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  CASE STUDY: Why DSCR Mortgage Rates Are Only Valid for One Day – Eyal’s Refinanc

  Posted by Nadlan Group on May 15 at 21:55

  🏠 CASE STUDY: Why DSCR Mortgage Rates Are Only Valid for One Day – Eyal’s Refinance Journey

  Loan Number: 1294
  Borrower: Eyal D.
  Location: Florida
  Loan Type: DSCR Refinance with Cash Out
  Key Insight: DSCR loan rates can change daily — and sometimes even hourly.

  📈 Why Mortgage Rates Change Daily

  Real estate investors often ask, “Why is my rate quote only good for today?” Eyal’s case is the perfect example of how DSCR rates are driven by market volatility, Treasury yields, and lender pricing engines.

  In this case, the borrower received a rate of 7.7% at 65% LTV, but only if locked that same day. When the approval came a few days later, the rate had already moved upward, and a delay in locking meant re-pricing — and a potential loss in favorable terms.

  📊 What Happened in Eyal’s Loan Process

  • Loan Offer Sent: Rate offered at 7.7% with PITIA ~$2,979.

  • Borrower Approval Delay: Market volatility caused rates to rise within days.

  • Re-lock Needed: The new offer reflected higher average Treasury yields.

  • Negotiation: Borrower questioned the rate logic (UST 5Y and 10Y dropped), but lender used rolling average over 4 months, not daily drop.

  • Final Decision: Eyal approved the original rate — but market changes had already occurred.

  • Outcome: The rate increased slightly, and the lender explained the reason clearly.

  🧠 Key Lessons for Real Estate Investors

  ✅ DSCR Rates Are Tied to the Market
  Even if the 5-Year Treasury yield drops today, lenders calculate rates based on average trailing performance and risk spreads.

  ✅ You Can’t “Hold” a Quote
  A rate isn’t a commitment until you lock it in writing with the lender. Verbal discussions or charts are not binding.

  ✅ Loan-to-Value (LTV) Affects Rate
  Eyal’s increase from 60% to 65% LTV resulted in a higher rate due to risk-based pricing. More leverage = more risk = more rate.

  ✅ Rate Locks Are Typically Good for 24 Hours
  Lenders offer a rate with a timestamp. Wait too long, and you might lose it.

  ✅ Negotiate Fast, Not Emotionally
  Eyal wisely tried to negotiate — but in a volatile market, decision-making speed is often more valuable than debate.

  🧾 Rate Dispute Clarified

  Eyal noted that Treasury yields had dropped, yet the rate remained nearly the same. Here’s the lender’s logic:

  • While the UST 5Y dropped from 4.59% to 4.22%, the lender used an average of 4.41% over four months.

  • This discrepancy is common. DSCR loans are priced on spread over UST — and those spreads can widen even as the base rate falls.

  Learn more here:
  🔗 How Treasury Yields Impact DSCR Rates

  🎯 Final Thoughts

  This case perfectly illustrates why “rate lock” doesn’t mean “rate talk.” Investors must act fast when they find a favorable DSCR offer.

  If you’re refinancing, planning a cash-out, or expanding your rental portfolio — every hour counts in today’s volatile market.

  Need help navigating lender negotiations or rate lock strategy?
  👉 Talk to Nadlan Capital Group — Get access to 3,000+ lenders and lock in your best rate today.

  #DSCRLoans #RateLock #RealEstateRefinance #LenderQuotes #InvestmentLoans #InterestRateUpdate #TreasuryYields #FloridaRealEstate #NadlanFinancing #Loan1294 #ForeignInvestorLoans #RentalPropertyRefinance #CashOutRefinance #LTVMatters

  

  Nadlan Group replied 4 weeks, 1 day ago 1 Member · 0 Replies

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