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  • Jan 21: That assumable mortgage trick could save you $171K 🤯

Jan 21: That assumable mortgage trick could save you $171K 🤯

The Week's Second Rate Drop: What January Competition Means For You

Author

Alex Veytsman
January 21, 2026

📬 The Lending Letter 🏡

Mid-January Reality Check: Why Rates Just Ticked Down (Again)

Happy Wednesday! ☕ We're three weeks into 2026, and while everyone's already abandoned their New Year's resolutions, mortgage rates are actually keeping their promise to behave. Let's talk about what just happened overnight.

📊 TODAY'S 30-YEAR FIXED RATE
6.20%
Down 0.01% from yesterday | Source: Mortgage News Daily | January 21, 2026

🎢 What's Behind Today's Tiny Drop?

Okay, so a one basis point drop isn't going to make headlines, but here's what's interesting: we're seeing consistent downward pressure this week. The bond market is responding to some cooling inflation chatter, and lenders are getting slightly more competitive as we move deeper into Q1. 📉

Translation? If you've been watching rates like a hawk waiting for the "perfect" moment, you're looking at conditions that are about as favorable as they've been in months. Not perfect, but definitely workable. And here's the thing: inflation data this week suggests we might see more of this gradual softening. Keyword: gradual. Don't expect fireworks. 🎆

🧠 The January Effect

January is historically when lenders set their yearly strategy. Right now, they're hungry for volume after the holiday slowdown. This means slightly better rates, more flexible underwriting, and loan officers who actually answer their phones. Use this to your advantage. 📞

💰 Lender Promos: Let's Get You Connected

🏠 Shopping for Any Type of Property? Whether it's your first home, a refi, or property #47 in your portfolio, fill out this quick form and we'll match you with lenders who are actively competing for business right now. January = leverage season.

🏢 Investment Property Hunt? Smart investors know Q1 is when deals hide in plain sight. Less competition, motivated sellers, immediate tax benefits. Connect with investment specialists here who live and breathe cap rates.

🏖️ Building That STR Empire? Short-term rental financing is its own beast. Get connected with STR specialists who understand how to underwrite based on potential income, not just your W-2.

🎓 Educational Corner: The Secret Power of Assumable Mortgages

Let's talk about something most buyers don't even know exists: assumable mortgages. This might be the most underutilized tool in real estate right now. 🤫

Here's how it works: If someone bought a house in 2020-2021 when rates were 3%, they probably have an assumable loan (most FHA, VA, and USDA loans are assumable). You, as the buyer, can literally take over their existing mortgage—at their lower rate. 🎯

💡 How Assumption Works (The Real Numbers)

Example Scenario: Seller bought a house in 2021 for $400K with a 3% FHA loan. They still owe $350K. Today, that house is worth $500K.

Your Options:
Traditional Purchase: Get a new loan at 6.20% for $450K (assuming 10% down)
Monthly Payment: ~$2,760

Assumption Route: Assume the $350K at 3% + get a second loan for the $100K gap
Monthly Payment: ~$2,285 (even with the second loan at current rates)

That's $475 less per month. Over 30 years? That's $171,000 in savings. According to CFPB guidelines, this is completely legitimate and more common than people think.

The Catches:
• You need cash/financing for the equity gap (the difference between what they owe and the home's value)
• Not all loans are assumable (conventional loans typically aren't unless they're old)
• The lender still has to approve you
• There's an assumption fee (usually around $500-1,000)

Why Nobody Does This: Most real estate agents don't even mention it because it's more paperwork and they're focused on quick closings. But if you're in the game for wealth building, not convenience, this is a massive opportunity hiding in plain sight. 👀

🏘️ For the Investors: The 2026 Playbook Is Different

If you're sitting on the sidelines waiting for "perfect conditions," let me hit you with some reality: perfect conditions don't exist. But strategic conditions? Those are everywhere right now. 🎲

Why January 2026 Is Actually Solid:

1. The Lock-In Effect Is Creating Opportunity
Millions of homeowners have sub-4% mortgages and aren't selling. This sounds bad, but it's actually creating hidden gems—people who have to sell (divorce, job relocation, estate sales) are more negotiable because they can't wait for perfect timing. Buyer leverage is real if you know where to look. 🔍

2. Short-Term Rentals Are Rebounding Hard
After the 2023-2024 STR oversaturation scare, the market has normalized. Occupancy rates are climbing, nightly rates are stabilizing, and the amateur hosts who jumped in during COVID are exiting. This is your window. Talk to our STR specialists about markets that are actually performing. 📈

3. The Tax Angle Nobody's Using Yet
2026 is a unique year because we're midway through the current tax law cycle. Depreciation rules haven't changed, but fewer people are maximizing them. If you buy now and run a cost segregation study, you can accelerate deductions worth five or even six figures. Yes, really. 💰

🚀 Level Up Your Investment Game:

💡 Personal Finance Hack: The Credit Card Arbitrage Play

💳 Making Your Credit Cards Work FOR You

Here's a strategy that's both simple and powerful: balance transfer arbitrage. Before you roll your eyes, hear me out. This isn't about gaming the system—it's about understanding how interest rates work and using them strategically. 🧠

The Setup:
Right now, you can find credit cards offering 0% APR on balance transfers for 18-21 months (often with 0-3% transfer fees). Meanwhile, high-yield savings accounts are paying around 4-5% interest.

