July 28, 2022

I hope you have been enjoying your week so far. It seems like the market is picking up a little bit due to interest rates.

The Federal Reserve raised short-term interest rates, which generally increase rates on Home Equity Lines of Credit and on cars and credit cards. It also helps slow down inflation, and it slows down the economy. The Fed also changed its stance on future rate hikes and said they will now be deciding on rate increases on a meeting-by-meeting basis. The Fed’s stance is a change as they are worried about a full-blown recession. The good news is that there are still plenty of jobs, so some don’t want to call it a recession. The bad news is that the GDP numbers came out, and the growth for the second quarter was negative .9%, and recession or no recession is not a good number. The best news is that 30-year mortgage rates have dropped a full percent in the past week and a half, and with a little price dip, payments are closer to where they were in January! Remember that recession means lower rates, and inflation means higher rates. Who will win this battle? Let’s hope these rate increases have done their job and that inflation goes and rates go back down quickly. Heck, at this pace, we will be at 3% in October! LOL!

Interest rates are better and better every day! Let’s hope nothing whacky happens and turns the rates the other way!

• 30-year Government Loans (FHA / VA) are in the mid to high 4’s
• Conventional Loans up to $647,200.00 - Mid 4 to low 5’s.
• High Balance Loans $647,201.00-$ 970,800.00 are in the low to mid 5’s
• Jumbo loans above $970,801 are in the mid to high 5’s
• 5/1, 7/1, 10/1 Arms are in the low 4’s to low 5’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 high 6’s.
• 0 down loans are in the 5’s – 620 credit score min right now! Mid 6’s, for the most part, up to $670,000.00.
• 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 6.99% 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 weekend if you have any questions or if someone 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!