Monday Mortgage Rate Snapshot

We break down why improving market signals can create a narrow window to lock a better mortgage rate, especially when new conflict risks can spike volatility overnight. 

We also explain how credit score tiers affect pricing, highlight new lending products for builders and VA homeowners, and clear up what can and cannot be financed across mobile, manufactured, modular, and stick-built homes. 

• where rates sit right now and why we consider locking quickly when markets improve 
• how a one-time close construction loan avoids paying closing costs twice 
• which loan types can work for one-time close including FHA, VA, conventional, and jumbo 
• what makes 100% cash-out VA loans unusual and when they help 

Reach out to Nikki if you have any questions. 
You can find her on Facebook, TikTok, or Instagram @mortgagesfromMntoAZ and also call or text 952-484 1584.  

Transcript

Market Lift And Lock Timing

SPEAKER_00 0:35

Welcome to the Monday Market Update. It is April 6th. Nikki, how are you?

How Credit Scores Move Rates

One Time Close Construction Loans

VA Cash Out Up To 100%

SPEAKER_01 0:41

I'm doing well. I'm doing well, especially with the market as it is today. We saw some improvement last week into Friday. And then that improvement is actually continuing today. Today is actually a day for me where I'm going to be talking to a lot of clients about locking in their interest rates. Because usually when we see signals of the market improving, and then we hear about some additional potential conflict that may happen in Iran tomorrow, we want to make sure that we get everybody locked in today and with the with better interest rates, because we don't know what's going to happen tomorrow as far as the market is concerned. And whenever there is a conflict, the market kind of just goes up and down from a volatility standpoint. So we are into the mid-sixes still at this point. You can certainly buy down to the low sixes, but we are definitely out of the five still. So without a huge buy down, which is, you know, you can only go down so far. So yeah, mid-sixes, which isn't too bad. But yeah, we're hoping that we can get some resolution here pretty quickly and get the rates back down into the fives. With that being said, so I just want to touch on a couple of things. When it comes to interest rates, and then also a couple of additional products that I've adopted onto my product line that are going to be extremely helpful. So when we talk about interest rates, and when I say things like interest rates are in the mid-sixes, there's a couple of things that determines what that interest rate rate is from borrower to borrower. I know that we've talked about this before, but a big portion of your interest rate that you receive on a loan has to do with credit. And your credit score is obviously important. You obviously want to have it above 700, but for every 20 points, there is an interest rate break. So in other words, 720 is going to get you a better interest rate than 719. 740 is going to give you a better interest rate than 739. So for every 20 points on your credit report, that interest rate is going to improve. After about 760, it really doesn't matter. There is really no more improvement after that part. The thing that does improve is if you have a credit score over 800 and are needing mortgage insurance on the loan, in other words, not putting at least 20% down your credit scores over 800, you'll get the a break from the mortgage insurance cost over 800 as well. But from an interest rate standpoint, it kind of stops at 760 and above. You're going to get the most prime, you know, the better interest rate from that standpoint. So I'm not sure how people, a lot of people know that fact or not, but just something, a good reminder if you already did know. So a couple of things that I've added to my arsenal. First and foremost is what's called a one-time close loan. So what a one-time close loan is if somebody wants to purchase a plot of land and construct a home on it from scratch. That is called a construction loan. Most of the time in the market, you have to do what's called a two-time close. In other words, you have to close on your construction loan in order to buy the lot and start building. And then you have to do another mortgage at the end of it, which is your more permanent mortgage, and you have to pay closing costs twice. Now I have a product where we close on the lot in the construction and then just modify that construction loan at the end of the process into a permanent mortgage. So you aren't paying closing costs twice. What's even better about that is not only can I do the one-time close now, but I can also do it as an FHA loan, a VA loan, or a conventional loan, or even a jumbo loan up to$2 million. So basically it helps me to help clients who maybe are FHA buyers to be able to build and construct their own home without having to charge them twice for closing costs. So that's that's really nice. That's a huge development because a lot of times a lot of what I do is if people want to go down this route to build a home, I'm having to work with the bank to get them the construction loan and then do the and financing. And now I can just do it all in-house, which is really cool. So I have a couple of those actually going right now, which is awesome. I have a VA one and then I have an FHA one. So it's huge that we can do VA, FHA ones because not, I don't know if there's another lender out there that you know has access to that, like like we do. So that's really nice. Um, the other thing that I've adopted onto the product line is going to be 100% cash out VA loans. So the VA Ginny does allow you to take 100% of the equity of your home as a cash out and give you that equity. However, most investors stop it at 90% because the market has been pretty volatile when it comes to equity and they want to make sure that we don't have they don't have any issues when it comes to possible foreclosures and things like that. So they stop it at 90. But if you need to go to 100%, which in some cases, you know, people do, then I'm able to get you that cash out at the full 100%. So that's a very unique thing that, you know, we that I have been able to adopt here over the last couple of weeks onto the product line, which has been huge because it just helps different homeowners and gives me, you know, an opportunity to to be able to do that for them. So that's huge. So a couple of additional products, but yeah, you know, it's just it's one of those things where that list is ever growing and ever expanding. And as investors become more popular, as investors take on different opportunities and products, I'm able to get access to those, which is really nice.

