by Houtan Hormozian | Jan 16, 2026 | CRESTICO, Local, Mortgage
Premature Refinancing in early 2026 presents a wealth-destroying trap for homeowners. A rigorous analysis of bond market dynamics, transaction friction, and credit scoring models reveals why the optimal financial strategy is calculated inaction.
The opening weeks of 2026 have ushered in a distinct shift in the United States housing finance sector. After years of monetary tightening that characterized the post-pandemic correction, the 30-year fixed-rate mortgage has finally breached critical resistance levels. Benchmark rates receded to approximately 6.06 percent in January 2026, marking a three-year low that has predictably triggered a surge in mortgage refinance applications. For borrowers holding loans originated at the cycle’s peak, this statistical milestone appears to be the long-awaited signal to act.
Market analysts and behavioral economists caution that this “relief rally” masks a fundamental financial peril. The impulse to execute a mortgage refinance at the first sign of rate moderation often results in a net destruction of borrower wealth. A comprehensive evaluation of the 2026 economic landscape incorporating Federal Reserve policy lags, amortization mathematics, and the emergence of trended credit data suggests that immediate action is statistically inferior to a strategy of waiting. The true window for wealth-optimizing refinancing is projected to materialize not in the first quarter, but as the cycle matures later in the year or into 2027.
The Decoupling of Federal Policy and Mortgage Rates
A primary driver of inefficient refinancing decisions is the persistent misconception regarding the transmission mechanism between the Federal Reserve and consumer borrowing costs. Public discourse often assumes a linear correlation where a reduction in the federal funds rate necessitates an immediate and equal decline in mortgage rates. Quantitative finance demonstrates that this relationship is imperfect and frequently inverse in the short term.
The federal funds rate governs overnight lending between depository institutions and primarily influences short-term liabilities such as credit cards and Home Equity Lines of Credit (HELOCs). In contrast, the 30-year fixed-rate mortgage is a long-duration asset priced against the 10-year U.S. Treasury note. Bond traders manage portfolios worth trillions by forecasting economic conditions well into the future. When data suggests a softening labor market a precursor to Fed rate cuts institutional investors purchase long-term bonds immediately to lock in yields. This buying pressure drives yields down well before any official FOMC announcement.
By the time the Federal Reserve Chair announces a policy shift, the market has often already priced in the benefit. If the central bank’s action merely matches expectations, mortgage rates may remain static or even rise if the accompanying commentary signals long-term inflation concerns. This phenomenon creates a “buy the rumor, sell the news” dynamic that traps reactive borrowers.
A more critical factor for 2026 is the “spread” the difference between the 10-year Treasury yield and the 30-year mortgage rate. Historically averaging 170 basis points, this spread ballooned to nearly 300 basis points due to interest rate volatility and the Federal Reserve’s withdrawal from the Mortgage-Backed Securities (MBS) market. Current mortgage rates thus include a substantial “volatility tax.” As the economy stabilizes throughout 2026, this spread is expected to compress toward historical norms. Borrowers who refinance in January accept an artificially inflated rate. Those who wait for spread compression could realize rate reductions of an additional 50 to 100 basis points purely through market normalization, independent of Treasury yield movements.
The Microeconomic Penalties of Transaction Friction
Beyond macroeconomic theory lies the mathematical reality of transaction costs. A mortgage refinance is the origination of a new financial product rather than a simple administrative adjustment. The friction costs associated with this transaction in 2026 have risen alongside property values. Total refinancing costs typically range between 2 percent and 6 percent of the loan balance when accounting for origination fees, title insurance, and appraisal requirements.
For a standard $350,000 mortgage balance, a 3 percent cost structure equates to $10,500 in capital that must be paid via liquidity or equity erosion. The common “break-even” calculation dividing closing costs by monthly savings fails to account for the time value of money or the probability of future transactions. If a borrower refinances in early 2026 and incurs these costs, they must retain the loan for several years to recoup the expense. However, if rates drift lower by late 2026 as forecasted by Fannie Mae and the Mortgage Bankers Association, the borrower faces a dilemma: refinance again and duplicate the $10,500 cost, or remain trapped in a sub-optimal rate.
This scenario is known as “churning.” It enriches lenders and title insurers while systematically stripping equity from homeowners. Repeatedly capitalizing thousands of dollars in fees into the loan balance can negate the interest savings of a lower rate. The prudent approach involves executing a single transaction at the cycle’s maturity targeting a rate near 5.5 percent, rather than multiple transactions on the way down.
