Mortgage Rates On NON-QM Loans And No Doc Mortgage Loans

Mortgage Rates On NON-QM Loans And No Doc Mortgage Loans

This BLOG On Mortgage Rates On NON-QM Loans No Doc Mortgage Loans Was Updated On May 16, 2017

Current Home Mortgage Rates after the election of President Donald Trump are still at an all time low.  Mortgage rates have been steadily going up since the new year and many borrowers are waiting for that big correction. Current mortgage rates for FHA mortgage loans have gone up three quarter of a percentage point since last October 2016 and conventional mortgage rates are currently hovering around the 4.0% mark. This year has been the year where NON-QM Loans and many no doc mortgage loan programs have hit the market. Bank Statement Mortgage Loan programs for self employed borrowers are now very popular. Many home buyers with prior bankruptcies and foreclosures no longer have to wait the minimum waiting period after bankruptcy and/or foreclosure due to the many options they now have with the introduction of NON-QM Loans and Alternative Financing loan programs.

Mortgage Rates On Non-QM Loans On Second Home Financing

Current home mortgage rates for second homes are the same as owner occupied mortgage rates depending on the mortgage borrowers credit profile and income as well as the borrower’s debt to income ratio.

Where Are Mortgage Rates On NON-QM Loans Headed?

Home Mortgage Rates On NON-QM Loans started to creep up starting last November and starting the new year, mortgage rates have consistently have been going up week after week.

  • When the stock market goes up, mortgage interest rates go up. 
  • The Dow Jones has been in positive territory week after week. 
  • Historically, the stock market has always done very well in January. 
  • Many analysts predict a major correction and so do investors. 
  • Those mortgage loan borrowers who have not locked their mortgage rates are now paying the price. 
  • Many of my clients who have a clear to close are delaying their closing hoping that there will be a market correction.  
  • Borrowers who are refinancing can afford to speculate in waiting for mortgage rates to drop but home buyers do not have their luxury unless they want to delay their purchase closing.

Mortgage Rates And Economic News

Nobody has a crystal ball and can predict what the credit markets will do.

  • Interest rates have gone up so rapidly this year that many, including myself, feel that there will be a major market correction. 
  • However, interest rates have been spiking up week after week. 
  • For those mortgage loan borrowers who barely qualified for a mortgage because of tight debt to income ratio,
  • I strongly recommend that they lock their rates. 
  • There is a strong possibility that mortgage rates can drop but there is also the probability that mortgage rates will continue to climb.

Introduction Of NON-QM Loans And Alternative Lending

NON-QM Loans and subprime lending is back. Bank statement mortgage loans and no doc mortgage loans for self employed borrowers are back and are more popular than ever before. Mortgage Rates On NON-QM Loans are generally higher than traditional financing, however, most non-qm loan programs do not require income verification and/or tax returns.

Gustan Cho, NMLS ID 873293

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