Category Archives: Arizona home mortgages for bad credit

Why potential commercial loan rate increases are making investors nervous

Inflation fears are stoking fears in the minds of investors about potential commercial loan rate increases in the immediate future.

Yields on short-term Treasuries have recently reached new heights, creating new fears that long-term borrowing costs could rise as well. As of February 2nd, short-term yields on US treasuries sat 2.825 percent, the highest since 2014.

So why are these rising bond yields causing so much panic among investors? Their primary concern is related to inflation and the potential for steep rate increases by the Fed.

Steady job growth may be a sign of rising inflation. The rising rate of employment indicated in the recent January jobs report has many concerned that the Fed will raise interest rates to reduce the risk of inflation.

The Fed usually raises interest rates when the economy overheats, increasing borrowing costs to keep up with inflation. The Fed also raises interest rates when it expects inflation in the near future, which has many investors worried.

Investors are wary the danger of steep increase in commercial loan rates

A fundamental question is why investors are so concerned about inflation? The perception that inflation will soon rise rapidly could entail immediate interest rate increases by the Fed. Drastic rate increases in response to potential inflation would obviously hamper any recent economic growth due to higher borrowing costs.

The historically low bond yields of recent years have made risky investments like stocks more attractive. Bond yields impact the cost of borrowing throughout the economy. If bond yields rise too sharply, companies will have the added burden of higher borrowing costs. Should the Fed rapidly raise interest rates, these riskier investments will become considerably more volatile, which could explain the recent stock sell-off.The anticipated steep rate increases by the Fed would have a clear negative impact on corporate performance. A mismatch between the “real” cost of borrowing and long-term bond yields is also raising concerns among investors.

Investors note the danger that attempts by the Fed to raise commercial loan rates and control inflation may not be enough

The fact that long-term borrowing costs have remained low has spawned the greater fear that perhaps is the Fed may not be able to raise rates sufficiently to control inflation. Some are noting the disparity between Fed rates and real long-term borrowing costs. In the past year yields on short-term Treasuries have risen in line with Fed interest rate increases. However, the yields on long-term Treasuries have remained low or unchanged.

Some fear that in the face of rising inflation the Fed could overreact and dramatically raise rates to regain control of the situation.

Still investors panic about the risk of inflation may be premature. The relationship between employment growth and inflation, known as the Phillips Curve, has not matched economic data. Inflation has been relatively moderate of late in spite of recent robust job growth. The Fed could still hold off on the rate increases many investors expect.

These concerns remain speculative the time being and rarely is sound investment strategy founded on speculation.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Why There are Mixed Signals for Commercial Loans in 2018


Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

The multifamily market on the west coast could be a cause for some concern. Rental rates have increased, causing the market to be unsustainable. Also, there is stiff competition among lenders, which leads to many dealing with commercial loans to expect an intense 2018 among lenders.

Because of this tough competition, lenders are starting to take more risks by approving higher-risk commercial loans. And if the market takes a turn for the worse, this could put many lenders in a bind. Even though signs do point to a stable 2018, lenders should be prepared in case of a sharp turn.

But the majority in the industry think that momentum from 2017 will carry over into 2018. They also this that not only will there be stability, but that the commercial industry could even see a 5 percent increase.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

The issues with stiff lender completion and increase in rental rates could be the start of the marketing taking a turn for the worse. It might take a couple of years, but the impact could start in 2018. Especially if the issues continue or if new issues come up.

Some bad signs are also hitting office properties and retail stores.

