Latest / The Jon Sanchez Show / The 3% Mortgage Hiding Inside The House
Transcript
- Jon G. Sanchez: Good Tuesday afternoon to you. Welcome to the John Sanchez show on News Talk seven eighty KOH. Pleasure to be with you and a pleasure to be with my co-host, Mr. Corey Edge of Edge Rility. How you doing, Big C? Good to see you. It's been a week. It's been a week. Good Cory Edge: Yes. Good good to see you too. I'm doing fantastic. How are you guys? Jon G. Sanchez: doing awesome, man. Doing awesome. Hey, I gotta ask you real quickly before we turn it over to Dwight. How is how's your son Archer doing? I mean, stud soccer player, broke his wrist, recovered. Is he back in action? I've been meaning to ask you. Cory Edge: Yeah, he's he's Dwight Millard: Mm. Cory Edge: playing again. I think he's had four or five games feeling good. Jon G. Sanchez: Okay, okay. Cory Edge: I've seen him he's fall fell down twice, but he now he knows how to roll. So it all he's right back in action. So yeah. Jon G. Sanchez: okay, okay. Beautiful, beautiful, beautiful. Dwight Millard: One. Jon G. Sanchez: Yeah, he's been on my mind for some reason lately and and I keep forgetting to ask you. So just wanted to what That's right, yeah. That's right. Army ar Navy Navy rule. I was gonna say Army roll, but SEALs aren't navy Dwight Millard: He's he's getting navy SEAL training, right? You don't have to use your wrist, you just you gotta yeah you go. Cory Edge: Yeah. Jon G. Sanchez: or aren't army. Dwight Millard: Yeah. Jon G. Sanchez: good. Glad to hear that, Corey. Cory Edge: Yeah. Thank you. Jon G. Sanchez: And I and I'm sure your your stomach just drops every time you see him, you know, trip and that he hope that he remembers to roll, right? Cory Edge: Yeah, and it yeah. The first time for sure I'm like, Jessica's going to shoot me if I he comes home with something else broke. But no, Jon G. Sanchez: Yeah, yeah, exactly. Right, right, right. Cory Edge: it's it it it it's been good. So he's we're down in San Jose this weekend with the quake, so he's excited for it. We'll see what happens. Yeah. Jon G. Sanchez: Beautiful. that's awesome. That is so cool. Yeah, he's he's a little soccer stud. That's always wishing the best. That's so awesome. Mr. Millard, on Q Home Loans, how Dwight Millard: Yes, sir. Jon G. Sanchez: are you, my friend? Dwight Millard: I'm doing good. I'm doing good. I wanna always Jon G. Sanchez: Good. Dwight Millard: Corey, I ran into Corey on Friday. Happy anniversary, Corey. It was his anniversary, Cory Edge: Thank you. Dwight Millard: stumbled onto him in Truckee. Yeah, yeah. Corey got away. Yeah. Cory Edge: Yeah. Jon G. Sanchez: Happy Anniversary How many how many how many how many years, Corey? Cory Edge: At twenty two years and I had to remind Dwight that twenty-two years ago on that night, he was with me. He's like, No, I w I go, Yeah, Dwight, you're at my wedding. I go, this night. No, no, no, it was last weekend. I go, No, it was this Jon G. Sanchez: my gosh. Was it was it a drunken fest for you, Millard, and you just don't remember. Is that what it was? Dwight Millard: Well i i i in all fairness I was playing a golf game earlier, a best ball, so Jon G. Sanchez: So yes, it was a drunken fest that you're getting warmed up for the for the wedding. my gosh. No kidding. How funny is that? Well, congratulations, Corey. Dwight Millard: I mean, you know, yeah, yes, yes. It was a little Yeah, yeah, yeah. Yeah, yeah. Cory Edge: Yeah. Jon G. Sanchez: Three more to the quarter century mark. Yeah, isn't that scary to think? Think any woman Cory Edge: I know. Jeez. Dwight Millard: Yeah. Jon G. Sanchez: puts up with you that long. I mean, come on now. God bless Jess. Cory Edge: I know, right? Yeah. Tell me about it. It's a miracle. Jon G. Sanchez: Yes indeed. Yes indeed. You got a great woman, no doubt. All righty, boys and girls. Let's let's tell you what we have lined up for you today. You know, we we're gonna go through today's stock market recap, of course. not nothing real earth-shattering today. Record setting day for the SP and for the Nasdaq. Dwight, I stole your thunder. See, I'm not used I'm not I'm not used to saying records. I it it has, yeah. Man, I am out of practice. But we'll we'll we'll we'll do a take two on that here in a moment. Dwight Millard: Yes, yes. I know. I was ready too. It's been a long time. I know. It's been long time. Yeah. Yeah. Okay. Jon G. Sanchez: So we'll go through today's market action. Then we're gonna get into today's topic. Very interesting topic that we've briefly, and I mean briefly, we've touched on it over the years, but we've never done an entire show dedicated to today's topic. And we've titled today's show, The 3% Mortgage Hiding Inside the House. Hmm. So as you're gonna find out here in just a moment, exactly where the 30-year mortgage finished at today. I'm just gonna say roughly, you know, north of 7.5%, slightly above seven and a half percent. However, The house you may want may have something hidden inside, and that is a 3% mortgage. So today, Corey and Dwight are going to be explaining assumable mortgages, nothing, something that most people don't even talk about anymore. How you as a buyer can find them, how sellers use them, and then any financial traps that can turn an amazing rate into potentially a bad deal. So as I told the boys, I'll just full disclosure. I have no experience whatsoever. I've never done one. I've never