Investor loans (DSCR, NONQM, etc.) projection
Do you believe, with what data is available, that interest rates are expected to fall substantially enough (within the next 365 days) that it would simply make sense to wait instead of jumping in with such loan products due to their current high rates/PPP's?
Hi Derek, There are more DSCR options than you think that have no prepayment features. Some of my best priced DSCR investors I work with as a broker do not have prepayment clauses.
When rates fall tons of homebuyers are going to enter the market and it will become even more of a sellers market.
Quote from @Austin Clarence:What are your rates for these DSCR loans without prepayment penalties? Points?
Hi Derek, There are more DSCR options than you think that have no prepayment features. Some of my best priced DSCR investors I work with as a broker do not have prepayment clauses.
When rates fall tons of homebuyers are going to enter the market and it will become even more of a sellers market.
Let's talk about interest rates without getting all fancy. The future is a bit uncertain – some folks say rates might go down, but no one's sure. It's like predicting the weather, and things can change fast. Waiting around might mean missing out on good deals, especially in busy places like Houston. Sure, rates might seem a bit high now, but think of it as an investment for later in the real estate game. It all depends on your situation. Ready to jump into homeownership? Can you handle today's rates? Got other money tricks up your sleeve? These are the real questions. Instead of trying to guess the future, let's talk smart moves:
First,chat with a lender, get pre-approved, and figure out your budget with today's rates.Stay in the loop with market trends and economic news, but don't let them stress you out.Think about different loan options – it's not just about the lowest rate.And seriously, don't wait for the "perfect" market. It might never show up. Consider your options, weigh the good and bad, and make a move based on your own situation. It's your game, after all.
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Real Estate Agent Texas (#005416)
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Quote from @Mike Morehead:
Quote from @Austin Clarence:What are your rates for these DSCR loans without prepayment penalties? Points?
Hi Derek, There are more DSCR options than you think that have no prepayment features. Some of my best priced DSCR investors I work with as a broker do not have prepayment clauses.
When rates fall tons of homebuyers are going to enter the market and it will become even more of a sellers market.
I sent you PM, thanks
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@Derek Nemec, if you strongly believe that they will fall substantially in the next 12 months, then I could consider buying the PPP for 1 year. Don't forget to account for the points and refinance fees you will pay for the new loan as well. I have not personally seen it make sense to pay for a no ppp in a dscr.
I don't believe waiting is the right decision, but I do believe in putting together a strategy to maximize your opportunity.