📬 The Lending Letter 🏠

Tuesday, January 13: Rates Inch Up But Opportunity Knocks Louder

Happy Tuesday! ☕ We're nearly two weeks into 2026, and while some people are already abandoning their New Year's resolutions, mortgage rates are doing something interesting—they're creeping up just enough to make today worth talking about. Let's dive into what's happening in your wallet's favorite market. 💰

🎯 The Tuesday Rate Check: What a 6 Basis Point Move Actually Means

So rates bumped up 6 basis points overnight from 6.01% to 6.07%. Before you panic-Google "what is a basis point," let me translate: that's 0.06%, or about as much movement as your morning coffee price at Starbucks when they add oat milk. 🥛

But here's the thing—even tiny moves matter when you're borrowing hundreds of thousands of dollars. On a $400,000 loan, that 6 basis point increase translates to roughly $14 more per month. Over 30 years? That's about $5,000. Suddenly that basis point doesn't feel so "tiny" anymore, does it? 🤔

The good news: We're still hovering in the low-6% range, which is notably better than where we were six months ago. The market is basically doing its post-holiday dance—a little up, a little down, but generally stable enough to make solid financial decisions without losing sleep. 😴

💰 Lender Promos: Fresh Opportunities for Your 2026 Goals

📰 What's Actually Happening Today: Mid-January Market Reality

Let's talk about why rates moved today and what's on the horizon:

🧠 Educational Deep Dive: ARM vs. Fixed in 2026

Quick question: when's the last time you seriously considered an Adjustable Rate Mortgage (ARM)? If you're like most people, probably never. But hear me out—2026 might be the year this changes. 🤨

Here's what most people don't understand about ARMs in today's environment:

🏖️ STR Investors: Your January Playbook

If you're in the short-term rental game (or thinking about jumping in), January is absolutely prime time to set yourself up for a killer year. Here's why: 🎯

Spring Break Properties Are Listed NOW
Markets in Florida, California, Arizona, and other warm-weather destinations see their best pricing in January-February. By March? Prices jump as investors realize spring break revenue is around the corner. Early bird gets the worm—and the booking calendar. 🐦

Summer Seasonal Properties Too
Beach towns, lake properties, mountain retreats—sellers list them in winter when they're not generating revenue, which means better deals. Connect with our STR specialists who know exactly which markets are undervalued right now. 📊

The Setup Time Factor
Buy in January, and you have February and March to furnish, photograph, list, and get reviews before peak season hits. Buy in April? You're scrambling and missing prime booking windows. Time is literally money in the STR game. ⏰

💳 Personal Finance Hack: The Backdoor Roth IRA Strategy

📊 Real Talk: What Rates at 6.07% Actually Mean for Your Buying Power

Let's do some quick math that might surprise you:

$3,000/month budget at different rates:

At 3% (the good old days): ~$720,000 house
At 5%: ~$560,000 house
At 6.07% (today): ~$500,000 house
At 7%: ~$450,000 house

Notice something? The difference between today's 6.07% and potential future rates at 7%+ is significant. According to Freddie Mac historical data, rates can move fast—like "your buying power drops $50k in two months" fast. 📉

But here's the flip side: if you wait for 5% rates and home prices increase 5% in the meantime, you're not actually saving money. You're just shifting whether you pay the bank (interest) or the seller (higher price). Most people don't think about it this way, but the math shows they're often equivalent. 🤯

🎓 Quick Hit: Understanding Loan-to-Value Ratios (LTV)

Let's talk about something that confuses people constantly: LTV ratios. It's simpler than it sounds, I promise. 📐

Loan-to-Value (LTV) = Loan Amount ÷ Property Value × 100

Example: $400,000 loan on a $500,000 house = 80% LTV

Why This Number Controls Your Life:

• Above 80% LTV: You pay PMI (private mortgage insurance), which typically costs 0.5-1% of the loan annually. On $400k, that's $2,000-$4,000 per year you're lighting on fire. 🔥

• At 80% LTV: No PMI. This is the magic number most people aim for (20% down payment).

• Below 75% LTV: You often qualify for better rates. Lenders love you because you have skin in the game.

The Investment Property Twist: Investment property LTV requirements are stricter—often 75-80% max. According to Bankrate's investment property guide, you typically need 15-25% down for rentals. But here's the hack: once you have equity, you can refinance or get a HELOC to pull cash out for the next property. Rinse and repeat. 🔄

Pro Tip: If you're at 81% LTV and paying PMI, even paying down just $5,000-$10,000 to hit 80% can save you thousands per year. Sometimes the best "investment" is paying off a tiny bit more of your mortgage to eliminate PMI. 💡

🏘️ Market Intel: What's Selling (and What's Sitting)

Current market dynamics from boots-on-the-ground data:

🔥 What's Hot:

Turnkey Properties: Buyers don't want projects. Homes that are move-in ready are getting multiple offers. Redfin reports that updated homes are selling 2-3x faster than fixers. In this rate environment, people want simple. 🏠

Smaller Homes: With higher rates, people are buying what they can afford, not what they dream about. Starter homes are seeing the most action. 1,200-1,800 sq ft properties? Flying off shelves. 3,500 sq ft McMansions? Sitting. 📦

Multi-Family/Rental Plays: Investors are gobbling up duplexes, triplexes, and small apartment buildings. With rates higher, rental demand is strong, and the math still works for seasoned investors. 📊

❄️ What's Cold:

Overpriced Everything: Sellers still stuck in 2021 pricing? Their homes are becoming landmarks. Markets are rational again—overpricing means you're donating to your Realtor's monthly open house wine budget. 🍷

High-End Luxury: Unless it's in prime locations, luxury homes (>$1M) are moving slower. Wealthy buyers aren't rate-sensitive, but they're volume-sensitive—fewer buyers in that pool means longer days on market. ⏰

🌟 The Bottom Line

Today's 6.07% rate is what it is—not amazing, not terrible, just workable. The real story isn't the rate; it's what you do with the opportunities that exist right now, today, in mid-January 2026. 🎯

While everyone else is still in "New Year planning mode," smart buyers and investors are executing. They're not waiting for perfect conditions—they're working with current conditions and building wealth anyway. Because here's a truth most people learn too late: the perfect time to buy never actually arrives. You create the perfect time by making smart decisions with imperfect information. 🧠

Plus, remember that real estate's tax advantages haven't changed. Depreciation, mortgage interest deductions, cost segregation, 1031 exchanges—these tools are just as powerful at 6% rates as they were at 3% rates. The math changes slightly, but the wealth-building formula remains the same. 💰

So stop overthinking it. Stop waiting for rates to drop another half point while prices rise 5%. Stop letting analysis paralysis cost you months or years of equity building and rental income. 2026 just started—let's make it count. 🚀

Remember: Opportunity isn't about perfect timing. It's about recognizing value when others are hesitating. ⏰