Will Mortgage Rates Drop Soon?

Should I wait until I hear more from the feds and more in the news before I buy a house or rental properties? This is a burning question in Americans’ minds, and we are getting down to the potential answer today with our guest, Kyle Koller.

Kyle is a founding member and partner of U Mortgage. He has seen the ups and downs of rates and how that’s affected the buyer pool. Many of the things we are discussing today come down to opportunity cost.

Take a listen and see if RIGHT NOW is the time to buy a house.

Explore your passive income potential here: https://bit.ly/3J1y1vX

Listen HERE or watch on YouTube: CLICK HERE!


Speaker 1 (00:00):

And just a 1% drop meant 5 million more borrowers qualify to get a mortgage who couldn’t last fall,

Speaker 2 (00:06):

But December, January you could go in and get a house, be literally the only offer on that house. We’re still on a good point right now, but come two, three months, I think you’re going to be right again there, Chris, and telling

Speaker 1 (00:18):

That to love our clients. Some have pulled the trigger, but a lot of them just been sitting around twiddling their thumbs like, what are you doing?

Speaker 3 (00:26):

Chris Miles was able to retire twice by the time he was 39 years old, but he’s not content to just enjoy his own financial freedom and peace of mind. Chris wants you to have your own ripple effect so you can live free today. He’s not the financial advisor you expected. He’s the non-financial advisor you deserve. He’s jumping behind the mic right now, ready to make waves. Here’s Chris Miles.

Speaker 1 (00:56):

Hello my fellow Ripples. This is Chris Miles, your cashflow expert and anti financianal advisor. Well, I’m going to show it’s for you. You work so hard for your money and you’re now ready because you’re sick and tired of it, but you’re now ready for your money to start working harder for you today. You want that freedom. You want that cashflow right now. You don’t have to wait 30 or 40 years for it to happen. You want it today so that you can live that life that you love with those that you love. But most importantly guys, it’s not just about getting rich, it’s about you living a rich life because as you are blessed more financially, you now have a greater capacity to bless the lives and create a ripple effect of those around you. Thank you for tuning in today. Thank you for allowing me to create a ripple effect through you.

I just want to remind you, if you haven’t done so already, subscribe to our YouTube channel, the Money Ripples channel, and as well as the Money Ripples podcast channel that we have as well. You can definitely check that out if you love short videos and little clips. Basically if you’re a DD, check out that other channel as well. So guys, be sure to do that today. Alright, so I’ve got a guest, actually I believe this is the second time we’ve had Kyle back on here, but I’m really excited to have Kyle Kohler here today because of this very reason is that right now the number one objection I hear from people about either refinancing their house, buying a new home, or even buying a house as a rental, they actually say, shouldn’t I wait for mortgage rates to come down? I wait a little bit longer.

Should I wait until I hear more from the feds and more in the news? But the problem is, guys, you wait until somebody else tells you. That’s when you know it’s too late. That’s the problem. And so I’m bringing Kyle here because Kyle is on the ground floor. He’s a founding partner as well as a branch manager in U Mortgage is somebody that we’ve sent many of our clients for referrals because they’ve got amazingly, competitively low rates and terms, which is what we love. And so we want to talk about that today is are rates, are they going to keep going down? Are they going to go up? What’s going to happen and really what should we be doing right now and what’s really happening in the market? So Kyle, welcome back to our show.

Speaker 2 (02:53):

Thank you so much, Chris. I appreciate that introduction. Lots going on. Boots on the ground a lot.

Speaker 1 (02:59):

No kidding. Well give us just a little bit more of your background and just what even got you in the mortgage industry in the first place.

Speaker 2 (03:04):

Yeah, it’s funny. It is a crazy story of how it happens. So I feel like for everyone what they do in their industry, mine was I was trying to get into dental school and I was having a hard time getting in. I had the most kind of generic scores, GPA, getting interviews but not getting in. And then a friend of mine messaged me and said, Hey, you should come work with me and do mortgages. And I didn’t know anything about

Speaker 1 (03:25):

That. That’s like pulling teeth.

