📉 Daily Mortgage Rates LIVE – 12/03/2025 – Fixed Rate vs ARM Loans

Join us this Wednesday as we break down today’s Daily Mortgage Rates and compare Fixed Rate vs. ARM loans.

We’ll show how each option works, key differences in cost and payment stability, and why one may fit your situation better. Plus, get quick insights on rate trends, how ARMs react to the market, and why fixed rates remain a top choice.

Whether you're buying, refinancing, or comparing strategies, this session will help you decide with confidence.

📲 Tune in, leave comments, and ask questions — we’re here to help!

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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

Today, we're going to look at a few different options, in detail for a fixed rate & ARM. So adjustable only a popular topic, especially as the rates change and fluctuate. So definitely, a good consider, is to compare them directly side by side, be able to compare some conventional options as well as some of our non QM options. Now that we are live on all the platforms, let me go ahead and get stay. So, what we like to do every day is first off, just check out the general market conditions. So let me switch my screen, and we'll take a peek at the ten year treasury to give us an idea of where rates are in general.

So as I said, this is the ten year treasury, definitely one of the best indicators for rates overall. We look at a wide variety of different program, when we're looking at our live rate show here. So you can see in the last five days, definitely a little bit of an increase. You know, it has to go a little bit up and down through I wanna pull this out a little longer to put everything into perspective. And as you can see here, we are definitely still at one year lows.

So definitely a good thing for all of our customers out there. Let me scroll up a little bit. Sorry. That are looking to be shopping. We're still at one and the weekly fluctuations do not really affect the rates that much.

So So let's actually check out our rates for today for our standard programs. And again, if you'd like a full loan estimate, please get with one of our team members and send you a full breakdown. So for this scenario, we have here on our automated engine here is a basic setups. We can pair all the different loan options. So we have a single family home here, 500,000 purchase price, 300,000 loan amount, that corresponds to 60%.

We use the estimated $7.60 FICO, debt to income. That way we can compare all the programs for, the exact same scenario. So here, first off, we have conventional option. Typically, what most people mortgage, conventional comes in today, 5.875 rate. Final APR, 6.135.

For our borrowers that may not qualify for conventional, we tend to an FHA option. FHA allows more leniency on credit issues as well as a higher overall debt to income ratio. It does require upfront in your insurance, and FHA comes in at 5.25 rate. But with the additional cost there, mortgage insurance and everything, you always wanna look at the APR. APR coming in at 6.6.

It's a little bit higher than conventional, which is for an FHA option. Now for our borrowers that qualify for VA, our active military, veterans, Houses. If you qualify for VA, these programs are under the day 5.375 rate, but definitely less fees included for our that's here. I like your six three three nine. So beats both FHA and conventional, which is typical for our VA options.

So definitely take a look at VA if you do qualify. And our top week, we went over our USDA options, in a USDA eligible area, which you have to look up, but definitely a great option for those properties and those borrowers that are USDA coming in today, 5.15, 5.802 with all of the fees included. So we typically compare that to an FHA option or a conventional option. For shopping in those USDA areas of the country. And once things start to get interesting here, we love to present our NonQM pro so we have hundreds of different NonQM options here.

This is our non QM optoc for a primary home. So we can use optocs, that is, thanks to tenants, ten ninety nine's, p and l's, all kinds of different income options if our customer doesn't qualify using conventional options here. And the rates are almost identical, 5.87 almost same as conventional. Finally, we are coming in at five, just a touch higher for our non QM alt doc options. So great options for our self employed borrowers in predict.

And we can use alt docs for investment properties coming in today at 6% rate. Finally, PR 6.321, which will compare to our conforming conventional options. It was coming in at 6% rate as well. Finally, PR 6.311, so just a touch cheaper on the cost. And we love our DSCR our favorite non QM options here.

No income or views that estimated rents from the property to determine a DSCR ratio, stands for debt service covered ratio. If the expenses, that's a ratio of one point zero, which is what we use for these examples. And the first example here, standard three year prepayment penalty, pretty typical for these type options. Rates come in today at six. Finally, PR 6.308.

So just, actually a touch lower than conventional, which is pretty BSCR to be conventional. And we can add a get the reach down to 5.875. Finally, we got 6.181. Definitely cheaper than conventional. Absolutely amazing.

Since here, all kinds of different programs, but we'll save those all for a different day. Let's get into our today because a lot of our, clients, see our fixed rate options here, which are pretty standard here up on the website. But we obviously have adjustable options as well. And when the rates are changing and high like they are right now, popular question. So we will compare an exact example here for this exact I just went into my local area here.

