💰 Daily Mortgage Rates LIVE - 11/12/2025 - Non-QM 2nd Mortgages

 In this episode of Daily Mortgage Rates LIVE!, we break down Non-QM Fixed-Rate 2nd Mortgages — a powerful tool for real estate investors. Tap into your property’s equity without touching your low-rate first mortgage, using alternative income documentation like DSCR, bank statements, or 1099s. Learn how these loans work, today’s rates, and how to qualify, even if you’re self-employed. Plus, get expert tips, market insights, and strategies to grow your portfolio while keeping your first mortgage intact. 

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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 we'll get started for today. Welcome, everyone. My name is Nick Hiersche. I'm the president of the mortgage calculator. We are a lender that offers, of course, all kinds of different loans in our 35 licensed states. But one of the things we're passionate about is our non QM programs including our fixed rate second mortgage that we're going to pull over today. So what we do every day is we'll go over the general mortgage rates on our website of all the different programs and then we'll dive deep into some details on these specific programs with a very specific example. I'll even pull up an example of this.

So again, as I said before, if you have any questions, or need to get a quote for yourself, our team of licensed loan officers will be happy to help you out. Please drop a comment or go to our website. Let me go ahead and get started for today. Switch my screen up here. And first, we'll look at the general ten year treasury.

That's one of the, easiest items, to look at here when we're talking about mortgages. This is typically the one that's going to track most in line with what we're doing here today. So you see, nothing crazy. We've got a couple big announcements and a couple big changes there, over the year, or sorry, over the five day period. But as we always look at, we're still close to or at one year lows at the moment.

So awesome news for everybody out there shopping. We have all of our amazing options that are pretty much at one year lows here across the board. So let's actually look into some of the live rates. So here are some of our basic programs. So we'll go through each one.

This is using a similar example for all of them. We're going to use a single family home, a 500,000 purchase price through a 100,000 loan amount for response to 60% loan to value. Obviously, a lot of these programs can go much higher. This allows us to compare all across the different programs using a 760 estimated FICO score and an estimated 40% debt to income ratio. So we use all those settings here to compare all of our APRs and rates across our different programs for today.

So all of our different partners just refresh their rates here. It is about new eastern time. So we do have some fresh rates here. Our conventional primary option here, typically what you think of when you think of a mortgage, a Fannie Mae or Freddie Mac conventional loan. Rates starting today, 5.5.

Final APR, 6.135. Very similar to last show. FHA coming in today, rates as low as 5.25. And with the upfront in your mortgage insurance, remember to always compare the APR. APR comes in at 6.141.

So just a touch higher than conventional, which is pretty much expected for FHA. And we will compare that to our VA for eligible vets and active service members and surviving spouses in some cases. VA is definitely a great option. You look here, the rates look a little bit higher, Jay, coming in at 5.49 today. But if you compare the APR, definitely some great benefits with the VA program or VA eligible borrowers.

APR comes in at 5.709 with the fees including the funding fee there for VA. So definitely an amazing option for our eligible borrowers. Always look at that VA option. And we always wanna compare our USDA options. So USDA is only for properties that are in USDA eligible areas.

Those are typically the rural areas of the country. And for our borrowers that are eligible for these programs and properties that are eligible, these are great options. Rates coming in at 5.125. Final APR, 5.791 with all the different fees included for FHA. So a little bit more favorable than, FHA there and, definitely a little bit more favorable with conventional.

So if you are looking in those areas, always check out a USDA option. And where we start to shine here are some of our unique programs, our non QM, all dog primary options. This would be obviously full dog, but also bank statements, ten ninety nines, p and l programs, all the different options we have for non QM for a primary home fall under this category. And rates come in today 5.875, APR 6.145. So when we compare that to using a conventional loan, they're almost identical in this example.

Just a touch higher in cost there for a non QM. So amazing that our non QM comes in at very similar or almost exactly the same as conventional. And using our non QM alt doc options for an investment property, our rates are a little bit higher here, 6%. Final APR is 6.321, but we're gonna compare that to an investment property for conventional. So our next row down here, compares our conventional option for an property, and you see the rates are, again, almost identical.

Rates as low as 6% for conventional, final APR 6.311. So just a touch cheaper than using alternative docs. Definitely a great option again for our borrowers out there needing to use those non QM programs. And one of our favorite options, and we're gonna go over once a day as well, our DSCR stands for debt service covered ratio. No income or employment needed from a borrower.

We simply use the estimated rents from the property to determine a DSCR ratio. This example includes a DSCR over one and adds a three year prepayment penalty, which is pretty standard here for these investor programs and allows us to have some amazing rates. You see our DSCR even with a three year prepay coming at five eight seven five in our example. And finally, APR 6.193, which means it beats conventional. Absolutely amazing.