Speaker 2 (03:27):

I thought I work at a bank with you. Am I a teller? I had no idea, but he’s like, no, come and check it out. See how the industry is. And then that was roughly eight or nine years ago and he came in, taught me the industry and I just kind of sprinted ever since. So it’s just been kind of a blur, but mortgage years is kind of like dog years, so I feel like I’ve been doing this for 20, 30 years, just seen so much. But yeah, dental school to a mortgage career and now I am a branch manager of roughly 80 loan officers nationwide. We’re a nationwide branch and it’s just been fun to see it grow from five or six of us now to roughly, we’re kind of hovering close to the a hundred range. I’m excited.

Speaker 1 (04:07):

And you guys are doing well over half million a year in loans, right? Is that correct?

Speaker 2 (04:12):

Half a billion. Oh

Speaker 1 (04:14):

Sorry, half a billion. That’s what I meant. We’re doing a lot. 500 million plus

Speaker 2 (04:17):

This year. We should probably hit the 750 threshold. My goal is a billion. I want to be a billion dollar branch. So for just our branch alone, our companies does three or 4 billion a year as a whole nationwide company. But my nationwide branch, our goal is to be a billion dollar branch and keep speaking it to existence. This is going to happen. We’re going to be a billion dollar branch and what helps us is being nationwide, like you said, the low rates and getting a lot of units. We’re over a hundred units a month and we’re pushing to grow and just to improve on that piece.

Speaker 1 (04:48):

Well, with what I’m seeing with mortgage rates, I know everybody talks about the fed rates and people get those mixed up, the federal fund rate, which is what homemaker lines of credit are based on. But then there’s the mortgage rates that I see where I follow more of the 10 year treasury yield, which is a daily adjustment that’s actually adjusting on a day-to-day basis. And that’s more with the 30 year mortgages and things that you see. What are some common myths or things that are hanging people up right now that now maybe they’re starting to realize, oh, I made a mistake.

Speaker 2 (05:18):

So big myths is depending what the 10 year treasury does, sometimes the rates go up and down. It can affect mortgage rates. Sometimes it has nothing to do with the mortgage rates. So people that are just following the 10 year treasury, they’ll tell me, Hey Kyle, 10 year treasury is down. Our rates are definitely down, aren’t they? And you can take a look sometimes, depending on if the mortgage backed securities are trading well or they have any sell offs and stuff like that, the rates come down, but sometimes it doesn’t affect it at all. So a lot of people admit is thinking, oh, the 10 year treasury is down, rates are going down, and we don’t see that today. For example, the 10 year treasury is down six basis points, but mortgages, we have 14 basis points swing. So it’s actually in the green for mortgage rates are better today, whereas a 10 year treasury, it’s slightly, it opened up a little bit, six basis points worse, whereas mortgage, there are 14 basis points up. So it’s kind of interesting how that works. That would be a day of the correlation where it doesn’t quite make sense. So mid number one is that they are correlated? Yes, but doesn’t mean they’re exact

Speaker 1 (06:20):

Exact, right. If there’s a big move, then often you’ll see it happen, but the little micro removes maybe not so much.

Speaker 2 (06:26):

Also, there’s a ton of investors out there. We have thousands of banks depending on how they want to hedge their bets. They’re the ones deciding, oh, well if, yeah, rates could get much better that day overall, but some lenders will say, Nope, we’re not going to make any price change today. Other lenders will say, we will have a price change today. So that’s kind of why I like to be able to be a broker. I’m a broker so I can broker out to different banks and lenders because then I can see what they’re doing, what these lenders are doing, making the decisions when they see decisions with the Fed or what’s going on with the treasury. It’s kind of nice to see, oh, I know they’re hedging their bets. They think rates are going to get worse on Monday. They think rates are going to get better so you can make a decision. It really helps me make an informed decision for my client to see, okay, I think we should lock or we should float. It is nice to have those options.

Speaker 1 (07:14):

Well, and I’ve even heard on occasion that often it’s usually smaller or regional banks where there’s even special little loan programs. So they might say, Hey, we’ll give you fixed 4.99 or 5.99% if you do this that X, Y and Z or qualify for this. Are you seeing that happening right now too?