The Amortization Trap and Equity Erosion
The most insidious cost of serial refinancing is the destruction of amortization momentum. A standard U.S. mortgage is structured as an annuity where interest payments are front-loaded. In the early years of a loan, the vast majority of the monthly payment services interest rather than principal.
Refinancing resets this amortization clock. A homeowner who has paid down a mortgage for five years has finally begun to make meaningful progress on the principal balance. By refinancing into a new 30-year term to secure a lower monthly payment, the borrower resets the loan to Year 1. The payment composition reverts to being almost entirely interest.
Quantitative modeling of this “reset fatigue” shows that extending the repayment term significantly increases total interest costs over the life of the asset. A borrower might reduce their monthly obligation by $200 but ultimately pay tens of thousands more in cumulative interest by adding five years to their debt horizon. Unless the monthly savings are rigorously invested at a high rate of return, the borrower’s net worth at the end of the period is often lower than if they had retained the original loan. Strategic borrowers forced to refinance for cash flow reasons should consider 20-year terms to neutralize this effect, though few do so.
Credit Implications in the Era of Trended Data
The decision to refinance frequently carries implications for borrower creditworthiness that have intensified with the adoption of “trended data” models like FICO 10 T. Unlike legacy scoring models that viewed credit as a static snapshot, trended data analyzes 24 months of historical behavior to identify patterns.
Lenders and credit bureaus now scrutinize “credit seeking” behavior more aggressively. While rate shopping within a short window is treated as a single inquiry, inquiries spaced several months apart—typical of a serial refinance strategy are flagged separately. Repeatedly opening new mortgage trade lines lowers the Average Age of Accounts, a key component of the credit score.
For borrowers on the cusp of the “super-prime” tier (780+ FICO), a dip in credit score caused by a premature refinance in January could result in less favorable terms if they attempt to refinance again in October. The very act of chasing a lower rate can damage the credit profile needed to secure the lowest possible rate when the market truly bottoms out.
Regulatory Guardrails and the Seasoning Lock-Out
The mortgage industry has erected structural barriers to prevent rapid loan turnover. “Seasoning” requirements mandate that a loan must be held for a specific period before it can be refinanced again using conventional or government-backed programs.
Fannie Mae and Freddie Mac generally require a 12-month seasoning period for cash-out refinances. A homeowner who executes a rate-and-term refinance in January 2026 effectively locks their equity away until January 2027. If a financial emergency arises in late 2026, the borrower would be barred from accessing their home’s equity via a conventional low-rate mortgage and forced into higher-cost alternatives like personal loans or HELOCs.
Government-backed loans such as VA and FHA products enforce similar “lock-out” periods, typically requiring 210 days and six consecutive on-time payments before a new streamlined refinance is permitted. These regulations are designed to protect investors from prepayment risk but can leave impatient borrowers stranded in an illiquid position if market conditions shift rapidly.
Furthermore, Mortgage Brokers face Early Payoff (EPO) penalties if a borrower refinances within six months of origination. Lenders claw back the broker’s commission in these instances. This creates an adversarial dynamic where high-quality brokers may refuse to work with serial refinancers or charge higher upfront points to hedge their risk.
The Strategic Outlook: The Discipline of Inaction
The convergence of these factors—macroeconomic forecasts, transaction friction, amortization mathematics, and regulatory constraints—creates a definitive argument for patience. The mortgage market of 2026 is normalizing after a period of historic volatility. Forecasts from major institutions including Fannie Mae and the Mortgage Bankers Association indicate that rates will likely stabilize in the mid-to-low 6 percent range for much of the year before drifting lower.
The “sweet spot” for refinancing is likely to emerge in late 2026 or 2027, when Federal Reserve policy has fully permeated the economy and the spread between Treasuries and mortgages has compressed. By waiting for this maturity, borrowers can execute a single, efficient transaction that maximizes interest rate differential while minimizing fees and equity erosion. In a financial environment defined by instant gratification, the most sophisticated wealth management strategy is often the discipline to do nothing until the moment is mathematically optimal.
by CRESTICO | Jul 25, 2025 | Mortgage
Turning the dream of homeownership into reality is an exciting milestone — but for freelancers, gig workers, and self-employed professionals, the journey often comes with unique twists and turns. Traditional lenders tend to favor predictable paychecks and standard employment histories, making the path to securing a mortgage for freelancers far from straightforward. If you’ve ever felt your hard-earned independence was an obstacle rather than an asset in the eyes of mortgage lenders, you’re not alone. The good news? Innovative and flexible freelancer mortgage solutions are emerging, designed specifically to address the needs of today’s diverse workforce.
