🔴 Daily Mortgage Rates LIVE - 11/05/2025 -Asset Utilization

On this episode of Daily Mortgage Rates LIVE, we spotlight Asset Utilization — a flexible financing option that lets borrowers qualify using assets instead of traditional income. Learn how lenders assess liquid assets, investments, and reserves to determine eligibility, and why this program suits high-net-worth individuals, retirees, and self-employed borrowers. We’ll compare Asset-Based Loans to conventional mortgages, highlighting key benefits, qualification steps, and rate factors.

 🎥 Watch the full episode: 👉 https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

Catch all the episodes of Daily Mortgage Rates LIVE at https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

Check out all episodes of Daily Mortgage Rates LIVE at https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

So welcome, everyone. My name is Nick Hiersche. I'm the president of the Mortgage Calculator. We are a lender that obviously offers all types of loans, but what we really like to do is offer our non q m loans, which is one of our topics for today, our asset utilization and asset based loans.

So these are unique non q m programs that allow us to simply use borrowers assets in order to determine an income figure or be able to underwrite the loan. So let me get into the details for today. I'll go ahead and switch my screen here. And, first off, we did have some news this morning. So we always check the this is the ten year, treasury here.

Definitely, one of the best indicators of what rates are going to do in real time. Obviously, there are a lot of other factors in here, but this is a great thing for the average consumer to keep in mind. So we did have some news today. And so rates might be a little bit elevated today. Leveling off throughout the week.

This is a five day look back. But again, as I do every day, we wanna make sure we take everything into consideration and we are basically still at one year lows. Good news for everybody out there, we still have some great options. So let's get into today's topic. But first, our live mortgage rates.

So I just updated this just a few minutes ago. It is just after twelve noon eastern today. So we do have all of our live mortgage rates here from all of our different partners. And we're gonna go over some basic scenarios, in order to compare across all the programs since we have a bunch of unique programs. We set up a standard single family home, 500,000 purchase price, 300,000 loan amount, 60% loan to value, seven sixty FICO, and 40% debt to income.

So we can compare all the standard programs as well as all of our unique non QM programs here that come up. So first up here, we always wanna check out our conventional rates for conventional primary loan. That's a Fannie Mae, Freddie Mac standard loan you think of when you think of a mortgage. Coming in today at five point eight seven five rate. Finally, we are at 6.135 there in that example.

And next up, we will compare that to our FHA loan rate. So FHA coming in a little bit lower rate, 5.2 only PR is 6.16 with the yearly mortgage insurance that is required for FHA. And for our VA eligible borrowers, our service members and, surviving spouse, we have our VA programs. If you are eligible, these are amazing. Rates as low as 5.225, so the same rates at FHA there.

But if you notice the APR, final APR, 5.512 because there are some reduced fees for our VA eligible borrowers there. So definitely compare the APR and you can see there it's a great option for our borrowers that are eligible. And moving on to USDA, properties that are in USDA eligible areas, those rural areas of the country and borrowers that are eligible for those specific programs. There are some income limits as well. Rates today come in at 5.125, final APR 5.791 with all the fees included there in USDA.

So we'll typically come booking in those areas to FHA, and you see USDA as a touch better in those examples. So definitely look out for that program if you are in those areas. And now moving on to our non QM. So first up, non QM, alt doc for primary home. These are some of our favorite examples, and we're gonna go into some details today.

This is our lowest rate option, so typically a full doc loan, but alt doc covers full doc, bank statement, ten ninety nine p and l, and our topic for today, asset based loans. But the lowest rates we can offer today for a standard option here, 5.875 rate, finally PR 6.145. So we can compare that to conventional and almost identical, which is amazing. We love it when our non QM is identical to conventional. And for our non QM options for an investment property here, you see rates coming in at 6%, finally PR 6.321.

