Can You Get Home Loans under 5% Today? Conventional? Jumbo? FHA? No Points or With Points?

Video Closed Captioning:

good morning good afternoon good evening

folks michael’s uber one rental at a

time back with matt the mortgage guy how

are you doing buddy i’m doing good mike

how you doing i’m doing well i you know

something we haven’t done in quite a

while is just take a fictitious buyer

kind of put it in the system and look at

what conventional rates might be so why

don’t we just kind of talk about the

standard rates you know owner occupied

buyer decent credit looking to buy a

home what kind of rates this is

obviously not a quote or anything it’s

just you know

so people can understand the rain ranges

available right yeah and i’m not

offering anything but but i’m gonna give

you you know true

rates you know i actually priced like a

five percent down for somebody with a

760 credit score um and this this will

be a range so it’s not an offer to land

it’s not specific um and side note

caveat um if if you haven’t worked with

a mortgage broker in the past um there

are some cool things going on with

mortgage mortgage or margin compression

and

and you know broker price battles um

you can go to mortgage news daily and

see the average 30-year 5.95

and the broker’s item probably well i

shouldn’t say probably i am in the

mid-fives you know like no cost at five

and a half so um

i think it’s important for people to not

only know these numbers but plug these

numbers into what you’re buying to see

what that actually means because

i i can tell you mike over the last week

i’ve had too many conversations where

they go

3 400 a month

and sorry

i’m just the messenger right i i wish i

could get you three percent money but i

can’t it’s it’s five and a half and

we’ll talk in a other video about some

strategies to get it into the force but

you know 30-year fixed money without

paying you know points or fees somewhere

in the mid fives five and a half percent

okay and then if if you do 15-year which

i see very little of sure

when there’s affordability issues like

people aren’t leaning on 15s and when

the spread is smaller

the the the 15 years about four six two

five um oh i would i would have expected

more so it’s not even a full point delta

roughly not even a full point okay and

uh

you know you might find it three and a

half that you know if you shop around or

something more you can buy it into the

threes

by paying points but for the most part

yeah it’s less than one point um delta

which

you know surprises me too

um because we had a one point delta when

rates were three and a half and two and

a half on the fifteen and the thirty so

when they go up you expect it to be a

bigger difference yeah whiter white it’s

it’s really not okay there’s not an

appetite for those 15 years and then

what about arms because again arms you

know sometimes arms are the answer and

sometimes they’re not what do they look

like today right and this was a scenario

i went over with somebody yesterday

where

um they asked my team for some side by

sides and we provided them and they go

well wait it’s the same yeah

why would i do a five or seven or ten

year arm when it’s the same price as

30-year fixed money and my answer is

right just do the 30-year fixed money

and this is specific to

conforming conventional stuff yeah it’s

it’s it’s for all intents and purposes

the same price

where you see the arms being written and

in my business um where we’re writing

all the arms is in the jumbo space yeah

in the jumbo space you get

three quarters of a percent or a full

percent lower in rate riding a seven or

ten year arm

it’s a really significant savings yeah

so again conventional again conventional

being what below 600 k something like

that well 647 200 like nationwide then

you’ve got like different high deserts

high balance or whatever yeah so

conventional meaning uh gov so again if

you’re getting a five seven or ten year

arm conventional loan and it’s the same

rate as a thirty year fixed let me be

very clear

don’t do that alone right under any

circumstances don’t do that long it

would be kind of silly to have uh the

money be the same interest rate risk for

nothing right right there’s no reward

for risk yeah for people too i try to

give the advice where it’s like you want

to get into a loan even if you have a

plan to get out of it that if you stayed

in it yeah

downside protection is it isn’t going to

kill you right and so um you know that’s

that’s that’s what some of the talk is

too and i’ll speak on this real quick

when rates go lower i’ll refinance yeah

i hear that great plan but don’t depend

on it right that is the same talk track

that happened back in the day where it’s

like no matter what the terms are sign

the dotted line we’ll refinance you in

six months or a year when things get

better your job you know improves don’t

depend on that the loan you sign today

i know that data says you won’t be in it

for more than three to five years but

make sure to your point downside

protected that this is a loan that you

can sustain you’ve got job stability got

all the other stuff and um yeah you know

one thing i wanted to do real quick

because uh

we didn’t talk about it was price and

fha loan too because these

mike are coming back

oh yeah i agree i think fha and va

buyers are coming back absolutely yeah

and for a lot of buyers um you know that

they’re they’re less credit sensitive

you could have lower credit and fha is

not going to um you know ding your rate

if you’ve got a 645 credit score your

conventional mortgage insurance is going