As the freelance economy grows, so too do the creative strategies for financing your ideal home. Navigating the home loan process as a self-employed individual calls for resourcefulness, organization, and a willingness to explore options beyond the conventional. Whether you’re just starting to think about buying or are ready to take action, understanding how to present your financial picture and leverage new tools can give you a real edge. In this guide, we’ll share seven empowering ways freelancers like you can overcome common obstacles and secure a home loan for self-employed professionals — proving that with the right approach, your dream home is well within reach.
Understand Your Financial Profile
For freelancers, one of the biggest hurdles to homeownership is proving financial stability to mortgage lenders. Unlike traditional employees with predictable paychecks and W-2s, freelancers often experience fluctuating income and varied clients, making it harder for lenders to gauge reliability. This is why financial institutions scrutinize freelance income and require thorough documentation as part of their freelancer mortgage solutions. Lenders want reassurance that you can consistently meet your mortgage obligations, so it’s crucial to present a clear and convincing picture of your financial health.
Consistent cash flow and meticulous record-keeping are your strongest allies in this process. For example, if you’re a graphic designer with seasonal peaks, maintaining organized monthly earnings reports will help demonstrate steady income over time — even if individual months vary. Lenders prefer applicants who show at least two years of stable or growing freelance income. By tracking invoices, payments received, and business expenses diligently, you not only prepare for tax season but also make it easier to provide proof of income for freelancers when the time comes to apply for a mortgage.
To boost your chances of approval, start building a comprehensive financial portfolio long before starting the home buying process. This should include recent tax returns (preferably two years), Profit and Loss statements, Bank Statements, and a client list or contract history that highlights ongoing work relationships. Consider using accounting software to streamline your record-keeping and ensure everything is up-to-date and accurate. If possible, create a summary statement that explains your business model, sources of income, and how you manage financial ups and downs — this can help humanize your application and make your case more compelling.
By taking these proactive steps, you’ll be better equipped to navigate the unique challenges of freelancer home buying. Remember: transparency, organization, and preparation are key. Not only will this approach make your application stronger, but it will also empower you to negotiate confidently with lenders and find the freelancer mortgage solutions best suited to your needs.
Boost Your Mortgage Eligibility with Strong Documentation
For freelancers, documentation is your strongest ally when applying for a mortgage. Unlike traditional employees, you won’t have W-2s or a predictable monthly paycheck to show lenders. Instead, be prepared to provide at least two years of personal and business tax returns, current profit and loss statements, bank statements, and 1099 forms. These documents help paint a complete picture of your income streams and financial responsibility. If you’ve diversified your work — say, through multiple clients or projects — include contracts or invoices as additional proof of consistent work.
Demonstrating stable income, even in the face of inevitable fluctuations, is crucial. Lenders will look for patterns rather than perfection. For example, if you had a slow quarter but finished the year strong, highlight how your annual earnings remain consistent or are on an upward trajectory. Supplementary documentation like savings account statements or evidence of recurring client relationships can reinforce your case. These details show lenders that you’re adept at managing the ebb and flow of freelance income — a key factor in qualifying for both traditional loans and alternative mortgage options.
Partnering with a knowledgeable accountant can make all the difference in this process. An accountant experienced in working with freelancers can ensure your profit/loss statements are accurate, help you maximize legitimate deductions without underreporting income, and prepare your financials to meet lender expectations. This professional guidance not only streamlines your mortgage application but also strengthens your eligibility by presenting your business asset financing and personal finances in the best possible light.
Ultimately, strong documentation is about more than just paperwork — it’s about telling your unique financial story with confidence and clarity. By proactively organizing and presenting your records, you empower yourself to explore a wider range of mortgage solutions tailored for freelancers. With these tools in hand, you’re one step closer to turning your dream home into a reality.
Leverage Business Assets and Savings
Freelancers often have a unique advantage when it comes to building up business assets and personal savings — these resources can significantly bolster your mortgage application. Lenders want to see that you have the reserves to weather slow periods, and a healthy savings account or robust business cash reserves demonstrates financial stability. For example, if you’ve set aside several months’ worth of living expenses or can show consistent deposits into a business savings account, it signals to lenders that you’re prepared for the unpredictable nature of freelance income. In many freelancer mortgage solutions, these savings can be used to strengthen your application or even serve as part of your down payment.
