Mike's Morning Message
I hope you are having a great week and I hope that life is treating you well. This has been an odd week where new business is slow to trickle in the door but clients we had pre-0approved are getting offers accepted so it is not all bad!
One of my clients that went into escrow has their house sold but is closing their sale with their purchase. This is not an issue as we are doing the loan on the sale property and the purchase. We are closing both in less than 2 weeks because the seller of the house they are buying cancelled escrow on a non performing buyer earlier this week. Good news is that we can step in and try to close in 10 days or so. The one issue that came up is our contingent buyer does not have the required $15,000.00 deposit for the purchase of the new house because all of their money is coming from the sale of their house and they have about $6000.00 liquid, but they still have bills coming in. THIS HAPPENS A LOT!!! And there is an easy fix! We are getting them a quickie loan on the house they are selling for the $15,000.00 and we will put a demand in escrow for the money when we close. We can fully document where the money came from so we have no issues with that documentation and we don't charge any interest or fees on this type of loan so the buyer was like "what's the catch and where do I sign?" I am extremely stoked that we can help them and make their life easier, and I know most lenders don't do this because there is some risk and a lot of hassles!
I also had an agent tell me that he likes to write short escrows because it sometimes improves his chances of getting an offer accepted! I am good with that as long as we have the buyers pre-approved prior to the offer being accepted so 2 weeks closes are great!
Interest rates are Fantastic but Bond yields are climbing yet again! The 30 year mortgage has had 102 months below 5% in the past 60+ years! I hope these help you if you are shopping around:
? 30-year fixed conventional 1st Mortgage with 20% down - 4.875% (4.933 APR). Loan amounts up to $453,100.00 = $2397.84
? 15-year fixed conventional 1st Mortgage with 20% - 4.375% (4.477 APR). Loan amounts up to $453,100.00 = $3437.31
? 5/1 ARM 1st Mortgage - 20% down - Fixed for 5 years and then becomes variable - 3.875% - (3.999 APR) Loan amounts up to $3,000,000.00 = $14,107.11
? 7/1 ARM 1st Mortgage - 20% down Fixed for 7 years and then becomes variable - 4.000% - (4.111 APR) Loan amounts up to $3,000,000.00 = $14,322.46
? 10/1 ARM 1st Mortgage - 20% down Fixed for 10 years and then becomes variable - 4.125% - (4.223 APR) Loan amounts up to $3,000,000.00 = $14,539.40
? 30-year fixed 1st Mortgage FHA loan 3.50% down - 4.500% (5.664 APR). Loan amounts up to $453,100.00 = $2336.02 + $326.56 PMI = $2662.58
? 30-year fixed 1st Mortgage VA loan 0% - 4.500% (4.607 APR). Loan amounts up to $453,100.00 = $2295.79
? 30-year fixed 1st Mortgage Jumbo loan 20% down - 4.500% (4.600 APR). Loan amounts up to $3,000,000.00 = $15,200.56
All of the above are based on a 740 credit score. Rates are subject to change without notice, your mileage may vary!
I will be around all weekend and I am ready to work! Please let me know if you have any questions or if you need anything from me or my team. My office # is 661-260-2970 Xt. 2222 and my cell is 661-714-6258. This is the time to buy a house as prices are on the rise and interest rates may never be this low ever again! Have a great weekend and I hope to hear from you soon.