Heading into the home stretch of election season, right now it’s a toss-up. Whoever the eventual next President is, we all have our work cut out for us. The Federal Reserve lowered interest rates by .50% last month, but almost immediately, longer-term treasuries started a rapid ascent back toward previous levels. The 10-year treasury note has risen from 3.60% at the time of the cut to 4.25% today. This has had a dramatic effect on mortgage rates, which have risen approximately .375% to .625%, from the 5% range back into the 6% area.
We feel the Fed will continue to lower rates over the next year, but the effect of these cuts might be muted by the market. One reason is the overhanging level of government debt. Either candidate and eventual President will need to firmly embrace a more disciplined fiscal approach. On a more positive note, the economy continues to move forward: employment remains robust, inflation is coming down, and real estate values remain firm with a “normal” volume.
Our customized mortgage platforms can be a valuable assist in analyzing your current and projected real estate financing portfolio. We specialize in residential, commercial, apartment, and SBA financing at all price points and classes of properties. Centek can handle the most complex tax returns, and we are always pleased to run “what-if” scenarios with the “out of the box” thinking our clients expect.
A few important programs
- Non-occupant co-borrower concept offers great flexibility at all price points
- Only 1 year of tax returns accepted instead of the usual 2 (some programs)
- Asset depletion for qualifying in lieu of tax returns
- Wide array of interest-only programs for increased cash flow
- Deduct alimony from income rather than classifying it as a debt
- Bank-statement programs utilizing cash flow for qualifying
- Debt-Service Coverage Ratio (DSCR) loans on investment properties, qualifying based on rental income with no tax returns
- Reverse mortgages, an excellent vehicle for the right situation (both 1st and 2nd mortgages)
- Apartment and commercial loans tailored to specific needs
We always welcome your contact anytime!