Transcription Tulsa Mortgage
Steve: This is stevecurrington.com in the Steve N’ Tyler show episode number 59.
Narrator: Welcome to the Steve N’ Tyler Show with stevecurrington.com and Tyler Wagner.
Steve: Who negotiated the contract for you?
Tyler: A Realtor.
Steve: That’s pretty smart.
Steve: Good for you men.
Narrator: They are talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready because here’s Steve and Tyler.
Steve: What’s up?
Tyler: Good morning.
Steve: Hello Tyler.
Tyler: Hi Tulsa Mortgage.
Steve: Tulsa Mortgage is hot today. Listen, the speed at which we close loans is second only to the speed at which I drive to the podcast. That’s right. Today, I met one of Oklahoma’s finest highway patrolman on the Creek Turnpike in Tulsa, Oklahoma. Quite a nice gentlemen. I always say he’s nice because gave me a warning. [Laughs] Hey, a fresh early morning here in T. Doan and we’re talking about Tulsa mortgage today. We’re talking about home loans. We do with a home loan experts here in Tulsa and, so today, Tyler, we’re talking about do I have a choice in my loan term? In my loan term, do I have a choice?
Tyler: No. You can get what we give you Tulsa Mortgage.
Steve: Hey man, you can get what you get. You don’t throw a fit. That’s the rules. I tell you like I tell my kids. Now, you got a 30-year, that’s what you’re getting, just deal with it.
That’s what Tyler tells me every single day at the office when I get there. He goes “Hahahaha” shut up. shut up. What’s the reality Tyler? Do I have a choice in my loan term? I mean like, come on, on the real.
Tyler: Yes, you have a choice.
Steve: On the real?
Tyler: Yes. As long as you can qualify for it, you’ve got enough choices in your Tulsa mortgage at GetKoalified.com or SteveCurrington.com
Steve: As long as you can qualify?
Tyler: Yes Tulsa Mortgage.
Steve: You know, hey, you know you like quality service. That’s why we’re always here for you even when you least expect it. Do you hear that one? I wrote that myself. Yes, if you can qualify for it then that’s the deal, right?
Tyler: Yes Tulsa Mortgage.
Steve: It’s just, you’ve got to — and what I mean by that is, some people might qualify for a 30 year, one to 20 or a 25 or even a 15 or even a 10 year term, but their debt ratio is too high so they wouldn’t. Even though they want to do a 15 year, they may not be able to have the income to be able to qualify for a 15 year. That’s a whole another story. We haven’t even gone into terms before, have we?
Steve: Now, this is a first, this is like our first opportunity to go into loan terms.
Tyler: Yes Tulsa Mortgage.
Steve: I mean, this is kind of a special day. This is a really special day. This is the Brave Heart quote, because I think that’s a special day too. [laughs] Here’s the deal, of course you have the opportunity to pick your loan term as long as your lender offers it and most lenders do. Terms starting as low as 10. This one of my favorite subjects, okay? Because I talk to people all the time and Tyler’s heard me say it probably a million times, right? What is Tyler the thing that I tell people about a 30 versus 50? Can you remember? It’s my favorite quote. You’re going to make — I’m going to make?
Tyler: 180 payments.
Steve: You’re going to make?
Tyler: 360 payments Tulsa Mortgage.
Steve: No. I’m going to make 180 payments and you’re going to make a 180 more. [laughs] That’s what I like to say. Look, the’re no judgment if you do a 30 year or 20 or 25 instead of a 15. It’s just, if you’re in the business like we are, most of the time, unless it’s for some strategic tax purpose, you’re going to do a 15, because we see the interest that is accrued over the life of the loan, right Tyler?
Tyler: Yes. Tulsa Mortgage.
Steve: It’s a lot of money. Here’s what the — we keep going back to the book. Now, this is our research, because you as a consumer are probably out there researching on the Internet. We do the same things so we can find information that you might come across and then either verify it or debunk it. We’re like, what’s that show called? It’s called MythBusters. We’re like the mortgage MythBusters here at the Tulsa Mortgage Company that you call. 10-year, 15-year, 20-year, 25 and 30. Now, just to give you a breakdown, if let’s say you went from a 30 to a 25, you’re going to pay about the same rate. There’s not much difference in rate between the 30 and the 25.
