Blog – CTeBockhorst's Blog

What’s Ahead For Mortgage Rates This Week – January 12th, 2026

January 12, 2026 by Coleen TeBockhorst

The trade deficit dropped significantly this month, resulting in the smallest gap in the last 16 years. This has been entirely driven by the ongoing gold rush and, to a much less impactful degree, businesses working their way around high tariffs. The unemployment reports, however, have shed another light, showing a steady trend of unemployment rising and reaching a four-year high as of last week.

This is somewhat offset by consumer sentiment, which showed a slightly positive increase alongside relative improvements in the economy. All in all, the data points to mixed results for the broader market. The upcoming week will be a much greater indicator, with all major inflation reports in the PPI and CPI scheduled for release.

Trade Deficit

The U.S. trade deficit plummeted 39% in October to reach the lowest level in 16 years, but the steep drop stemmed from an ongoing gold rush of sorts as well as efforts by businesses to work around high tariffs. The trade gap shrank to $29.4 billion in October from $48.1 billion in September, the government said Thursday. The October report was delayed by the federal shutdown.

Consumer Sentiment

The University of Michigan’s gauge of consumer sentiment rose to 54 in a preliminary January reading from 52.9 in the prior month. This marked the second straight gain and the highest level of sentiment since September. “Consumers perceived some modest improvement in the economy,” the survey found, although sentiment remains nearly 25% below last January’s reading.

Jobs Report

The unemployment rate climbed to a four-year high of 4.6%, according to a mostly tepid November jobs report. The economy lost 105,000 jobs in October and added 64,000 new jobs in November, the government said, with the report skewed by deferred resignations of federal workers.

Primary Mortgage Market Survey Index

15-Year FRM rates saw an increase of 0.02%, with the current rate at 5.46%
30-Year FRM rates saw an increase of 0.01%, with the current rate at 6.16%

MND Rate Index

30-Year FHA rates saw a decrease of -0.16%, with current rates at 5.69%
30-Year VA rates saw a decrease of -0.17%, with current rates at 5.70%

Jobless Claims

Initial claims were reported at 208,000 compared to expected claims of 210,000. The prior week’s total was 200,000.

What’s Ahead

CPI and PPI inflation reports are the major releases for next week, along with the usual employment data.

Why Closing Old Credit Accounts Can Hurt Your Mortgage Approval

January 9, 2026 by Coleen TeBockhorst

When you are preparing to buy a home, it is natural to want your credit profile to look clean and organized. Many buyers think closing old credit accounts will improve their score, simplify their finances, and make them appear more responsible to lenders. In reality, closing old accounts can have the opposite effect. Those accounts play a much bigger role in your credit profile than most people realize and shutting them down can create sudden changes that impact your mortgage approval.

Understand How Closed Accounts Affect Your Credit History

Your credit history length is a major part of your credit score. Older accounts help build a long, strong payment record, and closing them can shorten your overall history. When you close an account, it eventually stops contributing to your average age of credit. A shorter credit history can lower your score and make your credit profile look less stable, which can affect the rate you receive or your loan approval altogether.

See How Closing Accounts Impacts Your Credit Utilization

Credit utilization is the percentage of available credit you are currently using. When you close an old card with a high limit, your total available credit drops instantly. This makes your utilization ratio go up, even if your spending stays the same. A higher utilization ratio can lower your score, and lenders view it as a sign of financial stress. Keeping older accounts open gives you more available credit and a healthier utilization ratio.

Know Why Lenders Look Closely at Recent Credit Changes

Lenders prefer to see stable, predictable financial behavior. Closing accounts shortly before applying for a mortgage can look risky because it changes your credit profile right before a major purchase. Even if your intentions are good, lenders may worry that you are trying to manage debt abruptly or hide financial strain. Consistency is key, and the fewer sudden changes you make before applying, the better.

Understand the Value of Long-Term On-Time Payments

Old accounts with long histories of on-time payments help strengthen your credit profile. These accounts show lenders that you have managed credit responsibly for years. Closing them removes some of that positive history from your active credit mix. Even if the account stays on your report for a while, the impact weakens over time. Keeping these accounts open preserves your strongest credit advantages.

Avoid Making Changes Right Before a Mortgage Application

A mortgage application is not the time to reset or rearrange your credit accounts. If you want to simplify your finances, it is best to do it after closing on your home. Before applying, avoid closing cards, opening new ones, or making large changes to your credit usage. The goal is to show lenders stability, steady habits, and a well-managed credit profile.