Speaker 2 (07:30):

Yeah, so actually there was an article, I got to see what just came out, but they said that the independent mortgage banks, they said, I’ll look for it and say it to you Chris, but they said that they lost on average roughly $1,900 per mortgage loan origination in Q4. So what that tells me is that they were doing that exact same thing you were mentioning. Maybe they were holding on to maybe a thousand loans that they could bundle up and sell as a mortgage backed security, but right now they found out that they lost a lot of money doing that in Q4. So I think the rates are going to be spiked up for these banks so they can recoup that. So that’s why it varies between banks having higher rates and lower rates because of what they’ve done, the strategies. So this strategy that these banks tried to pull off what you mentioned, it didn’t really work out for some banks, they showed a loss on their balance sheet in Q4 of 2023.

Speaker 1 (08:22):

Well, especially where I know there’s a lot of more cash buyers than entering the market doing purchases. There’s a lot less loans going out for the well and home sales have been down, although like I predicted, they’ve been coming back up again. They just announced February’s numbers, but again, they mentioned cash buyers are big. So I know that the mortgage business has really suffered. How have you guys weathered through that as is obviously it’s not 2021 right now.

Speaker 2 (08:45):

Yeah, so 2021, you just answer your phone, that’s all you have to do, right? I had my phone off the hook, I’ve been in the industry for everyone in the neighborhood could refinance. Nobody had rates in the twos in my neighborhood, so you could just literally knock doors if you wanted to. Right now there’s a needs market that we work on, so we pivoted. So I went on a recruiting binge as well to grow my branch because there’s loan officers that aren’t happy with what their company’s doing. So a lot of the companies, they have two options right now. I see companies that are like, oh, we’re just going to weather the storm and just kind of stay put. And then there’s ones like my company where we’re like, no, we’re going to attack the ground floor and go after the needs market because people still need to buy investor properties.

People still need to buy houses, whether they’re military and they have to relocate, maybe their family has grown and they just can’t live in that house much longer. What we try to provide for people is the needs market. I don’t want to come in and say, this person, this military member, they have their orders, they have to move. They’re accustomed to always living in a house that they don’t rent they want to buy. So what do we want to provide for them? Yeah. Yes, rates are higher than they normally are. Historically, from what we’ve seen, especially 2020 was anomaly. But what we’re trying to provide, well guess what? It’s kind of the same for everyone else that we have to deal with the treasury here. Let’s try to offer you a good rate. We had to lower our margins obviously to help make this work for people, but we’re here to help the needs market so it’s palpable.

We want to make sure they have a good experience, make sure they can afford this payment. And so we’re not trying to weather the storm. We’re trying to tell them, Hey look, this is our reality right now, so maybe we have a little bit lower mortgage insurance option. So right now mortgage insurance is a lot cheaper than it was actually in 2021. So people can have a lower payment on their rate because like you said, it’s a payment overall. It’s not just the rate. We got payment with the rate with the mortgage insurance. So lenders are trying to get creative to help consumers be able to afford housing. But what helped us crush it in 2023, we had, the best year we’ve had as a company is scalability. So we’re licensed in 48 states and then focusing on that needs market, people have to move regardless of what’s happening with rates. And so we want to be able to help them and make sure they have the best experience for that specific needs group.

Speaker 1 (10:56):

Now one thing I know about you is that, so people talk about home sales and home prices, whether they’re going up or down, and by the time a news announces it, it’s always the following month when they announce it. And it’s almost at the point where you’re behind on the news. And this is why I tell people, if you listen to the news, you’re already too late, but you are the first line. You’re really like that first line of offense. You’re on the front lines because good on the ground. Because when they’re going to you first even they put offers in Yes. But then you’re immediately the person they talk to and they put an offer even before the house is sold. I told everybody on this podcast in January, I said, watch out spring, the summer of 2024, you’re going to see a spike because mortgages in October, we’re at a high, they’re higher than they are now. They’re up near 8% now they’ve come down below 7% and just a 1% drop meant 5 million more borrowers qualify to get a mortgage who couldn’t last fall. So when there’s that normal transition spring to summertime, especially between school seasons, that’s when people are looking to buy houses, which is right about now. Are you seeing that spike starting to happen again?

Speaker 2 (12:00):

Oh yeah, absolutely. So for example, you nailed on the head perfectly, Chris, a great prediction way to crush it, but December, January you could go in and get a house, be literally the only offer on that house. Now what’s so great about being the only offer on the house is if you’re the only offer, you have more leverage. So now you can get seller paid closing costs, it maybe help you get a permanent rate or help you get what’s called a temporary rate. And what a temporary rate buydown is, is they can get a seller credit to have what’s used. An example of just as just an example, not what rates are at right now, but let’s say the rate’s at 6.875. They can get a seller credit to literally get their first year at 4.875 their second year at 5.875, and then years three through 30 at 6.875 completely paid by the seller.