been on one side or the other side of an assumable mortgage. So I am I am anxious to learn from you two gentlemen today about this issue. Corey, I'm just or either one of you, I guess I can ask this question just and then we'll get to the stock market. Any guess what percent of mortgages that are outstanding are assumable? Cory Edge: Well, Dwight and I were talking before the show and I I knew that the VAs were assumable if you have to qualify. I did not know until he reminded me that the FHAs are assumable too if you can qualify. So you Jon G. Sanchez: Cat. Cory Edge: know, we'd have to ask Dwight the Yeah, I was gonna say forty, fifty, yeah. Dwight Millard: Probably fifty percent, forty, forty, forty five, somewhere in there. Jon G. Sanchez: No kidding. Dwight Millard: Yeah. Jon G. Sanchez: So why isn't this talked about more? Dwight Millard: Well, I mean, with the recent un run-ups in equity, John, you there's the the challenge is if the house is selling for five hundred and your loan balance is three hundred, there's a two hundred thousand dollar gap right there you gotta fill. So that's where, you know, and the big, you know, the big push for FHA and and VA, FHA's three and a half down and VA zero. So a lot of those people that consume those don't have the that extra cash laying around. So, but you know what? We're we're problem solvers, so we should talk about ways that the government could step in. Cause in their infamous wisdom, Jon G. Sanchez: Yeah, yeah, absolutely. Dwight Millard: it's a fantastic, fantastic concept, but the practicalities just don't they don't add up. If they could come out and give you a s a a second on it to make up that difference, you might see. I mean, those are just little ways that we've talked about over the years to maybe try Jon G. Sanchez: Yeah, yeah. Dwight Millard: to get the where the government can and I hate to say that, where the government can maybe come in and and even if you had allowed a second to be private. Jon G. Sanchez: Right, right. Dwight Millard: I mean, right? I mean, so there's just there's just different ways, but unfortunately they don't have those and we'll get into it, but it's it it is a i you know, it is a great concept. Now prior to nineteen eighty nine, which you're going way back, but you didn't have to qualify for FHA. So if you did a loan like in nineteen yeah, mm-hmm. It was like eighty eight, eighty nine, not right in that rule right there. Jon G. Sanchez: See, I thought so. I thought so. Yeah, you you l how did that work real quickly? Yeah. Yeah. How how did that work in reality? Cory Cory has Cory Cory has an assumable. Dwight Millard: Well, was really good if you didn't if you didn't have a lot of equity, John, you just w yeah, you just you just take over. You just take over. Jon G. Sanchez: No but but back to your point. And I thought I'd remember that, but I was I was young and I didn't know about real estate at that point. But Dwight Millard: Yeah. Yeah. Jon G. Sanchez: yeah, you literally could I if if Corey was selling a an a a house with in a assumable mortgage, I could step in and and there's no qualifying, there's no credit checks, there's no no nothing. Isn't that crazy? She was that is Dwight Millard: No, no, no, no. Yeah, that was crazy. That was like, you know, and I think it the year was 1989, but yeah, you just coined it and wasn't a whole lot of expense. I mean, it was pretty crazy. But yeah, that that's probably the reason why they've changed it. But but yeah, yeah. Jon G. Sanchez: Yeah, yeah, I can imagine. Dwight Millard: I mean, but it now it's full qualifying. So I mean Jon G. Sanchez: Sure. Dwight Millard: you just gotta weigh the the benefits and the, you know, you know, to it. Jon G. Sanchez: Okay. Well, there's a lot to it. And then again we're gonna we're gonna highlight all this and again give you the pros and cons as we always do. But first let's get down to the stock market side, boys. I'll take over from here. day look you know, again I told you we're gonna do a recap or a retake. So Dwight, what kind of day was it today for the Dow or excuse for the NASDAQ and the SP five hundred? Dwight Millard: John, I'm gonna guess it was another record setting Cory Edge: Got it. Dwight Millard: day. I was ready too. I already knew that too, and I was ready for you to just ask me. yep. Jon G. Sanchez: you are so smart, Dwight. You are so smart. Indeed it was. I know you're I look at you. Look at you, mister Mr. Prepared. Well, okay. How many days have we set a record on the NASDAQ consecutively, Dwight? Dwight Millard: I'm gonna say three. Jon G. Sanchez: sh even more impressed. Man, man. You're looking at your brokerage statement, aren't you? I know what you're doing. Yeah. Dwight Millard: Okay. No, I'm not. No. Yeah, exactly. No. I I I I didn't yeah. I thought I we talked about it Thursday. Jon G. Sanchez: We did. Yeah. Yeah. Well, Friday, yeah, Friday, yesterday and today record setting days. So Dwight Millard: It was Friday, okay, yeah. Jon G. Sanchez: yep. But yeah, great job. So yeah, pretty substantial. Not huge numbers, but again, only Needed to make one point on the NASDAQ and we could have set a record today. But here's how we finished up overall. So the Dow long ways away from a record, but solid day today, up 253.49%. 