Tag Archive for: lower rates

Seize the Moment: Why Waiting for the Fed to Drop Rates Could Cost You

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In the world of mortgages, timing is often seen as everything. Many homeowners are currently sitting on the sidelines, waiting for the Federal Reserve to lower interest rates before refinancing. But is this really the best strategy? Let’s explore why waiting for the Fed to act might mean missing out on significant benefits that refinancing can offer right now.

The Fed and Your Mortgage: It’s Complicated

First, it’s important to understand that while the Federal Reserve’s actions do influence mortgage rates, they don’t directly set them. Mortgage rates are more closely tied to long-term bond yields, which can move independently of the Fed’s decisions. Waiting for the Fed to drop rates doesn’t guarantee lower mortgage rates, and here’s why that matters:

Why Refinancing Now Could Be Your Best Move

1. You’re Missing Out on Immediate Savings

Every month you wait is a month you’re not benefiting from potentially lower payments. Even if rates drop further in the future, you’ll have missed out on months or even years of savings. Remember, refinancing isn’t just about getting the lowest rate in history – it’s about improving your current financial situation.

2. Home Values are High Right Now

In many areas, home values have increased significantly. This means you likely have more equity in your home, which could allow you to:

  • Eliminate private mortgage insurance (PMI)
  • Qualify for better rates and terms
  • Access cash through a cash-out refinance

Waiting for rates to drop could mean missing out on leveraging your home’s current high value.

3. Debt Consolidation Opportunities are Available Now

If you have high-interest debts, refinancing now could allow you to consolidate these into your mortgage at a lower rate. The longer you wait, the more interest you’ll pay on these high-interest debts.

4. You Can Always Refinance Again

If you refinance now and rates do drop significantly in the future, you can always refinance again. By refinancing now, you start saving immediately and still leave the door open for future opportunities.

5. Shorter Terms Might Be More Accessible

With potentially more equity in your home, you might be able to refinance to a shorter term (like from a 30-year to a 15-year mortgage) without significantly increasing your monthly payment. This could save you tens of thousands in interest over the life of your loan.

6. Protection Against Potential Rate Increases

While everyone hopes rates will drop, there’s always the possibility they could rise. By refinancing now, you protect yourself against potential future rate hikes.

7. Improved Loan Terms

Refinancing isn’t just about the interest rate. You might be able to remove a co-signer, switch from an adjustable-rate to a fixed-rate mortgage, or negotiate better terms. These benefits are available now, regardless of future Fed actions.

The Cost of Waiting

While waiting for rates to drop might seem prudent, it comes with hidden costs:

  • Continued higher monthly payments
  • Missed opportunities to eliminate PMI
  • Accruing interest on high-interest debts that could be consolidated
  • Lost time building equity (if refinancing to a shorter term)

Your Financial Future Starts Today

Remember, the best time to refinance is when it makes financial sense for your unique situation. Don’t let the pursuit of a “perfect” rate prevent you from improving your financial health today.

By refinancing now, you’re not just changing your mortgage – you’re opening doors to better financial wellbeing. You’re freeing up cash flow, potentially building equity faster, and taking control of your largest debt.

Take Action Now

Ready to explore how refinancing could benefit you today? Reach out to us so we can help you understand your options. We can show you exactly how much you could save by refinancing now, versus the potential costs of waiting.

For more info, please contact me below or go here, to complete a short refi questionnaire.

Best Regards,

101 Loan
Senior Mortgage Advisor
www.101Loan.com  hello@101loan.com
650-465-8957 c
CA DRE #01205444  NMLS #326829
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 60 banks with over 300 “Five Star” Reviews on Yelp, Google and Linkedin.
  5. Over 30 years of lending experience with over $2b in closed loan volume.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Rates Finally Go Lower!

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It’s been over 20 months since interest rates started climbing as the Federal Reserve did everything to control inflation. This resulted in one of the worst lending climates for residential and commercial lending and real estate in the the last 30 years aside from the 2008 recession.

