September 20, 2022

September 20, 2022

President | Loan Officer
Mike Meena
Published on September 20, 2022

September 20, 2022

I am starting my 33rd year in the mortgage business this week, and I have seen a few things over that period. I will not tell you everything in this post, but I can tell you that it has been a wild ride, and I am looking forward to another 10-15 years. I have had the pleasure of meeting most of you, but the one thing I am terrible at is getting to know all of you the way I want to, but I am working on that! Many of you have come to our parties, heard me speak, read my blogs, or worked on deals with me. My track record has been pretty good, and I intend to keep it that way. Some would call me obsessed, but I call it a passion. As I cross over year 32 into year 33, I want to thank those of you who have been part of my career. You have made me wiser, stronger, harder working, calmer, and more detailed and kept me on my toes.

We are seeing interest rates rise again to the highest levels of the year just before the Federal Reserve meeting. If we get word that the Federal Reserve is raising rates just .75% rather than 1%., then the market should shift slightly. Yes, there is a slight chance that the Fed will go up a whole point, pushing rates even higher as the markets have not prepared for that. From what I am reading, it sounds like rates could be in the 5-7 range until the spring of next year, and then we are hopeful that inflation will get out of the way and allow rates to go down. One other thing that I think is worth noting is that we are still building homes at a deficit here in the United States. When rates finally go down, we will see another crazy surge as we will be even shorter on supply than before rates started to climb.

I am using the above information as my platform to tell my clients to buy now, and when rates drop, they can refinance. Six months later, they can buy up and rent their property. So if a client is putting 10% down today, maybe they should just put 5% down, and when rates drop, they can buy again with the same payment with 5% down again! They would then own an owner-occupied house and an investment property within a couple of years. Ask your clients – “Where do you think prices will be in 10 years? 20? 30?” How much will rent cost at that time? If you ask the right questions, you can help more people. Renting should not be an option unless they are renting from me!

Interest rates are on another losing streak and are still about inflation! We have an inverted yield curve, so even some 5-year options don’t look great! 2/1 buydowns are becoming very popular, with sellers paying closing costs!

  • 30-year Government Loans (FHA / VA) are in the mid 5’s.
  • Conventional Loans up to $715,000.00 - low to high 5’s - low 6’s.
  • High Balance Loans $715,001.00-$ 1,072,500.00 are in the high 5’s to low 6’s
  • Jumbo loans above $1,072,500 are in the high 5’s to low 6’s
  • 5/1, 7/1, 10/1 Arms are in the high 4’s to low 5’s
  • Bank statement loans - They are available with 10% down again! 7’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 - low 7’s.
  • 0 down loans are in the high 6’s to low 7’s- 620 credit score min right now! Mid 6’s, for the most part, up to $735,000.00.
  • 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 - 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 week 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 Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!

President | Loan Officer
Mike Meena President | Loan Officer
Click to Call or Text:
(661) 714-6258

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