Closing old accounts may seem like a smart cleanup strategy, but it often hurts more than it helps during mortgage approval. By keeping your accounts open, maintaining low balances, and staying consistent, you can protect your score and present a stronger, more stable financial picture when you apply for a home loan.

What to Know About Fractional Homeownership and Mortgages

January 8, 2026 by Coleen TeBockhorst

Fractional homeownership is becoming more popular as buyers look for creative ways to enjoy a second home or vacation property without taking on the full cost. Instead of owning one home entirely, you purchase a fraction of the property and share ownership with several other people. While the idea sounds simple, fractional ownership comes with unique rules, financing challenges, and long-term commitments that every buyer should understand before moving forward.

Understand How Fractional Homeownership Works
Fractional homeownership is different from timeshares. With a timeshare, you purchase the right to use the home for a certain period. With fractional homeownership, you purchase a real ownership interest in the property. This means you share the title, long-term responsibilities, and the financial benefits of owning real property. You may own one-eighth, one-quarter, or another percentage, and your usage schedule is usually set in advance to keep everything fair and predictable.

Know the Mortgage Challenges That Come With Fractional Ownership
Financing a fractional home is more complicated than financing a traditional home. Most lenders do not offer standard mortgages for fractional properties, since ownership is shared and resale can be more difficult. Many buyers rely on specialty lenders, or they pay cash for their share. If financing is available, guidelines may be stricter, and rates may be higher. Before committing, it is important to understand the lending rules for the specific property you are considering.

Review Operating Agreements Before You Buy
Every fractional property has an operating agreement that outlines rules, maintenance responsibilities, decision-making procedures, and what happens if an owner wants to sell. This agreement is just as important as the home itself. You need to know how repairs are handled, how usage is scheduled, how disagreements are resolved, and what rights you have as a part owner. Reviewing this document with a real estate attorney can help you avoid surprises later.

Consider the Long-Term Costs and Commitments
Fractional homeownership comes with ongoing costs beyond your initial purchase. You may pay monthly or annual fees for maintenance, cleaning, repairs, and property management. These costs are shared among the owners, but they can increase over time. You also need to understand your exit strategy. Selling a fractional share can take longer than selling a traditional home, and the value depends on the demand for shared ownership in that area.

Decide If Fractional Ownership Fits Your Lifestyle
Fractional ownership can be a great choice if you want a vacation home without the full expense or commitment. It offers lower upfront costs, less maintenance responsibility, and access to beautiful properties you might not purchase on your own. However, it works best for people who enjoy structured schedules, predictable usage time, and long-term planning. If you prefer full control of a property, a traditional second-home purchase may be a better fit.

Fractional homeownership can be a smart and affordable path to owning part of a vacation home, but it requires careful review, clear expectations, and the right financing approach. By understanding the rules and costs upfront, you can make a confident and informed decision that fits your lifestyle.

Mortgages for Parents With Young Kids and What to Consider

January 7, 2026 by Coleen TeBockhorst

Buying a home when you have young kids brings unique challenges, but it also creates opportunities to build stability for your family. Your priorities might look different from other homebuyers, and your financial decisions may need to reflect the needs of a growing household. By planning ahead and understanding what matters most, you can choose a mortgage that supports your budget, your lifestyle, and your long-term goals as a parent.

Consider How Your Monthly Budget Will Change
Raising young kids comes with expenses that shift as your family grows. Childcare, medical costs, food, activities, and emergencies can all impact how much you feel comfortable spending on a mortgage. Before choosing a loan, take a close look at your current budget and estimate future expenses. A mortgage payment that feels comfortable today should still feel manageable once school, daycare, or sports programs enter the picture.

Understand How Location Impacts Your Daily Life
For parents with young kids, location matters more than almost anything else. Proximity to schools, parks, daycare centers, grocery stores, and medical care can make life easier and reduce transportation costs. A longer commute may also affect your family time, so consider neighborhoods that balance convenience, safety, and affordability. Where you live affects both your lifestyle and your long-term loan decisions.

Choose a Mortgage Term That Fits Your Family Goals
Parents often have different financial priorities than other buyers. You may want a lower monthly payment to free up cash for family expenses, or you might prefer a shorter-term loan to build equity faster. Think about your long-term goals, such as saving for college, planning family trips, or leaving room in your budget for unexpected needs. Your loan term should support the overall financial health of your family, not stretch it thin.

