Is 2026 the Year To Buy Or Refi? Let’s talk!

We are seeing new opportunities opening for buyers, homeowners, and investors. I want to share a quick update on where mortgage rates may be headed, highlight a powerful loan strategy many people don’t realize is available, and showcase a recent client success story that proves creative financing still gets deals done.

Mortgage Rates: Where Are They Going?

Mortgage rates are showing signs of stabilization, with possible room to improve as inflation cools and economic conditions shift. Many experts believe 2026 could present meaningful opportunities for:

• Buyers waiting for improved affordability
• Homeowners considering refinancing
• Investors watching for better cash-flow opportunities

If you’ve been waiting on the sidelines, this may be the year to start planning your move.

Loan Product Spotlight: Reverse Mortgage for Purchase

Most people think of reverse mortgages only as a refinance option — but Reverse Mortgages for Purchase can be a powerful strategy for buyers age 62+.

This program can allow eligible buyers to:

• Purchase a home with no monthly mortgage payment
• No income qualification with a large down payment
• Improve monthly cash flow in retirement
• Buy closer to family or downsize with greater financial freedom

It’s an underutilized tool that can be a game-changer for retirees and their families.

⭐ Client Spotlight: No-Ratio Investor Loan Success (Texas)

Did you know we can finance “business purpose” loans anywhere in the US?  We recently closed a single-family rental property in Texas using a No-Ratio Investor Loan — a program designed for investors that does not require traditional income qualification.

Instead, approval was based on:

• Property cash flow potential
• Asset strength

This allowed the client to secure the loan without jumping through traditional underwriting hoops.

It’s a great reminder that there are still creative lending solutions available — if you know where to look.

How I Can Help This Month

If you or someone you know is thinking about:

• Buying or refinancing
• Investing in rental property
• Exploring retirement-friendly mortgage strategies
• Or simply wants a custom game plan for 2026

I’m here to help. Every scenario is different — and the right strategy can make all the difference.

Let’s make smart moves this year.

Warm regards,
Karen Card

Kick off 2026 - Outside-the-Box Loans for Today’s Market

2026 has started off with a bang! The year-end brought us the lowest interest rates we saw all year, and many are optimistic that this trend could continue. We’re heading into the new year encouraged by improving affordability and the potential for increased sales activity.

Home values are still expected to rise, but at a more moderate pace—likely closer to 2% annually, depending on location. That kind of steady appreciation is healthier for the market and creates opportunities for both buyers and sellers.

RATES

Mortgage rates are currently hovering around 6%. As always, some scenarios command lower rates while others are higher, depending on credit profile, loan structure, and property type. Most industry experts agree that rates are not likely to move meaningfully lower in the near term—although with so many moving parts, anything is possible.

If you’re on the fence waiting for “better” rates, it may be time to get moving. Waiting hasn’t been paying off for many buyers, and opportunities often come from strategy rather than rate alone.

LOAN PROGRAMS – The Rise of Non-QM

We are absolutely seeing the rise of Non-QM loans. Non-QM simply means these loans don’t fall under the government’s “Qualified Mortgage” guidelines used for Fannie Mae, Freddie Mac, and government loans (VA and FHA).

Some of the most common Non-QM programs we’re using include:

• Bank Statement loans (business or personal, 12–24 months)
• DSCR loans (Debt Service Coverage Ratio – rental income supports the payment)
• 1099-only income loans
• Investor No-Ratio loans (rental properties only)
• Asset-based loans, either imputing income from assets or using assets to meet Ability-to-Repay requirements

There are many more options as well. Some programs are tailored specifically for self-employed borrowers, while others are available to anyone. And believe it or not, interest rates on these programs are often very comparable to traditional full-documentation loans.

CLIENT SPOTLIGHT – A REAL WIN

My clients entered escrow to purchase a single-family property they planned to use as a second home and short-term rental in a mountain resort area. Unfortunately, their original lender—who had already issued a pre-approval—backed out and declined the loan.