In January of 2023 we had over 200,000 licensed loan officers in the United States and in just 12 months, we lost almost half of that number due to rising interest rates and the lack of real estate and loan closings.

As a mortgage professional that provides Residential, Commercial, Reverse, Construction and Hard Money lending, I individually went from  10+ closings per month, to just a little over 2 closings per month which was dismal when compared to my past performance.

Per Barry Habib, an expert in the lending community, 2 closed loans or more was considered in the 99 percentile of loan officers in 2023.  Most loan officers closed 1 per month or less in 2023 and some haven’t closed any loans in 2024.

Unfortunately this year hasn’t been much different or better. I know so many loan officers and realtors, that were forced to sell their homes or change careers. Thank god for savings and keeping your eye on the ball or I would have been in the same boat as so many others.

Now let’s talk Interest Rates…
Our business (lending and real estate) can fuel the market if we are going strong.  While jobless claims went from an expected 14,000 to over 249,000 this month, (which is tough for those recently laid off), its great for the bond yield that has significantly dropped since October of 2023 which was at 5.0% and now at 3.8% putting pressure on the Federal Reserve to lower rates especially with inflation flattening and cooling off.
Will the Federal Reserve Drop Rates?
No one really knows, but the Federal Reserve also knows, if they don’t lower rates, it will stall the economy and put a negative impact on the Dow Jones and Nasdaq and worse yet, further increase the cost of living which is out of control and why gas prices, food prices, and utilities are the highest we have ever seen.  Again, no one is certain what the Federal Reserve will do nor the impact the elections will have on interest rates, but this I know, rates are much lower than just 6 months ago.  See below…
Current Rates on Purchase or Refi:
 
Jumbo Rates… ($1,149,830 or More in Loan Amount)
  • 30 Year 6.125% at 1 Point (with an APR of 6.291)
  • 30 Year 6.375% at 0 Points (with and APR of 6.569)
  • 30 Year 6.625% at 0 Points/0 Fees (with and APR of 6.819)

Note: Above based on a 75% ltv or less with a mid fico score 780 or higher.

Conforming Rates…($1,149,825 or Less in Loan Amount)

  • 30 Year 5.875% at 0 Points (with an APR of 6.069)
  • 30 Year 6.125% at 0 Points / 0 Fees (with and APR of 6.394)

Note: Above based on a 75% ltv or less with a mid fico score 780 or higher.

If your like a customized quote, go here.  Any questions, please contact me.

Best Regards,

101 Loan
Senior Mortgage Advisor
www.101Loan.com
650-465-8957 c  hello@101loan.com
CA DRE #01205444  NMLS #326829
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 60 banks with over 300 “Five Star” Reviews on Yelp, Google and Linkedin.
  5. Over 30 years of lending experience with over $2b in closed loan volume.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Interesting Times in Real Estate…Part 2 (Interest Rates)

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As mentioned in part 1, Housing Inventory is influenced by many factors and one factor that has a large influence on real estate (whether it’s a good market or a bad one) is Interest Rates (the price you pay to borrow money over time).

When Interest rates are high, this usually slows down anything that’s is reliant on lending whether commercial, residential or consumer related.  When interest rates drop, businesses and consumers start spending again as their ability to leverage improves and their costs drops.

Interest Rates in the last 20 months – Once Very Low, Then Very High and Hopefully Going Lower…

In June/July of 2022, interest rates started climbing from all-time lows and continued their way up from 2.75% in rate in the residential markets to a whopping 8% as the Federal Reserve was trying to control inflation.

In August/Sept of 2023, the Federal Reserve started using language that they might slow down or stop increasing rates, as inflation showed signs that it was getting inflation under control and that they might ease rates in Q1 of 2024, great news for us loan originators, as we just had the worst year ever in 30 years of lending and why over 200,000 loan officers and support staff exited the industry similar to what was seen in 2008/2009 with the recession of the stock market and housing collapse.

