Mortgage Blog

I locked a loan last week for a Duplex purchase. The Purchase price is $700k with loan amount $490k. And we locked the rate 4.5% for 10/1ARM. Pretty good for a Duplex, and it is very good for the cash flow.

Also, we quoted 3.75% 7/1 ARM for no closing cost for 1.4m purchase 840k loan. We covered around $7000 for this rate. Indeed very good for the purchase loans.

One borrower asked me which loan program should we choose? I told them that 7/1 ARM, 10/1 ARM or 30 yr fixed are all very good. Then he asked whether 7/1 ARM should be safe? I think so. Once the we have the recession, the Fed will lower the rate again. Chase (and a lot of other big guys) predicted that we will have one in 2020. But the damage will not be as bad as 2008. The market might see 20% correction.

Please check the link below: https://www.bloomberg.com/news/articles/2018-09-13/jpmorgan-sees-liquidity-wildcard-in-gauging-depth-of-next-crisis