Plan for Space That Grows With Your Kids
Young kids grow quickly, and your home needs might change just as fast. When selecting a mortgage amount, consider whether the home you are choosing will still meet your needs in a few years. Extra bedrooms, flexible bonus spaces, or larger common areas can help your home adapt to your family’s lifestyle. Planning ahead can prevent costly moves and avoid taking on a larger mortgage sooner than necessary.

Build a Strong Emergency Fund
Kids come with surprises, and your home will too. An emergency fund gives you financial breathing room for repairs, medical expenses, childcare changes, or a temporary loss of income. Lenders like to see strong savings because it reflects responsible planning. More importantly, it protects your household from stress and gives your family stability and comfort as you settle into homeownership.

Buying a home as a parent should feel exciting, not overwhelming. With careful planning, smart budgeting, and a clear understanding of your family’s needs, you can choose a mortgage that supports your household today and into the future.

Mortgage Impacts of Using Venmo, Cash App, or PayPal for Income

January 6, 2026 by Coleen TeBockhorst

More people are earning money through freelancing, side gigs, digital work, consulting, and online sales. Because of this, it is common for income to flow through platforms like Venmo, Cash App, or PayPal instead of traditional direct deposits. While these tools make it easy to get paid, they can also affect your mortgage application in ways many buyers do not expect. Understanding how lenders view these platforms can help you prepare long before you apply for a home loan.

Know How Lenders View Peer-to-Peer Income
Peer-to-peer apps are convenient, but from a lender’s perspective, they are not the same as receiving income through payroll. Lenders need to confirm that your income is stable, consistent, and tied to real work or business activity. Money sent through Venmo or Cash App can look like personal transfers if there is no clear record of what the payment was for. Without documentation, it becomes harder for underwriters to use this income to qualify you for a mortgage.

Keep Your Payment History Clear and Documented
If you use peer-to-peer apps for business or gig work, keep your records organized. Label every payment clearly so lenders can understand what each deposit represents. Many apps allow you to add notes or tags to each transaction, and using these consistently can save time during underwriting. When deposits are clearly marked as business-related, it becomes easier for lenders to verify and count that income as part of your mortgage approval.

Move Your Payments Into a Business or Personal Bank Account
Lenders rely heavily on bank statements, not app histories. Even if you get paid through Venmo, Cash App, or PayPal, you should transfer that income into a bank account regularly. This creates a clean paper trail and shows consistent earning patterns. When lenders see funds appear in your account from the same types of work each month, it helps them verify your income and strengthens your application.

Understand the Need for Long-Term Income History
Lenders usually need a one-to-two-year history for self-employed or non-traditional income. Even if the money flows through peer-to-peer apps, you still need to show that you have been earning consistently over time. Tax returns, bank statements, and profit-and-loss summaries become important. The more consistent your income looks, the easier it is for lenders to include it in your qualifying amount.

Separate Personal Transfers from Income
One of the biggest challenges with peer-to-peer payment apps is that personal transfers can mix with business income. When friends pay you back for dinner, send birthday gifts, or split bills, the deposits can look the same as your actual earnings. Separating these payments helps avoid confusion. Creating a dedicated account for business-related transfers gives lenders a cleaner picture of your financial habits.

Peer-to-peer payment apps offer convenience, but they can also create confusion during a mortgage review. By keeping your records organized, transferring funds to a bank account, and establishing consistent earning patterns, you can make your mortgage application stronger and avoid unnecessary delays.

What’s Ahead For Mortgage Rates This Week – January 5th, 2026

January 5, 2026 by Coleen TeBockhorst

With the only notable item on the schedule being the release of the Federal Reserve minutes, which reflect the current stance of the Fed, virtually nothing has changed since the last rate cut. The Federal Reserve is expected to continue its wait-and-see approach.

Primary Mortgage Market Survey Index

15-Yr FRM rates saw a decrease of -0.06% with the current rate at 5.44%
30-Yr FRM rates saw a decrease of -0.03% with the current rate at 6.15%

MND Rate Index

30-Yr FHA rates saw no change for this week. Current rates at 5.85%
30-Yr VA rates saw no change for this week. Current rates at 5.87%

Jobless Claims

No release of data due to the holidays.

What’s Ahead

The upcoming week will feature the usual data releases, with the major ones being the Trade Deficit, Consumer Credit, and Consumer Sentiment from the University of Michigan.