51,521 was our close. Nasdaq up 122.45% to close at 27,599.792. So I'm just gonna say 27,600. And the SP 500, first time closing above 7,800, it closed at 7818. That was a 45-point gain or point five eight percent. And so you may be asking yourself, well, John, what the heck was the reason behind it? There was no reason. It was strength and technology. It was one of those days where they loved the chip stocks. There was no sharp moves and oil prices going up, no sharp move, and bond yields going up. And so they they they just used it as a buying excuse. it was really that simple. utility sector, strong group today. I'm gonna jump right into this one. 3% gain for the utility sector, fueled by a surge Cory Edge: Yeah. Jon G. Sanchez: in constellation energy. Trades under this simple CEG. Stock rose 12 and a quarter percent, $32.78 to $300.40. Get this, guys. Just to show you how this power thirst that the AI industry has. Constellation today announced a 20-year power purchase agreement with Google Alphabet, which for the day was up 76 cents, supporting 890 megawatts. 890 megawatts of nuclear power capacity. Through upgrades at 11 existing units across six states in the PJM, which I don't know what that is, PJM grid. Now, I want to put this in perspective again. One one megawatt, just to put it in perspective, and it depends upon whose numbers you look at. So don't hold me to this exact number. But one megawatt will power approximately 220 to 230,000 homes. Okay, that's that's just kind of the rough rule of thumb. One megawatt. This deal, again, eight. Hundred and ninety megawatts. Corey, you're the math wiz. Let's see, how many homes would that do? Eight hundred and ninety times two hundred and thirty. Yeah, yeah, a whole bunch of homes, huh? A bunch, a bunch. Cory Edge: A bunch, yes, a lot. Jon G. Sanchez: But isn't that crazy to think we're all old enough in this room to know that you know we were we were around when nuclear, you know, was around, you know, three mile island and Dwight Millard: I mean. Jon G. Sanchez: you know, so on and so forth, to think number one, that nuclear is coming back, and number two, that that you know, Google is predicting. that strong of power needs, that desire, that thirst of that amount of power, you know, over the years. I mean, where are we gonna be with these if they're still around? I Dwight Millard: Yeah. Jon G. Sanchez: I frankly, I I question whether data centers are gonna be around. I I just have this feeling there's gonna be some some different technology. But think about where, you know, if Google, you know, being the smartest kids in the room, thinking, you know what, 20 year purchase power agreement, that means they are very confident that this power glut this need is gonna be there for the next twenty years or they wouldn't have signed the agreement. but isn't that crazy, Corey, to think that they're predicting that far out and and with that amount of power they're gonna they're gonna need. I mean, it's mind bullying. Mind bullying. Cory Edge: I was thinking about you today as I was listening to people on CNBC talk about stuff. And I was curious to get your thoughts on this kind of the perfect segue. I saw that. I hear all the stuff with the French debt going on. The GDP numbers got revised lower, but the only thing that's actually growing are AI data centers. Everybody else is kind of out of work. Jon G. Sanchez: Huh, where where where have we said that before? Yeah. Dwight Millard: Yeah. Cory Edge: The Wall Street Journal had a big article today that deals are blown up in the commercial world because the rates went up. There's no construction workers anywhere. Jon G. Sanchez: Huh. Shocking. Yeah. Cory Edge: Like, do you especially the French thing kind of gets me? I know that has nothing to do with what we do here, but it just seems like I just looked at the TV. I'm like, how in the world is this thing going up when there is just chaos reigning everywhere? And the Dwight Millard: Yeah. Jon G. Sanchez: Everywhere. Everywhere. Cory Edge: only thing propping this whole country's GDP up is some guy saying, Yeah, I'm gonna need power in 20 years. So Jon G. Sanchez: Exactly. I'm gonna make a I'm gonna make Cory Edge: Here's a billion dollars. Jon G. Sanchez: a I'm gonna make a profit in 20 years. Cory Edge: Yeah, yeah. Dwight Millard: Yeah, yeah. Jon G. Sanchez: Yeah. And I didn't get a chance to listen to the to the interview, but it was some you know AI executive or something that said it's becoming a struggle to raise money for these AI data centers. Yeah. well you you've got that Dwight Millard: Mm-hmm. Mm-hmm. Jon G. Sanchez: going on, and then you've got of course many cities and towns and so on and so forth saying. We don't want them in our backyard, you know, so we're not gonna get into that. But but the bottom line is, yeah, it's this is what I've preached over and over, Corey, to your to your point. It's it's it's exciting, but it's scary at the same time. And you know, give you an example, today we saw AMD, advanced microdevices just surge to fresh highs because of CPU sales of its chips to Meta, you know, because of the n the new Muse AI agent. So Yeah, anyways, I just look at the clock. I'm way late. Let's hold right here, boys. Welcome back to the John Sanchez show on New Stock 780KOH with Corey's Vidrillity, Dwight Millard of OnQ Home Loans. All right, once again, here is how we finished up on the session. pretty good day, like I said, or like Dwight said, record setting day for the SP 500 and the Nasdaq composite. The SP rose 45 points, 