And we can add a five year prepayment penalty here. It doesn't quite change the rate today, but you see the final APR comes in at 6.145 when we add the five year prepayment penalty, which means it lowers the cost a little bit and again beats the conventional, which is amazing. And we do have a no prepayment penalty option here. This is for our borrowers that don't want a prepayment penalty. That's always an option.

Rates come in at 6% on APR, 6.321. So when you compare that, no prepay option is just a touch higher than conventional, but again, amazing to use our DSCR alternative income options. And our topic for today. So this is gonna be our second more Looks like my connection reset. Hopefully, you can hear me there.

So our fixed second mortgage option here coming in at 7.875, lowest rate option today. Finally, PR 8.168, but we're gonna go into a detailed example today to push this to the maximum cash out, which is our typical request here from our course. Now using our fixed rate second mortgage, non q m options for an investment property, so we can use, obviously, full dollar bank statements and even DSC here for our second mortgage investments, and we'll get into those details in a second. Our rates coming in at 8.75 is the lowest rate option. Finally, PR nine point one and six.

So we'll compare that here. This is at a low LTV. We're about to push it to the max here in our example. So as I do every day, I wanna pull up a specific example. So I look at a listing, here in the area.

So I found this listing here in the Fort Lauderdale area, very nice, newer house. $750,000 price here. So this was a good example for a couple different reasons. But what I did here is I assumed that, instead of maybe listing this for sale and dropping the price as I went over in my example for deluxe as well. A lot of times our borrowers may, need some cash and they think they need to sell their home.

The market may not be, the way they want it, and we can propose this option. So in this case, if our borrower doesn't wanna keep dropping the price, maybe wants to keep the house, just to, do something else, we can use our non QM second mortgage option. So I assumed a $400,000 loan balance here and pulled up some options to get some cash out. So at the max LTV here, our first example, using our non QM option with twelve months personal or business bank statements for a fixed second mortgage, we can go up to 85% loan to value for this exact home. So in this example here, we see our rates obviously a little bit higher but still more preferable than typically a variable rate HELOC.

Lowest rate of 9.375 or 2.225 discount points and cost. And we can get that down to point eight five discount points and cost at a rate of 9.875. So this is using bank statements option, which is a little more expensive than our next example. Here though, you can see our first mortgage is 400,000 and we're going to get our borrower 237,500 cash out if this is their primary home in order to allow them to maybe do some repairs or do whatever they need to do and perhaps take it off the market and not have to sell. The rest of this breaks it down.

We're using personal bank statements, etcetera, and breaks down all the LTVs pushing it to a maximum 85. Now for our next example, little bit better on pricing. It's going to be using full doc. So typically our borrowers use full doc, wanna use just one year. So one year of tax returns, w twos, etcetera.

So we can use one year full doc, and we can push that up to 85% on to value on a primary home. And the rates coming in a little bit nicer here, 8.75 rate causing 2.375 discounts and costs. And we have a par right here, no cost down to 9.5% rate, which again is typically preferable to a HELOC. And a fixed rate allows us to use non QM options and keeps us at a fixed rate instead of a variable option. And now the coolest option that we have next is going to be for our investors.

So we switch this over to an investment property. If someone owned this property as an investment, maybe considering keeping it as, you know, rental property or Airbnb or selling it, obviously is what our current goal is, but maybe they don't wanna drop the price. We have an amazing option. This is probably our most requested option here at the moment. And that is our non q m investor DSCR fixed rate second mortgages, and we can get cash out up to 80% loan to value, which is absolutely amazing for our investment properties.

That's obviously typically more cash out than we can even get for a first lien in some cases. So great option for investors out there. This is our DSCR option. Again, no income or employment, just the estimated rents from property, and this included a three year prepayment penalty. We can bump that up a little bit or take it off, but this is going to be our most typically requested scenario.

So pushing this up to 80, adding that prepayment penalty, the rates are still very similar to what we saw before. 9.375 from investment property, pretty amazing. Points coming in here at 3.35. And the lowest cost option here, 9.75 rate coming in at 1.725 discount points and cost. And you see the 80% low value in this example gets us a $200,000 cash out.

So perhaps that investor could put that property into service as an Airbnb or whatever they needed to do, to capitalize on their investment. So these are amazing options and, again, are some of our most requested options. If you'd like to get a full quote, a full breakdown, please get with one of our team. We have over 400 licensed loan officers that would be happy to help you out and we get loans in 35 states for the primary homes and even some additional states for the DSCR investment parties as they're typically closed as a business purpose loan. So thanks everybody for joining us, and good luck out there with your home shopping if you're doing a purchase or if you need a second mortgage, like, reach out to our team.

Thanks, everybody.