Posts

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

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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

Rates Back to 2009 Levels; Time for ARMs!

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Mortgage rates have climbed to their highest level since 2009! One way to combat the rise in rates is to take an ARM instead of a 30-year fixed-rate loan.Read More

Offer Rent-Backs To Get Offers Accepted; ARMS Are Back!

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ONE MORE REASON JUMBO RATES ARE LOWER THAN CONFORMING After reading this recent blog, a friend of mine who owns a mortgage bank reminded me of one more reason why jumbo rates are lower than conforming rates. Big banks will sometimes buy loans at a loss because they expect to make money by “cross-selling” other […]Read More

Jumbo Market Lives; Inflation = Windfall; Why Lenders Are Terrified of Forbearances

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I am repeating this b/c I am still getting so many questions: The Jumbo Market Definitely Lives. Jumbo buyers with 20% down can buy up to $1.6 million in CA and up to $1.4 million in Texas with 1st/2nd Combo Financing. I recently blogged about combo financing here. Traditional jumbo lenders remain in the marketplace […]Read More

Explaining Mortgage Rates for Borrowers in Texas

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Mortgage rates are a hot topic for borrowers in Texas. Everyone wants to get the best mortgage rate possible when they’re getting ready to take out a loan for their home purchase. Here are a few helpful reminders to keep in mind about mortgage rates in Texas: 1. Mortgage rates will vary depending on the […]Read More

Things to Know About ARM Loans in California

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Adjustable-Rate Mortgages, or ARMs, sometimes get a bad rap in the lending world. What is an ARM Loan? An ARM Loan (Adjustable-Rate Mortgage) is exactly what it sounds like: it’s a mortgage loan that has an interest rate that can change, or adjust, over time. Rates usually hold for a certain amount of time and […]Read More

The “Yield Curve”; What It Is, and Why It Matters

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After the 2008 meltdown, almost all of our borrowers insisted on only 30 year fixed rate mortgages b/c so many had heard horror stories about adjustable-rate mortgages, or ARMs. The ARMs that earned the bad rap, however, were primarily subprime adjustable-rate loans with short 2 year fixed periods and very steep adjustments. The A Paper […]Read More

ARMs Are Not Evil; Defense of Adjustable Rates

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A 47 year old borrower came to us recently with a $1.4 million mortgage and 5 years left on an Adjustable Rate Mortgage (ARM) at 2.875%. He plans to be in the house for the rest of his life and wanted to convert his loan to a 30 year fixed. We told him not to do […]Read More