And we'll compare that to our conventional option for an investment property. Coming in again, same rate, 6% flat. Finally, PR is 6.11. So you see conventional is just a touch cheaper, but basically the same as our off dock options, which is absolutely amazing. And some of our loans are DSCR loans, stands for Debt Service Coverage Ratio, no income or employment information needed.

These are our investor products here and our standard DSCR coming in at with a three year prepayment penalty which is pretty standard for these loans, coming in at as amazing $5.01 $8.07 5 rate even lower than conventional and all that. Lendly, BR 6.169. So pretty amazing when we add that prepayment penalty there and use DSCR, you can actually beat our conventional options. And with a five year prepayment penalty here, you see same rates 5.875 but the final PR comes in at 6.12. So just a touch deeper there on the fees when we add a five year prepayment penalty.

So again, some amazing options. And, moving on here, we have some other options. Obviously, you can check out all of our live rates here, all kinds of different products. But let's get into our topic for today. So So I always wanna make sure we put this into perspective.

So I grabbed a live listing here, just in my area. A nice little home here, very near the beach. And, you see here the price, a pretty reasonable price for a nice home and you see it's nicely remodeled. So in this example, I'm going to go over three ways our borrowers, can purchase this with assets only using an asset utilization or asset based non QM loan program. First up, if our borrower wants to purchase this as a primary home, the lowest down payment when we use assets is going to be 15% down.

So 85% loan to but here are some great options. And as with all non QM, there is no PMI required. And if you wanna lower the price, obviously, we can put 20% down or more and it will, make the rates, and cost a little bit better. But this is the typical example we get requested for. And there are three different ways to do the income here.

Actually, the three different partners here for three different slight variations of the asset based program. First up here is the simple option here for a primary home, which simply requires that the borrower has a 125% of the value of the mortgage, of course, that we're doing and any other debts. So if they had a car payment, they need to have the full amount of the car bonus, to be paid off in assets plus a 125%. And that's what they use. Very simple.

There is no calculation beyond that. So this is a pretty amazing option. Rates coming in at as low as 6.75. You see there for 2.5 discount points. And, we can go all the way up to 7.375 for no no discount points or the part right here in this example.

And you can hear the rest of the breakdown. You can see the actual house, and all that information. Now let's move on to if our borrower wanted to purchase this as a second home. Oh, sorry. Second home is this one.

So as a second home, same down payment, 15% down. This option is a little bit different. Again, no PMI required as we went up before. But this one uses all the eligible assets and divides by 84 to determine the monthly income for a GTI qualification and the minimum GTI is gonna be 50 similar to a lot of our non payment programs. So a different way to approach the asset based program instead of just, having the total assets over, the total balances.

We're going to the total assets divided by 84 and then use it as an income figure. So a little bit different way to do it. And with the second home, it's gonna be a little bit higher rates and costs. So you see here the lowest rate option coming in at 7% for 2.125 in discount points. And our par option here, 7.625 rate for no cost here.

And it's still again 15% down, 85% loan to value, second home asset related program. And our final option here for our investors out there, DSR is one of our favorite options for investors, but this is always out there as well. This is our asset based purchase example. Again, 15% down for an investment property and we added a five year prepayment penalty to this example. And there are no there's no PMI required, of course.

This option is again similar to the other option where we have to have a 125% of the balance of the assets. And you see here the rates are actually coming down because we were able to add the five year prepayment penalty. So rates are better here for investment because we're able to add a prepayment penalty. 6.874 lowest rate option, 3.375 discount point to cost. And the, lowest cost option here, 7.499 rate at 1.25 in cost.

And again this is our basic 15% down option and we can close this in an LLC. It is a fixed purpose loan and we do have the five year prepayment penalty. So those are the three different ways we can approach our asset related mortgage programs. So that'll go ahead and wrap it up for today. Again, if you have any questions on any of these scenarios, feel free to drop us a comment or feel free to send us an email or any one of our 400 licensed loan officers would be happy to help you out and send you an example there.

So thanks everybody for joining us, and good luck out there with your home shopping. Have a great day.