May 3, 2022

I hope you are doing well, and I hope you had a great weekend!

We are starting to see some exciting products come back to the market that has been away for a few years. The most recent addition to the mainstream is the interest-only products with some of our High Balance and Jumbo products.
30-year Fixed-rate Interest Only – YAY! 25% down – Interest only for ten years and then becomes a 20-year Fixed rate.

10, 7, and 5-year Arms Interest-only! These loans are fixed for 10, 7, or 5 years, and they become adjustable after! They are interest-only for ten years! You only need 20% down on these baby’s! On a $1,000,000.00 loan amount, your client saves $1200.00 – $1400.00 per month. You can pay extra and pay down the principal or make the minimum payment.

Interest-only loans are a great way to ease into a payment and keep it reasonable. Imagine buying a home for $1.25 Mil with 20% down, and your payment is $1200.00 less than a standard mortgage? If you add $200.00 a month to your payment each year and in 10 years, you will have paid about the same amount vs. a principal and interest loan. If rates go down, then go ahead and refinance! These rates are slightly higher than a fully amortized loan, but only about .125%-.250%.

This is a big week for interest rates. Yes, the Fed will raise short-term rates later this week, probably .50%, but then the market will move based on the comments and how they feel they will proceed.

Many think we will have 2-4 additional rate hikes after this one. Ugh! Yes, this one is built into the market, and we will likely continue to see rates rise until inflation is under control.
30-year Government Loans (FHA / VA) are in the mid to high 4’s
Conventional Loans up to $647,200.00 – High 4’s low 5’s
High Balance Loans $647,201.00-$ 970,800.00 are in the high 4’s to low 5’s +
Jumbo loans above $970,801 are in the high 4’s +. We can mid 5’s with as little as 10% down. We can do 1-year findings on these too!
5/1, 7/1, 10/1 Arms are in the low 4’s for over $647,201. Under that, don’t bother right now!
Bank statement loans – They are available with 10% down again! 6’s+ depending on down and credit score.
Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the low 5’s.
0 down loans are in the 5’s – 620 credit score min right now! Mid 5’s, for the most part, up to $670,000.00 Price.
0 down Jumbo to $975,000.00 – 680 credit score – call for a quote
Private Money lenders – hard Money Loans – 35% down!
No Ratio Loans 30% down
Debt Service Coverage loans with as little as 25% down
Bridge Loans – are typically 5.49 – 6.49% with limited fees – But they get you where you need to go!
Interest rates are subject to change without notice! Above are LA County Loan Limits.

I will be around all week if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!