Home Financing and More With Jodie Tanga

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Who is Jodie Tanga?

Jodie Tanga, also known as the “Mortage Genius” is the Director of Business Development at Pacific Rim Mortgage. She is a highly experienced loan officer, mortgage banker and broker in Hawaii. She grew up in Kailua, Hawaii and is a Graduate of Iolani. She went on to the University of San Francisco where she studied financial economics in undergraduate and graduate school. She also worked in banking on the mainland until coming back home to Hawaii, and started up Pacific Rim Mortgage.

Pacific Rim Mortgage is a locally operated mortgage company known for good ethics, low closing costs, low interest rates, and amazing customer service. Their team of local mortgage consultants serve all of Oahu, and the Neighbor Islands.

To reach Jodie you may contact her in the following ways:

Phone: 808-488-5510
Email: jodie@pacrimmtg.com
Website: https://pacrimmtg.com/

Interview Transcription

ADRIENNE:
Welcome back. And thanks for listening to the Team Lally real estate show home of the guaranteed sold program. We’ll buy it I’m Adrian and I’m Attilio. If you have any questions, just give us a call at 7999596 or check us out online at Team lally.com. Our guest today is a highly experienced loan officer, mortgage banker and broker in Hawaii, she grew up in Kailua, Hawaii and is a graduate of Iolani she went on to the University of San Francisco where she studied financial economics in undergraduate and graduate school. She also worked in banking on the mainland until coming back home to Hawaii and start up Pacific Rim mortgage. Please welcome our guest, Director of Business Development at Pacific Rim mortgage, the mortgage genius, Jodie Tanga.

JODIE:
Hi,

ATTILIO:
mortgage genius in the house.

So you know, you’re pretty good about you being on the shows, you know, so people understand the format. We have vendors come on in the beginning couple minutes. Yep. We have main guests. So today our Mangus is God. Yeah, mortgage genius. So giving her a little bit more time to let’s talk about what’s happening here. With mortgage rates and mortgage

programs. Yeah. Because people want to know these things. You know, I think people are talking about it, because we’ve gone from like, interest rates being a couple of months ago, six, seven months ago, whatever. 2.22 point something to like, six something five something? What,

you know, what’s, what’s happening, Jodie?

JODIE:
Yeah, so, so really, all of this has been written in the plan

for a while.

We, you know, got into the pandemic, and there were concerns and there were businesses that had been shut down or, you know, cease activities,

mandatory lock downs, and all that stuff. And so, as a, as a tool to keep some sort of remnant of the economy moving, interest rates went down. They went down to historically low levels. And, and so now that we’re coming out of it, there’s been a lot of economic data,

low unemployment rates and very high inflation rate. And so what what is happening

mechanically is the Federal Reserve is trying to lower inflation rate.

And the way that they do that is by increasing the overnight rate, which is the rate in which big banks borrow money for like an eight hour fat like a literal overnight rate. And what happens is there is a trickle down effect that when the overnight rate increases,

so does everything else auto loans, personal loans, home equity lines of credit, credit card

Are

and mortgages.

So, the thought process is to lower excited increase

the interest rates to potentially

decrease demand

help with supply chain issues.

And theoretically therefore decrease inflation rates. Well, if you guys remember from economics 101 I was trying to stay awake I was at the University of Arizona was a huge class 400 people in it and big auditorium electronics they awake and in the in the part that I was awake and and hearing you know, paying attention to what the professor was saying

ATTILIO:
you have supply is one access demand is the other access and where they intersect is where the price equilibrium.

And when the demand is high,

demand is high and supply is low. If the you have upward pressure on that pricing equilibrium, if supply is high and demand is low, then you have downward pricing on where those two lines intersect on the pricing equilibrium. And they’re there. The federal government would like to US government would like to have that, you know, like be closer to the pricing equilibrium as opposed to way off. So what that means is like

the price they’re trying to push the prices up, like you just said to slow down to the man, Adrian, let’s share with Jody and the rest of our listeners, you know, we’ve got quite a few listings all over the island

you know, we have a pretty good in the trenches, finger on the pulse

what’s happening with these interest rates with demand?

