What is Going On
in the Mortgage Business?

Last week, a San Francisco Chronicle’s article titled  “Mortgage rates are close to the ‘magic  number’. Will it matter for California’s market?” was discussing the “magic number”, which supposedly is the interest rate of 6%. At that rate, the real estate/mortgage world is supposed to start moving. The rate is already here, however, the home owners who have the interest rates in 3rds, do not rush to sell their properties to buy the new ones with the higher rates. Anyhow, the train started moving. More people want to refinance their existing mortgages mainly to consolidate their other debts to lower their monthly payments.

One of my clients has a mortgage and 24 other monthly obligations with the overall balance of $71,000 and a minimum monthly payment of $1,300, and, as a consequence, low credit score. We are now combining all of his balances in one loan plus covering closing costs and, as a result, he will get an extra $20,000 in cash. All of this with the rate of 5.5%.

Raoul Badde from Penny Mac during his recent zoom presentation told our team that the whole lending infrastructure had changed. Many major banks and credit unions are not very much interested in originating new mortgages. In addition, many mortgage brokers left the business and those who stayed are getting one loan a month. Those who are closing two monthly loans  are in the top 10 percent of the nation. A three-minute cut of Raoul’s presentation is available at this link.

I am not bragging, but in September, after closing four purchases, I already have five new loans in the pipeline along with six new clients whom I am helping with various mortgage needs.

What are you waiting for? Your individual mortgage solution might be just a phone call away. So don’t hesitate to call me at  (415) 225-7920.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602