With a very short escrow, the holiday season underway, and storm season approaching in the mountains, timing was critical. We were able to step in, structure a solution, and close the loan in just 21 days from start to finish using a Total Asset loan based solely on the buyer’s assets.

This is a great example of why loan structure and experience matter.

I hear a lot of frustration right now about rates not dropping further. The reality is that today’s rates are very close to the 40+ year historical average. The real challenge—especially here in Southern California—is affordability and home prices, not just interest rates.

We are eternally grateful for your referrals and continued trust. If you—or someone you care about—has questions, I’m always happy to help.

Holiday Traditions, Local Magic & a Market Shift - Santa is Almost Here!

December—and all the bustle of the Christmas season—is upon us!

What do you look forward to most during the holidays? For us, it’s not only spending time with family and friends, but also taking part in the many festive events happening right here in our community. Some of our favorites include the Dana Point Harbor Boat Parade, the lights and decorations around the Old Wharf, the La Plaza tree lighting, Santa’s Jolly Trolley, the Pines Park tree lighting, local Christmas gift markets, and the many toy drives throughout the area.

One tradition especially close to our hearts is hosting the 5th Marine Regiment children for a “Brunch with Santa” at the Dana Point Yacht Club, complete with Christmas gifts and holiday cheer. It’s always a highlight of the season.

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RATES

The outlook for rates continues to improve, with inflation and employment data pointing toward the possibility of another Fed rate cut. Mortgage rates are now hovering near last year’s lows—good news for buyers. We’re not completely out of the woods yet, but any additional drop may finally motivate many would-be movers who have felt “frozen in place” for most of this year.

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HOME VALUES

Prices remain steady, particularly in the coastal areas of Southern California. Active listings have been consistent with last month as well—but keep an eye on January. Inventory almost always picks up after the holiday season.

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LOAN PROGRAMS

New conforming loan limits for both Fannie Mae and Freddie Mac have been released.

• The standard national limit is now $832,750.

• In high-cost counties (including LA and Orange County), the limit rises to $1,249,125.
  These limits apply to one-unit homes, with higher limits available for two- to four-unit properties.

We’re also seeing increased activity in the Non-QM space. These programs fall outside traditional conforming guidelines and often allow alternative documentation—such as bank statements or asset-based qualification—which can be a great option for self-employed borrowers or those with complex financial profiles.

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CLIENT HIGHLIGHT

We’re currently working with a homeowner on a limited fixed income who is using a Reverse Mortgage to improve her financial stability in retirement. This loan will eliminate her current mortgage payment—dramatically improving her monthly cash flow—while also giving her access to additional funds for the future.

If you know anyone considering a reverse loan, we’re always happy to answer questions and explain how these programs can provide options and peace of mind. As always, there is no one-size-fits-all solution.

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Wishing you a wonderful, joyful, and restorative holiday season.

As we close out 2025, I want to say how deeply grateful we are for the trust, referrals, and relationships we’ve built this year. Every client experience is personal to us, and it’s an honor to help guide families through one of the most meaningful financial decisions in their lives. Thank you for being a valued part of our community

Warmest regards,
Karen

Fall Market Buzz: Mortgage Trends and November Notes

 

🏡 November Newsletter from Karen Card — Your Mortgage Maven

Hello friends,

Can you believe we’re already heading into the holiday season? The pumpkins are barely gone, and I’m already seeing twinkle lights going up around the neighborhood! It’s that cozy time of year when we all start reflecting on what we’re grateful for — and I’m truly thankful for the wonderful clients, partners, and friends like you who make my work so rewarding.

Market Update: Prices Holding, Rates Easing

We’ve seen a bit of a tug-of-war lately between interest rates and home prices. The good news? Rates have shown signs of softening after a long climb, which has brought a touch of optimism back into the market.

Home prices in Southern California have remained surprisingly resilient — limited inventory continues to keep values steady in most areas. Buyers are tiptoeing back into the market as rates dip, and sellers are beginning to see more activity, especially for well-priced homes in desirable neighborhoods.

