WEBVTT 00:00:00.970 --> 00:00:05.690 We're back. Where have you been? Where have we 00:00:05.690 --> 00:00:08.609 been? I know. It's take 10. Take 10. We're back. 00:00:08.750 --> 00:00:10.949 We just have a lot to talk about. Yep, we sure 00:00:10.949 --> 00:00:12.669 do because it's been a minute. Pitter -patter. 00:00:12.730 --> 00:00:16.149 Let's get at her. Let's get to it. So it is September 00:00:16.149 --> 00:00:20.329 freaking A. The fourth. The summer went by too 00:00:20.329 --> 00:00:24.070 fast. Yeah. So we find the 30 are fixed at 6 00:00:24.070 --> 00:00:28.109 .484 % on average right now. The lowest that 00:00:28.109 --> 00:00:31.120 we've seen since last September. So it's been 00:00:31.120 --> 00:00:34.179 a year, journey back to this way. Oh, man. And 00:00:34.179 --> 00:00:36.299 if you remember what happened last September, 00:00:36.560 --> 00:00:39.500 everybody was all amped up because they thought 00:00:39.500 --> 00:00:43.140 rates were going to drop. Yep. And if this sounds 00:00:43.140 --> 00:00:45.479 familiar, it's happening again right now. So 00:00:45.479 --> 00:00:47.179 the Federal Reserve is talking about lowering 00:00:47.179 --> 00:00:49.799 rates again in September, and we have the same 00:00:49.799 --> 00:00:51.960 deja vu kind of thing happening. So let's talk 00:00:51.960 --> 00:00:54.280 about that for a second. First of all, are they 00:00:54.280 --> 00:00:57.359 lowering mortgage rates, Corey? Right. I feel 00:00:57.359 --> 00:00:59.630 like we say this all the time. But you can't 00:00:59.630 --> 00:01:01.689 say it enough, the Federal Reserve does not control 00:01:01.689 --> 00:01:03.829 mortgage rates with their Fed Funds rate. They 00:01:03.829 --> 00:01:06.469 do not. So they are lowering their Fed Funds 00:01:06.469 --> 00:01:09.689 rate, which is an overnight rate, literally overnight, 00:01:09.810 --> 00:01:11.930 short -term in nature. So credit cards, homemade 00:01:11.930 --> 00:01:14.930 lines of credit, those things will adjust. Mortgage 00:01:14.930 --> 00:01:17.230 rates are long -term rates, and those are determined 00:01:17.230 --> 00:01:22.049 by the bond market. And so the bond market decides. 00:01:23.010 --> 00:01:25.969 It looks at Fed action, and if it agrees or disagrees, 00:01:26.750 --> 00:01:30.569 it'll move. So when word is on the street that 00:01:30.569 --> 00:01:33.430 they are going to drop prime rate, everybody 00:01:33.430 --> 00:01:35.549 gets frisky in the bond market, that typically 00:01:35.549 --> 00:01:38.930 happens 30 days prior to the drop. Is that about 00:01:38.930 --> 00:01:40.989 right? 100%. All right, so here's something you 00:01:40.989 --> 00:01:44.109 can talk about at parties. There is a tool out 00:01:44.109 --> 00:01:48.829 there called CME FedWatch. People trade the probabilities 00:01:48.829 --> 00:01:51.989 of the Fed lowering or raising rates like they 00:01:51.989 --> 00:01:55.370 trade bonds or stocks. And so right now, there 00:01:55.370 --> 00:02:00.489 is a 97 .6 % chance that the Fed will drop rates 00:02:00.489 --> 00:02:03.969 in September. So I would ask you, if I know that, 00:02:04.230 --> 00:02:07.569 and you know that, and this tool knows that, 00:02:07.969 --> 00:02:09.789 do you think that the people that trade bonds 00:02:09.789 --> 00:02:12.629 also know that? Yeah. So they've already priced 00:02:12.629 --> 00:02:15.409 in the current Fed rate drop. It's already in. 00:02:15.610 --> 00:02:19.300 It's already in there. we're looking at now is 00:02:19.300 --> 00:02:22.379 what about October? Future rate drops. That's 00:02:22.379 --> 00:02:25.719 right. So October, now we have a 52 % chance 00:02:25.719 --> 00:02:28.319 of another rate drop in October. That gets people 00:02:28.319 --> 00:02:32.259 excited. What happens when that doesn't come 00:02:32.259 --> 00:02:33.960 through? When that doesn't come through, you 00:02:33.960 --> 00:02:36.460 see mortgage rates rise back up. When that expectation 00:02:36.460 --> 00:02:39.639 is not met, the rates will go up. That's right. 