At that time (still in Sept of 2023), the Federal Reserve shared their intention and plan on how they were going to lower rates in 2024, 2025 and 2026 getting us back to rates in the mid 4’s to mid 5’s.  In q1 of 2024 after seeing Decembers numbers for inflation, those plans were squashed as inflation started to rear its ugly head again even though the stock market was on fire which would normally fuel the real estate market but rates went from the mid 6’s to the low 7’s in less than 1 month and stayed that way until March when rates finally started to drop as the Federal Reserve stated in an FOMC Meeting that “the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent” which is in line with the same update in September of 2023 which was great news.

We hope the Fed’s continue to lower rates to fuel the economy and help the real estate market which should bring more buyers and sellers to the market.

What Do Interest Rates Really Do?

Interest rates directly affect the cost of borrowing for consumers and businesses alike. In the context of real estate, mortgage interest rates significantly influence the affordability of homes. Lower interest rates make mortgages more accessible and reduce monthly payments, stimulating housing demand. Conversely, higher interest rates increase borrowing costs, potentially dampening demand and slowing down the pace of home purchases. In the Bay Area’s high-priced real estate market, even slight changes in interest rates can have a substantial impact on affordability, housing activity and can increase or impede consumer confidence.

Interest Rates Affect Consumer Confidence?

Consumer confidence, a crucial driver of economic activity, is closely tied to interest rates. When rates are low, consumers are more likely to feel confident about making major purchases, such as homes and durable goods. This increased spending contributes to economic growth. Conversely, rising interest rates may cause consumers to postpone discretionary spending and investments, leading to a decline in consumer confidence and overall economic activity.

The Federal Reserve plays a central role in influencing interest rates through monetary policy decisions. By adjusting the federal funds rate, the Fed aims to achieve its dual mandate of price stability and maximum employment. Changes in the federal funds rate ripple through the financial system, impacting borrowing costs and, consequently, economic activity and real estate markets.

Summary…

In summary, interest rates in the Bay Area have far-reaching implications, affecting housing affordability, economic growth, and consumer sentiment. Monitoring interest rate trends is essential for stakeholders in the real estate industry, policymakers, and consumers alike, as they navigate the complexities of the market and plan for the future.

Any questions, please contact me.

Best Regards,

101 Loan
Senior Mortgage Advisor
www.101Loan.com
650-465-8957 c  408-377-4123 o
CA DRE #01205444  NMLS #326829
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 60 banks with over 300 “Five Star” Reviews on Yelp, Google and Linkedin.
  5. Over 30 years of lending experience with over $2b in closed loan volume.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Low Housing Inventory and High Interest Rates – If Your a Buyer, What Does this all Mean?

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Housing inventory remains very low in the Bay Area.  Even though interest rates remain high due to inflationary fears from the Fed’s, the higher cost of financing isn’t slowing the market down. 

In Santa Clara County, there are approximately 930 properties for sale (consisting of homes, town house and condos (as of July 2023)) with a median days on the market of 10 days.

In Santa Cruz County, there are approximately 305 properties for sale with a median days on the market of 22 days per Charles Holcomb with Compass Real Estate with the Dawn Thomas Team.  Its still very much a seller’s market with sellers demanding and getting prices well over list prices.

Last year I sold my home in Saratoga to downsize, thinking prices would go lower due to higher rates allowing to scoop up a great deal…Was I wrong!  In searching for property, I have seen multiple offers and listings going well above the list price.  In fact, I have seen accepted offers well above what comps support.  It feels a little like 2018 again.  Jen Beehler with the Elevate Group states as inventory remains lows, expect more of this.  She then went on to explain that when making an offer where financing is involved, its very important to be fully preapproved with the ability to close quickly.

At 101 Loan, we take pride in that, our preapprovals are fully underwritten (with DU run) allowing our buyers the ability to make offers without a loan contingency and close in a timely manner, sometimes in 3 weeks or less.  This helps our buyers make the strongest offer possible often times resulting in accepted offer.

