Blog – CTeBockhorst's Blog

What’s Ahead For Mortgage Rates This Week – October 13th, 2025

October 13, 2025 by Coleen TeBockhorst

Due to the government shutdown, nearly all reports will be delayed aside from a few third party reports. The Consumer Sentiment report has been released on time and shows that consumers are still frustrated with the economy and increasingly high inflation. It is unknown when the government shutdown will end and when we will be seeing reports released again in a timely fashion. Interest rates will still be continued to be adjusted amidst the government shutdown.

Consumer Sentiment
Americans have soured on the prospect of finding new jobs, a new survey shows. They are also still frustrated by persistent inflation, giving them little confidence that the economy will improve soon. The first reading of the consumer sentiment survey in October was basically flat at 55.0, the University of Michigan said Friday. The index has been hovering at levels that are typically experienced during recessions.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw a decrease of -0.02% for this week, with the current rate at 5.53%
• 30-Yr FRM rates saw a decrease of -0.04% for this week, with the current rate at 6.30%

MND Rate Index
• 30-Yr FHA rates saw no change for this week. Current rates at 6.03%
• 30-Yr VA rates saw a decrease of -0.01% for this week. Current rates at 6.04%

Jobless Claims
Initial Claims were reported to be delayed until further notice.

What’s Ahead
The CPI and PPI — key inflation reports — are tentatively scheduled to be released.

The Connection Between Your Debt-to-Income Ratio and Mortgage Approval

October 10, 2025 by Coleen TeBockhorst

When applying for a mortgage, one of the most important factors lenders review is your debt-to-income ratio. This simple calculation helps determine how much of your monthly income is already committed to paying debts, and it plays a major role in whether you qualify for a home loan. Understanding how this ratio works can improve your chances of securing the right mortgage.

What Debt to Income Ratio Means
Your debt-to-income ratio, often called DTI, measures the percentage of your monthly income that goes toward paying debts. These debts include credit cards, car loans, student loans, and the expected mortgage payment. Lenders use this figure to assess whether you can comfortably handle the additional responsibility of a mortgage without overextending yourself.

How Lenders Calculate It
The formula is straightforward. Lenders add up your total monthly debt payments and divide that number by your gross monthly income. For example, if you earn 6,000 dollars per month before taxes and your debt payments are 2,000 dollars, your debt to income ratio is 33 percent. Generally, most lenders prefer to see this number under 43 percent, although the specific limit can vary depending on the loan program.

Why It Matters for Mortgage Approval
Lenders want to ensure that borrowers are financially stable and unlikely to default. A lower debt to income ratio signals that you have room in your budget for housing costs, which makes you a stronger candidate. A higher ratio, on the other hand, may indicate that your finances are stretched, which can make it harder to qualify or may limit the loan amount you are offered.

Ways to Improve Your Ratio
If your debt-to-income ratio is higher than recommended, there are strategies to lower it. Paying down credit card balances or paying off smaller loans can quickly reduce your debt payments. Avoiding new debt before applying for a mortgage is also important. In some cases, increasing your income through a raise, side work, or a second job can help balance the equation.

Managing your debt-to-income ratio is one of the most effective ways to strengthen your mortgage application. By preparing ahead of time, you can improve your chances of approval and secure more favorable loan terms.

Reverse Mortgages for Retirement Planning

October 9, 2025 by Coleen TeBockhorst

As homeowners approach retirement, many begin to think about how to maximize their financial security while maintaining independence. For those who own a home with significant equity, a reverse mortgage can provide an additional source of income. While this product is not right for everyone, it can be a powerful tool for retirees who want to supplement their savings.

How Reverse Mortgages Work
A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home equity into cash. Unlike traditional mortgages, there are no monthly payments required. Instead, the loan balance grows over time and is repaid when the homeowner sells the property, moves out, or passes away. Funds can be received as a lump sum, monthly payments, or a line of credit.

Benefits for Retirees
One of the main advantages of a reverse mortgage is the ability to access funds without selling your home. This can be especially useful for retirees who want to stay in their homes while covering living expenses, medical costs, or other financial needs. Because the loan does not require monthly payments, it can help improve cash flow and reduce financial stress.

Important Considerations
Reverse mortgages come with responsibilities and risks. Homeowners must continue to pay property taxes, insurance, and maintain the home. If these obligations are not met, the loan could become due. Additionally, because the loan balance grows over time, the amount of equity left for heirs will be reduced. It is important for retirees to weigh the benefits of financial relief against the potential impact on their estate.

Who Should Consider a Reverse Mortgage
A reverse mortgage can make sense for retirees with substantial home equity who plan to remain in their property long term. It can be particularly helpful for those with limited retirement savings but high housing wealth. However, it is not ideal for individuals who plan to move soon or who wish to leave their home as a major inheritance.

For the right homeowner, a reverse mortgage can provide greater financial flexibility in retirement. Careful consideration, along with professional guidance, can ensure this tool is used wisely and in alignment with long-term goals.

