What to Know About Financing Your Home in the Desert. My team member, Dean Rathbun, United American Mortgage Corporation, sent out an email with details of what he’s watching in today’s market.
His email is below with his suggestions on using a jumbo loan to purchase a home in The Desert:
Initial jobless claims were down showing only 190,000 claims. This is the lowest number of claims since September. It’s a distorted headline as many of the large tech companies have made layoffs which will start to resonate once severance periods expire. I’ll keep a close watch on this data to help predict when rates will start to decline. December new housing starts were also positive showing a 11.3% increase month over month. Great data for a bit of a recovery. Interest rates are holding this week while the FED enters a quiet period for 10 days prior to their next meeting. Word on the street is another .25% increase to rates.
Did you know that as of January 1, 2023 California Assembly Bill 2170 put into law the requirement for a seller of a property acquired under a trustee’s sale (foreclosure) requires the institution to only accept offers from “eligible bidders” for the first 30 days? Eligible bidder basically means an owner-occupant, not an investor. This bill was put in place to help promote owner occupants to have the first opportunity to buy homes.
Did you know that we have jumbo mortgages with competitive fixed rates with the following down payment allowances:
5% down to $1,150,000 loan amount FICO of 740 or higher
10% down to $1,650,000 loan amount FICO of 720 or higher
15% down to $2,150,000 loan amount FICO of 740 or higher
20% down to $2,000,000 loan amount FICO of only 680 or higher
25% down to $4 million loan amount FICO of only 700 or higher
30% down to $5 million loan amount FICO of only 720 or higher.
This matrix above is EXTREMELY competitive and our rates on this program are outstanding. These of course assume owner occupancy and the various programs require liquid reserves post-closing. Call me for details.
Sometimes life throws us curve balls. Nothing we could have possibly expected. Even then, in the challenging moments, there is a positive somewhere. George Eliot said “What do we live for, if not to make life less difficult for each other?” Let us take the stress of mortgage loans off yours shoulders. We get the job done.
After I received this email, I reached out to Dean with a few questions of my own.
Below are his answers:
What is your opinion of buying points?
Points are great if someone buys down a 30-year fixed rate, and when rates are low. In this environment, I am not a fan as we believe rates will come down in the next 18-24 months, which will allow a consumer to refinance to a lower rate.
The break even on the costs of points is usually 4-6 years.
I know homes may be staying on the market longer than last year; what are you seeing on the lending side? Have you seen a change in home prices since the frenzy last year?
Home prices have certainly come down, and it is regional by percentage. We have seen some areas as much as 10% and others as little as 5%.
What types of loans are being used right now?
Most of our clients are closing with fixed rates on conforming loans at $726,200 or less and on jumbo mortgages over that loan limit, most are doing 7-year ARM’s as they look forward to refinancing during that time on the dip.
Be sure to reach out to Dean for all your lending needs!!
888-455-2847 Toll Free Ext. 211
www.DeanRathbun.comUnited American Mortgage
DRE 00998943/NMLS 98516 NMLS #98516 l CA DRE #00998943 | AZ LO-1001564 | CO #100017802
UAMCO DRE #01154798 | UAMCO NMLS #1942
And be sure to let me know if you’re ready to sell or buy a home in the Desert!!
Remember, “There Really Is Something About Mary!” Call Me and experience firsthand why my clients become friends, repeatedly returning for their real estate needs and confidently referring to their friends and family.
Dean Rathbun’s Interest Rate Sheet as of Friday January 20th, 2023.