The chaos level in the house definitely picked up this past week. Brendan announced around 4:00 p.m. on Thursday that he was heading back to school Friday morning. You might ask, so what is the issue? The boy has more clothes than the rest of the house combined, and most of them needed to be washed. That led to a late night of laundry, folding, and packing.
It is quiet without him, but I did not have to worry about breaking an ankle on a shoe on the way down the stairs in the morning.
Product and Lending Notes*
I had a good question this past week about a lending area worth mentioning, especially with the spring market approaching. A client was looking to purchase an investment property in Florida. We can and do lend in all 50 states.
Early last year, we also rolled out a product known as a DSCR loan, or debt service coverage ratio loan. This is a great option for investors and does allow the property to be titled in the name of an LLC. Most residential loans cannot be titled that way, as those loans are made to individuals rather than entities.
The DSCR product focuses simply on the cash flow of the property. We do not need to review income, tax returns, or similar documentation. If the property supports a one-to-one ratio, the rate can be very similar to conventional loans in today’s market. Let me know if you have any questions or would like to discuss further.
Market Notes
It was an interesting week in the market as we returned to normal, non-holiday trading. Mortgage rates hit their lowest levels since February of 2023 and ended the week roughly 0.125 percent lower than last week.
We mentioned last week that the employment data released yesterday would be important, and it was. The report did not show signs of the job market heating up.
So what moved the market? I am glad you asked. President Trump announced that he has asked his team to purchase $200 billion of mortgage-backed securities. Mortgage-backed securities directly impact mortgage interest rates, not the Fed and not the 10-year Treasury. Increased demand for MBS can push rates lower, which is what we saw following the announcement.
Where do we go from here? That will be interesting to watch, but this is a great article that goes into more detail on the topic.
Looking Ahead**
Have a great weekend, and do not hesitate to reach out with any mortgage related questions or preapproval needs. We are always happy to help.
-Steve-
*All loans, including investment property and DSCR loans, are subject to credit approval and program guidelines. Rates, terms, and availability are subject to change without notice.
**All loans are subject to credit approval and program guidelines.