It’s essential, however, to clearly separate your business and personal finances. Not only does this create a clearer picture for underwriters reviewing your application, but it also simplifies your own record-keeping and tax reporting. Open dedicated checking and savings accounts for your freelance business and regularly transfer your earnings into your personal accounts as income. This organization makes it easier to provide clean bank statements and reduces confusion during the mortgage approval process, especially if you’re considering Bank Statement Loans, which rely heavily on clear documentation of income flow.
Beyond regular savings, don’t overlook the power of retirement accounts or investment portfolios as evidence of freelancer financial health. Even if you don’t plan to tap into these funds for your Home Purchase, showing healthy balances in IRAs, 401(k)s, or brokerage accounts reassures lenders of your long-term financial responsibility and liquidity. Some Loan Programs may even allow you to use these assets as a compensating factor if your income fluctuates seasonally or annually. By highlighting all facets of your financial picture — including business assets, personal savings, and investments — you can present yourself as a secure and reliable borrower, opening more doors to creative freelancer mortgage solutions.
Explore Alternative Lenders and Loan Programs
For freelancers and self-employed professionals, qualifying for a mortgage through traditional banks can feel like navigating a maze of rigid requirements and outdated expectations. Fortunately, today’s mortgage landscape is evolving, with a growing number of alternative lenders who understand the unique rhythms of freelance income. These non-traditional lenders are often more flexible in evaluating your financial situation, focusing on overall cash flow and business health rather than just W-2 forms or pay stubs.
Special loan programs designed specifically for self-employed applicants are also making homeownership more accessible. For instance, some lenders offer “bank statement loans,” where your last 12–24 months of bank statements are used for freelance income verification instead of tax returns. Others may accept profit-and-loss statements or use a combination of personal and business assets to assess your ability to repay. These options recognize that while your income may fluctuate month to month, your long-term earning potential can be strong and reliable.
When comparing these alternative options to conventional mortgages, it’s important to weigh both requirements and benefits. While you might face higher Interest Rates or need a larger down payment with some alternative lenders, you’ll benefit from a more personalized underwriting process that takes your actual financial picture into account. Additionally, many of these programs streamline documentation, making the application process less daunting for freelancers juggling multiple income streams. By exploring these forward-thinking solutions, you can find a mortgage path that truly fits your entrepreneurial lifestyle — turning the dream of homeownership into an achievable reality.
Consider a Larger Down Payment
For freelancers, one of the most effective ways to strengthen a mortgage application is by making a larger down payment. Lenders often see self-employed applicants as higher risk due to fluctuating incomes and unconventional financial profiles. By offering a bigger upfront investment — typically 20% or more — you can offset some of this perceived risk, signaling your financial stability and commitment. This approach not only increases your chances of approval but also gives you access to better freelancer mortgage solutions, including potentially Lower Interest Rates and reduced private mortgage insurance requirements.
Saving for a substantial down payment may seem daunting, especially when your income varies from month to month. However, adopting targeted down payment strategies freelancers can make a significant difference. Consider automating transfers into a dedicated savings account each time you receive client payments, or earmark a percentage of every invoice for your home fund. Diversifying your income streams — such as taking on high-value projects during peak seasons or offering workshops — can also accelerate your savings goals. Remember, separating business and personal finances will help you clearly track your progress and maintain disciplined saving habits.
A larger down payment doesn’t just improve your loan approval odds; it can also enhance the overall affordability of your dream home. By reducing the amount you need to borrow, you’ll likely secure lower monthly payments and save thousands over the life of your mortgage. Lenders may reward your financial prudence with more favorable terms, especially if your credit score tips freelancers toward the excellent range. This dual focus on saving aggressively and maintaining strong credit will empower you to present the most compelling case possible to any lender.
Ultimately, making a larger down payment is an empowering step for freelancers seeking homeownership. It demonstrates financial foresight and resilience — qualities lenders value highly in self-employed applicants. By planning ahead and leveraging creative savings strategies, you can turn the challenge of variable income into an opportunity to showcase your readiness for this exciting new chapter.
