Video Closed Captioning:
good morning good afternoon good evening
folks michael zuber one rental at a time
and i’m actually very thankful that we
get to speak to this gentleman today on
friday versus our normal talks on
wednesday because something crazy
happened on thursday how you doing matt
i’m doing pretty good mike how you doing
i i’m a mortgage broker and i survived
i survived the 7.5 inflation reading and
i’m here
in person yeah well first and foremost
you’ve helped so many people by your if
you like it lock it you’ve saved some
people significant pain so i hope so
kudos to you for that uh but yeah i
gotta ask what what so what i have seen
is
there’s now a 99 chance that the fed
will raise rates 50 basis points in
march that went from zero to five
percent to 24
to 99
wow guessing
that it impacted mortgage rates
yesterday
oh for sure for sure yeah you know that
that that cpi reading and then just
everything the fed continues to say and
um
yesterday was an interesting day the
funny part is is
you know for as much freak out as people
do in the short term i priced a couple
loans to win the contract i’m like we’re
still locking people at 399.
it’s it’s it’s not 2.62 i was just
looking at this to see like how far
we’ve moved um and i think on on
somebody’s average um one of these
aggregators that shows like the average
rates
august was two six
eight
and now we’re 4.02
whoo we’re over
right we’ve we’ve gone like
a
one point you know one in three one and
three eighths i think is something um
you know that’s that’s a pretty dramatic
for a six month time frame um a lot of
that coming in last six weeks yeah but
you know it’s more of the same story for
me i think where
week on week i’m telling people
the forecast calls for higher rates
we’re not going to get and that’s the
the problem is is that people look
in the past and they go oh we’ve seen it
go up and then come back down and up
we’ve seen these rebounds
there’s nothing pointing to we’re going
to get a rebound and so literally all
the commentary i read and everybody who
i follow says listen
another day it’s prudent to lock do not
float hoping for you know even this
morning mortgage bonds opened up like 20
basis points better
virtually no lender passed on that
savings uh and and reprice for the
better and then as it slid
like 20 basis points to get like to
break even on the day a couple of them
reprice for the worse and so um you know
it’s it’s going to be interesting to see
i still think that you know the demand
is there
and there’s plenty of willing and able
buyers but you know i recorded a video
this morning
speaking to home buyers and just
reminding them
if home ownership is your goal if you
know having a place of your own that you
can
remodel that you can paint the walls
whatever color you want
all the tax benefits the debt pay down
the appreciation
all that stuff is the same at three
seven five and four percent in four and
a quarter none of that changes
maybe
if anything changes it’s you saying
what can i afford on a monthly basis and
then having to back into
your purchase price target right and
maybe it’s not 480 maybe it’s 445. but
all the other reasons you want to become
a homeowner all the other reasons that
people in one rental at a time want to
buy rental properties and build wealth
all that stuff holds true
at really any interest rate right you
know i i’m sure that me and you and
other people that are part of the
channel have bought stuff at seven
percent and eight percent
and this worked out okay yeah i i again
i bought deals at 12 some of the
interest i paid private or hard money
i’d be hard money is over 12 so
just got to do the deals that make sense
it’s always a great day to do a great
deal don’t get fixated on sub three it’s
you missed it it’s not there anymore
right yeah there was there was something
there was a there was an optimal blue
which is like a pricing engine
um and so they have like aggregated data
from
billions in in mortgage production
and god where’d it go
i had it i want to pull it up just for
reference in my own brain
yesterday’s
conforming lock average was 4.0 4.07 oh
wow
granted some people have a 660 credit
score and so they’re four and a quarter
some people have perfect credit and they
might be three eight seven five but for
all intents and purposes we’re at about
four percent um yeah that was quick yeah
that was very quick it feels like only
yesterday we were sitting around on
christmas thinking will we dip back
below three percent or will we continue
to go up because they were probably i
think they were probably about three and
a quarter around christmas time and yeah
those those rates are long gone unless
you want to pay lots of points you know
if you like it lock it i uh i’m glad
that we’ve been doing this um
again p i mean you’ve seen it right bank
of america citigroup calling for seven
rate increases this year which takes
funds from basically zero to one in
three quarters
