Video Closed Captioning:
good morning good afternoon good evening
folks michael’s uber one rental at a
time back with matt the mortgage guy how
are you doing buddy i’m doing good mike
how you doing i’m doing well i you know
something we haven’t done in quite a
while is just take a fictitious buyer
kind of put it in the system and look at
what conventional rates might be so why
don’t we just kind of talk about the
standard rates you know owner occupied
buyer decent credit looking to buy a
home what kind of rates this is
obviously not a quote or anything it’s
just you know
so people can understand the rain ranges
available right yeah and i’m not
offering anything but but i’m gonna give
you you know true
rates you know i actually priced like a
five percent down for somebody with a
760 credit score um and this this will
be a range so it’s not an offer to land
it’s not specific um and side note
caveat um if if you haven’t worked with
a mortgage broker in the past um there
are some cool things going on with
mortgage mortgage or margin compression
and
and you know broker price battles um
you can go to mortgage news daily and
see the average 30-year 5.95
and the broker’s item probably well i
shouldn’t say probably i am in the
mid-fives you know like no cost at five
and a half so um
i think it’s important for people to not
only know these numbers but plug these
numbers into what you’re buying to see
what that actually means because
i i can tell you mike over the last week
i’ve had too many conversations where
they go
3 400 a month
and sorry
i’m just the messenger right i i wish i
could get you three percent money but i
can’t it’s it’s five and a half and
we’ll talk in a other video about some
strategies to get it into the force but
you know 30-year fixed money without
paying you know points or fees somewhere
in the mid fives five and a half percent
okay and then if if you do 15-year which
i see very little of sure
when there’s affordability issues like
people aren’t leaning on 15s and when
the spread is smaller
the the the 15 years about four six two
five um oh i would i would have expected
more so it’s not even a full point delta
roughly not even a full point okay and
uh
you know you might find it three and a
half that you know if you shop around or
something more you can buy it into the
threes
by paying points but for the most part
yeah it’s less than one point um delta
which
you know surprises me too
um because we had a one point delta when
rates were three and a half and two and
a half on the fifteen and the thirty so
when they go up you expect it to be a
bigger difference yeah whiter white it’s
it’s really not okay there’s not an
appetite for those 15 years and then
what about arms because again arms you
know sometimes arms are the answer and
sometimes they’re not what do they look
like today right and this was a scenario
i went over with somebody yesterday
where
um they asked my team for some side by
sides and we provided them and they go
well wait it’s the same yeah
why would i do a five or seven or ten
year arm when it’s the same price as
30-year fixed money and my answer is
right just do the 30-year fixed money
and this is specific to
conforming conventional stuff yeah it’s
it’s it’s for all intents and purposes
the same price
where you see the arms being written and
in my business um where we’re writing
all the arms is in the jumbo space yeah
in the jumbo space you get
three quarters of a percent or a full
percent lower in rate riding a seven or
ten year arm
it’s a really significant savings yeah
so again conventional again conventional
being what below 600 k something like
that well 647 200 like nationwide then
you’ve got like different high deserts
high balance or whatever yeah so
conventional meaning uh gov so again if
you’re getting a five seven or ten year
arm conventional loan and it’s the same
rate as a thirty year fixed let me be
very clear
don’t do that alone right under any
circumstances don’t do that long it
would be kind of silly to have uh the
money be the same interest rate risk for
nothing right right there’s no reward
for risk yeah for people too i try to
give the advice where it’s like you want
to get into a loan even if you have a
plan to get out of it that if you stayed
in it yeah
downside protection is it isn’t going to
kill you right and so um you know that’s
that’s that’s what some of the talk is
too and i’ll speak on this real quick
when rates go lower i’ll refinance yeah
i hear that great plan but don’t depend
on it right that is the same talk track
that happened back in the day where it’s
like no matter what the terms are sign
the dotted line we’ll refinance you in
six months or a year when things get
better your job you know improves don’t
depend on that the loan you sign today
i know that data says you won’t be in it
for more than three to five years but
make sure to your point downside
protected that this is a loan that you
can sustain you’ve got job stability got
all the other stuff and um yeah you know
one thing i wanted to do real quick
because uh
we didn’t talk about it was price and
fha loan too because these
mike are coming back
oh yeah i agree i think fha and va
buyers are coming back absolutely yeah
and for a lot of buyers um you know that
they’re they’re less credit sensitive
you could have lower credit and fha is
not going to um you know ding your rate
if you’ve got a 645 credit score your
conventional mortgage insurance is going
