waves. Second year, bigger wave, third year we're trying to show the seasonality, looking backwards. Yeah. But then, okay, well how do we prove, narrate the future? Right ? Well , I was like, can you please send me, who is your manager? I , yeah . Can they craft like absolutely. Bob's had two great years and man his 2024, you know, look at all the opportunity that we have. Look , you know, he's already on a trajectory to do even better than the previous years . So it's documenting the past of the seasonality, documenting from not just the borrower but their manager, you know? Yep . Look, he's gonna continue to do well. That we believe that that narration and underwriter's gonna be like, okay, that makes sense.
Speaker 1:Yeah. Yeah. We can't just leave it blank. Otherwise it comes back usually with a negative , uh, <laugh> answer. We gotta paint the picture. Exactly. So we're not just numbers people, we're storytellers. Right?
Speaker 3:Well 'cause we, we have to be, you know, it's, the other thing interesting thing too is they've got , um, this home that they're selling, you know, that's gonna be , uh, another key factor, you know, in terms of proceeds, right? It's, it's it, so it's two variables. How much home can, or how much mortgage can we get you approved for? And then, well , how much do you actually walk away with by the time you have, you know, pushed away from the closing table with your proceeds? And
Speaker 1:They're gonna need those proceeds to buy
Speaker 3:It will get them to that next level as well.
Speaker 1:Okay. Alright. Well, speaking of buying and selling homes , uh, after the news I've got , uh, the MLS data for March Home sales in the five county metro area. Some surprises there. Um, so stay tuned for that. Right now it's time to turn it over to the WTMJ Breaking News Center.
Speaker 2:Don't break the fact to get into a house. Back to the Accu Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back. And again, thanks for tuning into today's show. So , uh, David March. Home sales , uh, I did the number crunching here for , uh, March. Single family detached and condo sales in the five county metropolitan area. And this data comes to us from the metropolitan MLS of which I'm a member via accu net Realty Advisors. Well, it was darn near a repeat of a year ago. Seven fewer condos in single family detached homes sold this march compared to , uh, last March. So the total number was 1,205. Now the good news is we had more listings than sales. So 1,559 new properties were listed by realtors for sale on the MLS. Um , but that number is down 124 or seven point a half percent compared to March of 2023. Median sales. Priceless . Last March, as I mentioned earlier in the show, is up to $321,000. If we compare this march though to March of 2019, the most recent , um, pre pandemic march that we have on the books, single family home and condo sales in the five county area, were down only 17%. That ain't bad. Um , 2, 241 fewer closed sales compared to March of 2019. Listings, however, are down 35% from March of 2019. That's a gap or a shortage of 825 fewer homes from which to choose. Uh , do you wanna guess how much the median home sales price is up since 2019 in dollars? I just told you it was 3 21.
Speaker 3:Uh , $90,000
Speaker 1:108. Good. Guesser, you can get that second job at the circus. Sure. Uh , guessing people's weight and age. Um , and , but you know, here's the other Stu 30 year fixed rate in March of 2019. You want hazard a guess how good your memory?
Speaker 3:Mm , four and a half .
Speaker 1:Good guess it was kind of between four and a half and four and a quarter. Kind of trending a little down at that time. Yeah , I think it was maybe four by the end of the month, but started at a 4.4. So yeah, four and a quarter. You know what , maybe on the next break I'll, I'll do the calculation of what did it cost to buy the median sales price home in 2019 versus today, just so everybody can be a little more , uh, impressed at how much the cost of home ownership has gone up. So , um, well ,
Speaker 3:But wait, wait , wait , wait , wait. But the other side of that equation, because we had the jobs report on Friday, I don't think it , it's not like wages haven't kept up. Some, not all, but you're probably earning more in 2024 than in 2019 as
Speaker 1:Well. You know what, we could go back, I don't know if we have time to do this on a break, but we could go back and see what the average hourly , um, wage was in March of 2019 and then do the average work week . Just kind of , 'cause remember I just said in the earlier segment it pencils out to about an income of 62,000 , uh, per year , uh, based on today's numbers. So what are you seeing in the , in the real world in terms of supply and demand?
