We're back. Where have you been? Where have we
been? I know. It's take 10. Take 10. We're back.
We just have a lot to talk about. Yep, we sure
do because it's been a minute. Pitter -patter.
Let's get at her. Let's get to it. So it is September
freaking A. The fourth. The summer went by too
fast. Yeah. So we find the 30 are fixed at 6
.484 % on average right now. The lowest that
we've seen since last September. So it's been
a year, journey back to this way. Oh, man. And
if you remember what happened last September,
everybody was all amped up because they thought
rates were going to drop. Yep. And if this sounds
familiar, it's happening again right now. So
the Federal Reserve is talking about lowering
rates again in September, and we have the same
deja vu kind of thing happening. So let's talk
about that for a second. First of all, are they
lowering mortgage rates, Corey? Right. I feel
like we say this all the time. But you can't
say it enough, the Federal Reserve does not control
mortgage rates with their Fed Funds rate. They
do not. So they are lowering their Fed Funds
rate, which is an overnight rate, literally overnight,
short -term in nature. So credit cards, homemade
lines of credit, those things will adjust. Mortgage
rates are long -term rates, and those are determined
by the bond market. And so the bond market decides.
It looks at Fed action, and if it agrees or disagrees,
it'll move. So when word is on the street that
they are going to drop prime rate, everybody
gets frisky in the bond market, that typically
happens 30 days prior to the drop. Is that about
right? 100%. All right, so here's something you
can talk about at parties. There is a tool out
there called CME FedWatch. People trade the probabilities
of the Fed lowering or raising rates like they
trade bonds or stocks. And so right now, there
is a 97 .6 % chance that the Fed will drop rates
in September. So I would ask you, if I know that,
and you know that, and this tool knows that,
do you think that the people that trade bonds
also know that? Yeah. So they've already priced
in the current Fed rate drop. It's already in.
It's already in there. we're looking at now is
what about October? Future rate drops. That's
right. So October, now we have a 52 % chance
of another rate drop in October. That gets people
excited. What happens when that doesn't come
through? When that doesn't come through, you
see mortgage rates rise back up. When that expectation
is not met, the rates will go up. That's right.
So you can literally just Google CME FedWatch.
You can pull up this tool at any time and see
it. And you can watch mortgage rates trade on
future Fed probabilities. So future. How many
people out there wish they had bought a house
a year ago, even though the rates did go up a
little bit. Yep. Because, and here we are again.
So let history. help you determine your future.
Or even refinances. I mean, we were guilty of
this. We looked at last year and we're like,
ah, hey, rates are coming down. Let's get everybody
ready to refi. When they come down, we'll do
it. And then they never did. And so you've got
people that have been paying a rate towards 8
% for another year. Which is expensive. It's
expensive. You know what? Something that we are
doing is the half point kickoff. That's right.
This is a great way to also help get people off
the fence a little bit. We have something that
we are doing through the end of the year, half
a point off of whatever their current rate is
that we lock them in at. So if they have their
30 year fixed at the 6 .49, they get half a percent
off. So now for the first year or first 12 payments,
they're at 5 .99. And then they can sit there
and wait for another year on the rates to drop.
And if they don't happen, at least they captured
the appreciation in the market and they're putting
money back into their own pocket. Totally lender
paid. We're covering the cost of this. It costs
your barber nothing. Corporates chipping in.
And so just a quick, it's just like a 1 .0 or
a 2 .1 temporary buy down, except it's half of
1 % and it's lender paid by us. So just as Lisa
said. for one year, they're gonna have a rate
half a point lower than their market rate on
a 30 -year fixed through the end of the year.
And we don't have to price it into the rate itself.
Nope. It's just whatever your rate is, it's below
that. That's right. So take advantage of that
and get some of these people off the fence. That's
right. Let's go with it. And that is conventional
loans, purchases and refinances, but not cash
out. So there you go. Let's do it. Super important
to get folks off the fence and get them to moving.
Let's talk about VA for a second. Okay. Because
we've had some cool tips and tricks. Yes, we
just found out one yesterday. Yep. And that was
if you have a veteran that is planning to rent
their residence, but they don't have a tenant
yet, then they can get a realtor who is not a
party to the transaction. So if you're their
agent, you can't do this. But a realtor can run
comps and you can use that to offset their current
mortgage payment. Yeah. Who knew? Isn't that
awesome? Who knew? Um, I have a personal story
of one. I know Lisa's done this before to qualify
someone, but I just had one last month where,
um, borrower and realtor had negotiated this
huge seller credit, um, to fix a bunch of stuff.