That is something when you’re the only offer on that house that you can negotiate and you’d be very surprised. We have percentages here, the date of how many sellers were accepting those types of offers. And then February hit, March hit, and now there’s three offers, four offers. This last one that we saw, we had an average of 3.4 offers per house, and I promise you April, may is going to hit six or seven offers. So if you’re thinking about it and you’re on the fence, think about the difference of leverage you have if you’re competing with six people. I like to have a picture of, let’s say you’re in a box, it’s you against one person or you against six people, how much more competition’s going to be? And so right now we’re seeing someone who wants that two one buy down, so it could be a little more palpable, but then someone comes in and really wants the house and they’re like, no, we don’t need the two one buy down, or We don’t need any seller paid closing costs.

We’re just going to take that offer so they can get the house. And it’s not as wild as 20 20, 20 21, but starting to get, it’s getting crazy. It’s definitely getting a lot more people in on offers. And so it’s switching. The buyers aren’t having as much power as the sellers. It’s still there. We’re still on a good point right now, but come two, three months, I think you’re going to be right. Again, Chris, I think anyone who’s sitting on the sidelines right now are going to kind of shoot themselves in the foot and be like, oh, I should have just got it now instead of waiting.

Speaker 1 (14:05):

Yep. I’ve been telling that to a lot of our clients. Some have pulled the trigger, but a lot of them just been sitting around twiddling their thumbs, what are you doing? This is the time right now.

Speaker 2 (14:13):

Everyone doing, we are all very similar. People don’t understand regardless of political aspects or religious or any of that, we’re very similar creatures and everyone’s sitting on the sidelines waiting and the ones that aren’t waiting are winning. I’m seeing it boots on the ground. The ones that are proactively going out and getting the house, they’re winning 2020 and 2021 was interesting because you couldn’t get a house. You, you just had to offer so many houses. We’d have an average in Utah here, I’m locally in Utah, but in Utah we probably had eight to 12 offers on every single house. And so I had clients that were so frustrated that rates were so low they couldn’t get into a house, so they just settled for the house that they wanted back in 2020. They didn’t even like the house. They’re just like, I need to get in a house right now is opposite. Rates are a little higher. You can actually get the house you want. There’s a beautiful house that you’ve been looking at and you’ve been seeing for afar, and it goes in, it lists. Now you’re only going to compete with one to four people. That gives you a 25% chance to get that house. Whereas in May, June, July, you’re probably going to, that’s going to be cut in half,

Speaker 1 (15:14):

10 to 20. Yeah, and I noticed you said this to me when we’re off the air before, it sounds like there’s a lot of people have pent up demand. People have just been waiting. It’s almost like they’ve almost accepted the rates the way they are now. And now they’re just emotionally done with where they are. They want to move now just in 2020 when nobody could buy a car, when we got to be 21 or 22, people are like, alright, I’m buying that car now. Right. What are you hearing right now from the sentiment in the marketplace?

Speaker 2 (15:41):

Yeah, so what I’m seeing is a lot of people, like you said, they are not really, nobody cares what the rate is if they hate their house or if their house is too small or if they want a garage or they want a yard. There’s a lot of people that bought in 2020, especially even the first time home buyers that now have two or three kids and they want to go in the backyard with their child, but the house that they bought was maybe a town home or something that didn’t have that. They want to have bigger property, they’re walking away. Whether I tell ’em you, if you can turn it into a rental because 2.875 rental is an amazing cashflow forever. It’s phenomenal. But if these people would much rather right now they’re like, no, I want to live in the house I want to live in. I don’t mind paying an extra 500, $600 a month in payment because I get the house that I want. So people are kind of accepting the fact that yes, rates are a little higher, but I really want that new kitchen or I want a garage or I want that bigger house. So it’s a cycle. When your family grows, you want different things and a lot of people are just, they don’t care about the house that they bought in 20 20, 20 21.