Speaker 3:Buyers are over it in terms of, you know, rates. Rates have never been the reason. Uh, and it's just a matter , I said to an agent on , uh, Thursday, I said, rates can stay higher longer than you can stay stubborn. Ooh ,
Speaker 1:That's a nice little saying
Speaker 3:Because if
Speaker 1:Sitting there waiting for rates to come down, yeah , you are probably gonna have to wait longer than you think.
Speaker 3:And in which case, you know, as we say all the time, part of the beauty of a fixed rate mortgage is you arrest the cost, you freeze it in time like Han Solo Mm-Hmm . <affirmative> is captured. And then you're probably gonna figure out how to make more money next year and the year after that and the year after that, making the cost of your house less and less. And so the , as has been the case for some time now, it's supply and demand as, as you noted on listings. I mean, I have clients who are winning. I think it's really hard where it's the bloodiest. Oh, is it the first weekend of a $400,000, you know, salt and is it called a salt and pepper salt
Speaker 1:Box ?
Speaker 3:No , salt box . Salt box salt and pepper box salt and salt pepper box. A salt box house in tosa . It's like, yeah, that's gonna be brutal if you're looking in that super submarket. Oh, but it , you know, is it the third weekend of a kind of more aged ranch that needs a little love, a little less competition?
Speaker 1:Yeah. Well and you know, I am , I'm uh , just deliver the commitment letter for a first time 25-year-old first time home buyer couple and they won on their first attempt. Sure . I helped connect them with a good buyer's agent in the submarket in which they were working. And they wrote 15,000 over the asking price with ,
Speaker 3:They wrote, they wrote what the house was worth
Speaker 1:To them. Well, and, and I mean they were quick learners and, and they put in an appraisal wiggle room. Yeah . Uh , provision. Um , and we documented that they had more money to put down than what they actually ended up doing. So we were able to write it with 20% down. We used, you know, a lot of the tools in our toolkit and they came out on top. They did get a , um, they had to do a couple repairs they found on inspection, but the sellers agreed to do 'em. And so we delivered the commitment letter a little early. Alright. When we come back, do you have another story in your hip pocket? I have another story if you don't . I do. I do. Alright . We got more stories coming up right after this break. You're listening to the Accident Mortgage and Realty Show on Wisconsin's radio station AM six 20 WTMJ.
Speaker 2:Important home buying questions and answers you can count on. This is the Acura Mortgage and Realty Show with Brian Wicker on WTMJ. Thanks
Speaker 1:For tuning into today's show. So , uh, David, you've got a less is more story <laugh> . Tell us about that.
Speaker 3:So , uh, in the same theme from before, hey, if IC call the wrong lender, you know when we were talking about just an
Speaker 1:Average income , if you call an income average? Yeah . Yeah . An average. If you call an average lender, just, Hey , you know what , you know what I'm gonna do ? I'm gonna go with my bank. Why? Because I don't know . Because I should, I'm just gonna lazily and crazily, I gotta get an ad back out there with that. If you just lazily and crazily go with your bank, not only might you not get the maximum amount of home purchasing power, but you could end up paying more. So how , how did you , um, handle these folks? So ,
Speaker 3:So this young couple, another referral from a smart agent, they both go good jobs qualify all day. I'm not worried about the debt to income ratio. They are putting 3% down, which as a first time home buyer, God bless 'em , you can do that. The pro the differentiation. One of the clients has a seven 80 credit score and the other client has a six 80 credit score. Ooh . And from somebody's
Speaker 1:Got bragging rates
Speaker 3:From on high on the mountain. Fannie Mae and Freddie Mac have said, Hmm . Are there two people on a mortgage? We use the lower of the two middle scores to qualify. Yep . And so if both of these borrowers remained on the borrowed money, I would have to use their six 80 credit score to putting
Speaker 1:Together on the
Speaker 3:Application On the application , uh, to put together interest rate and PMI numbers.