If you’ve been waiting for the “right” moment to buy or refinance, this might be the window worth watching.

Spotlight: The Rise of Non-QM Loans

One of the biggest trends right now is the growing popularity of Non-QM loans. These flexible programs are ideal for clients who don’t fit the traditional lending box — and I’m seeing more interest than ever.

Here are just a few examples:

• Bank Statement Loans – Perfect for self-employed borrowers whose income looks different on paper.

• DSCR Loans (Debt Service Coverage Ratio) – Great for investors purchasing income properties where cash flow tells the story.

• Asset Depletion Programs – A smart option for retirees or high-net-worth clients who have substantial assets but limited monthly income.

Real Example: Recently, I helped a client purchase a rental property using a DSCR loan. Their personal income didn’t fully qualify under traditional guidelines, but the property’s cash flow was strong enough to cover the mortgage. With this approach, they were able to secure the home without stretching their personal finances — a win-win!

These products open doors for many borrowers who might otherwise be left out of the conversation — and as always, I’m here to help tailor the right fit for each client’s situation.

How about those Dodgers!

What an amazing World Series!  Nothing like right down to the wire! Huge congratulations to the Los Angeles Dodgers on winning the World Series! ⚾🎉 Whether you’re a die-hard fan or just enjoy the excitement, it’s been fun celebrating their big win here in SoCal.

A Personal Note

On a personal note, I’ve been enjoying our beautiful fall weather here in Dana Point and getting ready for the holiday season with family. Steve has spent some time out on the water with lobster traps — one of the perks of living here!.  The lobster dinner/tacos were amazing!

I’d love to hear what you’ve been up to as well — whether it’s travel, new projects, or just settling in for a cozy fall at home.

Let’s Stay Connected

If you have clients who could benefit from today’s creative loan options, or if you’re considering a move yourself, let’s connect. I’m always happy to run numbers, answer questions, or brainstorm strategy before you make your next step.

Wishing you a joyful start to the holiday season,

Warmly,

Karen Card
Your Mortgage Maven

BOO! 👻 The ghouls are out, and football season is here!

This year has flown by — Halloween will soon be upon us! We’d love to hear what your costume will be. One of my personal favorites is Frida Kahlo with the unibrow — what’s yours?

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🏡 Buyers’ Market

As time on the market expands for most sellers, the market is definitely shifting to benefit buyers. Traditionally, this time of year brings fewer new listings, so we may see market times adjust even more. We’ll see…

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💸 Mortgage Rates

The news of the day is: steady as she goes. Rates are up slightly from their lows of the year but are still holding in a fairly tight range near 6.5%.
Did you know what the average mortgage rate was in 2006? Between 6.1% and 6.8%. Sound familiar? The big difference, of course, is that home prices were much lower then, making housing more affordable.

Keep in mind there’s no “one-size-fits-all” mortgage rate. Rates vary widely depending on factors like loan amount, credit score, program type, property type, purpose, points paid, and more.

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🏠 Time to Refinance?

The average homeowner nationwide now holds roughly 59% equity — an astounding number driven by the dramatic rise in values during the COVID era when rates were artificially low.

That creates enormous opportunity for refinancing, especially if rates move closer to the 5% range as many anticipate next year.

For homeowners who want to tap into their equity without giving up their low first mortgage rate, there are now second trust deed options — both fixed and variable (typically known as HELOCs).

A Reverse loan in 2nd position is also growing in popularity for those over age 55 with a low-rate first mortgage. This option is structured as a fixed-rate second with full proceeds drawn at closing — not a line of credit — a new twist on reverse financing!

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💼 Creative Loan Programs

In the mortgage world, these are called Non-QM loans (non–qualified mortgages). They don’t fit traditional Fannie, Freddie, or FHA guidelines but are designed to meet real-world borrower needs.

Examples include:

• Bank Statement Loans – great for self-employed borrowers who deduct significant business expenses.