Speaker 1 (16:42):

What do you think about this strategy, Kyle? And this is something I mentioned back in January on the show is I said, I’m like, this is my prediction. I could be wrong because I mean the truth is 2023, almost everybody said real estate prices will drop. And nationwide they went up over 5%. It was like five point a half percent nationwide this year. Like I said, I predict that, I mean I don’t know if it’ll hold for the entire year, but I’m pretty sure it would, especially through the summer, is that if you bought, now, even if the rates were higher right now, if you bought now, there’s very likely you could easily see a 5% appreciation jump over the next three to six months. So say you bought a half million dollar house and then all of a sudden that half million goes to 525,000, even if the rates came down later, even if you refied it had to pay new closing costs. And you can probably correct me, there might be ways to do no cost refis as well, right? Yes. Even if I had to pay 10 grand for that refi, I still netted 15 grand for free. I

Speaker 2 (17:40):

Yes. And again, the reason why I think you’re going to be correct is it’s about offers. When you have more offers on the house, that’s when the appreciation goes up. It’s going to be the highest bidder. So when people June, July, August are really itching to get into the houses, especially if rates go, like you said, if rates go another 1% lower, that’s another 5 million buyers. So it’s just math. So if you have an extra 5 million buyers that now are pre-approved that wanted to buy a house, but they couldn’t because they weren’t pre-approved, but now they’re, think of you as if you’re pre-approved right now, you want to compete with the people that are pre-approved right now, not people that are pre-approved in the future because an extra 5 million people. So more people, more offers higher appreciation. I think you’re going to be right on the spot there. I think people that even I think if they waited in March right now and they try to buy in August, I guarantee those houses from March to August will be at least four or 5% higher in purchase price. I know it. It’s just math from, you can even look back the last 20 years. It appreciates. And so that’s what I predict. Yeah,

Speaker 1 (18:41):

We’re even erring this in early April. So guys, that even means less time. Yes. Good luck with that. No, it really does. What do you say with those that are wondering, well, should I wait for rates to drop instead of just trying to get in now? I mean, are there good refinance options that you think allow people to refi for lower costs or even for no cost? Yeah,

Speaker 2 (19:07):

The reason why I really love the temporary rate, I love this program, Chris, because it’s a subsidy, I love it. So for example, because it’s a subsidy, let’s say you buy a house in April and you get the one oh buy down. So what the one oh buy down is, is you just get that 1% lower rate for that year. Let’s say rates happen to get better in six months when you’re able to refinance, well, you still have six months left over on that subsidy. Guess what the lenders that we work with do, they’re going to give that back to you in the refinance so you don’t lose it. That’s why I love it. A permanent, you’re going to bet against the market. So if you’re going to buy down a point, let’s say it’s a million dollar loan amount, you’re buying down 10 grand.

Well, if the rates get better and you refinance, you bet on the market that the rates were going to get better. So you lose out temporary, I love because it’s kind of a win-win. You get that alleviated payment that’s lower, and then after if the rates do get better, you can refinance and you get some of that money back. So that’s why I’m a huge advocate for the temporary one oh or two one buy down. And I tell them to negotiate that with the seller. The seller has to pay for it, all of it. It’s just a win-win situation right now. So I tell clients, Hey, look, imagine getting 4.875 right now. You can get that rate right now through a two one temporary buy buydown, and you’re going to be winning. You get the house you want, you get the rate that you want. And then you don’t have to worry about, well, what if rates get better? Well, what if rates get better? Well, cool, if you’re on a two one buydown, that’s 24 months worth of 2% lower rate one year, what percent lower rate than the note rate? The second year you got a buffer of 1224 months of if rates do get better, bet better, you’re in a win-win situation.

Speaker 1 (20:41):

And if they don’t get better, if they even go higher, you’re still like, well, at least I’m in right now, lower

Speaker 2 (20:46):

Least right now. At least I experienced 12 to 24 months of alleviation. And then if rates at the note rate at third years better than what the par rate is at that time you won. So I like to leverage out if you have at least 12 months advantage. That’s why I like the temporary buydown.

