Manny Cien

08/24/2026

Credit Tip of the Day!

As a loan officer, I often have clients asking about ways to best manage their credit. Here is one helpful tip most people are not aware of:

If you pay off a revolving account (credit card account), don’t close it, leave it open. The longer you have an account open without any derogatory issues, the better for your credit. Why? Because it shows a long term history of good credit management. A good indicator of future behavior is past behavior. If you close that account, then you can no longer use it, and that long term good account history becomes less and less valid. My clients with the highest credit scores often have accounts that have been open for decades.

If you pay off an account in full, and leave it open, use it occasionally and pay it off as soon as possible. That way you keep your account and history open and active with a good credit standing. If you are able to pay it off in full each month, in most cases, you do not pay any interest on the account (check with your account holder to make sure this is the case).

That being said, each individual and situation is different. If a person has challenges with spending, gambling, credit management, or is susceptible to fraud, scams, or being taken advantage of by others, closing the account may be the better option.

As always, if you, or someone you know has questions about credit, the home buying process, or are thinking of buying, selling, or refinancing, please reach out or pass along my information. I am always happy to help.

Manny Cien
Sr. Loan Officer
Arbor Financial Group
(619) 277-3431
[email protected]
NMLS 664734
DRE 01303110

08/17/2026

Let’s Talk About Rates!!!! - Loan Level Pricing Adjustments, and why it’s never one size fits all.

Often a potential client will ask me, “What is the interest rate?” and my answer will always be, “That depends! Let’s look at your scenario. Whatever it is, I will do the best I can for your situation.”

Think about it like automobile insurance where an insurance company will always balance risk depending on various factors like type of car, past driving record, amount of driving, age and value of the car, age of the driver, amount of coverage, etc. Automobile insurance is never one size fits all. It is tailored to balance the risk of each individual car and driver. This is much like lending.

On a Conventional Fannie Mae or Freddie Mac backed loan, the rate one person gets on the same day, from the same bank may be different from another person, depending on the property type, loan type, term, credit score, etc. The interest rate will depend on what are called “Loan Level Pricing Adjustments (LLPAs)”. A Loan Level Pricing Adjustment is a fee applied to conventional mortgages base on risk. They were established after the 2008 financial/housing market crash to help the agencies manage risk by charging risk based fees to borrowers. The higher the risk, the greater the fees, and consequently the higher the rate. The lower the risk, the lower the fees, and consequentially the lower the rate. Here is a list of some of the Loan Level Pricing Adjustments that can impact a borrower’s interest rate:

• Credit Score - The higher the score the lower the adjustment or no adjustment. This is why someone with a higher credit score will often receive a better rate than someone with a lower credit score. These adjustments are usually made in increments of 20 points with a score of over 780 being the best. Then 760 - 779, then 759- 740, then 739 to 720, with that pattern continuing downward as credit score decrease. These adjusters are also tied directly to the Loan to Value of the property in a table where the amount of adjustment for each credit score may be different depending on the amount of equity or down payment.

• Loan to Value - This is dependant on the amount of down payment or the amount of equity a borrower has. The greater the down payment or amount of equity the lower the adjustment or no adjustment. This is why someone with a greater down payment may be offered a better rate than someone with a smaller down payment.

• Condo vs. Singly Family Residence - A condo or refinance with less than 40% down payment or equity will have a small pricing adjustment, but if a borrower puts less than 25% down or has less than 25% equity on a condo purchase or refinance, the adjuster is substantial and will affect the rate a borrower receives.

• Adjustable Rate vs. Fixed Rate - An adjustable rate mortgage with less than 10% down will have a loan level pricing adjustment that may affect the rate.

• Investment Property or Second Home - An investment property or second home purchase or refinance will have significant LLPAs that increase significantly with less down or equity. The higher the Loan to Value, the higher the loan level pricing adjustment.

• Manufactured Home - A manufactured home will have a straight loan level pricing adjustment that will affect the rate, regardless of the loan to value.

• 2 to 4 Unit Property - A multi-unit property with 40% down or less will have an LLPA. That LLPA increases with 25% down or less.

• High Balance Loan - For 2026, in San Diego County, on a 1 unit property, any mortgage loan between $832,750 and 1,104,000 is considered a High Balance Loan. There are LLPAs for high balance loans dependant of the down payment or equity amount that will have an effect on the interest rate recieved. Generally a High Balance loan will carry a higher rate than a conventional conforming loan below $832,750. If a borrower’s loan amount is close to the conforming loan amount of $832,750, a loan officer should see if getting the loan amount below that amount is possible for the borrower in order to get a lower rate.

• Subordinate Financing - If there is a HELOC or HELOAN 2nd loan on the property or as part of a purchase transaction, there is a pricing adjustment that increases as the down payment or equity amount decreases.

• Cash Out Refinance - If a borrower refinances and takes cash out, there are pricing adjustments dependant on credit score and loan to value that may affect the interest rate.