• DSCR Loans (Debt Service Coverage Ratio) – for investors, qualified solely on the property’s rental income.

• 1099 Loans – ideal for contractors or gig-economy earners.

We’re also seeing an expansion of asset-based lending, now easier to qualify for than ever. Some programs only require that assets cover five years’ worth of income (divided by 60 months) to qualify.

Down Payment Assistance (DPA) programs are also thriving — some offering up to or even over 100% financing, much like VA or CAL-Vet loans.

Interest-only loans are making a comeback, too. While their rates are slightly higher, the lower monthly payments can be an attractive strategy for borrowers who expect most of their wealth growth to come from appreciation rather than principal reduction.

Finally, bridge loan programs are on the rise again, providing a path to purchase a new home before selling your current one — a great option in today’s market.

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🍷 Wine Country & Family Time 

We just returned from a quick trip to Paso Robles, where we learned that tourism is down about 30% this year. Despite that, the wineries still seemed busy — many fully booked and requiring reservations for tastings and dining. We enjoyed some lovely wines, caught up with old friends at a wedding celebration, and (of course) brought home a few bottles. 😊

Next, we headed “over the hill” to visit my sister in Madera and took a day trip into Yosemite. The gates were wide open due to the government shutdown, and although most campgrounds were closed, plenty of tourists were out picnicking and taking photos — us included!

We stopped by the historic Ahwahnee Hotel for a quick tour and a little trip down memory lane before watching climbers scale the face of El Capitan. Apparently, there were a dozen or so — we could only spot a few without high-powered binoculars!

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Cheers to all!
Go Trojans — and good luck to your teams as well! 🏈

Summer is Over? Say It Ain't So!

 Although the kids are back in school, it still feels like summer here in Dana Point! We’ve been blessed with incredible weather all season long. I still remember one summer when the sun never came out—just marine layer and cold. This year has been the opposite!

One of our highlights was snorkeling in Laguna and taking advantage of the warmer ocean temps. We saw so much sea life! My favorite? The baby leopard sharks cruising around—so cool.

I hope your summer has been filled with fun and good memories, too!

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What’s Up with Rates?

Good news—interest rates are finally creeping down, with some mortgage rates hovering around 6% today. That’s a big improvement from six months ago!

Once we see a more significant drop, the real estate market could take off like a rocket. Buyers have been sitting on the sidelines while inventory has been slowly building. When confidence returns, it could feel like a tsunami of activity!

Quick note: The Fed rate impacts mortgage rates, but not directly.

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Home Prices?

For now, prices seem to be leveling off. No major gains lately, mainly because of two factors:

✔ Inventory is up
✔ Buyers are cautious with rates still higher than they’d like

Affordability remains a challenge, even as rates ease a bit.

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Buy Before You Sell!

Think you need to sell your current home before buying your next one? Think again!

This unique market has sparked some great “bridge loan” programs that allow you to buy first by tapping the equity in your current home—even before you sell it.

In some cases, the lender even guarantees to buy your current home if it doesn’t sell quickly (using your agent, of course!). Most programs also don’t count your current mortgage payment against you when qualifying for the new loan. Huge advantage!

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2-1 Buydowns

This is one of my favorite strategies right now. A 2-1 buydown allows the seller to pay to temporarily reduce your interest rate, making the payment more affordable upfront:

1. Year 1: 2% below the current market rate
2. Year 2: 1% below market
3. Year 3+: Back to the original rate

And here’s the best part: if you refinance early, you get back the unused portion of the buydown funds!

Why would a seller pay for this? Because they want to sell—and often, the cost can be built right into the purchase price.