More people are starting to work from home, which is becoming a bad sign for office properties. With people using their home as their office, there is no need for office spaces, which is leading to a higher vacancy. Retail stores are also starting to lay off more employees, which is another bad sign. That means that they could be on their way to going out of business, leading to the vacancy of even more spaces.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Arizona Home Loans for bad credit score: FHA Loans

The Federal Housing Administration is a authorities entity that may assist safe Arizona Home Loans for bad credit debtors. The federal government backed loans typically supply bad credit score debtors in addition to first time dwelling patrons a viable choice to help in dwelling possession.
If in case you have bad credit score, you might have in all probability been turned away by a financial institution for those who utilized for a house loan. You might suppose that proudly owning a house is unattainable. Nonetheless, there are a variety of applications that may enable you to qualify for a house loan. One of the best first step is to ditch the financial institution and discover a firm that makes a speciality of serving to people and households determine Arizona home loan for bad credit. A very good first cease is a mortgage broker. Not like a financial institution, the broker doesn’t truly loan out the money for a house loan. As an alternative she or he retailers completely different banks that will help you discover the most effective loan for your buy and credit score scenario. This enables extra flexibility when it comes to the kinds of loans that the broker can discover in addition to lenders. A mortgage broker or mortgage firm can act as your middleman and often get you higher loans and higher phrases than you might get by going straight to a financial institution, particularly when you have bad credit score.
One loan kind your broker will advocate is an FHA loan. An FHA loan is a program for Arizona home mortgages for bad credit debtors. If in case you have bad credit score, an FHA loan could also be a superb choice for you to safe a house loan. An FHA loan is a authorities backed loan. Every month you pay further insurance coverage towards default. The loan is secured by the Federal authorities so lenders usually tend to give them to debtors with bad credit score. With a view to qualify for an FHA loan you will want to have three.5% of the acquisition worth to place down. Additionally, you will pay further for month-to-month mortgage insurance coverage which might range based mostly on the quantity of your loan. For a lot of bad credit score debtors an FHA loan is an efficient path for homeownership.
The Federal Housing Administration doesn’t give out loans. With a view to acquire an FHA loan you will want to discover a mortgage broker, financial institution, or funding agency that’s licensed to provide out FHA loans. The FHA gives mortgage insurance coverage to the lender on their loans. This mortgage protects the lenders from losses attributable to house owner default. The lenders bear much less danger as a result of the FHA can pay an insurance coverage declare to the lender if the house owner defaults on their loan the lender has to foreclose on the property. This insurance coverage makes and FHA loan a superb program for bad credit score debtors as a result of a lender is extra more likely to make a loan to a borrower with bad credit score if they’ve FHA insurance coverage.

Historical past of the FHA and Its Function in Arizona dwelling mortgages for bad credit score Debtors

The FHA was established in 1934 in the course of the Nice Melancholy. The purpose of the company is to assist all People buy houses and to assist stimulate the housing economic system. Within the 1940s the FHA helped finance dwelling loans for veterans and army households. By the 1980s the FHA moved into falling dwelling costs and made it attainable for dwelling patrons to get financing throughout wanted in the course of the recession. By 2001 homeownership in the USA was at a report excessive. The FHA has insured over 34 million mortgages since its inception.

As illustrated above, the FHA has been within the dwelling mortgage enterprise for over 80 years. It’s utterly self-funding and doesn’t require tax payer money or authorities bail outs. This makes it very best for Arizona home mortgages for bad credit as a result of lenders know and trust the company. As well as, there aren’t any surprises when it comes to rates of interest like there are in adjustable charge mortgages. FHA loans supply mounted rates of interest for 15 to 30 years. Nonetheless, understand that you’ll pay mortgage insurance coverage every month. The quantity of this fee varies relying on the quantity of your loan. You’ll pay this insurance coverage till your loan to worth ratio is lower than 80%. That means, you should have an additional month-to-month fee till you might have paid off 20% of your loan. If the worth of your house will increase dramatically you may look into refinancing to get rid of this month-to-month fee. As well as, there are specific mortgage preparations that may be made throughout your actual property negotiations to have the vendor pay a portion of this insurance coverage upfront.

Discuss with a mortgage broker to find out if an FHA home loan is an efficient choice for you.
The Federal Housing Administration has helped many householders acquire loans they in any other case could not qualify for. A mortgage broker can stroll you thru the method of qualify for an FHA loan in addition to describe any funds chances are you’ll want. Name a broker as we speak to take the following steps to buying a house.

Dennis Dahlberg
Dealer/RI/CEO/MLO

Stage 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.SETABAY.COM
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027



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