0.58%, Nasdaq up 122, 0.45%, and the Dow gained 253 points. so fresh highs are fresh records for SP and the NASDAQ. All right, real quickly, as I said, one of the driving forces today, we're talking about nuclear energy and this deal that Google signed with Constellation Energy for eight hundred and ninety megawatts over the next you know 20 years. Just mind-blowing. we saw NRG energy moving very strongly, falling into that group, up about six dollars and eighty-two cents. Vistra VST, the symbol up fifteen dollars and fifty-nine cents. So yeah, keep an eye on that group. Chip stocks did pretty good today, and the video is a little bit quiet up 37 cents to 339.27. Marvel a 5.81% gain at $15.76 to $287.01. The management raised their fiscal twenty-eight revenue outlook to twenty billion from eighteen billion on stronger demands. And then as I said, advanced microdevices rallying after they said they plan to increase their twenty twenty-seven production in response to strong AI product demand. Stock gained two point eight percent, seventeen dollars and sixty-seven cents to six forty-nine forty-two. let's see. but not everything was rosy in the chip sector today. Over to memory. you had Seagate Technology down $81.46, 9.18% loss, Western Digital down $30.60. And the name of the COVID era, Moderna lost $15.75, 7.3 quarters percent to close $187.46. All right, on the oil side, like I it was a quiet trade today, just 11 cent gain on oil. We closed below 89 below 90, excuse me, 89.44 a barrel. Gold rose $30.90 to $4,188.30. In a four basis point decline, Mr. Millard Dwight Millard: Mm-hmm. Jon G. Sanchez: on the 10-year Treasury. Still five point two seven percent. Talk to us about mortgages. Dwight Millard: Yeah. Yeah, yeah. Well, I mean the mortgage backed securities just did the same thing. We just we we gained w lost five basis points. So we're down to 7.56 on the 30-year fix, John, according to Mortgage News Daily. So yeah, 7.56 Jon G. Sanchez: Down to seven point five six. It sounds so funny to hear that. Dwight Millard: down. I know. And and so it's just these are just tough rates. These are just tough rates for everybody. I've had a few clients More than a few have just kind of put off having to do things that, you know, they were gonna Jon G. Sanchez: Yeah, yeah. Dwight Millard: take some money out to go buy an investment, prop things like that, and they're just kinda holding off. So Jon G. Sanchez: Well, that's why our topic today, the thirty percent mortgage hiding inside the house, you know, tell hopefully they're hopefully they're listening. Yeah, can listen to that. Dwight Millard: Yeah. See if we can make that work. Mm-hmm. Jon G. Sanchez: Hey, real quick, Dwight, before we we move on, thirty year jumbo I'm seeing on Mortgage News Daily, seven point seven percent. Knocking on the door, papers. Dwight Millard: Yeah. Mm-hmm. Seven. Yeah. Which is the way it should be though, John. I mean it should be higher than your standard conforming but rate. yeah. So you're just shy of eight percent on a Jon G. Sanchez: It should be, but I'm just I'm just t commenting on the rate. I mean, seven 'cause those are yeah. Dwight Millard: jumbo, which is gonna be, you know eight hundred, what'd they do? Eight hundred and thirty seven thousand, or if there's a new Jon G. Sanchez: Plus, yeah. Dwight Millard: yeah. And so i anything above that just gonna be jumbo, and that's a tough, tough rate to start to swallow, right? Seven point seven. So Jon G. Sanchez: Yep. Yep. Dwight Millard: and and and again remember John, these rates that we refer to off mortgages daily, these are the seven eighty credit score, one point, yeah, that yeah, Jon G. Sanchez: The the the the prime of the prime. Yeah. Dwight Millard: yeah. So so you know, if you're less than that, it could be even more damaging than what we're what we're quoting. Yeah. Jon G. Sanchez: Yep. Yep. Crazy, crazy. Cory Edge: Hey John, while and while we're talking about rates real quick, I don't know if you caught the article in the Wall Street this morning, but they had they did have an article about how some of these commercial deals across the country, the buyers are coming back and pressing for better deals because of the rates. So in the commercial Jon G. Sanchez: Really? I did not see that. Cory Edge: Yeah, in the residential world, you kind of sign your contract and that's those are the terms you stick to. In the commercial world, they do what's called a retrade. I mean, it happens everywhere where deals almost done and they want one final shot at the negotiation, typically the buyer. but they have multiple examples where these buyers are coming back saying, Hey, my rent went from X to X. So I want 500 grand, 600 grand, I want a a commensurate Jon G. Sanchez: Interested. Cory Edge: discount. and the article went on to say at least the brokers I had talked to, the sellers are in a mood like, I have to sell it. I don't have a choice. Like I Jon G. Sanchez: Yeah, right, right. Cory Edge: I have to get out of this thing. so it's Dwight Millard: Mm-hmm. Cory Edge: all that stuff is happening. So Jon G. Sanchez: Corey, you you you have a lot of experience in commercial also. What would you be doing right now? if you let's say, you know, you're a big commercial multi million dollar project and, you know, it's coming due right now, right? Let's say the tenures are up or whatever your initial terms were, and you're looking, I