.png)
Conventional mortgage rates have climbed to around 7.5%, their highest point in nearly three years, as Treasury yields push borrowing costs higher across the board. For most of the market, that's unwelcome news. For JMJ Funding's trust deed investors, it's an opening.
Hard money rates are priced relative to the cost of conventional capital. A borrower weighing a JMJ Funding loan compares our rate against what a bank would charge, and against the value of speed and certainty a bank simply can't offer. When the conventional baseline climbs, so does the room to price our loans, without the comparison becoming any less attractive to a borrower who needs to move fast.
That's good news if your capital is funding those loans. The return on a trust deed tracks the rate the loan carries, so as conventional rates have pushed higher this year, the rates JMJ Funding can structure on new originations have climbed too, and the return available to investors has room to climb right along with them.
None of this means we're loosening our standards, the same conservative loan-to-value and exit-strategy discipline applies to every deal, rate environment or not. What's changed is the backdrop, and it's working in your favor. A market that's squeezing conventional borrowers is, for trust deed investors, a genuinely good window to put capital to work.