Starting the New Year with Smart Home Financing

January 2, 2026 by Coleen TeBockhorst

The New Year is a natural time to pause, reset, and think intentionally about financial goals. For many buyers and homeowners, real estate and home financing are part of that plan. Whether you are considering purchasing a home, refinancing, or simply positioning yourself for future opportunities, starting the year with a clear strategy can make a meaningful difference.

Review Your Credit Early
Your credit profile plays a significant role in determining mortgage options and interest rates. The beginning of the year is an ideal time to review your credit report, address any errors, and pay down high balance accounts. Small improvements over a few months can have a noticeable impact on loan eligibility and long term affordability.

Set Clear Financial Goals
Rather than vague resolutions, set specific goals tied to your home financing plans. Buyers may focus on saving for a down payment and closing costs, while homeowners may aim to reduce debt or improve cash flow. Clear targets help create momentum and make progress easier to track throughout the year.

Understand Your Mortgage Options
Many borrowers wait until they are ready to move forward before exploring loan options. Taking time early in the year to understand available programs, rate structures, and qualification requirements allows for better planning and fewer surprises. Knowledge creates confidence and flexibility when opportunities arise.

Plan Ahead for Buying or Refinancing
Timing matters in real estate and mortgage planning. Preparing early gives you the ability to act quickly when market conditions align with your goals. Whether it is purchasing your first home, upgrading, or refinancing, having a plan in place puts you in a stronger position when the right moment comes.

Work With a Trusted Advisor
Mortgage decisions impact both short term budgets and long term financial health. Having a trusted professional to answer questions, review scenarios, and provide guidance helps ensure decisions align with your broader financial picture. A proactive approach often leads to smoother transactions and better outcomes.

Starting the New Year with smart home financing is about preparation, clarity, and confidence. If you would like to review your options or simply understand where you stand, I am always happy to be a resource as you plan for the year ahead. Wishing you a successful and healthy New Year.

Why Good Credit Score Is Not Always Enough to Secure a Mortgage

December 31, 2025 by Coleen TeBockhorst

A strong credit score gives many buyers confidence as they prepare to purchase a home. Good payment history and responsible credit use are valuable, but they do not guarantee approval. There are several other important factors that lenders review, and any one of them can slow down or stop the process.

When Your Debt Becomes a Barrier
Your credit score reflects how well you manage credit, but lenders also review how much debt you carry. High monthly obligations can limit the loan amount you qualify for, and in some cases, prevent approval. Lenders calculate your debt-to-income ratio, which is the percentage of your monthly income that goes toward paying debts. Many lenders prefer this percentage below forty-three and keeping it under thirty-six can make you a stronger candidate.

Large monthly obligations, such as high auto loan payments, can reduce your approved amount even if your credit is excellent. Too much debt can make your financial picture look stretched and increase lender concerns.

Employment Concerns That Raise Questions
Steady income matters just as much as good credit. While getting approved for a rental can feel simple, mortgage guidelines are more detailed because a home loan is a long-term commitment. Lenders usually want to see at least two years of consistent income in the same field.

If you recently started a job and have only a few paychecks, that may not be enough history. The same applies to self-employment, where lenders typically require two years of tax returns to show stable earnings. Side hustle income can be unpredictable and may not be counted at all.

Gaps in employment or frequent job changes can raise red flags, even if you are currently working. Lenders want to feel confident that your income will continue.

Limited Cash for Upfront Expenses
Many first-time buyers prepare for a down payment but are surprised by additional upfront costs. Closing costs typically total two to five percent of the loan amount. Even with great credit and strong income, limited savings can delay your plans. Without enough verified funds, moving forward becomes difficult unless you qualify for assistance or can receive a financial gift.

Paper Trail Problems
Lenders verify everything. They review income, bank statements and the source of your down payment. Every transfer, deposit and balance must be traceable. Moving funds between accounts requires statements for each one, and large deposits need documented explanations.

Cash being kept at home is a common problem. If the money has not been in your bank account for sixty to ninety days, it usually cannot be used. These strict rules help lenders ensure the funds are genuine and not borrowed at the last minute.

Understanding these factors can make the loan process much smoother. While good credit is helpful, the full financial picture matters. A knowledgeable loan professional can answer questions and guide you step by step so you can move forward with confidence.

How the Sharing Economy Is Changing Mortgage Underwriting

December 30, 2025 by Coleen TeBockhorst

The rise of the sharing economy has changed the way many people work, earn, and budget. Income from rideshare driving, freelance projects, short-term rentals, and delivery apps has become a normal part of modern finances. These new income streams are helpful for building savings and paying bills, but they also affect how lenders view your mortgage application. Understanding how the sharing economy influences underwriting can help you prepare for a smooth approval process.