mean, I don't know what commercial rates are at this point, but Dwight, maybe you could look those up real quickly. But what the heck do you do right now? I mean, you have a limited market and like you know, the housing where you can say, Yeah, I'll take this or I'll go a variable or a five one. You don't have a lot of choices when it comes to the commercial side. So what do you do now? Cory Edge: On the CMBS market is not, I mean, it's doing okay, but the the rates are kind of blowing out. So you hopefully you're talking to your banker, right? That's what a lot of these guys will do. You Jon G. Sanchez: Yeah. Okay. Cory Edge: get within 12 months, especially, well, I'd say 18 to 12 months. If you are not calling your banker, your banker's calling you because they don't they know your term is up as well. And they don't want the property. Commercial's a little different because a lot of those times those those guys and gals will say, Well, if it doesn't work, you can just have it back. They don't care. It's just a business to them. Jon G. Sanchez: Right. Yeah. Yeah. Yeah. It is. It is. Cory Edge: but the bank does not want it. So yeah, it's it's like Trump Dwight Millard: Okay. Cory Edge: said long time ago. Well, I don't have a problem, the bank has a Jon G. Sanchez: Ha ha ha. I don't remember that quote from Trump, but it would not surprise me. I would not surprise which time. Which time? Which time? Yeah. Yeah. Dwight Millard: I don't either. But yeah. Cory Edge: Yeah. That that was right when he went bankrupt on the Tropican or the yeah, yeah, sorry. I forget. whatever was in New Jersey. But Dwight Millard: Mm-hmm. Jon G. Sanchez: I remember seeing that place when I went when I was a, you know, young broker. I told you guys I had to go back to, you know, spend six weeks back in New York. And this is what ninety three. And we one weekend we got off and and we went to New Jersey and I saw that. It's like crazy, just crazy over there. But his, you know. that place was. I d I don't remember what w what was I don't remember what his casino was called there. Darn it, forget that, but yeah. Cory Edge: Was it I was gonna say it wasn't Tropican. It started with the gosh, what was it? You're right, I can't remember. No. Yeah. Jon G. Sanchez: Yeah, I want to say Trump Towers, but it wasn't that either. So yeah, I know. We'll we'll look it up during the break. But yeah, it was pretty, pretty, pretty extravagant to say the least. All righty, fellas. Well, let's go ahead and get this break going and get it going and get it out of the way. And then we're going to come back and talk about the three percent mortgage hiding inside the house. And we're talking about assumable mortgages, all the pros, cons, everything you need to know about it as an option in this high mortgage environment with Corey Dwight. Welcome back to the John Sanchez show on Instock 780 KOH with Corey Edge Vegrility. Don't white millard of on Q Home Loans. All right, once again, we finished with a record setting day of the NASDAQ and the SP 500. NASDAQ rose 125 points to close at 27,600.45%. SP up 45 points, 0.58%, closed at 7818. And the old Dow just up 253 points, 0.49%, closed at 51,521. Okay, the three percent mortgage hiding inside the house. That is gonna be our topic. Yeah, yeah. Cory Edge: Hey, John, real real quick, sorry to cut you off. explain to us there was an article today, something about Trump signing something for diesel that had a different color. And I know that's a stupid question for me to ask, but Jon G. Sanchez: No, no, Dwight Millard: Yeah. Cory Edge: they they mentioned farmers. So I'm like, well, John will know because he's a farmer. So red diesel, what what is going on with that? Jon G. Sanchez: so you're talking about the I think it was an executive order that Trump signed Cory Edge: Okay. Jon G. Sanchez: yesterday for what's called red dye diesel. So if for those of you not familiar with that term, it is not a special blend of diesel. It is a blend it is a diesel that we use in marine and farming specifically. Okay. Literally the refinery puts red dye in the diesel. Now, why do they do that? Because as farmers, we don't have to pay federal state tax. We save 20% currently 24.4%, 24.4 cents, excuse me, 24.4 cents per gallon using red diesel for tractors, equipment around the ranch, construction equipment, et cetera, and also in the marine industry. So significant savings. So, Corey, what he what he did, and I I I'm so funny, I'm so glad you brought this up because I'm I'm puzzled of this entire thing. So excuse me. So he announced yesterday he's going to allow. The use of this, okay, to bring down diesel prices, which again have skyrocketed well over $60 or $6 a a gallon. So yeah, he signed the executive order yesterday evening to temporarily allow truckers and farmers to use red dye diesel, which is exempt again from the highway taxes. What got me on this thing, Corey, is farmers are already exempt. So don't hit sit here and tell me, hey, this is a great thing for farmers. We're already exempt from it. Okay. What I don't understand how. The the the government can say this is to allow truckers to use this. Now, keep in mind, folks, that if I put if I put red diesel in my semi and I send one of my guys to to Winnemucket to go pick up a bunch of hay, there's a very good chance when they see Sanchez Ranch LLC on the side of that semi-truck door and our dot DOT number and so