Speaker 1 (21:01):

Is that possible with a cash out refinance as well? Or is that only

Speaker 2 (21:05):

Purchases capital refinance? Nope. This is only on purchases. But there are the options, like you said on the cash out refinance, where we can kind of leverage where the rates are and see, for example, let’s say hypothetically rates are at 7.25, well 7.25, maybe you even get a credit from the lender to be no cost because 6.9 nines par, there’s different areas where you can get the costs to be lower, but then let’s say rates get back up to eight or 9%, you won on that refinance. So it just kind of depends on what people are looking at. But when rates get in the low sixes, we have a lot of clients that bought last year in October that have rates in the high sevens, so it’ll be very advantageous for them to refinance to the sixes. And that’s where we can look at different scenarios where if rates did get down to low six, you could get a package where let’s say you pay a lot of closing costs when you purchased your home and you don’t want to pay a lot of closing costs on a refinance. You could go for a slightly higher rate in the sixes, but hey, if your rate’s 7.875 and the par rate’s 6%, you could refinance a 6.25 when the lender’s offering you maybe five or $6,000 in what’s called lender credit to cover your costs. There’s strategies to help you alleviate the costs when you’re refinancing and purchasing a house. But great question there.

Speaker 1 (22:17):

This means more money in your pocket anyways, especially depending on why you’re doing a cash at refinance, which is kind of where I’m leading down right now because you’ve been noticing, here’s the thing I hear, and I know you hear it too, which is I’ve got a mortgage that’s in the 2.75% or in the threes right now. Why would I want to refi to double the rate currently in the sixes or maybe even the sevens? Why would I do that? And you’re seeing some reasons why to do that, aren’t you?

Speaker 2 (22:46):

Yeah. So a big reason I’m seeing right now is you guys got to understand the difference between blended rates, right? You have one rate on your mortgage, but you also have credit card rates, you have car rates, you have all these other installment loans, maybe you got a loan for something else to buy a boat or something like that. Those have different rates. So what we’re seeing right now with boots on the ground is we’re seeing people that yes, they may have a 2.875 mortgage rate, but they have $150,000 in credit card debt at a rate of 26% or 24% or whatever ends up being maybe they have student debt that they’re accruing that they need to pay off. There’s just so many different types of installment loans and debts that right now. So what we do is we calculate what’s your new blended rate.

So for example, let’s say the rate’s 2.875 on their mortgage, 24% on their credit cards, and then 7% on their car loan. They can consolidate that and then we can calculate what’s called the blended rate. And it’s interesting to see people going from 2.875 to possibly 6.75 on their mortgage, but they paid off the a hundred thousand dollars in credit card debt and the $10,000 car debt, $20,000 boat debt, their new blended rate crushes, their previous blended rate. So it’s a strategy that people don’t understand that, hey, look, you can actually be better off by doing a cash out refinance. And I’m very strict on these. I will, if it makes sense, I will let them know. If it doesn’t make sense, I will tell them, no, absolutely you should stay in your 30 year fixed. And then let’s look at some HELOC options with a home equity line of credit and see where that rate is.

Sometimes that rate’s anywhere between six and 12% and just pay off a certain amount. We want to protect that low rate as much as we can. But unfortunately, there’s some people, Chris, they got a little too excited when the rates got low and their mortgage, they save 500 bucks on their mortgage and instead of being excited, they save 500 bucks on their mortgage. They went out and bought a boat, they went out buy a really nice truck, and they just kept spending and it just keep spending. So what I’m seeing is debt accumulation right now, and that’s why a few people had to sell their house. They had to sell it because they, the debt got too out of control. So that’s trending, and I’m only one guy and I’m seeing it. It’s going to be, I use me as a trend kind of if I see six or seven of this scenario in one month, I’m just one guy. That’s got to be a lot more scenarios throughout the United States.

Speaker 1 (24:56):

Well, and one thing that’s interesting too is that, I mean the interest rate’s, the easy answer. If you have high interest rate debt, yeah, you consolidate at a lower rate, it makes sense for most people. The harder thing I noticed with some of my clients, and I know I referred somebody to you last year when rates came down lower than they are today, and I told her, I said, there are low right now, spring of 23, you would want lock. I’m like, I see it. I think you want to lock right now. And you even said we should lock right now. She didn’t. She dragged her feet and then eventually didn’t do anything, right? Spiraled out of control, cost some money spiral, but it was actually trying to get a cash out refinanced. Her big hangup was, but my rate’s 3.25, however, you’re talking about getting me the 6.25 is what you guys had offered her at that time.