00:02:39.879 --> 00:02:43.580 So you can literally just Google CME FedWatch. 00:02:43.900 --> 00:02:46.620 You can pull up this tool at any time and see 00:02:46.620 --> 00:02:50.289 it. And you can watch mortgage rates trade on 00:02:50.289 --> 00:02:53.250 future Fed probabilities. So future. How many 00:02:53.250 --> 00:02:55.009 people out there wish they had bought a house 00:02:55.009 --> 00:02:57.729 a year ago, even though the rates did go up a 00:02:57.729 --> 00:03:00.370 little bit. Yep. Because, and here we are again. 00:03:00.789 --> 00:03:05.180 So let history. help you determine your future. 00:03:05.620 --> 00:03:08.060 Or even refinances. I mean, we were guilty of 00:03:08.060 --> 00:03:10.939 this. We looked at last year and we're like, 00:03:11.259 --> 00:03:13.539 ah, hey, rates are coming down. Let's get everybody 00:03:13.539 --> 00:03:15.539 ready to refi. When they come down, we'll do 00:03:15.539 --> 00:03:17.819 it. And then they never did. And so you've got 00:03:17.819 --> 00:03:20.780 people that have been paying a rate towards 8 00:03:20.780 --> 00:03:24.520 % for another year. Which is expensive. It's 00:03:24.520 --> 00:03:27.139 expensive. You know what? Something that we are 00:03:27.139 --> 00:03:29.879 doing is the half point kickoff. That's right. 00:03:30.110 --> 00:03:34.509 This is a great way to also help get people off 00:03:34.509 --> 00:03:39.349 the fence a little bit. We have something that 00:03:39.349 --> 00:03:41.930 we are doing through the end of the year, half 00:03:41.930 --> 00:03:44.949 a point off of whatever their current rate is 00:03:44.949 --> 00:03:47.409 that we lock them in at. So if they have their 00:03:47.409 --> 00:03:51.810 30 year fixed at the 6 .49, they get half a percent 00:03:51.810 --> 00:03:55.289 off. So now for the first year or first 12 payments, 00:03:55.750 --> 00:03:59.479 they're at 5 .99. And then they can sit there 00:03:59.479 --> 00:04:02.000 and wait for another year on the rates to drop. 00:04:02.180 --> 00:04:04.819 And if they don't happen, at least they captured 00:04:04.819 --> 00:04:07.840 the appreciation in the market and they're putting 00:04:07.840 --> 00:04:09.979 money back into their own pocket. Totally lender 00:04:09.979 --> 00:04:11.840 paid. We're covering the cost of this. It costs 00:04:11.840 --> 00:04:14.180 your barber nothing. Corporates chipping in. 00:04:14.199 --> 00:04:17.500 And so just a quick, it's just like a 1 .0 or 00:04:17.500 --> 00:04:20.720 a 2 .1 temporary buy down, except it's half of 00:04:20.720 --> 00:04:24.339 1 % and it's lender paid by us. So just as Lisa 00:04:24.339 --> 00:04:26.449 said. for one year, they're gonna have a rate 00:04:26.449 --> 00:04:28.350 half a point lower than their market rate on 00:04:28.350 --> 00:04:30.550 a 30 -year fixed through the end of the year. 00:04:30.649 --> 00:04:32.850 And we don't have to price it into the rate itself. 00:04:33.269 --> 00:04:35.750 Nope. It's just whatever your rate is, it's below 00:04:35.750 --> 00:04:37.970 that. That's right. So take advantage of that 00:04:37.970 --> 00:04:39.829 and get some of these people off the fence. That's 00:04:39.829 --> 00:04:42.410 right. Let's go with it. And that is conventional 00:04:42.410 --> 00:04:46.949 loans, purchases and refinances, but not cash 00:04:46.949 --> 00:04:51.069 out. So there you go. Let's do it. Super important 00:04:51.069 --> 00:04:54.110 to get folks off the fence and get them to moving. 00:04:54.519 --> 00:04:56.980 Let's talk about VA for a second. Okay. Because 00:04:56.980 --> 00:04:59.360 we've had some cool tips and tricks. Yes, we 00:04:59.360 --> 00:05:02.860 just found out one yesterday. Yep. And that was 00:05:02.860 --> 00:05:07.040 if you have a veteran that is planning to rent 00:05:07.040 --> 00:05:09.540 their residence, but they don't have a tenant 00:05:09.540 --> 00:05:13.560 yet, then they can get a realtor who is not a 00:05:13.560 --> 00:05:15.459 party to the transaction. So if you're their 00:05:15.459 --> 00:05:18.360 agent, you can't do this. But a realtor can run 00:05:18.360 --> 00:05:21.800 comps and you can use that to offset their current 00:05:21.800 --> 00:05:24.420 mortgage payment. Yeah. Who knew? Isn't that 00:05:24.420 --> 00:05:27.379 awesome? Who knew? Um, I have a personal story 00:05:27.379 --> 00:05:29.459 of one. I know Lisa's done this before to qualify 00:05:29.459 --> 00:05:31.860 someone, but I just had one last month where, 00:05:31.860 --> 00:05:35.199 um, borrower and realtor had negotiated this 00:05:35.199 --> 00:05:39.800 huge seller credit, um, to fix a bunch of stuff. 