Blog - JVM Lending

Rates Keep Falling & Will Fall More; Timing The Market

June 30, 2022/in Homebuying, Interest Rates, Our Blog

Rates fell again primarily in response to negative economic data, including revised data that showed the economy shrunk more than we thought in Q1 along with more recession indicators and predictions. The 10 Year Treasury, which correlates closely to mortgage rates, hovered near 3.5% only a few weeks ago – but it is now under […]Read More

Do Price Reductions Signal DEPRECIATION?

June 29, 2022/in Our Blog, Real Estate

Price reductions do not signal depreciation… yet.. and they won’t until we see people actually sell their homes for less than what they paid for them.Read More

Closing Cost Credits Are Back! (From Sellers and Agents)

June 27, 2022/in Homebuying, Our Blog

I used to blog frequently about closing cost credits from sellers and agents – but I stopped because the market was so hot that no seller or agent would consider paying them. BUT – now that listings are suddenly sitting on the market longer, closing cost credits can be great enticements for buyers. This is […]Read More

VA Loans Are Still Much Easier, As We Still Don’t Need Full Inspection Reports

June 24, 2022/in Our Blog, VA

I wrote this blog in early March: VA Loans Are Much Easier Now – No More Clear Inspection Reports! The full blog is copied below but the gist of it was this: we can close VA loans without submitting full inspection reports to underwriters if we provide an NPMA-33 form instead. As long as the […]Read More

Good News! Recession Coming Soon; Rates Continue to Fall After Fed Raises “The Rate”

June 23, 2022/in Mortgage Industry, Our Blog

A week ago, I pointed out how the recent 0.75% increase in the Fed Funds rate resulted in LOWER long-term rates. I highlighted three reasons for this: (1) The markets perceived the news as effective inflation fighting; (2) the markets expected the news and had priced it in already; and (3) the Fed Funds rate […]Read More

Why The Fed Desperately Wants to TANK the Housing Market!

June 22, 2022/in Homebuying, Our Blog

One of my favorite macro pundits, Alfonso Peccatiello (former $20 billion fund manager who goes by “Alf”) recently tweeted this: “The biggest group of consumers in the US owns houses, not stocks. And this is why taming the animal spirits in the housing market is paramount important for the Fed. And they will succeed…” He […]Read More

No Building + Growing Population = Strong Housing Market EVEN IF RATES ARE AT 6%!

June 17, 2022/in Mortgage Industry, Our Blog

There were about 2.3 million new homes constructed in 1973 – a number we have not seen since. This is not that big of a deal until you remember that the entire population of the U.S. was only about 211 million (compared to 332 million now). Over the last year, we have built about 1.3 million homes, when, again, the U.S. population was over 330 million!Read More

Fed Raised Rates & Mortgage Rates Fell – Before Rising Today

June 16, 2022/in Interest Rates, Our Blog

The Fed raised the Fed Funds Rate 75 basis points (0.75%) yesterday, and mortgage rates largely fell in response to the news.Read More

Huge Opportunity From High Rates!

June 15, 2022/in Homebuying, Interest Rates, Our Blog

Grizzled Escrow Officer Sets Me Straight! While aimlessly wandering the hallways lamenting the industry slowdown, I ran into a very grizzled escrow officer who runs the title company next door. She is one of those utterly fearless women who has been around forever and has literally seen it all. She handled George Washington’s escrow when […]Read More

High Rates; Softer Market; ARMs; Housing Shortages; Recessions; Refis

June 13, 2022/in Mortgage Industry, Our Blog

Highest Mortgage Rates Since 2009 Last week’s sky-high inflation numbers have pushed 10-Year Treasury rates to levels we have not seen since 2018. While mortgage rates are at levels we have not seen since 2009. Beating A Dead Horse – Again The fast-climbing rates and media rumblings continue to spook buyers – so I am […]Read More