For more on what we do for our buyers, please see below:

  • We get the buyer completely pre-approved before they make an offer, so they won’t need a loan contingency (unless we recommend having one), something seller’s require.
  • We strategize with the buyer and Realtor, to close in the quickest amount of time with the least amount of contingencies while keeping the buyers risk as low as possible.
  • At the time of an offer, we call the listing agent on behalf of the buyer and their Realtor to differentiate the offer over someone else’s. (This makes a huge difference in the eyes of the listing agent and seller and conveys strength in the preapproval)
  • We can close purchases in 21 to 25 days (as needed) depending on the loan program the buyer chooses. Faster is better in the eyes of the seller!
  • We provide a timeline to the buyer, the listing agent and the buyers agent, once the loan is locked; detailing each step of the transaction to ensure a smooth closing.  We ensure the buyer knows exactly what the loan will cost once locked and then update them immediately if there are any changes to the loan structure, as a result due to a change of circumstance.  We then re-summarize the costs before the buyer signs the loan docs.
  • We coordinate the buyer’s signoff with escrow and their Realtor, to ensure the purchase closes on time, as scheduled.

We basically “micro-manage” the purchase from start to finish to ensure everything goes as smoothly as possible, something crucial in this market, to ensure all parties have a smooth and stress-free closing.

If you’d like to get preapproved or determine your purchase power, please contact us.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  408-377-4123 o  408-608-1921 f

CA DRE – License # 01205444  NMLS #326829

6090 Hellyer Ave #100, San Jose, CA 95138

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

 

Want a Lower Payment and a Lower Rate Below Market…A 2-1 Buydown May be the Trick!

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Want a Lower Payment and a Lower Rate Below Market…A 2-1 Buydown May be the Trick!…(Read Below for More Info)

 

What is a 2-1 Buydown?

A Buydown temporarily reduces the mortgage payment for the borrower. This happens because the seller offers a credit that pays the difference between the full P&I payment and the reduced P&I payment. The seller only needs to provide the credit and the lender handles supplementing the payment. So, it’s a seller credit used in a different way!

Why would a seller want to give this credit to the buyer?

A Buydown is paid for by the seller instead of the traditional lowering of the sales price when a listing doesn’t sell.  This potentially attracts more buyers because they get a much lower rate and payment for the first 2 years.  It also provides a lower payment helps buyers ease into their new home given all the new expenses they may have.  It also allows them to refinance when rates drop.

This also allows the seller to maybe not have to lower the list price.  This keeps home values as high as possible!  Since this is also a cost to sell the property then the sellers potentially get a tax break by lowering any capital gains (of course sellers should always contact their tax advisor on this).

You can also have a situation where the list price is fine and the sellers don’t need to lower it or give a credit to the buyers.  So then the buyers can counter to increase the sales price to cover the buydown subsidy and then have the sellers give that buydown subsidy!  Sellers get the same net sales price and of course the buyers are getting a much lower payment on their first 2 years!  Of course to do this the property has to appraise for the higher purchase price.  The buyers have to have the extra couple thousand for the down payment because of the slightly higher purchase price in order for this scenario to work.

Basically this is the borrower “financing” their buydown with the higher purchase price in order to get the seller to give the credit to fund the buydown!

Here Is an Example for Educational Purposes Only:

Interest Rate is 6.50%       Loan Amount is $715,000

P&I at $715,000 with a rate of 6.50% is equal to $4519.29/month

If a Seller credits the buyer with a subsidy, this amount can be applied to the buydown and reduce the 1st, 2nd or 3rd year payment, depending on the subsidy amount.

Let’s say a seller agrees to supplement the payment difference for years one and two.

The first-year payment for the borrower would be a rate of 4.50%.  The second-year payment for the borrower would be a rate of 5.50%.  Years 3-30 would be the normal rate of 6.50%.

