📉 DSCR Loan Update - September 2024
#Finance #Loans
00:00 Introduction
00:10 DSCR Loan Interest Rates
00:42 DSCR Loan Interest Rate Pricing
02:21 Housing Market Update
03:10 Off Market Listings
03:33 BRRRR Loans
Today's DSCR Loan Interest Rates Index is 6.68%...but rates are significantly lower at OfferMarket.
⚡ Instant quotes today range from 5.75% to 6.5% with no buy down, no junk fees, and the most transparent and competitive pricing in the market. Get your instant DSCR loan quote: www.offermarket.us/loans?ref=youtube-9-2024
DSCR loan interest rate = 5 Year US Treasury + Credit spread
The 5 Yr US Treasury or “Risk Free” rate is currently 3.43% and the current prevailing credit spread is 3.25%. When you add the two components together, you get 6.68%.
📉 The 5 Yr US Treasury is at a 52-week low and down 1.5% from the highs we saw in October of 2023 and some in the financial markets believe interest rate pricing is overdone.
The credit spread or “Risk Premium” depends on several factors, most notably: credit score, LTV, prepayment penalty, property type, property location, loan amount, and institutional credit investor demand for DSCR loans.
Credit spreads, near historic lows, are prone to spike during periods of economic turbulence. The most competitive institutional investor on our platform is offering artificially low credit spreads to hit a volume quota....
Does that mean DSCR loan interest rates are too low?
Our view is that DSCR loan interest rates are extremely attractive and we are experiencing a spike in refinance demand from highly sophisticated rental property investors.
Market update:
💰 Refinance demand is up 94% YoY
🏠 Pending home sales fell 5.5% in July to the lowest level on record
🏠 Active listings are at their highest level since July 2020. Housing inventory has risen the most in FL, NC, GA
📈 Mooresville, NC is the fastest growing suburb
📈 Consumer loan delinquencies are at levels not seen since 2005-2012
🏚️ Access off market listings in attractive rental markets and set deal flow alerts for your target markets.
📈 Grow your rental portfolio with our Fix and Rent "BRRRR" loan, a bundle of Fix and Flip “hard money” on the front end to purchase and rehab with a discounted no or low seasoning DSCR loan refi on the back end.
We hope you will accept our invitation to join our real estate investing platform -- it's free!