If you go from a 25 to a 20, then you’re going to see a little bit of improvement in rates, a little bit, not anything major. Where you really see the big jump is going from a 20 to a 15 or going from a 30 to a 15. That’s where you’ll see the benefits of the rate that you get anyway. The difference in the term lies in the monthly payment and how much interest you can save over the long term even though the interest rate on a shorter term is usually lower, the monthly payments will be higher.
For instance, if you had a 7% loan on a 30-year fix on a $300,000 loan, your mortgage payments are about 1,995 bucks a month without taxes and insurance where if you priced, and this is giving you a comparison of a 15-year at 6.75, when all reality if you’re doing a 15-year versus a 30 that rate’s going to improve by about 0.75 probably rather than a quarter. There’s your debunk right there because they’re kind of making it look like oh, if i do a 15-year, my rates not even really that much better. You know what I mean?
Steve: It’s not always.
Tyler: That’s true.
Steve: I mean it just isn’t. It’s not always better but — I mean it’s not always better by that much but it is a lower rate and so in this case, the payments $2,654, you’re going to pay in that example, you’re going to pay $2,654. You’re paying basically 670 bucks more a month but you’re paying it off in 15 years. Now, what is more likely thing to happen and what we’re doing, what we’re seeing a lot, right Tyler, is the people that are currently in a 30-year, and they’re going to a 15, right?
Steve: We’ve got a couple right now that we’re doing that with and here’s the thing. Sorry I was away from my microphone. Here’s the deal, if you’re currently in a 30-year and you’re five years in, let’s say this is the scenario, you’re five years into your 30-year fix, and let’s say you’re at a higher rate but you did it in 2010 and you’re 5.5%, okay? What we recommend that you do is, if you’re going to refinance to get a lower rate, go to a 15-year because when you go from 5.5% to like 3% on a 15-year, depending on your loan size, your payment may not even go up and out of the same payment. But the difference is, instead of being at 25 years left on your loan, you’ll be at 15 years left on your out loan and the amount of interest that you pay over the life of that loan is going to be ridiculously less.
If I could draw this, imagine for me people, imagine a whiteboard and on the left of the whiteboard I have written 30-year fixed 200,000 dollar loan and on the right side I wrote 15-year, 200,000 dollar loan, and make up the interest and the principal doesn’t matter but 95% of your payment on a 30-year is going to interest. On a 15-year, which is on the right side of the whiteboard, 95% of your payment is going to go to the principal. [laughs] That’s the difference. I mean it literally flip flops on a 200,000 dollar loan if your principal and interest payment and your total payment is a thousand bucks, then $956.18 is going to interest and 44 bucks is going to principal.
When you do a 15 or maybe a 10, it just flips literally. It goes to $950 goes to interest — and I’m exaggerating a little bit but it’s literally the difference between the 15 and a 30 is the difference of you paying a whole bunch of interest and you paying a whole lot of not that much interest. Plus, think about this Tyler, I have a 14 year old daughter, okay? If I got my mortgage when she was born and I did a 15-year, I, now at the age of 15, I will own a home free and clear versus on her 30th birthday, [laughs] if I live on that same loan. I don’t know any other way to compare but literally you’ve got to look at it’s 15 years versus 30 years. I’m going to make 180 payments, if you do a 30, you’re going to make 180 more. That’s the deal.
Steve: What do you think? Did we leave anything out there? That’s the 50. Now, 10 can be different. Obviously your payments going to go up a little bit higher. Your rates is going to be about the same on a 10 year versus a 15. Look, there’s all kinds of mortgage calculators out there so don’t take my word for it. Get into a mortgage calculator and go do the math and figure it out for yourself because the information is out there. It’s just a matter of you going to do the math. People do that all time. They will call us and say “Well you know what my payment is” and I literally this is how you do it, this how you calculate your payment. Okay Google, find me a mortgage calculator. It’s crazy it’s on Google. If you just like type it in mortgage calculator, there’s one like built into their site. What I say about that it’s not like any website that you’re necessarily going to even thought I want you to go to getqualified.com to get qualified. But Tyler, right here. Mortgage calculator run on Google. I’ve got this really high tech-loan origination system, it’s got all this cool stuff and features on. I don’t mess around when logging in to my computer and get into our system and I just go to Google and I’m like okay, I do the rate, I do the term, boom.
Let’s do that for example because anybody can do this on their thing. Let’s see how close I was on my $200,000 payment. $200,000 payment at this is 3.92% on a 36 year fixed. The payment is $946. If you do that same on a 3% rate but you do it on a 15 year and this will give you the breakdown of principal interest but was it $936? Is that what I just said?