ADRIENNE:
I would say that we got to be very careful on our pricing. And the conversation that we’re having with our sellers is hey these comps are from when the interest rates were at like two and a half percent Yeah. And now they’re double and people can’t qualify for as much so we have a lower smaller buyer pool. Yeah. Well and then here’s the other thing Jody and you know this too has it affected supply No not yet. Because supply is still low you know we’ve got we’ve got a home in Kaneohe I mean Kailua I looked it up there’s like six actives. Night. Like six actives eight in escrow

ATTILIO:
34 solds. So the window for people worrying, what’s the window six months. So that as an interesting example, we were over there the other day, and one of the neighbors drove by that, you know, owns a couple of streets down over there. Yeah. And I asked him, I said, Oh, this is like, you know, multiple homes, income producing property would would you be, you know, come on by, we’re gonna have a broker’s open and open house. And you said, Would you be interested in maybe picking this up for an investment?

Not at these interest rates and sped away? Yep, basically burn rubber. Not at these interest rates. So, you know, it’s an anecdotal story, but it’s probably are you doing? Are you hearing that from people like, oh, you know, what? These interest rates? I mean, you must have been pre qualifying people back then. And then now you’re doing them again, right? And then they’re qualifying for less? Are they still staying there? Are they still hanging in there? Or that? Well, there’s if they’re still hanging in there, what are they doing? They’re kind of having to like trim down what they’re looking for.

JODIE:
Yes, they have to decrease the price point or or you know, decide to pay more or come in with more down

I mean, so they gave me a general like

criteria of what they’re hoping to accomplish and from that we we put something together and as time went by every single time that they sent us a property of interest you know, we were having that conversation. Hey, did you notice the monthly payment went up or even the conversation of those this one you no longer gonna qualify for all but you sent me one at this price point last month or two months ago? Yes. Correct. We did. But rates went up.

ATTILIO:
Yeah, right now it’s kind of like putting your finger in the river. Take your finger out to different river different river by the time you put your finger back in. Right so we’re at a different we’re in a different market right now. We are seeing softening on some stuff. More important before it would be like it could be just total wreck and multiple offers because there’s no inventory now. It’s like, you gotta put some lipstick on that wreck. You got to get it cleaned out. You got to get it fixed up.

The buyers are

The buyers are getting tired. They’re tired. They’ve seen a buyer open, I was like, I’m tired.

ADRIENNE:
So on that note, Jody, what are what are some helpful tips or coaching, you give those buyers that are out there right now.

JODIE:
I mean, my whole, our main advice is to focus on and be most comfortable ultimately with your monthly payment.

And if that means decreased price point, then understanding that this isn’t it, this isn’t your final

place that you’re you know, ever going to buy. And depending on your own personal situation, we know you have to live somewhere. So the ultimate decision becomes, this is what I can afford, can I buy something at this price that’s going to meet my needs, versus renting or versus whatever your current situation is.

ATTILIO:
Really, what it comes down to great advice that people need to understand we cannot have inflation and prices continue to go up and up and up. Even for sellers, it’s not generally a good thing for the entire economy.

ADRIENNE:
Oh, God with everything with all these changes that are happening, I know that we’ve got a you have some new loan products that are coming back around, and that might be helpful, you get, you’re getting a little bit more creative and outside the box thinking depending on the client’s situation, I think we should touch on a couple of those solutions. Do tell Jody.

JODIE:
So we do have these loans that are

gonna be

like perhaps maybe you wanted a house that was ready to move into. But now based on your price point, and the new interest rates, you can only get this lower price point, which, if you look, there are some but they’re not quite in the shape that you wanted, or had hoped for. Or even not even lendable meaning they’re just too into bad condition that they can’t even get a loan. So

we have loans now that you can borrow up to a certain amount of money more than the purchase price.