00:05:40.339 --> 00:05:43.759 I love this trick. Okay. But like we'll say the 00:05:43.759 --> 00:05:45.959 seller credit was $17 ,000 and closing costs 00:05:45.959 --> 00:05:50.230 were like $10 ,000. Right. So You can't get cash 00:05:50.230 --> 00:05:53.910 back at closing. You have to either buy the rate 00:05:53.910 --> 00:05:56.970 down or find something else to do with it. With 00:05:56.970 --> 00:06:00.970 VA only, the seller can pay debt off for the 00:06:00.970 --> 00:06:05.069 veteran. So what we told him was, hey, just run 00:06:05.069 --> 00:06:07.269 up your credit card. Just put everything that 00:06:07.269 --> 00:06:10.069 you would typically pay cash on, on your credit 00:06:10.069 --> 00:06:13.060 card. Keep your cash. And then we'll pay the 00:06:13.060 --> 00:06:14.839 credit cards off at closing, and then you can 00:06:14.839 --> 00:06:17.000 use your cash for repairs. It's the only time 00:06:17.000 --> 00:06:18.560 a lender will tell you to run up your credit 00:06:18.560 --> 00:06:21.420 cards. That's correct. We would typically not 00:06:21.420 --> 00:06:25.699 encourage. That's a fun trick. That's right. 00:06:26.040 --> 00:06:28.579 And we're doing another promo through now till 00:06:28.579 --> 00:06:31.540 they're gone. We're giving out a fanny shaker 00:06:31.540 --> 00:06:34.660 as a closing gift. Yes. What's a fanny shaker? 00:06:34.889 --> 00:06:37.990 A fanny shaker. It's my invention, but I've already 00:06:37.990 --> 00:06:40.509 bankrupted my company, I guess. So I have all 00:06:40.509 --> 00:06:44.730 these fanny shakers and it is a belt that has 00:06:44.730 --> 00:06:47.069 snaps attached. Just look at our social. I am 00:06:47.069 --> 00:06:50.410 wearing one for the half. percent temporary buy 00:06:50.410 --> 00:06:53.209 down. So you can see it in action. By the way, 00:06:53.209 --> 00:06:55.649 she did hit that field goal twice. I know it 00:06:55.649 --> 00:06:57.750 looks... I didn't miss it once. I did not miss 00:06:57.750 --> 00:07:00.069 it one time. She did hit it two for two. Two 00:07:00.069 --> 00:07:02.370 for two. That's pretty cool. I'll take anybody 00:07:02.370 --> 00:07:04.990 out there and have that contest. That's fun. 00:07:06.170 --> 00:07:10.319 But the Fanny Shaker, it... can adjust down in 00:07:10.319 --> 00:07:12.680 case you want to give it to your kid, or it can 00:07:12.680 --> 00:07:15.800 adjust up, or you can have two combined if you're 00:07:15.800 --> 00:07:20.519 a husky, a husky kind of person. And you can 00:07:20.519 --> 00:07:22.660 choose any college color. I have them all. That's 00:07:22.660 --> 00:07:24.920 right. Of course orange and white is the best 00:07:24.920 --> 00:07:28.959 color. Obviously. Yeah. So free clothes and gift. 00:07:29.220 --> 00:07:31.040 I love it. For now until the end of the year. 00:07:31.620 --> 00:07:35.459 Until they're gone. And then the last thing we 00:07:35.459 --> 00:07:37.899 want to touch on. If you're in the Knoxville 00:07:37.899 --> 00:07:40.360 area, we had a reverse event a few months ago. 00:07:40.680 --> 00:07:43.699 It's great turnout, 80 plus people. I just had 00:07:43.699 --> 00:07:49.029 a reverse deal that we did. Some of my parents 00:07:49.029 --> 00:07:51.189 friends and they had deferred maintenance on 00:07:51.189 --> 00:07:55.370 their home and Both of them had retired but things 00:07:55.370 --> 00:07:57.009 aren't working out in their retirement because 00:07:57.009 --> 00:08:00.790 one of them got very sick And so they're just 