Year One@ 4.50% = $3622.80 – P&I/Month

Year Two@ 5.50% = $4059.69 – P&I/Month

  • Keep in mind that the borrower still has to qualify at the NOTE RATE and not the buydown rate so in this scenario the borrower qualifies at the note rate of 6.50%
  • In this scenario with the 1st year rate being 4.50% and the 2nd year rate at 5.50% then this means their average rate for the first 2 years is at 5.00% which is still 1.50% LOWER than the current market rate!!

Seller Subsidy:

The difference between the Normal Payment of $4519.29 and Yr. One of $3622.80 is $896.49/Month.

The difference between the Normal Payment of $4519.29 and Yr. Two of $4059.69 is $459.60/Month.

If the Seller offers a subsidy of $896.49 x 12 = $10,757.88 (for 1st year) plus $459.60 x 12 = $5515.20 (for 2nd year) they would offer the borrower a total subsidy of $16,273.08 which would pay for the payment difference the first two years.

This strategy helps a homebuyer ease into their house payment and frees up funds for other things that would have normally gone to a house payment. NOTE: Seller credit cannot exceed maximum seller contribution for program selected.

 

For More Info, please contact me.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Unemployment Down in Bay Area and Real Estate Staying Strong…

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A Very Interesting Week for Real Estate, Unemployment and the Dow Jones!

This week, see why the economy is coming back strong. For more info, see https://youtu.be/7DaDcWhDUdg.

Home Values

Real Estate values continue to stay strong, with multiple offers as Shelter in Place has been modified.

Just this week, we pre-approved over twice as many borrowers as with previous weeks.  Many of my Realtors are reporting buyers coming off the fence and writing offers.  Housing inventory is finally up with Shelter in Place in Phase 2 allowing Realtors the ability to list property.  Inventory is now at 2.8 months but with over 7 Million people residing in the bay area, that isn’t much!  This is great news for sellers, but not so much for buyers where supply and demand are not equal.

Unemployment

Bay Area unemployment wasn’t as high, as some expected, compared to other areas throughout California.  Marin County came in at 11.1.  San Francisco County at 12.6, San Mateo County at 11.4 and Santa Clara County at 11.7.  What is also interesting is national unemployment dropped from 15.3 to 13.3%.  In just one month, over 2.5m people went back to work which is great news for the economy!

Local, National and Global Markets

The Dow closed today at 27,110 due to the following:

  1. Economic Optimism
  2. Overwhelming Policy Response
  3. Corona Virus Uncertainty Abating
  4. Global Yields Increasing

For more info on these, see my weekly report which can be found at www.101Loan.com under Rob’s Corner.

In Closing…Noah Manning with Perspective Realty in the North Bay and myself provided a summary on the above (and more) at https://youtu.be/7DaDcWhDUdg.   (I hope you enjoy it and if you like it, please leave your comments on the channel)

I hope you have a great weekend!

All the Best,

101 Loan

Senior Mortgage Advisor

408-377-4123 o  650-465-8957 c   hello@101loan.com

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Cash Out Refi’s Might Go Away?

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 First and Foremost…
I just read an interesting report on how lenders may eliminate cash out refinances on conforming and jumbo loans. We have seen the “add” for cash-out refinances get super expensive lately.  It appears the Federal Reserve doesn’t want borrowers pulling equity out of their homes.  They feel home values may go down due to the negative impact of Shelter in Place and Covid-19.
For more info, see quote and link below:
 
“Many lenders have eliminated or restricted cash-out refinances, financing for investment properties and some for second homes as well,” Cohn says. “Jumbo lenders have also tightened their guidelines.”
 
https://www.cnet.com/personal-finance/6-things-to-know-about-refinancing-right-now/ 
 
Next…
A listing agent in the east bay recently posted a great Yelp review on the service we provided her. I just love when we can help Realtors and their clients successfully & smoothly close on purchases. 
To view the review, click here: https://www.yelp.com/biz/101-loan-mortgage-san-jose-2  (See Testimonial from Bette dtd. 4/28/2020)
If you’d like the same care, please contact me.
 