In order to use that money to do the necessary repairs with a contractor. Nice.

And that going to help I mean, that’s going to help people that, you know, still want to buy, but maybe are in this price point, or were even looking for that in the first place. Yeah. There’s also, you know, some stated income loans

are actually it’s not stated income, it’s no income, meaning, I’m not saying Oh, yeah, she makes x dollars. We’re just not qualifying based on income. So you’re qualifying on credit score, you’re qualifying on the amount of reserves that you have in the bank. And you’re qualifying on the amount of down payment that you have available. What this was for a particular group of people, what were we thinking of that this is serving, like people so so this is new, there is one, the knowing com One is for a primary residence purchase, what one that you plan on occupying.

And then there’s another loan, which is for an investment when you don’t plan on occupying, but you plan on renting and so we can use that rent, and then we don’t have to factor in any of your other current debt. We just compare the rent

to

the mortgage payments. Gotcha.

And that becomes the ratio, the debt, the debt servicing coverage ratio. Yeah. So those are two really great programs. So you don’t necessarily need to have

ADRIENNE:
much documentation in either situation, except for what the credit score your bank account. Good downpayment. Yeah. And then maybe like a rental contract or rental comps showing what you know what the home will support if it’s an investment

JODIE:
Yeah, it definitely helped

a huge segment of the market really that want that they know they want to buy and you know they’re not able to qualify when we when we look well qualified conventionally. Yeah.

ADRIENNE:
So Jody, on these particular types of loans? Is the interest rate much higher or just a little higher? What’s the difference between, you know, providing all the docs versus not?

JODIE:
It’s two to 3% Higher, depending on your credit score. Gotcha.

So yeah, it’s not, you know,

super cheap. It’s, you know,

ATTILIO:
it’s a different product. Right? It’s a different product. Yeah. You know, the consumers hear these terms. They don’t know what they mean, was it loan officer, mortgage broker, mortgage banker?

So difference?

JODIE:
That’s a great question. So

their

loan officers have to be licensed. And they have to, they can work for a mortgage broker or a mortgage banker. So loan officers are generally the one

that you’re talking to that they’re telling you how much you can qualify for there’s, you know, reviewing credit and understanding the loan products and the loan guidelines that are out there.

From the one step above, a loan officer is going to be the, your, your lending platform. So the two main Well, I guess, three, but the two main are going to be a mortgage broker.

And versus a mortgage banker. So a mortgage a mortgage broker, they’re true.

They work for the buyer. Yes, they work for

the buyer, and they collect all the information, they understand the full picture, they educate you on what is the best loan and why. And they have the option to work with multiple different

wholesale lenders.

And so these wholesale lenders all have their own different rules and requirements. Now, generally, they all follow Fannie Mae and Freddie Mac guidelines for the most part. But they,

they they also have their own little rules, like, okay, so this is the Fannie rule. And we’re just going to add this little thing on top just so that you, we feel more safe, right. And so it’s a mortgage brokers job to understand all these different potential places that they’re thinking about brokering your loan to, and understanding your unique situation and deciding where it’s best.

And getting you the best interest rate with the lowest closing costs.

A mortgage banker, however, which we’ve done both we’ve been both throughout our, like 17 years, yeah.

Mortgage Banker, they’re there. There’s a boss, there’s, there’s like you have a manager, a sales manager,

an operations manager, the underwriting manager, the VP, the ultimate CEO, and you know, there’s, it’s just more like a corporation, and there’s one for the most part one set of rules. And so you’re just not quite as flexible. Like, you can’t be like, Oh, okay, so in, like, with, you know, the young, they’re situations a little different. So I’m going to take them to

finance of America for their loan, because they have a unique situation where they have less than a 12 month credit history, you know, or something like that. Like it’s more, you have one set of rules at a generally

ATTILIO:
speaking, slightly higher interest rates. What’s the craziest request that you’ve ever received?

