Mixed reports from where the Fed is headed have rates staying close to where they were last week.  The Euro’s are pushing to keep rates the same for the coming year.

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We will see what impact this will have on the Fed.

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Private loans/HML have seen a small easing in pricing over the past week to 10 days.

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DSCR Loans

Best Rate at 60% LTV:    6.75% to 7.00%

Best Rate at 70% LTV:    6.875% to 7.25%

Best Rate at 80% LTV:    7% to 7.375%

Highest LTV:    85% (purchase + rate and term)

Lowest FICO score:    620

Smallest Loan:    $75,000

Largest Loan:    $20mm (large portfolios)

Vacant Properties:    75%

Short-Term Rentals: 80% (purchase + rate and term)

Best rates are based on 780+ credit score, DSCR above 1.15, loans over $300k and in major cities.  We have 20+ of the best DSCR loan buyers at our fingertips and can help with most clients’ needs.

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No Ratio Loans

Highest LTV: 75% (Purchase + rate and term)

No ratio loans are loans that do not require a rental agreement or have negative cash flow.

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Conventional Loans

Owner Occupied: Low 6%

Non-Owner Occupied:  High 6%

Conventional loan rates powered by TNS Loans NMLS #1719349 on properties in Colorado.  If you want specific rates, reach out to TNS Loans via email at MB@TNSLoans.com.

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Private Loans

Small Loans and Lenders (.5 – 3 Points): 9.75% – 12%

Large Lenders (15% down + 1 point + closing costs): 9.75 – 13%

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What’s moving the conventional rates?

 

Mortgage rates could see some more improvement this week if markets continue to bet on Fed rate cuts to start at the March meeting. Despite labor market and economic data that points to the Fed keeping policy rates at current levels, markets believe the Fed will have to start cutting much sooner than it expects if it wants to avoid a recession. Rates are unlikely to move higher unless that belief falters.

 

BUT WAIT. Now we get news the Euro Central Banks are pushing back and are proposing that rates stay the same in 2024.

 

WE WILL KEEP AN EYE ON WHAT THE EURO’S HAVE OVER THE FED AND IF THEY WILL STILL LOWER RATES IN 2024.

 

What’s affecting rates this week:

• Economic data: · A holiday shortened week brings Wednesday’s retail sales data and the Fed’s Beige Book on the economy. Not much other data to worry about this week.

• The Fed: Mortgage rates continue to reflect the belief that the Fed will need to cut rates six times in 2024, although Fed officials have been saying it will be less. If markets start to waiver in the belief that the Fed will cut rates dramatically this year to avoid a recession, we could see mortgage rates creep higher.

 Coming Soon…

Bank Loans

Construction Loans

HELOCS

Business Credit Cards

Please note all loans except Conventional Loans are Non-Trid loans (business purposes only) and require properties to be closed in a business entity like an LLC.

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Don’t forget to grab a copy of your personal Investor Mortgage Report here! 

What are the best loan products for where you are at now and where you are going.  

Keep up as rates get better and requirements become easier.

Investor Mortgage Report – Week of January 8 2024