And I’m like, yeah, but it’s the terms of the loan that matters, right? It’s what does it do to your monthly payment? Because even it’s the same interest rate of a debt that you have, maybe it’s like a car loan, but that payment’s much higher than it would if it got transferred to your mortgage. It’s a 30 year loan. And somebody will say, well, that just means I’m in debt for 30 years. It doesn’t matter. It’s money. You could pay it off sooner if you want. You can pay it down and still pay less interest potentially. But the key is if you can get your payments down, free up that cashflow, and then that money goes to be invested where in her case we’re going to cash out, not just, we weren’t really looking to do any payments, paying off any types of credit cards, but really just cashing money out as her payment was almost like a 15 year mortgage, but still cash that money out, make the payment cheaper. So she got money for almost for free. It was like a few hundred extra dollars a month, but she could make a couple thousand a month with that extra money. So that’s something that’s key.

Speaker 2 (26:35):

It is key. And it’s crazy to think of the people that did have just the rates and the low rates of twos and threes where they were saving at the time they were refinancing probably from the high threes. High fours. And it’s crazy to look back hindsight, but if people that went from 4.75 to 2.75 and they’re saving 500, 600 bucks on their loan, but amazing, instead of buying that truck, what if they would’ve invested that money per month? Imagine where that could have gone the last four years. And so yeah, same concept there is, yes. Hers specifically too was the payment didn’t even change. Matter of fact, I think her mortgage payment was a little lower, if I remember, as far as after everything was said and done with paying off the other debts she had, not her mortgage payment, but her overall payments that she needed.

Speaker 1 (27:17):

Oh, yeah, yeah. There’s a strategy extra money for pretty much for free. Yeah.

Speaker 2 (27:21):

Yes. Yeah.

Speaker 1 (27:23):

That to me is wild. But again, that’s hard because people have been taught and trained and educated, I wouldn’t even call it educated, really just brainwashed to believe by banks, by people that work for the banks, like financial advisors that said, no, no, no, no, no, don’t do that. You want to pay the sucker off, which is exactly what the banks want you to do. They want you to get that as much equity as possible, so it protects their investment in that mortgage. Correct. You understand that. And you can turn the tables back in your favor and say, wait, how do I have as much cash as possible? You have a much more empowered situation, and those banks don’t really want your mortgage back anyways, if that’s the case. It’s true.

Speaker 2 (27:59):

It’s true.

Speaker 1 (28:00):

Well, Kyle, this has been awesome. I mean, time’s flying, but if people want to look at their options with you, what’s the best way to get ahold of you?

Speaker 2 (28:08):

My handles on all my social media is Kyle, my lender. I was in a real estate office and everyone kept on saying, I’ll get you to connected with Kyle, my lender, Kyle, my lender. And so I just kind of went with it. So you can see my handles on social medias on all across the board, Kyle, my lender, Kyle, my lender.com, and then you can also reach out to me directly. My number’s six eight seven two zero one eight. I answer my phone and text everyone throughout the United States, or you could simply look up Kyle Kohler at you mortgage. I’m everywhere online. I focus a lot on social media, so I try to be on Google and you can find me just by looking up my name.

Speaker 1 (28:41):

Awesome. Yeah, we’ll be sure to put that in the show notes. And everybody, honestly, Kyle is the guy that we refer our own VIP clients that pay us for consulting. We refer them to Kyle and his team as well. So this is not some random guy I brought on the show just I thought he was cool.

Speaker 2 (28:55):

I appreciate you, Chris. Yeah, I try to do a great job for you. I know what you do for your clients. I match that intensity because you do such a good job. You save them so much money, you educate them, and we want to make sure that we’re a reflection of you. So definitely we do take that very seriously. I appreciate you.

Speaker 1 (29:10):

I appreciate that as well, man. So well, everybody, if you’re in the situation where you think either one, you’re purchasing a property, whether it’s for yourself or for a rental, whatever it might be, and or two, you’re considering some refinance options, guys, timing is everything. And I’ll tell you, I remember my very first mortgage, my very first home purchase, it got delayed a little bit, but it just happened to get delayed perfectly to where it dropped my rate one and a quarter percent lower. But sometimes it’s the opposite. Sometimes you wait too long and you’re paying a one and a quarter percent higher. So I would just say this guys, the timing is now the best thing is to have those connections, be ready, be prepared, so that when the time is right, you know what to do. So be sure to reach out to Kyle and his team, everybody. Make it a wonderful and prosperous week. We’ll see you later.