The Play:
1. Transfer $10,000 to a 0% balance transfer card (cost: $300 fee if 3%)
2. Put that $10,000 in a high-yield savings account earning 4.5%
3. Make minimum payments on the card each month
4. Let the savings account earn interest for 18 months

The Math:
• Cost: $300 transfer fee
• Earnings: $10,000 × 4.5% × 1.5 years = $675
• Net profit: $375 (for literally doing nothing)

Pro Tips from the Pros:

• Set Calendar Reminders
The biggest mistake is forgetting to pay off the balance before the promo ends. According to NerdWallet's analysis, people who miss the deadline end up paying 25%+ APR retroactively. Set three reminders: at 15 months, 17 months, and 18 months. ⏰

• Pay Off Before the Promo Ends
Some cards charge retroactive interest if you don't pay the full balance by the deadline. Read the fine print. Better yet, pay it off at month 17 just to be safe.

• Don't Touch the Principal
This only works if you actually keep that money in savings. If you spend it on a jet ski, you've just created expensive debt. This strategy requires discipline. 🎯

• Scale Appropriately
Some people do this with $50K+ across multiple cards. But if you're new to this, start with $10K max. Get comfortable with the process before scaling. Risk management matters.

The Bigger Picture: This isn't about getting rich—$375 isn't life-changing. But it demonstrates a crucial concept: understanding interest rate differences and using them strategically. Apply this thinking to mortgages, investments, and business decisions, and suddenly you're playing a different game than 99% of people. 🎮

📊 Market Intel: What the Numbers Actually Say

Let's cut through the clickbait headlines and look at what's actually happening in real estate right now:

Inventory Is Still Tight (But Improving)
According to Realtor.com's latest data, active listings are up about 8% year-over-year. Not a flood, but a steady drip. For buyers, this means slightly more options and slightly more negotiating room. For investors, this means deals exist if you're looking in the right places. 🏘️

Price Appreciation Is Normalizing
We're seeing 3-4% annual appreciation in most markets, which is actually healthy. Zillow's numbers show we're back to sustainable growth, not the bubble-like gains of 2020-2022. This is good news for long-term investors. 📈

Rent Growth Is Slowing
National rent growth is cooling, but here's the nuance: it's cooling in oversupplied markets (looking at you, Austin and Phoenix) while remaining strong in supply-constrained markets. Location still matters. A lot. 🌎

Days on Market Are Ticking Up
The median home is sitting on the market about 5 days longer than this time last year. This gives buyers more time to think, inspect, and negotiate. According to NAR data, we're moving from "frantic" to "normal," which frankly feels pretty good. ⏱️

🤔 The Question Everyone's Asking: Wait or Buy?

Here's my honest take: If you're waiting for rates to hit 4%, you might be waiting a very long time. And even if they do, home prices will likely surge as buyers flood back into the market. 🌊

Let's do some quick math that nobody talks about:

Scenario A: Buy today at $400K with 6.20% rate
Monthly payment: $2,450

Scenario B: Wait for 5.0% rates, but prices rise 5% to $420K
Monthly payment: $2,255

You save $195/month by waiting... but you paid $20K more for the house. That's 103 months (8.5 years) before you break even. And that assumes prices only rise 5%. Historical data suggests prices tend to accelerate when rates drop. 📊

The Real Play: Buy when the property makes sense financially. You can refinance later if rates drop significantly. But you can't go back in time and buy that property someone else snagged. ⏰

🎯 Ready to Make Moves?

Your action items for this week:

🌟 The Bottom Line

Rates at 6.20% aren't sexy. They're not going to make you jump up and down. But you know what? They're workable, and more importantly, they're trending in the right direction. 📉

The smartest investors I know aren't waiting for perfect conditions—they're finding perfect deals in imperfect conditions. That motivated seller who needs to close in 30 days? The STR property in a great market that's been sitting for 45 days? The investment property that needs some work but has incredible bones? Those are your opportunities. 🎯

Remember: The tax advantages of real estate don't care what interest rate you pay. Depreciation works at 6.20% the same as it works at 3%. The wealth-building mechanics haven't changed—just the entry cost. 💼

So stop overthinking it. Start underwriting deals. Get pre-approved. Build relationships with sellers. Make offers. The market rewards action, not analysis paralysis. 🚀

Fortune favors the bold. But it also favors the informed. You're reading this newsletter, so you're already ahead of 90% of people. Now go use that advantage. 💪

The Lending Letter
📬 Your daily dose of mortgage market reality
🚀 Because opportunity doesn't wait for perfect conditions

See you tomorrow for Thursday's update!

Disclaimer: This newsletter is for informational and entertainment purposes only. Rates, terms, and strategies vary by individual circumstances. Always consult with licensed financial, tax, and legal professionals before making major financial decisions. Past performance doesn't guarantee future results. The strategies discussed require careful consideration of your personal financial situation and risk tolerance.