Steve: $1,381, so it’s 350 bucks more. 450 bucks more. I did that on my head. This is why I look at it. Can you budget $450 more for your house? Just to pay on the payments on your house. Do you think you can budget that Tyler?
Tyler: Yes. I could.
Steve: Then you need to do a 15. That’s the question. If you can find something else to not pay for and you can pay $450 more towards your mortgage, do it. I mean it’s not rocket science man, it’s like — or pay $936 a month for another 180 months. Your daughter is going to be 30 people.
Soundboard: Come on men.
Steve: I’m trying to find what is the [music]. You have a barrel of fun making 180 more payments than I do and look, nobody is judging anyone. Again, pick the freaking term you want to pick, I’m just saying. If you are rate conscious, then you ought to be interest conscious and you ought to just think about not paying for 30 years.
Steve: To me if I was — and we’re a lender but I’m just saying if I was the interest rate guards on Wall Street, you would think if you’re going to pay off faster then I will give you a higher rate because I would want to make more interest. But why do they do that? I will tell you why. Because it’s less risk. It is, because it’s less gross for a short amount of time, right? I’m going to say I will give you all my money for 15 years and this is less risky because I don’t want to give you my money for 30, so I’m going to give you a better rate. That you think so you can make more interest, I mean you charged a higher rate, I mean maybe. Then it wouldn’t make any sense to do a 15. There will be no incentive, would there?
Steve: There would still be an incentive, you could pay it off sooner. But there won’t be a big rate incentive. You know what I’m saying? You know what I’m saying Tyler?
Tyler: Yes. [music]
Steve: This is what happens when you impart wisdom like this upon the podcast listeners in podcast world. It’s like the angel choir singing. [music] That’s how powerful this information is. I’m just kidding. This is what Tyler sitting over thinking.
Soundboard: Hahahaha, shut up.
Tyler: Well, there actually is a loan out there too but you only have one option, 30 year.
Steve: Which loan is that Tulsa Mortgage.
Tyler: I think the rural development loan.
Steve: USDA doesn’t let you pick a term, do they?
Steve: That’s not good. What if I wanted to do a 15?
Tyler: You’re not doing it already Tulsa Mortgage.
Steve: Record set huh? We just did our biggest deal loan ever, it closed yesterday.
Tyler: Yes we did.
Steve: I mean it’s crazy. I don’t even want to — it’s $321,000 was the loan amount.
Tyler: 100% financing.
Steve: 100%, no down payment. Actually they did $1,000 of honest money and they got $680 or 700 bucks. They literally bought a $300,000 — they actually paid $312,000 with their funding fee or it was like $322,000. Their loan amount is $322,000 but they bought a $315,000 house with $320,000 out of pocket. Well they, no that’s right.
Steve: Because we paid for the appraisal. Congratulations on that. An unfortunate thing happened and that’s why we did that. They’re buying a house two weeks before closing, they wake up on the news, the house burnt to the ground. Can you imagine the luck, and then I didn’t even tell you this Tyler but yesterday we’re in the closing and the closer said she woke up this morning and was watching Fox News and at the bottom it said home on fire is a Pauper. Well that’s what they were buying this house. That Tulsa mortgage, so Pauper mortgage. The insurance is like “Oh God. Please tell me that’s not their house.” It wasn’t obviously. They drove by this morning, yesterday morning, they drove by just to check to make sure that the house hasn’t burned down. But that’s one of those like literally.
Soundboard: Come on man Tulsa Mortgage.
Steve: My house burnt down before I could close on it. Anywho, you’re doing a USDA, you’re doing 30 year, you don’t really have a choice but you’re also getting 100% loan. Think about that though. We will talk more about that. Now that we’re getting into these long term things, we’ll talk a lot about different terms so be sure to tune in to our next episode which Tyler, let’s give them a teaser, what’s our next episode about Tulsa mortgage?
Our next episode we’re going to talk about why the payments are higher on a 15 year loan even though the rates is lower. That’s going to be a real eye opener for people. Get ready to listen to that and you can find us at actually our new website that I just purchased. You know I’m a domain buyer, I’m more crazy. stevecurrington.live. If you can go to stevecurrington.live or you go to podcasts.stevecurrington.com, you can find our podcast and you can visit getkoalified.com to get qualified for your next home loan. I’m stevecurrington.com and Tulsa mortgage. I’m here with Tyler Wagner and that is our podcast for today. We’re out, see you.
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