Speaker 1:Oh yeah, that's right. So it's not just the interest rate and the closing costs that get pushed around by uh , a person's credit score. It's also the cost of the monthly private mortgage insurance when you put less than 20% down because the lower credit score to the PMI company represents, oh , these people aren't as credit worthy. I have to charge more. Uh , yeah . Because the, the risk of uh, foreclosure is higher. Alright , go on.
Speaker 3:So, and the other artistry about putting together these numbers, if I have, 'cause first instinct is I have two people on an application. Well, can I zero out one of their incomes? Mm-Hmm . <affirmative> so that we can fit within a box for better rate and pricing options. A lot of those, we have our favorite one through the state of Wisconsin. We have another one through Fannie Mae, Freddie Mac, home Ready . We've got a lot of those where it's like, can we get inside this income box?
Speaker 1:That's right. So you , you can't, you have to make under a certain dollar amount, which for the program I think you're talking about is uh , what, 80,000?
Speaker 3:About 80,000.
Speaker 1:A little over 80 here . Over 80,000 If we can get your qualifying income and under that tool we can leave people off Yes . The application. But that doesn't work for our best first time home buyer money, which requires us to list everybody's income that's gonna live in the house, even if they're not on the loan. Alright , so so you , you're being so I
Speaker 3:Couldn't do that. I I couldn't do that because if I zeroed out one of their incomes, that person still had debts and the one income could not carry two persons worth of debts. Yep . So my plan is we are going to proceed with an application only in the name, name of the person with the excellent credit, which debt drives their debt to income ratio up to like 47%.
Speaker 1:Ooh . So it looks bad on that measurement, but,
Speaker 3:But, but it will save them. Here's the punchline. They will get a half percent better in rate and they will save $200 a month by having lower PMI and the lower rate.
Speaker 1:That's real money. So sometimes less is more in , in the mortgage business. Yeah. Hey , do you a question on that. Do you have any um, down payment, extra down payment money maybe in the form of a gift? Or do they have some retirement savings that we could document to say that they could put more than 3% down? 'cause I think that's a weakness.
Speaker 3:They already
Speaker 1:A small down payment. They
Speaker 3:Already , they already have an accepted offer.
Speaker 1:Well , there you go. So apparently the 3% down didn't bother.
Speaker 3:Well, but this is a , this is actually an example , uh, from our previous segment. They are buying a home that never went public. They're , oh , how is that? You know , I think through their agent or , uh, conversation among their agent's network, I think the seller might be elderly, the seller and maybe just didn't want the hullabaloo of Mm-Hmm . <affirmative> , uh, many offers and whatnot and just would prefer to quietly figure out how to get their home sold. And so for this
Speaker 1:Nice young couple
Speaker 3:Yeah. This and, and, and, and so this young couple smartly or or prudently went fishing somewhere else where , where other people aren't fishing . Right . And it made for, they only wrote one offer one time and they are thrilled.
Speaker 1:Hey , uh, can they David, I know the answer to this question, but I'll pose it in the answer in the form of a question. Can they both still be on the title to the home? Yes . Even if only one of 'em is on the note.
Speaker 3:Yes, they can, they can both be owners of the home. Uh , but only one of them to get that best pricing. We'll be on the borrowed money.
Speaker 1:Alright , when we come back, I got a couple other stories. Maybe you got another one David. And so stay tuned. We'll be right back. You are listening to the Ette Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 2:Find a place to call home without the headache. This is the Anette Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back. I'm Brian Wicker, the , uh, elder, the old guy and that's David Wicker there, the young guy , uh, my son and and , uh, chief Client Experience Officer at Academic Mortgage. Uh , David, we're in , within a week here. I think it's on Wednesday that we're gonna close. Uh, one of my favorite customers who I believe is the only client in ACU Net's history, 25 year history, who has obtained a loan in every one of the four states in which we are licensed, which is Wisconsin, where he got his first loan , uh, then he moved out to California. I couldn't help him there. But when they moved back to Chicago area, the loan for 'em there, then they sold that house and moved to Minnesota to be closer to their grandchildren and uh, did a loan for up in Minnesota. And then even though they have that , uh, three and a half percent or three a quarter mortgage, they sold that house this last December. 'cause they wanna spend more time in the sunshine now that they're over 70. And so we're helping 'em buy a home in the villages, which is near Orlando and is the, I think single largest over 55 community, if not in the world for sure. The United States. I think they have 150,000 people. Uh , he just told me on the Monday after Easter on April 1st, 10,000 people leave the villages to go back up north. That that must look like a monarch butterfly <laugh>. 'cause they're a seasonal
Speaker 3:Now migration.
