As we hit the full stride of the summer season, the interest rate complex has heated up and is boiling over!!! Since the beginning of the year, interest rates have made a dramatic U-Turn…The pundits were talking about rates going thru the roof, but the herd mentality was wrong! The 10 year Treasury note has declined from 3.25% in January all the way down to piercing the 1.85% level!! The roof became a trapdoor!! The Federal Reserve cut their benchmark Fed Funds rate by 0.25% on Wednesday which at first received a muted response, but rates subsequently pivoted and became the catalyst for lower rates in conjunction with President Trump’s tweet on Thursday morning adding additional tariffs to on $300 Billion of Chinese goods!!
What does this mean, it means it’s time to analyze your current mortgage interest rate and determine if you would like to lower the monthly payment or perhaps shorten the amortization period to pay off the loan quicker. In addition to the conventional suite of loan products, we are now excited to offer bank statement programs and asset-based lending options. These are ideal programs for self-employed and retired people whose tax returns look light. Albeit, these rates are typically 2-2.5% higher than conventional rates, many of our self- employed clients have utilized this excellent avenue for both primary and investment property loans. Finally, one of our institutional lenders has rolled out a very aggressive reverse mortgage program that does not have a dollar amount limitation. As many of us know, this can be an alternative solution for clients who don’t quite fit into conventional qualifying.
The real estate market, as well as our overall local economy, remains quite strong with pockets of slight softness in certain housing markets. On the whole, demand remains stable for real estate acquisitions.
As always, we are available to run “What-If” scenarios, and our clients know after 35 years of experience, we “Think outside the box.” Have a happy and safe August and Stay Tuned!!
Gloria Shulman, Curtis Cohen & All of us at Centek