to look a lot higher the rate’s going to

look a lot higher and fha is going to

say come on down not only um you know

are we less

you know sensitive to your credit score

but also your debt to income

we’re going to be we’re going to be able

to stretch a little bit more too so so

without paying any points you could get

like a four six on an fha deal and um so

tell me about an fhe deal that’s

different conventional is it more down

no i mean you can do three and a half

percent down um fha you know home buyers

that are that are putting lower down

payments on conventional can do three

five okay um percent down so you could

get an fha loan in the force

you can get an fha loan in the force and

you know i could

show you

you know what it would look like with

buy down but fha specifically is not a

long-term loan so i don’t recommend

buying that rate down because um over

time you’re going to gain equity

hopefully your credit score improves and

you’re going to remove that mortgage

insurance and refinance out of it so fha

you know the average length in that loan

is even shorter um right so so don’t

spend a bunch of money up front buying

it down but

in a market

where things are starting to sit for 20

days 27 days you submit an fha offer

last year

you were laughed at yeah the seller had

17 offers to choose from and they just

said listen we’ve got four or five

really good conventional deals even if

this fha deals 5 000 more let’s

yeah no you know regardless of whether

or not that was right or not that’s that

that was the the the mood of the market

so um fha is um going to make a comeback

so yeah i think i think fha and va

buyers if you’re still interested your

time is coming again you you may be the

only offer

uh you know again i’m telling everybody

don’t even bother offering on first day

listings anymore look for the older

listings don’t offer list get seller

closing costs uh get uh buy down in

rates if you can ask for the moon your

time is now

why not yeah and i don’t know if you can

do this quickly if you can great if you

can’t no worries how about an investor

loan 25 30 percent down what are rates

looking at

i’ll pop that in because i’ve been i’ve

been pricing some of my own

the wifey and i uh

and some investor partners

see opportunity just like a lot of your

viewers so why not uh

get ready

why not be ready and i mean

for

for most folks my advice is like

if if you have a number that works

and you offer it and they don’t accept

it move on yeah if they accept it you’ve

you’ve underwritten it you know it works

exactly um uh i had one where

agent thought i would be sad that we

didn’t get accepted no it’s fine on to

the next one on to the next one that’s

what i hope uh investors are really

getting at is we’re learning what is

only writing great deals and if they say

no you just move on to the next one just

rinse and release is this right okay 25

down

and if if if the investors that know

know like there’s a big enough spread

between 20 and 25 you want to be putting

25 down if you have to only put 20 great

but i’m pricing everything at 25. yes um

my wife asked me last night too she goes

could we put 20 down i go yeah but no

we’re not going to 25

yeah um

is this right could this be right oh

yeah this is right um

low sixes

we’ll call that six and a quarter

without any points right on investment

properties

specifically sure

ask the seller to pay a couple points

you could get you can get a single

family investment property 25 down

five and a half percent rate

nice and that’s what it might take for

the thing to

do

two points being paid uh by

the seller and in this case i just had a

plugged in price of 545. sure so when

the loan amount is 408 for people that

don’t know how points work two percent

of that you know basically you need a

eight thousand dollar credit yep it’s

not a lot you know

give me an eight thousand dollar credit

i’m gonna use it to buy my rate down to

five and a half yeah let’s be very clear

all my investors we’re only writing

great deals good left the building we

are getting seller to pay closing costs

and we’re getting all sellers to buy

down rates especially for getting

30-year money might as well ask for the

moon if they say no move on matt how can

people find you and see what works for

them go to greatmortgagebroker.com for

whatever reason i’m getting more and

more people that are like i just want to

have a rough idea i don’t want to pull

credit don’t get pre-approved um

i’m just not in the business of

providing no value and having you out

there shopping with blinders on right

if you’re in the market you want to get

pre-approved my staff’s going to spend

hours i’m going to spend 37 on a credit

report i’m fine with all that whether

you buy it whether you don’t buy but get

yourself pre-approved whether it’s with

us or somebody else with us

greatmortgagebroker.com is where you

start

that way you know what you qualify for

you know your numbers

it frustrates me to no end mike i’ve got

people putting in offers we review the

stuff and we’re like you can’t do this

yeah qualify

no

whoever advised you to submit an offer

and whatever agent was willing to write

it without you being pre-approved um

not the way to do it get the numbers

figured out first um then you’ll have an

idea too where rates are at and what you

can get based on your specific scenario

and then back into what you can offer on

a property absolutely thanks buddy

greatmortgagebroker.com

yes sir thanks mike awesome thanks

Leave a comment

Your email address will not be published.