Transcript Generated by AI 00:00 I'm back with Park Place, 00:01 and we're back again with Eric Howard from Capital Funding Group, 00:04 who does a 00:06 great job and 00:07 with their HUD loans, 00:08 and we are greatly appreciative of them sponsoring the segment where every month 00:12 we check in with Eric on exactly where HHUD rates are right now. 00:16 So, 00:16 Eric, 00:17 welcome again. 00:18 Before we get into the HUD rates, 00:19 I think the big news from last time, 00:22 last month is the Fed has cut again. 00:24 So just tell us a little bit about that and what that means. 00:27 Correct. 00:27 Yeah, 00:27 the Fed did cut rates again, 00:29 Mark, 00:29 last week. 00:30 And, 00:30 uh, 00:30 as, 00:31 as we've generally seen, 00:32 that has translated, 00:34 uh, 00:34 into, 00:34 uh, 00:34 into lower H HUD rates. 00:36 Uh, 00:36 while there may not be a direct correlation 00:38 between the Fed cut and, 00:40 uh, 00:40 what we refer to as the 10-year treasury. 00:42 Uh, 00:42 we have seen a steady progression 00:44 over the last few months of lowering HUD rates, 00:47 uh, 00:47 which has been, 00:48 uh, 00:48 fantastic for borrowers. 00:50 That's great. 00:50 So, 00:51 where, 00:51 where are we at with HUD rates? 00:52 What, 00:53 what are the average rates and, 00:54 and tell us a little bit about what's happened over the last few months with those. 00:58 Sure. 00:58 So when, 00:58 when you go back even, 00:59 uh, 01:00 probably about 3 months or so, 01:01 Mark, 01:01 uh, 01:01 rates averaged, 01:02 uh, 01:03 for loans that closed in September 01:05 in the high fives, 01:06 so probably around 580, 01:07 590, 01:08 that number came down as we got into October to about 570, 01:11 uh, 01:12 even lower in November at close to 560. 01:15 And if you were locking a HUD rate today, 01:17 uh, 01:17 you'd be around 5.35%, 01:19 somewhere in that area, 01:20 a 5.35% rate 01:21 over 35 years 01:23 with no personal guarantee. 01:25 It's a pretty darn good deal. 01:27 You know, 01:27 obviously people should be looking at it. 01:30 Um, 01:31 I think one of the concerns people have is, 01:33 what if I, 01:33 what if I missed, 01:34 what if I refine now and the rates keep going down? 01:37 I mean, 01:37 we're always trying to hit the exact bottom. 01:39 Uh, 01:39 what, 01:39 what are, 01:40 what are somebody's options if they refi at 5:30 and rates keep going down? 01:44 Yeah, 01:44 I, 01:44 I, 01:45 I think, 01:45 Mark, 01:45 you, 01:45 uh, 01:45 you hit the nail on the head, 01:46 right, 01:46 which is, 01:47 um, 01:48 530 is just a fantastic rate. 01:50 And, 01:51 uh, 01:51 obviously, 01:52 while we're down here over the last couple of months, 01:54 uh, 01:54 and, 01:54 and could continue to go lower, 01:56 there is flexibility in terms of how we structure the HHUD loans 02:00 and an ability to simply modify those rates. 02:02 Uh, 02:02 if we had, 02:03 say, 02:03 a macro factor and, 02:05 and we had 02:06 real reduction in HHUD rates, 02:08 you can simply go back to HHUD in, 02:09 say, 02:09 1 year or 2 years, 02:11 uh, 02:11 whenever that timeline may be. 02:12 Your time frame 02:13 and simply reduce your rate. 02:15 Very easy process. 02:17 Uh, 02:17 it resets the rate, 02:18 all things being equal. 02:19 So, 02:19 tremendous flexibility in and around how we structure these things. 02:22 And if rates go lower, 02:24 you can benefit from that in the long term. 02:26 And if rates go higher, 02:27 then you've got a 5.35% rate. 02:29 Well, 02:29 Eric, 02:30 this is great news. 02:31 I mean, 02:31 we had this incredible 20-year window where rates were going down, 02:34 and yet some of us missed it. 02:36 Some of it, 02:37 sometimes there was no choice because of agreements that we had with various banks, 02:40 etc. 02:41 But now there's a new window 02:43 to still get a, 02:44 a, 02:44 a locked-in long-term rate in the low fives, 02:46 and it, 02:47 it's fantastic news. 02:48 Hopefully, 02:48 it'll continue. 02:49 And Eric, 02:50 thanks, 02:50 thanks for the great, 02:50 it's a great way to end the year and get 02:53 into the holiday season to have great news like this. 02:55 Thank you for the news and thanks for all your support of Park Place. 02:58 And thank all of you for your continued support of Park Place. 03:01 I hope that you have a great holiday season and 03:03 look forward to checking back with Eric in January and 03:05 we'll see if these rates can keep going down.