I love this trick. Okay. But like we'll say the
seller credit was $17 ,000 and closing costs
were like $10 ,000. Right. So You can't get cash
back at closing. You have to either buy the rate
down or find something else to do with it. With
VA only, the seller can pay debt off for the
veteran. So what we told him was, hey, just run
up your credit card. Just put everything that
you would typically pay cash on, on your credit
card. Keep your cash. And then we'll pay the
credit cards off at closing, and then you can
use your cash for repairs. It's the only time
a lender will tell you to run up your credit
cards. That's correct. We would typically not
encourage. That's a fun trick. That's right.
And we're doing another promo through now till
they're gone. We're giving out a fanny shaker
as a closing gift. Yes. What's a fanny shaker?
A fanny shaker. It's my invention, but I've already
bankrupted my company, I guess. So I have all
these fanny shakers and it is a belt that has
snaps attached. Just look at our social. I am
wearing one for the half. percent temporary buy
down. So you can see it in action. By the way,
she did hit that field goal twice. I know it
looks... I didn't miss it once. I did not miss
it one time. She did hit it two for two. Two
for two. That's pretty cool. I'll take anybody
out there and have that contest. That's fun.
But the Fanny Shaker, it... can adjust down in
case you want to give it to your kid, or it can
adjust up, or you can have two combined if you're
a husky, a husky kind of person. And you can
choose any college color. I have them all. That's
right. Of course orange and white is the best
color. Obviously. Yeah. So free clothes and gift.
I love it. For now until the end of the year.
Until they're gone. And then the last thing we
want to touch on. If you're in the Knoxville
area, we had a reverse event a few months ago.
It's great turnout, 80 plus people. I just had
a reverse deal that we did. Some of my parents
friends and they had deferred maintenance on
their home and Both of them had retired but things
aren't working out in their retirement because
one of them got very sick And so they're just
trying to figure out a way they can hang on to
their home and live in it And also make it, you
know handicap accessible and fix the deferred
maintenance. And so we looked into this um reverse
mortgage for them and they were able to correct
all the maintenance and and they were able to
they now have no monthly payment which takes
a lot of pressure off and the medical bills are
you know at this point everything's just streamlined
out for them and they have removed a huge stress
big deal and that was the only answer it's an
it is so in a lot of cases it'll be the only
answer In some cases, it's just a really smart
answer. That's typically what we see is you have
people on two very opposite sides of a spectrum,
like a barbell. Like you'll have people that
absolutely need it and that's the only thing.
And then you have some people that are very wealthy
that use it as a cash flow tool. And so it has
application all over the place. Where does it
help you as a realtor? Let's say you've got a
borrower. They live in Loudoun County, and their
home is worth $450, and they really want to move
closer to their kids in Jefferson County, but
the house near their kids is $650, and they just
can't make it work in their budget. Like, my
house is paid off now, and these interest rates,
and blah, blah, blah. Totally get it. It's a
reasonable thing to do. with a reverse mortgage,
they could borrow that $200 ,000, never have
to make a payment on it ever. And so they can
upsize home, get closer to the kids, do what
they need to do, and never have to make a monthly
payment. And they might even be able to get a
line of credit off of that that they could use
as a cash flow tool. So it gets people out of
this issue of, I'm stuck in my house, right?
And it gets them into maybe the house that they
need to grow older in and age in and whatnot
and how that house seems to be situated. And
it gets you guys potentially a larger sale. That's
right. Yep. Because if they're not capped at
450, which is what they'd make off their house.
then sky's the limit on that too. That's right.
Yeah. So that we're doing another one in Nashville.
If you want to make a drive, if you're in the
Nashville area, we'll be there on Wednesday,
September the 10th at 10 30 slash 11 o 'clock
at Pinewood social. So yeah, very cool space.
We'll get you there. Yeah. So 10 minutes and
30 seconds. Pretty good. We are rusty. Holler
at us. Let us know how we did and stuff and we'll
talk to you next time. All right. See you guys.