4/25/24 – Mike’s Mid Day Mortgage Update Today is another session of “Should I Buy Now or Should I Wait?” April Edition! Interest rates have increased again, but the market is still hot! Inventory is rising a little, but properties are still selling quickly, and it’s a brutal market for buyers. There is nothing out there that would make me think that a flood of reasonably priced inventory will hit the market, so we are going to use the above situation and give you a couple of scenarios below. Oh, and for those who think the market will crash and prices will go down… YOU ARE WRONG!!!! Buyer debating on buying today – $800,000.00 Price – 5% down – payment with Taxes, insurance, and PMI = $6499.86 The same buyer waits one year and saves 40K more by living with mommy – The property price is now up 6% = $848,000.00, and the buyer puts down 10%, and rates drop 1%. Loan balance $763,200 / New payment all in = $6041.50 The buyer who purchased for $800K refinances the same day at the same rate 1 year from now, and the house is now worth $848,000.00. Loan Balance $752,500 / New refinance payment =$5832.90. The person who buys today has $10,700 more in equity and a lower payment due to lower property taxes and a lower loan amount. Plus, they are saving $209.00 as long as they live in that house. Let’s say they live there for 10 years, and then that is an additional $25,000 in payment savings. OK, let’s say there is only 4% appreciation! The same buyer waits one year and saves 43K more by living with mommy – The property price is now up 4% = $832,000.00, and the buyer puts down 10%, and rates drop 1%. Loan balance $748,800 / New payment all in = $5935.00 The payment is still higher due to property taxes; you owe $3700 less. This also assumes that you save up the additional 43K annually. I would not be shocked if prices rise closer to 8% in the next 12 months, but I could be way off. The “I am going to save up 5% more so I can lower my payments excuse is horrific, as it never happens, and those people end up paying way more with the same 5% they were going to put down in the first place. I will go through these numbers with your clients and explain why waiting doesn’t make sense! I am available all weekend if you need anything. Let me know 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. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. But wait, there’s more! New Condo issue!!!! Canyon Village – Reserves and 10% of the dues not going to reserves! Condo / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE: American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough! American Beauty Gardens: 19% delinquency on special assessments due. 19% are 60 days or more late! We can do with 5% down, but others can’t! American Beauty Village West: Reserves Bouquet Canyon Village – Insurance – On Fannie’s list! Bridgewater, Emeryville - On Fannie’s list! Brookside Walk – Insurance – Cabrini Villas, Burbank - On Fannie’s list! Canyon Village – Reserves and 10% of the dues not going to reserves! Canyon Oaks – Insurance On Fannie’s list! Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list! Cornerstone – Insurance -On Fannie’s list! Creekside – ??? We don’t know Encino Oaks – 5460 White Oak Ave – On Fannie’s list! Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list! Madison at Towne Center – Litigation – We can do with 5% down, but others can’t! Mariposa: Insurance On Fannie’s list! Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list! Princessa Estates – has $8200 in Reserves, and they are voting on an assessment in May! Rainbow Sierra Terrace – Underinsured and voting on Insurance in March! Scenic Hills – Insurance – On Fannie’s list! Shadow Ridge – Oak Park – Insurance -On Fannie’s list! Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list! Sierra Glen Condos – Insurance – On Fannie’s list! The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list! Treana – Stevenson Ranch: On Fannie’s list! Valle Di Oro – On Fannie’s list! Vista Del Canon – Insurance is too low, UGH! Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list! Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA – On Fannie’s list! West Creek Condos and Townhomes: Insurance On Fannie’s List! Please let me know if you hear anything new on condos or townhouses. Interest rates had three good days in a row, and then yesterday happened, and it happened again today! Amazing! We will deal with the rates we have and help clients continue to buy with a smile! 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/ USDA) are in the high 5’s and low 6’s Conventional Loans up to $766,550.00 are in the high 6’s and low 7’s High Balance Loans $766,550.01 – $ 1,149,825.00 are in 7’s Jumbo loans above $1,149,625 are in 7’s Bank statement loans - They are available with 10% down again! 7’s to 9’s depending on down and credit score. Profit and Loss Statement loans- You don’t need bank statements, just a profit and loss statement! 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 $793,000.00. Private Money lenders - Hard Money Loans – 35% down! No Ratio Loans 30% down DSCR – Debt Service Coverage loans with as little as 15% down Bridge Loans - typically 7.99% with limited fees – and they get you where you need to go! 0 down California Dream for all Equity Share – Registration April 3 to April 29, 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! The above are LA County Loan Limits. I am still available all weekend if you need anything. Let me know 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. My direct line is 661-291-2222. When you text, 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
