On The Market

185: Top Lenders on Mortgage Rate Predictions + Loans You’ve NEVER Heard Of

Feb 1, 2024

Top lenders discuss mortgage rate predictions and unknown investor loans. They explain why waiting for lower rates is risky. They also talk about the potential drop in commercial real estate and the impact of high interest rates. They share loan strategies and options for real estate investors.

44:02

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Episode guests

Krystle

Kenny Si

Caeli Ridge

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Episode notes

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Quick takeaways

Mortgage rates are predicted to decrease in the future, opening up investment opportunities in the real estate market.

Flexibility and creativity in financing options are crucial in the commercial real estate market, with potential opportunities in converting office spaces into residential or service-oriented properties.

Deep dives

Lending trends and market insights

The podcast episode discusses the current state of loans and lending in the real estate market. The guest lenders talk about the importance of education in real estate investing and highlight the diverse loan products available for investors. They also mention that investment activity remains steady and unaffected by interest rate fluctuations. However, they predict a downward trajectory for mortgage rates in the future, which could lead to increased investment opportunities. The lenders also emphasize the need for borrowers to consider prepayment penalties and run the numbers to make informed decisions about refinancing.

Introduction

2min

Real Estate Investing and Lending

5min

Predictions on Mortgage Rates and the Influence of the Federal Reserve

3min

Real Estate Market Impact, Expanding Real Estate Portfolio, Vacation Home Management, and Landlord Insurance

3min

Commercial Real Estate Market and Loan Strategies

16min

Complexity of Loan Underwriting and New Products

5min

Loan Options and Strategies for Real Estate Investors

11min

Importance of Talking to Lenders and Using BiggerPockets' Financing Tools

2min

We know mortgage rates will fall this year, but how long will we have to wait? Will they get down to the fives or stay in the six-percent range? And even if the Fed lowers the federal funds rate, will this significantly impact mortgage rates? We brought on three elite lenders to get their takes on when rates will drop, how low they could go, and why waiting for lower rates is a riskier decision than you think.

Caeli Ridge joins us again as our go-to investor-lender combo, and Krystle and Kenny Simpson, San Diego-based lenders, are on the show to give their viewpoints from the small investor and large commercial lens. Plus, these lenders are about to share the info on some investor loans that you may have NEVER known about—loans that other investors are taking advantage of TODAY to get deals done, even with high interest rates.

Speaking of high interest rates, our lenders show mathematical proof that rates are NOT the defining factor of your real estate deal and how waiting for a half-percentage drop could cost you more than you think. Plus, the commercial real estate “bloodbath” coming for one certain sector unless local governments step in.

In This Episode We Cover:

The investor loans that you’ve NEVER heard of that are being used TODAY to get deals done

Mortgage rate predictions and how low rates could go by the end of 2024

The commercial real estate drop-off and why buying/selling has come to a halt

High-rate investor HELOCs you can get today that’ll cost you LESS than a thirty-year mortgage

Huge opportunity in commercial real estate as one sector becomes a “bloodbath”

DSCR, non-QM, and other investor-only loans you can take advantage of NOW

And So Much More!

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