on and so forth, they're gonna pull us over. It happens all the time. The NHE p the NHP pulls you over. And they do what's called dipping the tank. They literally get a dipstick, they dip it into your fuel tank. And if it comes out red, be ready to pay some massive, massive fines. Cory Edge: Sure. Jon G. Sanchez: So you don't do that. You just don't do it. I mean, I know a lot of guys that do it, but you don't do it. What I'm curious about though, guys, is this once you put that red diesel in your tank, it stays. It gets obviously into your fuel filter. It it stays in your tank. It's not like you can grab, you know, you can I just love what the government tries to make us look stupid. It's not like you can grab a water hose and put it in your diesel tank after, you know, they they they they get rid of this red dye diesel exclusion Dwight Millard: Right. Jon G. Sanchez: and you can flush your your your tank out, right? I think that's what the public thinks is I'll just wash it out. No, it's in there forever. So how do you then stay exempt? You see my point? So you're still gonna get Cory Edge: 'Cause you're gonna get pulled up when all this goes away, you're still gonna get pulled over. Dwight Millard: Mm-hmm. Jon G. Sanchez: pulled over. That's exactly right. That's exactly right. So you know, just like how I made fun of the announcement the other day, what Dwight Millard: Yeah. Jon G. Sanchez: was it, Thursday, Friday? I can't remember now, where they were gonna allow you know, a hundred they're gonna get a hundred million barrels of oil. I broke down fifty million barrels of oil and fifty million barrels of diesel from the European Union and a few other countries over there. And I ran the numbers and I said, that's three days of global consumption. It's nothing. It's a it's a drop in the bucket, right? So my point of all this is again, I keep emphasizing this, and all of you are so smart. Don't believe everything you read. Don't believe that everything is so great. And boy, we got this program, we got that, because in reality, this especially this red diesel thing, I I just don't know how it's gonna happen. I maybe they've got some great way to figure it out, but boy boy, I just see this is a disaster. I really do. I I love red diesel. I love it because it saves me, like I said, almost 25 cents a gallon. But you get you gotta keep it on the ranch, you know, or in the construction side, or you're you're gonna be in a world of hurt. So anyway, thanks for bringing that up, Corey. That's I could I could do an entire Cory Edge: Yeah, they're Jon G. Sanchez: show on that side of the it's just goodness. Cory Edge: They're they're pulling out all the stops, I guess. Jon G. Sanchez: Yes, yes, they really are. And and again, Dwight, you're you're you've been you've been following midterm elections. It's coming up and we're gonna you I Dwight Millard: Mm-hmm. Jon G. Sanchez: think Dwight, you matter of fact, predicted this a few months ago. You said we're gonna be seeing more and more crazy programs announced the closer we get to midterm elections. And I think this is, you know, kind of one of those. So yep, Dwight Millard: Mm-hmm. Yeah. Yeah. One of yeah. Jon G. Sanchez: exactly. All righty boys, let's get to our topic today. very interested to learn from you guys on this one. Like I said at the beginning of the show, I am a a newbie when it comes to you know assuming a mortgage. So You know, when someone meets with Corey or with Aaron and, you know, you're touring the home, and then of course you're gonna look at the kitchen, you're gonna look at the bedrooms, the neighborhood, the backyard, so on and so forth. But really, what what what we're talking about today could be one of the most valuable features of any home. And that's something you can't see, and that is the seller's mortgage. Again, national average today, where was that Dwight? 756, 753, you said 756. Dwight Millard: Yeah, seven fifty si yeah. Seven fifty six. Jon G. Sanchez: But what if you had one of those two to four percent mortgages? And what if that buyer could purchase that house? And take over that existing low rate mortgage. Would you then, would that make you a competitive seller compared to everybody else? I think the answer is yes. But without me blabbing, and we're running out of time quickly, Corey, let's start with you. And then Dwight, well, actually, you what, Dwight, I'm gonna start with you. You've got to explain for those not familiar, what is an assumable mortgage? First of all, it sounds simple. Dwight Millard: Okay. Yeah. So it i the assumable yeah, the assumable mortgage allows you to just basically take over whatever the current principal balance is. There's a cot there's cost to do it. It ranges from, you know, like VA charges a half a point assumability fee. I mean, you're probably talking five thousand dollars. I mean, it's probably really inexpensive compared to, you know, something else, but You know, the the assumabilities, so you're just taking the interest rate, that's the big plus. You're getting the interest Jon G. Sanchez: Mm-hmm. Dwight Millard: rate and you're getting the current balance. But that could be the the bitter and the sweet because depending on what this house is house is selling for, the difference between what the loan balance is and what the house is selling for is what you're gonna have to come out of pocket. So I mean, I'm sitting there thinking, yeah. Jon