JODIE:
Oh, I

hear. I mean, some way okay. Well, when a funny one is that, you know, we were scheduling final signing. And so we had, we’re at the we’re done, like their loans approved. They are super ecstatic. They want to get their house. Obviously, we want to meet deadlines, all that stuff. So. So I said, Well, we have to sign on Wednesday. So what what’s your availability on Wednesday? And this is like, you know, the Wednesday before? Yeah. And he’s he says that he wants to sign it at, you know, 330 I said, 330. Perfect. So then the day before, when we’re confirming and all that stuff. He was like, just making sure you guys are we’re all on the same page. Like it’s 3:30am.

ATTILIO:
Sir, he was clubbing he’s like, Oh, that’s cool. I gotta go buy one house. Sorry. I gotta go. I’ll take care to check. I’ll take care of the last round. I gotta go buy a house. I’m sure you guys figured it out, though. Because you always do. We did figure it out. I mean, and we met we met in the middle and we met at 6am instead.

cuz I was just joking, I can still meet

the club.

JODIE:
Other things that I have busy like Dracula, he can’t be seen in the sun, you might burn up. I mean, it was crazy. It wasn’t even for a good reason. Like it was, like, we were like, we were like, no. Insane if you were getting on a flight going to Europe for 20 days, and this was your absolute last opportunity. Yeah, I would have definitely I would have been there. It’s easy, but it’s like, for convenience of your scheduling.

No, not 330

In the morning, but we did do six 6am which was obviously still pretty early.

Another funny request was, I had a younger

army.

Man that was on in a training exercise. And he had just

actually we did this the entire transaction. So even before he was qualified, I met him out like in the middle of why he was so not at schofields. But on like, in this random field where he like came running out of the grass and was like, Okay, I have 25 minutes. As you were like a straw outfit. He was like in a sniper camouflage bushes. His training. He was in his full gear. Videos. Yeah. And yeah, so we we went, I met up with him, I went over the numbers. I said, Generally, you know, this is your max. And this is like, but this is what you wanted to pay monthly. So if you want to stay here, then you can’t go to your max because that’s, you know, gonna be he’s like, I totally get it blah, blah, blah. Then I’ve pretty much worked closely with the realtor.

I’m paid Yeah, this was what is your guys’s ours? And then then, you know, get a two weeks later, he’s in contract.

I go drive out to the middle again of WIOA. Yeah, and meet up with him again, to have initial disclosure side. He was like, I cannot do DocuSign like I cannot do like he couldn’t do anything in the field. He’s in a training exercise seal. Yep. Oh, a recording of that meeting. You want to hear the recording?

ATTILIO:
All right, Matt. Good job and give me 20 I need you to sign here. Sign here. Sign here.

Thanks. See you next time.

ADRIENNE:
And yeah, that and we’ve got it. We’ve got to wrap it up. But thank you, thank you for being our guests and sharing those really fun stories and all about the mortgage. We appreciate you. And anything you guys always yes. And any of our listeners can get a hold of Jody by going to Team rally.com on the Resource tab and experts we trust so thank you for listening and thank you to our sponsors Jody, the mortgage genius with Pacific more rim mortgage rally with Allstate Insurance Angie wood pillar post Home Inspections Done with Kilauea pest control with Hawaii Pacific Property Management Kyle was in fact while solution Robinson fine line paintworks yesterday of American flooring home jig, Sky construction, roofing and solar Ryan was zero res Hawaii if you want to get a hold of any of our sponsors just go to T lolly.com. I also want to give a big thank you to Leah Rodriguez, our producer here in the studio. Make sure to tune in next week love an awesome guest talking about something that’ll change your life forever. This is a team Lally real estate show home with a guarantee so we can sell your home with agreed upon price and your timeframe. We’ll have it bought for cash. Thanks. Hello.

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