Build and Maintain Excellent Credit
For freelancers, a strong credit score is one of the most powerful tools in securing a mortgage on favorable terms. Because self-employed income can appear unpredictable to lenders, your credit profile often becomes a key indicator of your financial reliability. Lenders look closely at your history of managing debt and making timely payments to gauge how you might handle a long-term commitment like a home loan. A high credit score not only improves your chances of approval but can also unlock lower interest rates, saving you thousands of dollars over the life of your mortgage.
Building and maintaining excellent credit begins with simple, disciplined habits. Always pay your bills — credit cards, loans, utilities — on time. Even a single missed payment can have a negative impact on your score. If possible, set up automatic payments or calendar reminders to ensure nothing slips through the cracks, especially during busy work periods or travel for client projects. Keep your credit card balances well below your limits; ideally, use less than 30% of your available credit at any given time. This demonstrates to lenders that you can responsibly manage borrowing without overextending yourself.
Another crucial factor is your debt-to-income ratio (DTI), which compares your monthly debt payments to your income. As a freelancer, this means being mindful of both personal and business debts. Reducing outstanding balances — whether on credit cards, auto loans, or business lines of credit — not only improves your DTI but also signals to lenders that you have healthy financial habits. For example, consider paying down a high-interest business loan before applying for a mortgage to present yourself as a lower-risk borrower.
Don’t forget to regularly review your credit reports for errors or outdated information. Freelancers often juggle multiple accounts and revenue streams, increasing the likelihood of reporting mistakes. Use free annual credit report services to check all three major bureaus, and dispute any inaccuracies promptly. By staying proactive about your credit health, you’ll position yourself as an attractive candidate in the eyes of mortgage lenders — turning your freelance success into a solid foundation for homeownership.
Partner with a Mortgage Broker Experienced with Freelancers
Navigating the mortgage landscape as a freelancer can feel overwhelming, but partnering with a mortgage broker who specializes in freelancer mortgage solutions can make all the difference. Unlike traditional brokers, those experienced with self-employed clients understand the nuances of fluctuating income streams, diverse tax situations, and the unique documentation freelancers must provide. They are well-versed in overcoming the hurdles that often trip up independent professionals and can advocate on your behalf to lenders who may not be familiar with freelance work patterns.
A knowledgeable broker acts as a Bridge, connecting you with lenders and loan products specifically tailored to the self-employed. For example, some lenders offer bank statement loans or alternative documentation programs, which consider your actual cash flow rather than just W-2s or pay stubs. An experienced broker can assess your financial profile and match you to these innovative products, increasing your chances of approval while potentially securing more favorable terms. They also stay updated on changing lender criteria and can alert you to opportunities or new programs designed for freelancers.
When choosing a broker, it’s essential to ask the right questions to ensure they have the expertise you need. Inquire about their experience working with freelancers and how many self-employed clients they’ve helped secure mortgages in the past year. Ask which lenders or loan programs they recommend for independent contractors and how they plan to present your application to highlight your strengths. A reputable broker should be transparent about their process and fees, and willing to share client testimonials or case studies that demonstrate successful outcomes for people like you.
By aligning yourself with a broker who truly understands freelancer mortgage solutions, you’re not just gaining access to a wider range of options — you’re empowering yourself with an advocate dedicated to your homeownership goals. With their guidance, you can confidently navigate the process, overcome common obstacles, and take strategic steps toward financing your dream home.
Empower Your Path to Homeownership
Securing your dream home as a freelancer is entirely within reach when you leverage innovative strategies tailored to your unique financial journey. By understanding your financial profile, maintaining strong documentation, utilizing business assets, exploring alternative lenders, considering a larger down payment, building excellent credit, and partnering with experienced mortgage brokers, you can unlock a wide array of freelancer mortgage solutions. These practical steps not only strengthen your mortgage application but also demonstrate to lenders that you are a reliable and prepared borrower.
Remember, proactive planning and seeking expert advice are key components on your path to homeownership. Embrace your entrepreneurial spirit and take advantage of resources designed for self-employed professionals. With determination, organization, and the right support, you can confidently navigate the mortgage process and achieve meaningful results — proving that homeownership is not just possible for freelancers, but entirely attainable.
by CRESTICO | Jul 18, 2025 | Mortgage
Buying a home in Los Angeles can be both an exciting and overwhelming journey. With high Real Estate prices and fierce competition, understanding how to secure a mortgage is crucial for homebuyers, real estate investors, and even those looking to refinance. Whether you’re a first-time buyer, a seasoned investor, or a retiree considering a reverse mortgage, this guide breaks down the process step-by-step to help you get approved, lower your mortgage payment, and choose the right loan for your situation.