G. Sanchez: So let's stop right there. So if if the if the house sells or if the house has a mortgage of two hundred thousand and Corey sells it for six hundred thousand, me as the buyer, I've got to come up with four hundred thousand. Dwight Millard: Correct, correct. So I I mean, John, if if you're a a buyer out there and you've got a lot of money to put down, that may not be a bad thing to do is kind of look around, see if there's any assumable. But the problem is is that you probably really don't want an FHA loan if you're putting a lot of money down. That's typically where you go conventional. Jon G. Sanchez: Right. Dwight Millard: So VA starts to become, to Corey's point earlier, VA becomes very popular because you don't even have to be a veteran to assume a VA loan. No. Mm-mm. Jon G. Sanchez: You don't? I did not know that. Get out of here, really. Dwight Millard: Now the seller, yeah, now this yeah, the seller, which is a veteran, let's just assume is a veteran, Jon G. Sanchez: Yeah. Dwight Millard: they may lose some eligibility being able to use their VA Jon G. Sanchez: Okay. Dwight Millard: on the next. So that's their only doubt. But yeah, you do not have to be a veteran to assume a VA loan. Yeah, yeah. So s yeah. Mm-hmm. Yeah, so that Jon G. Sanchez: I did not know that. Did you know that, Corey? Sound like you did. No? Okay. Wow. Great point, Dwayne. Okay. Cory Edge: I had no idea. No. Dwight Millard: may be that may be a an interest, you know. So if I'm sitting here and I I call Corey and I go, Jon G. Sanchez: So yeah. Dwight Millard: I got a couple hundred grand. Jon G. Sanchez: Right. Dwight Millard: I might ask to see if there's a a VA out there that I might be able to cover the spread. Yeah. Jon G. Sanchez: Right. So Corey, sneak this in and give us a little tease, then we'll wrap we'll come back and get more details. How often are you seeing this right now, especially on the VA side? Are you seeing many people taking advantage of this? Either buyers or sellers. Never. No kidding. Cory Edge: Never. Never. I don't think I've ever done one in my life. and I don't hear a lot of people talking about it only because to Dwight's point, you're gonna assume a $200,000 mortgage on an eight hundred thousand dollar house, like that the cat there's a cash difference, Jon G. Sanchez: Right. Right. Cory Edge: which works for some people, doesn't work for most. and then to your point, we can talk about after the break too. That if you have one of these mortgages and you are gonna sell your house, then you're going to get a definite price bump for that. And you can do the mathematical equation to see what it's gonna save. that buyer, but you might run into an appraisal issue. So you Dwight Millard: Yeah. Cory Edge: you kinda gotta look at it both ways. Jon G. Sanchez: Okay. Okay. Good food for thought. Keep those thoughts, Corey. We'll wrap it up and get more details when we come back. Welcome back to the John Sanchez show on New Stat seven eighty QH, Mr. Cory Edge of Edge. Reality, your phone number, sir. Cory Edge: Six seven three six seven zero zero. Jon G. Sanchez: Dwight Millard on Q Home Loans, your phone number, sir. Dwight Millard: Yes, sir. Two four zero two zero two two. Jon G. Sanchez: Thank you, my friend. All right. boy, once again, I wish we had about another two hours to discuss this. The three percent mortgage inside hiding inside the house. We're talking about assumable loans. Again, don't hear a lot about them these days, but we put our heads together for this show topic and went, hey, you know what? What can we do to try to get those mortgage rates down? And this is what we're coming up with. Corey, talk to me about divorce. Right? You just had your 22-year anniversary. I'm not talking about you personally, but you have a great strategy on the divorce side for. Cory Edge: Well, and it was something that a friend of mine who works for one of the major, major wholesalers, mentioned to me because that was what he did. And I had no idea. But most Fannie Freddie loan deed of trust deeds of trust have a provision in there that says if there is a divorce between the parties that are on there, assuming they're husband and wife, then one of those people, one spouse, can assume the loan from the other one. Basically get the other spouse off of the deed of trust, but the single spouse has to qualify still. Jon G. Sanchez: But keep the existing mortgage rate pre divorce. Okay. That's a great point to know. That is a great point to know. Cory Edge: most people probably correct. Yeah. Keep keep everything so you don't have to refinance the whole thing. and so it's right and what my buddy, this gentleman did, which I had no ideas, they eventually make it to his office. He works for a big national firm, like I mentioned. So that he goes through the qualifying with these Jon G. Sanchez: Okay. Cory Edge: people around the country. So Jon G. Sanchez: Wow. Fascinating. Fascinating. Great point. Okay, Dwight Millard: Mm-hmm. Jon G. Sanchez: Dwight, let's go back to something you caught me off guard and and that is you said a VA is assumable by a non-veteran. Dwight Millard: Yes. Jon G. Sanchez: so let's go back to your example. House sells Dwight Millard: Mm-hmm. Jon G. Sanchez: for whatever, six hundred thousand. but the the the seller only owes two hundred thousand, so the buyer has to step in with four hundred thousand. What alternatives do we have