Know How Lenders View Non-Traditional Income
Income from rideshare apps, delivery platforms, online marketplaces, and short-term rental hosting does not flow through a traditional payroll system. Because of this, lenders need more documentation to verify it. They want to see that your income is stable, predictable, and tied to real work, not one-time payments. If you earn through the sharing economy, tax returns, bank statements, and year-to-date income summaries become essential.

Understand the Need for a Two-Year Income History
For most non-traditional income, lenders look for at least two years of consistent earnings. This history helps them confirm that your sharing economy income is reliable. If your earnings change throughout the year, lenders will average your income to determine the amount they can use for your mortgage approval. This means the sooner you begin tracking and documenting your income, the stronger your application will be.

Keep Business and Personal Transactions Separate
One of the biggest challenges with sharing economy income is separating business earnings from personal transfers. Mixing these payments can confuse underwriters, especially if deposits look inconsistent. Opening a separate bank account for your sharing economy work helps create a clean paper trail. It makes your financial profile clearer, and it reduces the number of questions lenders must ask during underwriting.

Track Your Expenses and Deductions Carefully
Many sharing economy workers write off business expenses such as mileage, equipment, supplies, and maintenance. These deductions can reduce your taxable income, but they also reduce the income lenders can use. If your deductions are too high, your reported income may appear lower than what you actually earn. Before applying for a mortgage, review your tax returns and consider how your deductions might affect your qualifying amount.

Consider the Impact of Short-Term Rental Income
Short-term rental platforms like Airbnb and Vrbo have created new income opportunities for homeowners. Some lenders allow this income to be used for qualification, but only with strong documentation. You may need a history of rental bookings, proof of ownership, tax filings, and evidence that the property is permitted for short-term rentals. Clear records help lenders feel confident that the income will continue.

The sharing economy has opened up flexible earning options, but it also creates new considerations during mortgage underwriting. With careful documentation, clean bank statements, and long-term consistency, you can strengthen your application and show lenders that your income is reliable and stable.

How Real-Time Income Verification Is Changing Mortgage Approval

December 26, 2025 by Coleen TeBockhorst

Mortgage approval used to require weeks of gathering documents, submitting pay stubs, waiting for HR departments to respond, and hoping everything lined up perfectly. Today, more lenders are moving toward real-time income verification, a faster and more accurate way to confirm your income during the mortgage process. This shift is making the approval timeline smoother for buyers and giving lenders a clearer picture of your financial situation.

Understand What Real-Time Income Verification Means
Real-time income verification allows lenders to confirm your employment and income instantly through secure digital systems. Instead of relying on paper documents, lenders use approved payroll databases to see your income history, year-to-date earnings, and job status. This reduces paperwork, eliminates delays, and gives lenders a more accurate snapshot of your financial stability.

See How It Speeds Up the Approval Process
Traditional income verification can slow down a mortgage application, especially when employers take several days to respond. Real-time verification shortens this step significantly. With instant access to your income information, lenders can move your application forward faster. This can make a big difference in competitive markets where quick approvals help you stand out as a strong buyer.

Learn Why Accuracy Matters for Your Loan
Manual documents can lead to errors such as outdated pay stubs, missing information, or inconsistent figures. Real-time verification reduces those risks because the information comes directly from payroll systems. This accuracy helps prevent surprises, and it can reduce back-and-forth communication between you and your lender. With fewer mistakes, your approval process becomes smoother and less stressful.

Understand the Benefits for Self-Employed and Gig Workers
Not all real-time verification systems work for self-employed buyers, gig workers, or freelancers, but the industry is moving in that direction. More platforms are beginning to include income tracking for non-traditional workers, which may make future approvals easier for people who do not receive standard paychecks. As technology expands, variable-income buyers will benefit from faster and more transparent verification options.

Know How It Protects Your Loan from Delays
Because income verification is one of the most important steps in underwriting, issues with paperwork can delay closing. Real-time systems remove many of these obstacles. This helps keep your file moving, even during busy seasons, and decreases the chance of last-minute problems. Faster verification also means lenders can focus more on your full financial picture, not just paperwork.

Real-time income verification is transforming the way mortgages are approved. By making the process faster, more accurate, and more secure, it gives homebuyers a smoother experience and more confidence when moving through the loan process. As this technology continues to grow, it will make mortgage approval more accessible and less stressful for everyone.