Crestico, a leading Mortgage Broker in Los Angeles, offers an extensive range of mortgage programs tailored to fit every buyer’s needs. Let’s dive in.
Why Understanding a Mortgage Matters
A mortgage is a loan used to purchase a property, typically paid off over 15 to 30 years. Understanding how mortgages work helps you make informed financial decisions that affect your long-term stability.
Los Angeles presents a unique housing market with diverse real estate opportunities but also significant challenges, including high home prices and competitive bidding. Having a solid grasp of mortgage fundamentals puts you ahead of other buyers and can help you secure the most favorable home loan terms available.
Step 1: Assess Your Financial Readiness
Before diving into mortgage applications, take a detailed look at your financial situation. This includes your:
- Credit score: A higher score can help you secure better mortgage rates.
- Debt-to-income ratio (DTI): Lenders typically prefer a DTI below 43%.
- Savings for down payment and closing costs.
Use a Mortgage Calculator to estimate what you can afford monthly and the total loan amount you might qualify for. Crestico’s online tools make this easy.
Step 2: Get Pre-Approval
Pre-approval is a lender’s written offer to loan you a specific amount under certain terms. This shows sellers you’re a serious buyer and gives you a competitive edge in hot markets like Los Angeles.
Required Documents:
- Proof of income (W-2s, pay stubs, 1099s)
- Bank Statements
- Tax returns
- Credit report
Crestico streamlines this process by offering a digital application and a dedicated loan originator to walk you through it.
Step 3: Choose the Right Mortgage Program
There are many types of mortgages, and the best one depends on your financial goals and qualifications. Here are some common options available through Crestico:
Fixed-Rate Mortgage
Stable interest and monthly payments.
Adjustable-Rate Mortgage (ARM)
Starts with a lower rate, adjusts annually.
FHA Loan
Low down payment, government-backed. Ideal for first-time buyers.
VA Loan
For veterans and active military with $0 down.
Jumbo Loan
For high-value homes above conforming limits.
These alternative Loan Programs are designed for self-employed individuals, real estate investors, and others who don’t fit traditional lending molds.
Step 4: Shop Around for Mortgage Brokers
Working with a mortgage broker gives you access to multiple lenders and helps you find competitive mortgage rates. Crestico compares offers from dozens of lenders to find the most suitable match.
Don’t just accept the first quote—compare Interest Rates, loan terms, and total costs. Use a mortgage calculator to run the numbers.
Step 5: Lock in Your Interest Rate
When you find a favorable interest rate, ask your lender to lock it in. Rates can fluctuate daily based on economic conditions, so timing is crucial.
A rate lock typically lasts 30 to 60 days. Make sure you can close within that timeframe to avoid losing your locked rate.
Step 6: Complete the Mortgage Application
After selecting a loan, complete the full application process. This includes:
- Home appraisal
- Home inspection
- Title search
- Underwriting
During this stage, it’s crucial to avoid major financial changes such as opening new credit lines or making large purchases.
Crestico ensures a streamlined and quick process with expert guidance at each step.
Step 7: Closing and Beyond
At closing, you’ll sign final documents and pay any remaining costs. Your lender will fund the loan, and you’ll officially become a homeowner!
Afterward, focus on:
- Setting up mortgage payments
- Exploring options to refinance later to a Lower Interest Rate
- Considering a cash-out refinance for renovations or debt consolidation
Tips for First-Time Homebuyers & Special Cases
Down Payment Assistance
Los Angeles offers multiple programs such as:
- CalHFA
- Greenline
- Local city grants
These help lower upfront costs for first-time buyers.
Low Credit or No Down Payment
Programs like FHA and VA loans are forgiving of lower credit scores and offer minimal or no down payments.
Crestico specializes in Self-Employed Loans, offering flexibility with documentation like bank statements, P&L statements, and 1099s.
Investment & Commercial Loans
Investors can benefit from Crestico’s expertise in:
- DSCR Loans
- Fix and Flip Loans
- Bridge Loans
- Commercial Mortgage options
Reverse Mortgages for Seniors
Available to homeowners aged 62+, this option provides tax-free income while retaining homeownership.