let’s just play this out together and
again we don’t know what the spreads
will be but let’s just say the fed funds
is two percent for easy math today it’s
zero
so if that’s two percent the two year
probably has to go to
three and a quarter three and three
eighths
the ten year probably has to go to
probably has to go to four
four and an eight wow that and that
means the 30 year is five and a half am
i planning that out right
yeah i mean i think
when when you said two and then ten i
was thinking that the the ten might be
three sevenish
but still
you know the the difference between the
10-year treasury and and and the 30-year
mortgage is about 1.7 percent so if
we’re 3-7-3-8 on the 10-year treasury
we’re five and a half percent on the
30-year um mortgage and uh
yeah so so people today
are crying about four
um
wait till five right yeah if you don’t
like four you ain’t gonna like five so
so so get it while it’s hot and and uh
you know it’s
i hate to use the word historically
because i feel like yeah we’re just like
oh this guy’s in mortgage and all he
wants to do is say it’s always the sun
is always shining and you know but like
when you really look at that
like i had somebody reach out to me that
had no idea about rates at all they’re
like what are rates i said about four
percent uh is that good or bad and i
said it’s good and they said well what’s
the lowest it’s been i said two and a
half they said what’s the highest it’s
been
- and so you know and it was funny
because it was a funny conversation with
somebody who really didn’t know at all
and they were asking me like well when
was it 18 i go i don’t know early 80s
well when was it two and a half
yeah last summer um and so
um you know i showed them the whole big
chart and it gets you to think right
like okay four percent is a pretty good
interest rate um one thing i want to
mention before i forget is that we’ve
talked about this a lot over the last
six months but it’s going to be
game on more than ever for these
mortgage companies who see shrinking
refinance volume maybe even less
purchase contracts or or or
you know applications for purchase
they are gonna do whatever it takes to
win business and i’ve seen some shady
shady stuff like um somebody on my team
got a mailer and they’re like man this
is just deceptive right um and it
doesn’t surprise me you know all the you
know credit trigger leads where you you
fill out a mortgage application get your
credit pulled eight mortgage companies
call you and you’re like why are they
calling me well because the credit
agency sold your data because mortgage
companies are desperate to get business
they’re gonna call they’re gonna promise
you the world um you know people just do
not
um i don’t know if you noticed one of
the things i made a
either tick tock or
instagram or both
about rocket yeah i saw that 3.375
and then you go down and you look in in
box a which you know in your course that
has my info in there i say look at box a
and lender fees that matters
there’s 39 000 in lender fees
um
as much as me me and you would love to
think
that somebody wouldn’t fall for
something like this
it happens right
they look and they go 3.375 great
and then they end up putting 40 000
um of that home’s equity in fees
onto their onto their refinance which is
very detrimental not good
yeah so so beware make sure you’re
talking to somebody you like and trust
that’s that’s my advice and and i talk
to people every day i’m in the glorious
position where i’m not to beg anybody
for business if you’re not working with
me great but work with somebody who you
like and trust and get good advice from
somebody who’s you know got a reputation
to protect is building a long-term
business and not just in a call center
have to plug in 100 applications before
the end of the week or you know we’re
not going to reach our bonus or whatever
the heck they’re working on
yeah i’ve been telling consumers and
investors this is perhaps better time
than ever to work with a mortgage broker
you trust i trust you and
greatmortgagebroker.com
have the conversation reach out see what
makes sense again always a great day to
do a great deal nothing wrong with four
percent
nothing wrong with five percent just
make sure the deals work and again where
do you want them to reach out go to
greatmortgagebroker.com yeah let us know
where you’re at and how we can help and
and like mike said you just you’ve got
to do the work and you’ve got to work
the numbers um that’s one of the things
that you want to do as an investor is
get yourself pre-approved know your
numbers from the lending side because
without those numbers
you’re you know
driving blind out there in the real
estate investing market and i see people
do it all the time i don’t advise it
right you get get a good handle on your
numbers before you start going out and
uh just listening to uh somebody to open
house go this is a great investor deal
trust me this is a good trust me trust
me
yeah crazy stuff thanks buddy yep