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Market Snapshot: Orange County Real Estate

Here’s a quick look at what’s happening right now in our local market:

1. Median Sales Price: Homes in Orange County sold for around $1.19 million in July 2025, up about 1.1% year-over-year.Redfin
2. Days on Market: Homes are spending longer on the market—about 53 days, up from 31 days last year.Redfin
3. Average Home Value & Time to Pending: Zillow reports an average home value of $1,171,609, up 2.1% year-over-year, with homes going pending in roughly 20 days.Zillow
4. Inventory & Competition: With inventory slowly climbing and mortgage rates easing, the market is showing signs of steadiness and renewed buyer interest.

In short: prices are holding steady or inching up, but homes are staying on the market longer—making it a balanced market with opportunity for both sellers and buyers.

Let’s Chat—Here’s What You Can Do Next

Whether you're planning to sell, buy, or just want to understand how these trends affect your home goals, let’s talk one-on-one. I’d love to offer a complimentary Strategy Session tailored to your situation—no strings attached.

Ready? Here's your next step:

1. Reply to this email or call/text me at 714-290-6940
2. Let me know if you’d like to:
1. Review how these trends may impact your home’s value
2. Explore bridge loan and 2-1 buydown options
3. Discuss timing your next move in today’s market

Thanks for reading—I always enjoy keeping you in the loop. When the market shifts, you’ll be ready to ride the wave!

Loans, Laws and Loopholes: What's New?

Welcome to your monthly roundup of must-know mortgage, tax, and real estate news. Whether you’re a homebuyer, investor, Realtor, or industry partner, these updates will help you stay informed—and ready to take advantage of current opportunities.

Rates are still hovering in the mid-to high-6's ++.  We won't see much improvement until we see inflation slow, a Fed move, or hints of recession.  Only time will tell! 

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 Student Loan Payments: New Rules Under the New Administration

The new administration has rolled out a fresh wave of changes to federal student loan repayment. Key points:

• Automatic Repayment Resumption: Most borrowers are back in active repayment, and many who were in forbearance are seeing their loans move toward collections.
• New Income-Driven Repayment (IDR) Programs offer potentially lower monthly payments.
• Borrowers struggling with delinquency should explore ombudsman services and federal assistance programs before their credit is impacted.  Ask us for help!!

Mortgage Tip: Student loan status directly impacts mortgage eligibility. We can help navigate options that may improve your debt-to-income ratio and credit profile.

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 Tax Law Updates: Mortgage & Property Impacts

Here’s what to know about current federal tax law changes and their effect on real estate:

🔹 Mortgage Interest Deduction

• The cap on deductible mortgage interest remains at $750,000 of qualified loan amount for those not grandfathered under older limits.
• Second homes still qualify—under specific conditions.

🔹 SALT Deduction (State and Local Taxes)

• The SALT deduction cap has been increased to $40,000, offering significant relief to homeowners in high-tax states like California and New York.
• This adjustment could improve tax outcomes for many homeowners and make certain high-cost markets more attractive.

🔹 Mortgage Insurance is Tax-Deductible

• Borrowers can now deduct Mortgage insurance premiums –including PMI, FHA MIP, VA funding fees and USDA guarantee fees… subject to income limits.
• This is a real win for any borrower putting down less than 20%!

🔹 1031 Exchange Watch

• No immediate changes—1031 exchanges remain a powerful tool for deferring capital gains on investment property sales.

 

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The Power of VA Loans: Benefits You Shouldn’t Miss

As a Certified Veteran Lending Specialist, I am proud to help Veterans, Active-Duty, and Reservists leverage one of the most powerful financing tools available:

• $0 Down Payment (yes, really!)
• No Monthly Mortgage Insurance
• Flexible Credit Requirements
• Assumable Loans (huge when selling in a high-rate market)
• Reusable Benefit – you can use your VA entitlement more than once

Even if you’ve used a VA loan before—or think you’re not eligible—it’s worth a conversation. We’ve helped countless Veterans get approved when others said no.

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💬 Let’s Connect

Got questions about the market, your current loan, or future plans? I’m always here to help clients, agents, and partners make informed, confident decisions.

 Karen Card
Mortgage Expert | Veteran Lending Specialist
Serving Orange County & Beyond