Speaker 1:Anyway, so he's also a , uh, a ordained minister. So like a lot of the ministers you talked about in the last couple weeks, he gets the special tax break. Sure . So that was one reason why he decided, hey, I don't care. And thank , thank goodness we snagged him a 6.625 rate. I locked him in on that one day in January, January 31st when rate dipped. Mm-Hmm . <affirmative> . And , uh, so he, he's got a nice 6.625 rate and , um, anyway, two , two other interesting things about that transaction. One is he, he's careful, he's a smart guy and he's like, you know what, I'm gonna, I haven't , I don't wire money very often, so I'm gonna like do a test wire of just like 10 grand to make sure that's
Speaker 3:Go smoothly. That's what Yeah. Do a test . Do a thousand, but yeah, sure.
Speaker 1:Before, before you wired the big 163,000 . And so he did that last week and it's not, it didn't go well. Um, as of this recording, the wire still hasn't come through and he started it on Wednesday. It's kind of caught in the fed wire system somewhere. How we know that it went out and now he's wiring from his Schwab brokerage account. Um, so maybe a little goofy there, but it hasn't been received by the title company. Yeah , yeah. Still weird. So trying to help him, you know, figure this out. And thank goodness he did that because now he might need to move the money from Schwab to Wells Fargo because in an unusual twist, this title company in the Villages will take a cashier's check that is like unheard of in Florida that a title company would take a cashier's check. So, you know, it ain't over until it's over. Alright . Until you get the money to the closing table. And uh, but the last thing I wanted to tell about that, or you got a question,
Speaker 3:I just like, kudos to your client for having the savvy to do the test. 'cause you know, if if they're closing on Wednesday, hey everybody wakes up on Tuesday morning is like, I'm gonna wire the money today. You're not thinking, well what if it doesn't get there?
Speaker 1:Yeah. Right. It's , and it is highly unusual. I mean the fed wire system is highly reliable. Yeah. So I think it'll get worked out one way or the other. But the other story he told me in the process of getting his loan to the closing table is how a couple years ago, in 2022 when he turned 70, he met with his life insurance agent and he said, okay, you got this life policy over here and now that you're done with your 20 year fixed premium period, your premiums are gonna start going up. So that $70,000 of cash value you have in your life insurance policy is gonna get gobbled up over the next five years. And then after that, you're gonna have to start writing checks of over 10 grand a year to keep this policy alive. To which, after thinking about it for a little while, he said, you know what, I'm gonna cash in that policy and I'm gonna get me and the Mrs a little red Corvette. And so chipped in a little bit more money from a cd. And for, they also, when you buy a Corvette, they're a lot more expensive now than they were then. Um , you get to go out to the , you're saying
Speaker 3:What you're , you're saying that money isn't about money? Is that what you just told me?
Speaker 1:I'm thinking it's about enjoying life. Yes . And so he gets an A plus for realizing Yeah, I , you know, my kids don't need to inherit anymore when I
Speaker 3:No,
Speaker 1:You know,
Speaker 3:They can inherit the red Corvette maybe if you still have it .
Speaker 1:Right. Right . Maybe they get the red Corvette and they also get to go to driving school , uh, out at the, for a thousand dollars instead of three grand. So he went out there to Vegas and just had a great time after he bought the car. Anyway, so way to live it up, Jim. Alright, that's all the time we have for today's show. Thanks for spending part of your Sunday with us, or if you're, download the podcast, whatever day you're listening to this, it's always a pleasure to talk with you. David, thanks for , uh, uh, being the cohost today, and we'll see you back here next week. You've been listening to the Accu Mortgage and Realty Show on Wisconsin's radio station. AM six 20 WTMJ. The proceeding was a paid program. Advice and opinions expressed during the Accu 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.