12/8/2023 – Mortgage Payment Down 12.75%

We are all hearing that interest rates have fallen and will continue to go lower as the economy continues to underperform. Lower rates are good news for homebuyers, but please remember that these things don’t go in a straight line. More importantly, you need to be able to tell buyers what that means for them in today’s numbers.

I will use a $1,000,000.00 property for my example on a 30-year mortgage with 25% down, where just a month or so ago we were around 8.25%, and today we will be in the mid 6’s depending on down payment, points, and credit score on a conventional loan. Here are the full PITI Payments using 1.25% taxes and $4000.00 in insurance below:

8.250% = $7009.50

8.000% = $6878.23

7.500% = $6619.11

7.000% = $6364.77

6.500% = $6115.51

8.250% vs. 6.500% vs. payment using 25% down

600K @ 8.250% = $4255.70 / @ 6.500%= $3719.31

700K @ 8.250% = $4923.32 / @ 6.500%= $4297.52

800K @ 8.250% = $5590.93 / @ 6.500%= $4875.74

900K @ 8.250% = $6308.55 / @ 6.500%= $5503.96

Your purchasing power is now up by 12.75% over where we were just 30-45 days ago! Buyers who were stuck on getting a $6000.00 payment for a $900,000.00 house can now get in for $5500 or buy for $980,000.00 and still stay under the $6000 payment.

You can still do a 2/1 buydown and start your rate in the mid 4’s year 1! get in now and refinance when rates go lower!

Condo / Townhome issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE:

1. American Beauty Village – West has insurance issues – East will get renewed February 28, 2024, and will likely be deemed non-warrantable at that time.
2. Scenic Hills – Insurance
3. Mariposa – Litigation semi-cleared! Insurance a mess!
4. Bouquet Canyon Village – Insurance
5. Madison – Litigation
6. West Creek / West Hills – Insurance
7. Cornerstone – Insurance
8. Canyon Oaks – Insurance
9. Brookside Walk – Insurance – NEW as of last week
10. Shadow Ridge – Oak Park – Insurance
11. Cabrini Villas – Burbank – Insurance
12. Sierra Glen Condos – Insurance

Las Ventanas – Litigation cleared – NO LONGER ON THE NAUGHTY LIST!!! REPAIRS HAVE BEEN MADE!!!  

Please let me know if you hear anything new on condos or townhouses.

Interest rates increased a bit today, but we are at the best interest rates since the beginning of August. Let’s hope there are no crazy turnarounds and rates continue to spiral downward.

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• We do loans in all states, so call me with anything you need.  
• Government Loans (FHA / VA) are in the high 5’s and low 6’s
• Conventional Loans up to $765,550.00 are in the mid 6’s and low 7’s
• High Balance Loans $765,550.00-$ 1,148,325.00 are in the high 6’s to low 7’s
• Jumbo loans above $1,148,325 are in 6’s and 7’s
• Bank statement loans - They are available with 10% down again! 8’s and 9’s depending on down and credit score.
• No income qualifier – 40% down with reserves! In the 8’s!
• 0 down loans are in the high 7’s – 660 credit score min right now, up to $740,000.00.
• 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 - typically 8.250% with limited fees – and they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until February 2024???
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am available all weekend 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 ext. 2222. Please text (661-714-6258) or email me at Mike@AugustaFinancial.com.

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!