Best Regards,
101 Loan
Senior Mortgage Advisor
www.101Loan.com
408-377-4123 o 650-465-8957 c 408-608-1921 f
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070
101 Loan LLC – CA DRE #01205444  NMLS #326829
Products/Services/Accolades:
1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Opportunity May Be Knocking – 1st Time Buyers May Finally Have a Leg Up!

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In the Bay Area, we have been in Shelter in Place for over 30 days. Unfortunately the flattening of the COVID 19 has not reduced the curve as much as officials have hoped.  Meanwhile consumers are wondering when they will be able to go back to some normalcy in life.

In terms of Real Estate… it continues to be in demand.  Predictions state that this may not be the case in the future, unless officials come up with a plan for consumers to stay healthy but still productive.  Real Estate continues to stay high in value since inventory is so low but with consumer confidence being low and because Shelter in Place is still in affect, properties may sit on the market for longer periods.

This is creating opportunities for first time home buyers.  Because of the stock market correction, 1st Time Buyers,  don’t have to compete with buyers that were using stocks to purchase a property or that had large down payments, putting 1st Time Home Buyers into competitive position.  In addition, sellers are getting antsy, wondering why their homes are not selling or when they may sell.

For more info on the above, about the Bay Area Real Estate Market and Current rates, please tune into my You Tube channel at 101 Loan or at https://youtu.be/-3DSUCsKQVg.

For more info on the above, about the Real Estate Market locally and about current interest rates, tune into my You Tube channel..  If you would like to get pre-approved, please contact us at www.101loan.com or complete the following questionnaire at https://101loan.com/purchasing-start/.

Any questions, please contact me at https://101loan.com/contact-us/.

All The Best,

101 Loan

Owner and Senior Mortgage Planner

101 Loan LLC

“A Stock Market Loss is Only a Loss if You Sell”

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A Stock Market Loss is Only a Loss if You Sell or so Financial Planners tell us!

For those in their 30’s, 40’s or 50’s, those age groups, should have time for the stock market to recover. However, for those much closer to retirement or retired, they may not be as fortunate!

As companies take huge losses with “Shelter in Place” and consumers are pulling back their purchases, analysts feel MORE stock losses are imminent.  The Federal Government stimulus will help in the short term, but longer-term, we are facing a new economic reality and one that we will not like.

If you’re in your 60’s, 70’s or 80’s, making back the market’s losses may only be a hope, and unfortunately not reality. The question to ask is…What are my options now that my fixed costs are the same, but my assets have taken a big hit?

We may have an answer for you. To learn more, please contact me or review the information on my site at https://101loan.com/reverse-mortgage-start/ .

Thank you.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o 650-465-8957 c

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

“Over 200 “5 Star Reviews on Yelp and Over 30 years of Experience in Lending”

Market Update and What Should Retired Homeowners Due in a Declining Stock Market…

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As for Mortgage Rates and the Stock Market…The dust has not settled.  Analysts say this week or next may be similar to the last few weeks with volatility in the market. For now, only loans of $510k or less are low in rate. Loans above $510k are expensive, “rate wise” when looking at refi options. Purchase loans are still low in rate as banks subsidize them. In regards to market volatility for this week, please see the following at https://seekingalpha.com/article/4335928-markets-are-setting-up-for-another-move-down-technically-speaking-for-week-of-3-30minus-4-3.

In Addition…Wells Fargo has announced they will only do jumbo loans for clients with $250k deposited with them and will not be doing conforming loans or government type loans (such as FHA and VA) going forward. We are glad we have access to more than one jumbo lender and access to everything else! Being a broker in this type of market does have its perks with access to multiple lenders, many of which are portfolio lenders and lenders that sell to Fannie Mae and Freddie Mac, giving our clients more loan options!

In Closing…with market devaluations, many of your retired clients may be feeling the pain or fear of seeing their portfolio or monthly income from those assets go lower. As a solution, we have access to Reverse Mortgage Financing that can help them Age in Place and eliminate stress and anxiety with the changing times. For more info, please contact me.  Any questions, please contact us.