LLPAs are not the only thing that can affect an interest rate. Here are some additional examples of things that can affect interest rates:

• Market Conditions - The market will change Monday through Friday and rates may increase or decrease depending on market factors. Sometimes those changes can happen multiple time in a day. This is why you will lock in a rate, so that regardless of market shifts, for a set period of time (lock period) your rate will not change if your loan parameters remain the same.

• Loan Type - Conventional, FHA, VA, USDA, High Balance, Jumbo, HELOC/HELOAN 2nd Mortgage, Reverse Mortgage, Bridge Loan will all carry different rates and rate pricing structures.

• Loan Term - 30 year, 20 Year, 15 year, 10 year, will price differently with the shorter term usually offering a lower rate.

• Points & Credits - A borrower can always pay points to buy the rate down further if desired, or they can take a higher rate and request the lender give a credit to help cover closing costs.

Whether paying points or recieving a credit makes financial sense is dependant on future rates and on, if, and when the borrower refinances. A Loan Officer can help calculate how long it will take in monthly savings to recoup the initial cost of buying down the rate.

• Temporary Buy Downs - A borrower or seller can pay upfront interest through escrow to the lender to temporarily provide a lower interest rate for the first 3 or 2 years of a mortgage. These are called 3-2-1 or 2-1 temporary buy downs. The seller may often offer this as a concession to a buyer to generate more market interest in the property, by making the mortgage more affordable for the first few years.

• Lenders - Lenders/Banks/Credit Unions will all price differently depending on various internal profitability factors. It is always a good idea to shop around for a lender that will offer you a great rate, and provide a good experience and service.

I know this is a lot of information, but I beleive one of my responsibilities is to help educate my friends, family, community and any potential borrowers so they can make educated decisions when it comes to mortgage financing.

As always, if you, or someone you know are thinking of buying, selling, or refinancing, please reach out or pass along my information. I am always happy to help.

Manny Cien
Sr. Loan Officer
Arbor Financial Group
(619) 277-3431
[email protected]
NMLS 664734
DRE 01303110

08/10/2026

Does the Loan Officer or Realtor you work with actually make a difference? Who you work with does matter!

Some people think that all loan officers or Realtors are the same as long as they are competant and licensed. They may think that finding the Realtor who will give them a discounted commission or a lender that will promise the lowest rate will produce the same results. Don’t get me wrong, a discounted commission and/or lower rate can obviously be beneficial, but it is not the whole story.

Several years ago I had a Realtor come to me with her client’s information. We had never worked together before because she had other loan officers that she worked with. She said that three of her preferred loan officers had looked at his file and said they could not help or approve him. She came to me as a last resort. As I went through his information and credit report I noticed that there were several debts that were duplicated and shouldn’t be counted in his debt ratios. Also, since it was a VA loan, and knowing VA guidelines, I knew I could gross up his non taxable income.

Within 30 minutes I was able to go back to the agent and let her know that I could pre-approve her client. She then found him a home and we were able to close the loan and make his homeownership dream a reality. In addition, the agent earned a commission she wouldn’t have had she listened to her preferred loan officers.

A few years later that same borrower was moving out of state and was able to sell his condo at a nice profit that made a huge difference in his life. Why? Because I cared enough to take the time to really look at his file and focus on the details. He was also fortunate that he had an agent that didn’t give up when her preferred lenders told her it was a no go.

So if you are ever buying or selling a home, make sure you are working with true professionals that put your interests first. Who you chose to work with can make all the difference.

If you, or someone you know are thinking about buying, selling, or refinancing, please pass along my information. I would be happy to help them.

Manny Cien
Sr. Loan Officer
Arbor Financial Group
(619) 277-3431
[email protected]
NMLS 664734
DRE 01383110

03/09/2023

FHA reduces mortgage insurance premium, helping borrowers.

02/23/2023

Here is a great article with insight to what will help keep your credit scores high. As a 20-year Sr. Mortgage Loan Officer, I know that your credit score can have huge financial implications. They don't teach about credit in school, so most people are left to learn by trial and error. They say, "Knowledge is power", so the more you know about how credit scores work, the better prepared you will be to make smart credit decisions. Of course, if you ever have any questions, you can always call, text or message me.

Your credit score is more important than ever these days, saving you countless dollars on your credit card rates, mortgage, auto and student loans, and even insurance or getting your dream job. And U.S. consumers have done a relatively good job maintain scores lately, as the average FICO reached

02/17/2023

The answer to my most asked question!

02/08/2023

Prequal vs. Pre-approval. Which do you need?

01/27/2023

Sell and transfer your tax base. Prop 19 explained!

01/10/2023

I did a short video on this a couple weeks ago. Since the market has shifted, I am seeing more buyers request a credit from the seller to either buy down the rate permanently, or do a temporary buy down. This is a great way to purchase a home now that prices have come down, while still getting a much better interest rate. This is something that can really make buying now a great opportunity! Message, call or text me if you have questions or want to discuss this in more detail.

Here's how they work.

12/21/2022

There are many reasons 2 years ago I chose to work for a broker, and specifically Arbor Financial, instead of a mortgage bank or regular bank/credit union. One of the most important is better rates and loan options. I knew that if I could offer my clients amazing service and exceptional rates it would be a winning combination for the clients, the Realtors and myself.