to look a lot higher the rate’s going to
look a lot higher and fha is going to
say come on down not only um you know
are we less
you know sensitive to your credit score
but also your debt to income
we’re going to be we’re going to be able
to stretch a little bit more too so so
without paying any points you could get
like a four six on an fha deal and um so
tell me about an fhe deal that’s
different conventional is it more down
no i mean you can do three and a half
percent down um fha you know home buyers
that are that are putting lower down
payments on conventional can do three
five okay um percent down so you could
get an fha loan in the force
you can get an fha loan in the force and
you know i could
show you
you know what it would look like with
buy down but fha specifically is not a
long-term loan so i don’t recommend
buying that rate down because um over
time you’re going to gain equity
hopefully your credit score improves and
you’re going to remove that mortgage
insurance and refinance out of it so fha
you know the average length in that loan
is even shorter um right so so don’t
spend a bunch of money up front buying
it down but
in a market
where things are starting to sit for 20
days 27 days you submit an fha offer
last year
you were laughed at yeah the seller had
17 offers to choose from and they just
said listen we’ve got four or five
really good conventional deals even if
this fha deals 5 000 more let’s
yeah no you know regardless of whether
or not that was right or not that’s that
that was the the the mood of the market
so um fha is um going to make a comeback
so yeah i think i think fha and va
buyers if you’re still interested your
time is coming again you you may be the
only offer
uh you know again i’m telling everybody
don’t even bother offering on first day
listings anymore look for the older
listings don’t offer list get seller
closing costs uh get uh buy down in
rates if you can ask for the moon your
time is now
why not yeah and i don’t know if you can
do this quickly if you can great if you
can’t no worries how about an investor
loan 25 30 percent down what are rates
looking at
i’ll pop that in because i’ve been i’ve
been pricing some of my own
the wifey and i uh
and some investor partners
see opportunity just like a lot of your
viewers so why not uh
get ready
why not be ready and i mean
for
for most folks my advice is like
if if you have a number that works
and you offer it and they don’t accept
it move on yeah if they accept it you’ve
you’ve underwritten it you know it works
exactly um uh i had one where
agent thought i would be sad that we
didn’t get accepted no it’s fine on to
the next one on to the next one that’s
what i hope uh investors are really
getting at is we’re learning what is
only writing great deals and if they say
no you just move on to the next one just
rinse and release is this right okay 25
down
and if if if the investors that know
know like there’s a big enough spread
between 20 and 25 you want to be putting
25 down if you have to only put 20 great
but i’m pricing everything at 25. yes um
my wife asked me last night too she goes
could we put 20 down i go yeah but no
we’re not going to 25
yeah um
is this right could this be right oh
yeah this is right um
low sixes
we’ll call that six and a quarter
without any points right on investment
properties
specifically sure
ask the seller to pay a couple points
you could get you can get a single
family investment property 25 down
five and a half percent rate
nice and that’s what it might take for
the thing to
do
two points being paid uh by
the seller and in this case i just had a
plugged in price of 545. sure so when
the loan amount is 408 for people that
don’t know how points work two percent
of that you know basically you need a
eight thousand dollar credit yep it’s
not a lot you know
give me an eight thousand dollar credit
i’m gonna use it to buy my rate down to
five and a half yeah let’s be very clear
all my investors we’re only writing
great deals good left the building we
are getting seller to pay closing costs
and we’re getting all sellers to buy
down rates especially for getting
30-year money might as well ask for the
moon if they say no move on matt how can
people find you and see what works for
them go to greatmortgagebroker.com for
whatever reason i’m getting more and
more people that are like i just want to
have a rough idea i don’t want to pull
credit don’t get pre-approved um
i’m just not in the business of
providing no value and having you out
there shopping with blinders on right
if you’re in the market you want to get
pre-approved my staff’s going to spend
hours i’m going to spend 37 on a credit
report i’m fine with all that whether
you buy it whether you don’t buy but get
yourself pre-approved whether it’s with
us or somebody else with us
greatmortgagebroker.com is where you
start
that way you know what you qualify for
you know your numbers
it frustrates me to no end mike i’ve got
people putting in offers we review the
stuff and we’re like you can’t do this
yeah qualify
no
whoever advised you to submit an offer
and whatever agent was willing to write
it without you being pre-approved um
not the way to do it get the numbers
figured out first um then you’ll have an
idea too where rates are at and what you
can get based on your specific scenario
and then back into what you can offer on
a property absolutely thanks buddy
greatmortgagebroker.com
yes sir thanks mike awesome thanks