for that four hundred thousand dollar gap? Some people may want it Dwight Millard: Well. Jon G. Sanchez: again, like we said, they sold a house, they had a lot of cash, and they want to just, you know, have a small mortgage. And boy, who's not going to jump over a three percent? But what else can we do there? Dwight Millard: Yeah, no, and John, real quick, the dovetail off that USDA is also assumable, which is looks, walks, and quacks like a VA. You just don't have to be a veteran. So it's no money down. So USDA also USDA, F H A and VA. But to your point, I mean, obviously if you have the cash, you have to make up the difference. But now you can actually do secondary financing. So let's say you have 200 of the 400. you could do that, and then you could go get a home equity line, a fixed rate second as a s as a you know, secondary financing, which keeps your blended rate then better than what your current rates are. Yeah. Yeah. And your blended is Jon G. Sanchez: Lended's the key word. Dwight Millard: yeah, so the higher rate's on the second, but your big loan is on the first, which is low. So yeah, that's Jon G. Sanchez: So so let's let's let's let's stop real real quickly there 'cause that's important. So you assume a three percent in our perfect world, you assume a three percent, but you got to go out and get a home equity or whatever form of gap financing that you have there. And let's say it's at seven, right? But you're saying the blended, okay, yeah, it's not all three, but it's not all seven. So you blend the three and the seven to get an average of, you know, whatever that number comes out, five and a quarter or whatever that number is. that is your true effective rate between the two loans. That's what you mean by blended, correct? Okay. Dwight Millard: Correct, correct. Which is way better than what you would get, you know, it's Jon G. Sanchez: Yes. Dwight Millard: two points higher today than what you could get on a blended. Jon G. Sanchez: Do I what's the qualification process? Is it same, harder, less? No? Okay. Dwight Millard: Same thing. Nope. Same thing. You know, they look at credit, debt to income ratios, time on job, all the things we look at, the s the assum the assumptions are are the same thing. They're gonna look at everything. Jon G. Sanchez: Corey, how does a buyer find out I mean, do you start with your agent and go, share with me any of your your listings that that are assumable? I mean, that's why it was done in the old days, Cory Edge: I I would Jon G. Sanchez: I remember. Cory Edge: yeah, and I would assume most of the agents don't know, but you can look at every house that has a mortgage, that mortgage is recorded. The deed of trust is recorded. So anybody can look at it and see if it's a FHA, a VA, maybe a USDA, and start there. And I would not rely on your agent to figure that out. You need to spearhead Jon G. Sanchez: Okay. Cory Edge: it. Jon G. Sanchez: Interesting. Cory Edge: because most Dwight Millard: Yeah. Cory Edge: agents won't dig in that far. So Jon G. Sanchez: Is there is there technology that we could use to expedite that? Cory Edge: I'm sure you could create a bot to do anything. Jon G. Sanchez: Yeah. Cory Edge: because it's all pu it's public, but we'd have to ask Mr. Clark because he knows all this stuff. Like Jon G. Sanchez: Right. Cory Edge: you gotta get into the recorder system and then have it dig around. I don't know how you Jon G. Sanchez: Okay. Cory Edge: you know, maybe Mark Zuckerberg can figure that out, how to let that but I don't know how to do it. Dwight Millard: Yeah. Jon G. Sanchez: Yeah, okay. Cory Edge: hey Dwight, while we're talking about it though, let's assume it is assumable. The there's servicers out there that aren't lenders. So who do you call? Do you call whoever the deed of trust is or whoever they're making the payment to? Dwight Millard: Yeah, that's probab well the servicers will have should have the answer to that because they're gonna represent Cory Edge: Okay. Dwight Millard: they're gonna re represent them. So you should know most again, most most if not all of the FHA VAs and USDAs have the assumable feature in it. So you can just make the assumption that it's assumable and then and then I think that gap financing, John, is real big. And I we gotta then you Jon G. Sanchez: Mm-hmm. I do too. Dwight Millard: would dig into the lenders that will do the gap financing for the difference. So Cory Edge: But I I Jon G. Sanchez: Could could Cory Edge: guess my question is you're you don't you don't call your favorite mortgage broker, you gotta call the person who already has the loan. Yeah. Okay. Okay. Gotcha. Dwight Millard: yeah, yeah. It's yes, yes, yes. You go through whoever's servicing, whoever has the loan, correct. Yep. Jon G. Sanchez: Yeah, it's all, yeah. Dwight, could we do a show about that gap finance? And I think that we could do a show entirely on that. That's it's pretty pretty. Okay. Here go. Beautiful. Dwight Millard: Yeah, what I'll do, John, is I'll reach out to a couple of you know, my sec secondary lenders. Yeah, and see if they if yeah. Jon G. Sanchez: Great topic, guys. Great topic. We just scratched the surface, of course. Any questions, folks, reach out to the boys. They can get you all the details and all the answers. Excellent job as always, fellas. Sure appreciate ya. We'll do it again tomorrow on the John Sanchez show. God bless. Have a great afternoon.