Posts

JVM’s Relationship With Its Mortgage Bank

We were getting recruited last fall by America’s third-largest mortgage bank. B/c of our size and unique model, the CEO showed up to review our entire tech stack, our Salesforce buildout, our org chart, our marketing plan and collateral, our website, our sales organization, our ops structure, our training program, our HR policies, and our […]Read More

When 1.99% Is A Bad Deal; Why Rates May Not Fall Further

1.99% – YAY!!!! OR NOT…. (LOOK AT THE FEES) Several lenders were touting their 1.99% interest rates recently, and we were getting emails from agents and borrowers alike asking about the “amazing rates.” But, that rate is not amazing when you look at the fine print, and almost all lenders, including JVM, can offer it […]Read More

Why Low Rates Are BAD For Homebuyers

Rates are about 1% lower than where they were last year at this time, as most people know. This enormous rate-reduction appears to be a huge boon for homebuyers, as low rates reduce payments and increase buying power. A 1% reduction in rates reduces the payment on a $500,000 loan by almost $300 per month. […]Read More

Quicken’s IPO – So Much To Learn; Reason To Be Leery

Rates edged lower again, so now instead of being really, really, really low, they’re really, really, really, really (4 really’s) low. It remains to be seen if we’ll hit “5 really’s.” BOOMS, PLATITUDES AND BUSTS Over the years, we have seen numerous mortgage banks massively expand during refi booms, and then wildly and loudly celebrate […]Read More

Purchase Applications Hit 11 Year High; Refis = 63% of Volume

The Mortgage Bankers Association surveys multiple mortgage banks every week and then releases all of the data. The most recent survey, discussed in this National Mortgage News article, is particularly interesting. Here is just some of the data: Purchase applications are at an 11 year high. Refi applications are 106% higher than last year at […]Read More

“Fed Plans to Keep Rates at Low Levels for Years” What Are “Rates?”

This blog’s subject line is borrowed directly from this WSJ article. Fed Chairman Powell stated in early June that there are no rate increases in sight and that the Fed will do whatever it has to do to keep rates down through 2022. These actions include keeping the Fed Funds rate near 0% and massive […]Read More

10 Cent Beer Night in Cleveland in 1974; How It Relates to Our Economy Now – More Black Swans

In 1974, the Cleveland Indians baseball team promoted Ten Cent Beer Night for a game against the Texas Rangers. Fans showed up in droves for the cheap beer and drank it by the gallon. The inevitable result was an entire stadium full of drunken fans, bench clearing brawls, a 9th inning riot with all the […]Read More

Rates Keep Falling; Rates Keep Falling, Down, Down; What’s Going On?

I stole my subject line from the 1985 Simple Minds song – Don’t You Forget About Me… OK – they might have actually sung “‘Rain’ keeps falling…” but I was an economics-obsessed econ major, so I heard “Rates.” Because rates were falling! From almost 18.5% in 1981 all the way down to 12% in 1985! […]Read More

Why Now Is The Best Time to Buy – Again; Home Prices 8.45% LOWER In January

We beat this dead horse all too often but am beating it again because it is excellent information to share with potential buyers who may be on the homebuying sidelines for a variety of reasons. Mansion Global recently published a column titled With Recession Fears Diminished, January Is a Smart Time to Buy. Here are […]Read More

“Rates Hit 19-Month Low” – Why? Will They Stay Low? Rate Roll-Downs

Rates hit a 19-month low and the headlines prompted some of our borrowers to ask about “rolling down” their locked-in rates. RATE “ROLL-DOWNS” Rates, however, have been hovering very close to their current levels for the last few months. So, while rates have bottomed out, the improvements have been marginal. When lenders lock in a […]Read More

What Could Bring Rates Plummeting Back Down?

According to Freddie Mac, the average 30-year fixed rate mortgage was 4.83% in October. We have not seen rates that high since 2011, and the Fed seems determined to continue to push rates up. Even though it seems likely that rates will continue to climb, there are some things that could bring them down again. […]Read More

Interest Rates Remain a Gift – History Vs. Hysteria; Look at the History, Please

PANIC OVER RISING RATES Borrowers, Realtors, investors and the markets as a whole all seem to be in a panic over rising interest rates. The only people who should be worried, however, are “refi-ologists” (businesses and companies who focus only on refinancing). For starters, higher rates can be a good thing for several reasons, as […]Read More

Our Rates Are Lower; How & Why? Rate Surveys & Lending Channels

INTEREST RATES AT JVM We want to address interest rates again b/c we sometimes get compared to some of the large banks offering promotions. LOWERED OUR RATES First and foremost, our rates are now lower than ever, relative to our competitors. We have been able to lower our rates for several reasons: (1) New Investors: […]Read More

Timing The Bottom For Rates? Get While Gettin’ Is Good

Borrowers often ask us if we think rates will fall further before they lock, and they often want to “time to the market” and lock in their rate at the “bottom.” As a result, they are sometimes reluctant to lock or get us their paperwork. This in turn delays purchase transactions and sometimes causes borrowers […]Read More

Fed Raised Rates for 1st Time Since 2006; What Does It Mean?