This is an exact home here for sale for 1,175,000.000. Homes are definitely use this as a good example because we're gonna compare conventional and non q m and do an example of fixed first adjustable for each of them. Allows us to compare, why conventional we can't go up to the same loan amounts. So a great option here. Prices are pretty high here in own, Fort Lauderdale area.

Home our borrower wanted to purchase, very often they would say, do you have fixed and adjust? Can we check them both out? So this is our bar here that we're going to use for this exact scenario. So first up, because typically our bar the least amount down, the first year was our non QM option, which allows us to exceed the maximum loan amount of which you will see here in a minute is restrictive. So our non QM option allows us to put 10% down for a primary home purchase in this example.

Our bar in this example, just like the, the seven sixty FICO. But this is a full doc non QM, also known as a jumbo loan. We do have some, in particular prime jumbo, but that's not today's episode. So this is a typical non QM full doc, and we're going to be able to put 10% down with no PMI because it does not have PMI required. So this is a great option.

Lowest rate option, 7.125 for 2.25 discount points and cost here. And we even rate option, no cost option, for a $7.05 rate. And you'll see here we're able to put 10% down and get over a million dollar loan in this which is a typical request our borrowers wanna put them on, on their new home purchase. You can see here all the different options that we select. You can see the LTV and the FICO score we use for this.

Now what we always want to compare is this with a standard non QM adjustable. Range. So when we compare the rates here, notice we have, these rate options and we'll have some different rate options, but this is a very similar program, our non full dock option and it's using a five six arm, So five years fixed and then just every six months based on the sulfur, rate there. And this requires a 10% down payment. No PMI just like the other option.

And here you see we have slightly lower rates. We can get down to a 7% rate for 2.37 pricing cost. And we do have a par rate at SIP. So again, if we'll compare that to our fixed rate option, just a touch lower. There's not that much difference.

Very often, When I'm advising my clients to compare these two options, fix is definitely more predictable. And, definitely, in my opinion, to just go down a touch in rate for a very similar cost structure. But now, let's compare all options. So when we ask our borrowers ask to go conventional, say conforming under the conforming limits, now that kind of puts us in a little bit of a bind here because the property is very high priced. So fortunately, this the limits here are going to be the limits, the loan limit.

$832,007.50 limit, area and that's going to require us, unfortunately, to do a conforming conventional loan, 30% down. So our borrower payment, they're gonna be pretty bummed down in this example. We do have a couple hacks. The topics of some of our other shows to add a HELOC and do a combo, that's not today's topic. So we're just comparing fixed versus adjustable, the base mortgage either way, that has to say conforming.

This is our fixed. And we you have some great rates. Lowest 5.625 in this scenario for two two point one two five discounted cost. And we even have options with lender credits of 6.49 rate. A little bit of a lender credit towards our closing cost.

You see here, with this demo, much lower payment, but that's because we're only financing, 822,000 under the limits there. $352,000 down payment. And again, here we have the same setup. It was 70% over and we're using that same $7.65. Now to compare that to our adjustable rates for conventional, we will choose our standard conforming five, six silver arms.

So the same setup there, five or six, six to adjust, great. And, we're gonna put 30% down because stay under the limits. And you see the rates point two five rate is the lowest option. And, we don't have a par or linear credit option because this is kind of a weak scenario here. So 5.625 rate at 1.625 in cost.

But this was definitely the lowest rate option. So this affords a little bit of a difference. So our borrower staying in the conventional loan limit area, I do see a little bit of a difference here. The lowest rate option in 5.25, lowest rate option for fixed 5.65. So in this scenario, if our client, can afford the 30% down and is comparing these two options side by side, you can see that the doing the arm, if they're, up for the additional comes to having the, the payment change in five years perhaps.

Could go up, could go down. You don't exactly know right now. Right? We don't have a crystal ball a little bit there. But there is quite a bit of difference here.

So again, 2.125 cost for 5.625 as the lowest, rate option we can buy it down to when we're going, fifth and to do the adjustable, we can 5.25 rate for very similar cost there, 2.375 discount points cost. So and get the rate down a little bit with arms in the conventional realm. But remember with non QM, there is not that much of a difference when we're going to use a jumbo the other non QM program. So very common request from our borrowers. Hopefully, that's helpful for our borrowers out there, that are out there shopping and asking the same question right now.

Hopefully, that puts some of that to bed. And for our team members watching there, definitely a common question. Hopefully, this gives them some more answers to provide their clients. So if you need I've submitted a full breakdown of exactly what your scenario is for a fixed rate or arm, please give it to our team members, drop a comment, go to our website. We have over 300 loan officers in over 30 states.

We'd be happy to help you out. So thanks everybody for joining us today, and we'll be back later this week with another episode of Daily Grace Life. Have a great day.