Rates hit a 20-year high yesterday, and we still had 8 contracts come in. So, this is another reminder that real estate still happens – no matter how high rates get.
How To Get 1% Below Market Rates
Jumbo ARMs (Adjustable-Rate Mortgages) in the low 7% range
We have a jumbo investor that is still offering 5/1 ARMs in the low 7% range (a full 1% below 30-year rates) with only 25% down! The 7/1 and 10/1 ARMs are only a bit higher. We of course consider the 5/1 ARM to be an excellent bet/opportunity, given the likelihood that rates will fall next year, opening up opportunities to refinance into lower-rate 30-year fixed loans. I should add that this investor considers any loan over $726,200 to be “Jumbo” too.
1-0 Temporary Buydowns
I am going to beat this dead horse again, as we love temporary buydowns. I am pushing 1-0 buydowns now (instead of 3-2-1 or 2-1 buydowns) because 1-0 buydowns are so “cheap.” I mentioned yesterday that a 1-0 buydown, which would buy down an interest rate a full 1% for one year, would only cost about $4,000 for a $500,000 loan, making it much easier to get the necessary seller credit. Readers can learn more about temporary buydowns here.
40% Down In Low 7% Range – No Income Required
I blogged about this a few weeks ago and am hitting it again. We have a no-income-verification-ARM (fixed for 7 years) in the low 7% range for borrowers with good credit and 40% down.
Rates In 8% Range – So Why Are My Rate Quotes In My Email Blogs In The 7% Range?
There are headlines everywhere screaming: “Rates are back in the 8% range for the first time since the year 2000!” And – it is true, as many of our quotes are now in the 8% range too. The reason my quotes in my email blogs are in the 7% range is because FHA rates are always much lower than Fannie Mae and Freddie Mac rates and first-time homebuyers no longer get “hit” with all of the rate adjustment factors that normally would increase someone’s rate, such as a low FICO, a condo purchase, low down payment, etc.
100 Requests For Marketing Materials This Week
One of the reasons, we remain relatively busy is our support for our agent partners – particularly in the form of co-branded marketing materials. These consist of finance flyers, homebuyer booklets, temporary buydown flyers, and much more.
It is not unusual for us to receive as many as 100 such requests in a single week; we literally have an entire machine set up solely to crank out accurate and customized marketing materials.
If anyone would like more info in regard to this, please let me know.
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