Why We’re Seeing Fraud Claims Now & Will See A Lot More

June 10, 2022/in Mortgage Industry, Our Blog

I knew and worked with a bunch of hard money lenders (who loaned money based strictly on equity) prior to the 2008 meltdown. Even though they were a bit cocky with their success and they lived like rockstars, they were all nice and honest guys for the most part. They solicited pools of funds from friends, family members, and outside investors – and then loaned out that money to homeowners and homebuyers who could not qualify for better financing.Read More

What Every Homebuyer Must Know About Hazard Insurance & Mortgages

June 9, 2022/in Mortgage Industry, Our Blog

Here are a few tidbits about Hazard Insurance, something that is required with every mortgage. Hazard insurance is also known as fire insurance and homeowners insurance, and it should not be confused with mortgage insurance, which only covers the mortgage and not the dwelling. Lenders require the “Dwelling Coverage” to match or exceed the lower of the loan amount, or the replacement cost estimate.Read More

Save Money With Seller-Paid Rate Buydowns Instead of Price Reductions

June 8, 2022/in Homebuying, Our Blog

A “rate buydown” gives borrowers lower interest rates in exchange for higher fees or “discount points” paid up front (when they close). We discourage rate buydowns in general because borrowers rarely hold onto their mortgages long enough to make the extra points or fees worth the added expense. But – if sellers are willing to pay for the rate buydowns, my opinion changes quickly.Read More

Converting a Primary Residence Into a Rental: Considerations

June 6, 2022/in Down Payment, Our Blog

Many buyers take advantage of owner-occupied financing, even if they plan on renting out the properties later on, because the rates and down payment requirements are so much lower. These buyers do need to be careful and here are some of the considerations.Read More

2nd Mortgage vs. HELOC (Home Equity Line); Which Is Better?

June 3, 2022/in Financial Planning, Homebuying, Our Blog

Yesterday’s blog, 5 Reasons to Get a HELOC, was inspired by a question from my nephew – as he is a perfect candidate for a HELOC. He is in his early thirties – and he has a family to support, about a half-million in equity, a very low rate first mortgage, an excellent job, and […]Read More

5 Reasons To Get a Home Equity Line Of Credit ASAP

June 2, 2022/in Our Blog, Self Education

When I was in law school, I clerked for a firm that specialized in commercial litigation. And – the first thing the attorneys did when considering litigation was to ensure the defendant had sufficient assets to go after – should they win a judgment. And a primary asset they looked at was the defendant’s home; […]Read More

Goldman Sachs Still Buying Homes; Rates Dropped The Most In 2 Years Last Week – Why?

June 1, 2022/in Interest Rates, Our Blog, Real Estate

Goldman Sachs-Backed Funds Bought Entire Housing Development I saw this recent New York Post article on Twitter yesterday and thought it would be another nice share for any potential buyers who might have cold feet. TLDR: Two Goldman-backed ventures just spent $45 million to buy up an entire housing development in Florida. The big funds […]Read More

Media Lies About Housing Market; Slower Market ≠ Depreciation

May 27, 2022/in Mortgage Industry, Our Blog

Agents are telling me that some of their clients are getting cold feet about buying right now for a variety of reasons, including: 1) Concerns about higher rates and payments; 2) Concerns about depleted investment accounts; 3) Concerns about an overheated housing market; and 4) Misleading media reports that are scaring the heck out of everyone!Read More

Supply Chains Untangling; Inflation Waning? Who Was Right?

May 26, 2022/in Mortgage Industry, Our Blog, Self Education

For much of 2021 we were shown photos of container ship parking lots drifting far out to sea – with dire warnings of inventory crises and mass shortages. But today, Leonard Steinberg shared this in his Compass blog:Read More

Getting Rich From Dry Powder (Cash On Hand)

May 25, 2022/in Homebuying, Our Blog, Real Estate

You don’t need to be a wealthy investor to take advantage of massive opportunities in a down market. You just need to make sure you have some dry powder (cash on hand) – and be ready to take the plunge when opportunities arise.Read More

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