Why Choose Crestico in Los Angeles
Crestico has over a decade of experience helping clients navigate the complexities of real estate financing in Southern California. Here’s what sets them apart:
- Extensive loan program variety
- Quick pre-approvals
- Transparent process
- Expertise in Non-QM loans
- Personalized service from licensed loan originators
- Local market knowledge for areas like Woodland Hills, Encino, and beyond
Explore more about Crestico’s services at www.crestico.com.
Final Thoughts
Securing a mortgage in Los Angeles doesn’t have to be overwhelming. With the right preparation, tools, and guidance from a trusted broker like Crestico, you can move confidently toward homeownership, investment, or Refinancing.
Take the first step today by getting pre-approved and exploring your loan options. Whether you want a low rate, flexible terms, or access to specialized loans like Self-Employed Loans, Crestico is ready to help.
by CRESTICO | Dec 6, 2011 | CRESTICO
A new analysis suggests that the tide of home foreclosures isn’t going to recede soon. The report from the Center for Responsible Lending, “Lost Ground, 2011,” finds that at least 2.7 million mortgages loaned from 2004 through 2008, or about 6%, have ended in foreclosure and that nearly 4 million more Home Loans (roughly 8%) from the same period remain at serious risk. Put another way, “The nation is not even halfway through the foreclosure crisis,” says the report, which analyzed 27 million mortgages
made over the five years. Across the country, low- and moderate-income neighborhoods and neighborhoods with high concentrations of minorities have been hit especially hard, the report found. The report also noted that certain types of loans have much higher rates of completed foreclosures and serious delinquencies. They include loans originated by brokers; hybrid adjustable-rate mortgages, option ARMs, loans with prepayment penalties and loans with high Interest Rates (subprime). African Americans and Latinos were more likely to receive a high-cost mortgage with risky features, regardless of their credit. For example, among borrowers with good credit (a FICO score of over 660), African-Americans and Latinos received a high-interest-rate loan more than three times as often as white borrowers.
Delinquencies down, foreclosure inventory sets record high
The October Mortgage Monitor report released by Lender Processing Services, Inc. (LPS) shows mortgage delinquencies continue their decline, now nearly 30% off their January 2010 peak. Meanwhile,
foreclosure inventories are on the rise, reaching an all-time high at the end of October of 4.29% of all active mortgages. The average days delinquent for loans in foreclosure extended as well, setting a new record of 631 days since last payment, while the average days delinquent for loans 90 or more days past due but not yet in foreclosure decreased for the second consecutive month. Judicial vs. non-judicial foreclosure processes remain a significant factor in the reduction of foreclosure pipelines from
state to state, with non-judicial foreclosure inventory percentages less than half that of judicial states.
This is largely a result of the fact that foreclosure sale rates in non-judicial states have been proceeding at four to five times that of judicial. Non -judicial foreclosure states made up the entirety of the top 10 states with the largest year-over-year decline in non-current loans percentages. The October data also
showed that mortgage originations are on the rise, reaching levels not seen since mid-2010. Mortgage prepayment rates have also spiked, as much of the new origination is related to borrower Refinancing; loans originated in 2009 and later are the primary drivers of the increase. While FHA origination activity
is down, GSE and FHA originations still account for the vast majority of all new loans – nearly nine out of every 10 new mortgages.
Jobs up, looks better than it is
Job creation remained weak in the US during November, with just 120,000 new positions created, though the unemployment rate slid to 8.6%, a government report showed Friday. The rate fell from
the previous month’s 9.0%, a move which in part reflected a drop in those looking for jobs. The participation rate dropped to 64%, from 64.2% in October, representing 315,000 fewer job-seekers.
The actual employment level increased by 278,000. The total amount of those without a job fell to 13.3 million. The drop in participation rate is significant in that had the labor force remained steady, the jobless rate would have dropped to 8.8%, according to Citigroup calculations. If the labor force had
followed trend growth, unemployment would be at 8.9%. “Overall, the continued modest employment gains reflect an economy that plods along at an uninspiring pace,” Kathy Bostjancic, director
of macroeconomic analysis at The Conference Board, said in a statement. “These modest job gains are still not enough to propel economic growth to a sustainable 2%-plus growth path.” The
measure some refer to as the “real” unemployment rate, which counts discouraged workers, also took a fall to 15.6% from 16.2%,its lowest level since March 2009.