Keep in mind once again that the Fed does not control long term interest rates. It influences short term rates only. The Fed Funds rate is the rate banks charge each other to borrow funds overnight. Today’s move seems to be having little impact on mortgage rates, as the markets have already accounted for the […]Read More

VA Loans – Best Financing Available; Pros And Cons

We are seeing a lot more VA buyers lately so we thought it warranted a blog. VA financing for veterans remains the best deal on the market, as the rates are very low (lower than conventional rates), there is no mortgage insurance, and no down payment is required. VA buyers can in fact buy with […]Read More

Benefits of Buying; Rates Remain Historically Low

We say this often, but once again, please feel free to have us help sell your clients on the benefits of buying. For example, we have a client buying a house with an in-law unit for $737,000. The client is currently paying rent of $2,300 and he had very cold feet about increasing his housing […]Read More

Delayed Financing After All Cash Offers; Low Rates for Leverage

We have many buyers with enough liquidity to make “all-cash” offers. We are not averse to recommending all-cash offers (even though we potentially lose a loan) because such offers are deemed stronger by sellers, giving buyers more bargaining power. All-cash buyers often still want to take advantage of financing opportunities in order to tap into […]Read More

JVM Lending – Full Service Shop; Flips; FHA; Streamlines; Conventional; Un-permitted units

The bond market and many lenders are closed today, but JVM is open, at full staff and able to lock loans today. Please contact us, as always, if you have any questions, concerns or scenarios you would like addressed. JVM’s wholesale channels continue to offer the lowest rates available, as well as enormous flexibility. Flips, […]Read More

“Leverage” Yourself While Rates Are Low

We have a well-educated Asian immigrant buyer with over $150,000 in the bank. He qualifies for almost anything, but he wants FHA financing. The reason is that FHA financing (high balance), can be had at 4.25% at “no points” and “no fees”, and with a substantial lender credit for closing costs to boot. Our buyer […]Read More

Buying a House With a Major Roof Issue – What to Do?

We have a purchase involving a house with a very leaky roof. The buyers want to replace it in any case, but nobody wants to replace the roof prior to close of escrow (the seller does not want to pay for it; and it is risky for the buyer to sink money into a house […]Read More

10 Financed Properties Rule

We still get questions all the time about the Ten Property Limit imposed by Fannie Mae. 1. This rule applies only to Residential Properties of 4 or fewer units; 2. This rule applies only to FINANCED properties; borrowers can own 50 “free and clear” properties; and 3. This rule allows up to TEN financed properties. […]Read More

2 – 4 Unit Properties Offer Better Returns Than SFRs

There is a four unit property listed in Antioch, CA right now for $229,000. Each of the four units supposedly rents for $900 per month. This property can be financed with a 25% down payment and loan at about 5%. PRICE: $229,000; DOWN: $ 57,250; LOAN: $171,750; P&I: $922/month; Taxes: $238/month; Insurance: $100/month. TOTAL PITI: […]Read More

Be Nice to/Prepare for Appraiser

Agents, please see the comment below from one our best and most seasoned appraisers: “Real Estate Agents who don’t understand this will have appraisal issues far more often than an agent who does understand this: Agents or a homeowner being friendly, helpful, and accommodating to the appraisers makes a HUGE difference. When I see a […]Read More

“Short Refinancings”; DU Refi Plus

We get questions constantly in regard to “upside down borrowers” who want lower rates but who also want to maintain their credit. Option #1: Du Refi Plus – If a borrower has a Fannie Mae loan, he can refinance into a new Fannie Mae loan with No Mortgage Insurance even if his loan-to-value ratio is […]Read More

Getting Condo Complexes FHA Approved

We get inquiries constantly regarding whether or not Condo Projects are FHA approved. With FHA so dominant in today’s market, such approvals are extremely valuable. While we are able to get some complexes approved ourselves, the process can be complex and cumbersome. This is why we now recommend that Realtors and HOAs, interested in FHA […]Read More

Far More REOs

Today Citi is leading the charge again, after getting completely out of the market yesterday. Today rates improved initially because jobless claims came in higher than expected; again, such signs of economic weakness typically portend lower rates. BUT, we just received several “price change for the worse” announcements from some of our lenders. So we’ll […]Read More