SPEAKER_00 5:39

No, that is it's amazing. And even after the the last conversation or two we've had with all the different things that are coming and changing. And now, if you have a roommate, I mean, even just that conversation, I've talked to three agents that are just like, what? Tell me more, you know. Again, it's it's getting these products and the programs and staying on top of it. So we appreciate you doing that for us because again, that's what's important about having someone like you in your corner. So we as agents can go out there and really focus in our lane while you're geez, you're killing it in yours.

SPEAKER_01 6:16

So yeah, we're trying to, you know, ever expand the product line and make sure that I'm able to serve, you know, a whole plethora of people and their and their needs versus you know, just even not having access to those things. So yeah.

Mobile Vs Manufactured Financing Rules

SPEAKER_00 6:30

And I did have one question come up that I wanted to ask you about. I was just gonna look here real fast. It was on it's Minnesota and it was on mobile homes. Now I remember back in the day, and I haven't touched or talked about a mobile home for a while, but what I remember about it is a real estate agent, per our license, we don't sell mobile homes, is what I remember. But it can you touch base on anything regarding financing or what that looks like so that I can get this over to there's a huge difference between a mobile home and a manufactured home and a stick build home.

SPEAKER_01 7:07

Okay. Or and even a modular home. So a modular home, which is the same, a stick build is like your just your traditional house that you would find. A modular home is basically a home that's constructed somewhere somewhere else and put together on site, basically. Those are treated as a stick-built home. So there's really no from a financing standpoint, they follow the same rules. A manufactured home, we is considered a piece of real estate, and it has certain rules and regulations as to when the when it can be built, how big it has to be, and what the type of financing is on it. There are interest rate increases a little bit when you are, you know, doing a manufactured home versus a single family home. But overall, it's pretty much treated the same from a financing standpoint with a couple little requirements from the home itself. A mobile home is completely different. The mobile home is considered a basically a titled channel. So it's not actually considered real property. Um so it has a car, it has a title to the home similar to a car title, and everything goes through the DMB. It does not go through title, you know, traditional title closings, things of that nature. So I do not do mobile home financing. There's very, it's very rarely, rare that you do find a company that will exclusively do mobile home financing. You may be able to get something done at like a local bank, but for the most part, that is going to be more of a cash transaction or something that has involves like with the DMV, not with normal traditional financing. Got it. Yeah.

Wrap Up And How To Reach Nikki

SPEAKER_00 8:36

So well that no, that's great explanation on all four different different ones that we're looking at here. And I think that will that will wrap it up as well. And if she has any questions, as usual, I say reach out to Nikki. She is a wealth of information, and you're so gracious with your time and willing to help.

SPEAKER_01 8:54

So absolutely not a problem at all.

SPEAKER_00 8:56

Always, always appreciate you. All right. Well, we'll look forward to next week's update. Until then, everyone, go out, sell something, and reach out to Nikki if you have any questions. And with that, how do they find you?

SPEAKER_01 9:08

Uh, you can find me on Facebook, TikTok, or Instagram at mortgages from Mn to A Z and also 952 484 158 for for a phone call or a text.

unknown 9:18

Perfect.

SPEAKER_01 9:19

All right. We'll see you next week, everyone. Have a good one. Bye.