However, economists were treating the rate drops with skepticism. “When the unemployment rate declines, we want to see both employment and participation increase as discouraged workers
return to the labor force. Today, we got the former, but not the latter, making the 0.4% drop look a bit suspect,” Neil Dutta, US economist at Bank of America Merrill Lynch, told clients. “We would not be surprised to see the unemployment rate give back some of its decline in the coming month(s).” Average earnings were essentially flat, up two cents to $23.18 an hour. Private payrolls increased 140,000, considerably less than a report earlier this week showing that nongovernment jobs were up by more
than 200,000 for the month. Government payrolls fell 20,000, including a 4,000 drop in federal positions.
Long-term unemployment remains a big problem: The average duration for joblessness surged to a record-high 40.9 weeks. Stagnation in wages also continues, as more employed workers took
on second jobs. There were just under seven million multiple job-holders for the month, the highest total in 2011 and the most since May 2010. Traders offered little reaction to the report.
Futures already had been indicating a positive open but lost some ground in the ensuing minutes after the Labor Department report hit the tape. “At this pace of job growth, it will be more than two decades before we get back down to the pre-recession unemployment rate. Moreover, a shrinking labor force is not the way we want to see unemployment drop,” said Heidi Shierholz, economist at the Economic Policy Institute. “At this rate of growth we are looking at a long, long schlep before our sick
labor market recovers.”
Remember:
All these scary reports create opportunities for the investor no matter where you live.
by CRESTICO | Nov 10, 2011 | CRESTICO
Yesterday there was a passing thought that Italy’s debt problems would deal a serious blow to the country with its Interest Rates at record highs since the EU began. Yesterday another passing thought that the EU would eventually be restructured based on comments from French Pres Sarkozy that a two tier EU may be the best thing eventually. Yesterday the stock market dropped 389 points, the 10-Year Note yield fell 12 basis points to close under 2.00% at 1.96%. That was yesterday; like it has been the last few weeks, one day its doom and gloom, the next not as bad. No one actually knows what will happen tomorrow; therein lies the difficulty in attempting to assess the situation on a day to day basis.
Yesterday there were comments from supposed knowledgeable people that the ECB was precluded from buying bonds from individual EU countries; obviously that isn’t the case. We reported it as fact and one reason that the debt problems in the region were unlikely to be resolved for years and that there would be defaults in a number of countries. Overnight reports from the wires saying the ECB was in buying Italian bonds, so far no confirmation from the central bank. Italy did sell bills today, the demand was strong and for the moment markets are less concerned that Italy can not fund itself. The country sold 5 billion euros ($6.8B) of one-year bills at an average yield of 6.087% after yields yesterday on 10-Year Notes surged past the 7 percent level.
In Greece there is apparently a new leader that will form an interim government; former vice- president of the European Central Bank Lucas Papademos will head a national unity government for Greece, according to the country’s presidency.
At 8:30 this morning weekly jobless claims along with the every other day optimism about Europe driving stock indexes higher and interest rate prices lower. Weekly claims fell 10K to 390K the lowest claims in 7 months, expectations were for unchanged at 400K; continuing claims also fell, from 3.707 million to 3.615 million.
September U.S. trade balance declined to -$43.11B, if here is any consensus in the markets these days the forecast was for the balance to -$46.3B. October import prices fell 0.6% against estimates of -0.2%; export prices fell 2.1%.
At 1:00 this afternoon Treasury will complete borrowing $72B this week with $16B of 30-Year Bonds. The 10-Year Note auction yesterday was weaker than traders were expecting, sending rates higher on the reaction before regaining strength into the close with the 10-Year Note at 1.96%. This morning the 10-Year Note is hovering at 2.05%.
At 9:30 the DJIA opened +126, NASDAQ +30, and the S&P +13; the 10-Year Note 2.05% +9 bp and mortgage prices down 8/32 (.25 bp).
Attempting to trade on fundamentals these days is almost impossible with the constant changes happening in Europe. Looking solely at the technicals, the 10-Year Note presently is sitting right on its 40 day average at 2.05% with its 20 day average at 2.09%. 30-Year FNMA MBS today is trading below its 40 day and at the moment holding at its 20 day, similar to the 10-Year Note. The relative strength in both markets is hanging at neutral. The overall technical picture slightly positive but not by much. That the 10-Year Note this morning is back over 2.00% somewhat negates its close yesterday below 2.00%. With U.S. markets being completely dominated by what happens in Europe the outlook for U.S. interest rates in the end is impossible to anticipate. Bottom line; markets are adrift in a sea of uncertainty over Europe and the impact on the U.S. economy.