00:08:00.790 --> 00:08:02.470 trying to figure out a way they can hang on to 00:08:02.470 --> 00:08:05.990 their home and live in it And also make it, you 00:08:05.990 --> 00:08:08.350 know handicap accessible and fix the deferred 00:08:08.350 --> 00:08:11.899 maintenance. And so we looked into this um reverse 00:08:11.899 --> 00:08:14.459 mortgage for them and they were able to correct 00:08:14.459 --> 00:08:18.180 all the maintenance and and they were able to 00:08:18.180 --> 00:08:20.439 they now have no monthly payment which takes 00:08:20.439 --> 00:08:23.680 a lot of pressure off and the medical bills are 00:08:23.680 --> 00:08:26.939 you know at this point everything's just streamlined 00:08:26.939 --> 00:08:29.779 out for them and they have removed a huge stress 00:08:29.779 --> 00:08:33.200 big deal and that was the only answer it's an 00:08:33.200 --> 00:08:35.919 it is so in a lot of cases it'll be the only 00:08:35.919 --> 00:08:39.019 answer In some cases, it's just a really smart 00:08:39.019 --> 00:08:41.279 answer. That's typically what we see is you have 00:08:41.279 --> 00:08:43.799 people on two very opposite sides of a spectrum, 00:08:44.120 --> 00:08:47.159 like a barbell. Like you'll have people that 00:08:47.159 --> 00:08:49.019 absolutely need it and that's the only thing. 00:08:49.480 --> 00:08:51.679 And then you have some people that are very wealthy 00:08:51.679 --> 00:08:55.159 that use it as a cash flow tool. And so it has 00:08:55.159 --> 00:08:57.059 application all over the place. Where does it 00:08:57.059 --> 00:09:00.149 help you as a realtor? Let's say you've got a 00:09:00.149 --> 00:09:05.669 borrower. They live in Loudoun County, and their 00:09:05.669 --> 00:09:09.590 home is worth $450, and they really want to move 00:09:09.590 --> 00:09:13.269 closer to their kids in Jefferson County, but 00:09:13.269 --> 00:09:17.809 the house near their kids is $650, and they just 00:09:17.809 --> 00:09:20.070 can't make it work in their budget. Like, my 00:09:20.070 --> 00:09:22.490 house is paid off now, and these interest rates, 00:09:22.690 --> 00:09:24.929 and blah, blah, blah. Totally get it. It's a 00:09:24.929 --> 00:09:27.679 reasonable thing to do. with a reverse mortgage, 00:09:28.080 --> 00:09:31.879 they could borrow that $200 ,000, never have 00:09:31.879 --> 00:09:35.320 to make a payment on it ever. And so they can 00:09:35.320 --> 00:09:37.980 upsize home, get closer to the kids, do what 00:09:37.980 --> 00:09:40.500 they need to do, and never have to make a monthly 00:09:40.500 --> 00:09:43.259 payment. And they might even be able to get a 00:09:43.259 --> 00:09:44.860 line of credit off of that that they could use 00:09:44.860 --> 00:09:48.259 as a cash flow tool. So it gets people out of 00:09:48.259 --> 00:09:51.120 this issue of, I'm stuck in my house, right? 00:09:51.799 --> 00:09:55.019 And it gets them into maybe the house that they 00:09:55.019 --> 00:09:59.759 need to grow older in and age in and whatnot 00:09:59.759 --> 00:10:02.299 and how that house seems to be situated. And 00:10:02.299 --> 00:10:05.080 it gets you guys potentially a larger sale. That's 00:10:05.080 --> 00:10:06.960 right. Yep. Because if they're not capped at 00:10:06.960 --> 00:10:09.120 450, which is what they'd make off their house. 00:10:10.150 --> 00:10:11.950 then sky's the limit on that too. That's right. 00:10:12.370 --> 00:10:14.850 Yeah. So that we're doing another one in Nashville. 00:10:14.889 --> 00:10:16.269 If you want to make a drive, if you're in the 00:10:16.269 --> 00:10:18.649 Nashville area, we'll be there on Wednesday, 00:10:19.769 --> 00:10:24.409 September the 10th at 10 30 slash 11 o 'clock 00:10:24.409 --> 00:10:27.149 at Pinewood social. So yeah, very cool space. 00:10:27.149 --> 00:10:29.870 We'll get you there. Yeah. So 10 minutes and 00:10:29.870 --> 00:10:32.750 30 seconds. Pretty good. We are rusty. Holler 00:10:32.750 --> 00:10:36.690 at us. Let us know how we did and stuff and we'll 00:10:36.690 --> 00:10:38.230 talk to you next time. All right. See you guys.