Creative Mortgage Options Shared Appreciation and Other Alternatives

October 8, 2025 by Coleen TeBockhorst

Traditional mortgages are not the only way to finance a home. For buyers who want more flexibility or who face unique financial circumstances, creative mortgage options can provide alternative pathways to homeownership. These products are not always as well-known as standard fixed-rate loans, but they can be powerful tools when used wisely.

Shared Appreciation Mortgages Explained
A shared appreciation mortgage allows a lender or investor to provide a loan in exchange for a percentage of the future appreciation of the property. This often means lower monthly payments or reduced upfront costs for the borrower. When the home is sold, refinanced, or after a set period, the investor receives their share of the increase in value.

Benefits of Shared Appreciation
This option can make homeownership more affordable, especially in high-cost areas. It may be appealing to first-time buyers who want to reduce their monthly expenses or to homeowners who want to tap equity without taking on additional debt. By sharing future appreciation, the homeowner gets help today in exchange for giving up a portion of tomorrowís potential gains.

Risks to Consider
While shared appreciation reduces costs in the short term, it comes with trade-offs. If your home value increases significantly, you could end up giving away a large portion of your profit. This structure also adds complexity when it comes to selling or refinancing the property. Borrowers must carefully read the terms and fully understand how appreciation will be calculated.

Other Creative Mortgage Alternatives
In addition to shared appreciation, there are other options worth exploring. Community land trusts help lower purchase prices by separating the cost of the land from the home itself. Lease-to-own arrangements allow renters to build equity while preparing for traditional financing later. Seller financing is another alternative where the seller provides the loan directly, often with more flexible terms than a bank.

Creative mortgage options can be powerful tools, but they are not a one-size-fits-all solution. Before pursuing these paths, consider your financial goals, long-term plans, and how much control you want to retain over future profits.

Interest-Only Mortgages Explained

October 7, 2025 by Coleen TeBockhorst

When shopping for a mortgage, you may come across an option that allows you to pay only the interest for the first several years of the loan. These are called interest-only mortgages, and while they may sound appealing at first glance, they are not the right fit for everyone. Understanding how they work and who benefits from them is key to making a smart decision.

How Interest-Only Mortgages Work
An interest-only mortgage allows borrowers to pay only the interest on their loan for an initial period, often five to ten years. During this time, monthly payments are much lower compared to a traditional mortgage. However, once the interest-only period ends, borrowers must start paying both principal and interest, which can cause payments to rise significantly.

Who May Benefit from This Option
Interest-only mortgages may be a good fit for certain types of borrowers. High-income earners who expect bonuses or commissions may prefer lower monthly payments now, knowing they can pay down the balance later. Real estate investors who plan to sell or refinance before the interest-only period ends may also find this loan attractive, as it frees up cash for other opportunities.

Risks and Considerations
While the initial affordability is tempting, the long-term risks can be significant. Since you are not reducing the principal during the interest-only phase, you will not build equity as quickly. If property values decline, you may even owe more than your home is worth. When the payment resets to include principal, it can be a shock if you are not financially prepared.

Who Should Avoid Interest-Only Mortgages
First-time buyers, families on a fixed income, or anyone who values stability in their monthly budget may want to avoid interest-only mortgages. These borrowers are often better served by a traditional fixed-rate loan that builds equity from day one and offers predictable payments.

Interest-only mortgages are a tool, but like any financial tool, they must be used wisely. If you are considering this option, weigh your financial goals carefully, think about how long you plan to stay in the home, and be honest about your ability to handle higher payments in the future.

What’s Ahead For Mortgage Rates This Week – October 6th, 2025

October 6, 2025 by Coleen TeBockhorst

The release of key Unemployment Data was delayed last week due to administrative changes in how jobless figures are tracked. The Consumer Confidence report reflects these policy adjustments, showing growing concerns about the job market and a larger-than-expected decline in confidence for September.

Lastly, with tariff disruptions continuing to affect the manufacturing sector, the Global US Manufacturing data has revealed that production has slowed overall since the initial disruptions.

Manufacturing PMI
The latest survey showed a weaker gain in production, whilst new order book growth softened as tariffs continued to weigh on exports. Tariffs and broader policy uncertainty also dampened firms’ assessment of the business outlook, but expectations of manufacturing production reshoring and hopes of better demand in the year ahead meant sentiment remained positive overall.

Consumer Confidence
Consumer confidence fell sharply in September on growing worries about the labor market. The consumer-confidence index dropped to 94.2 in September from a revised 97.8 in the prior month, the Conference Board said Tuesday. This is the lowest level since April.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw an increase of 0.06% for this week, with the current rate at 5.55%
• 30-Yr FRM rates saw an increase of 0.04% for this week, with the current rate at 6.34%

MND Rate Index
• 30-Yr FHA rates saw a decrease of -0.06% for this week. Current rates at 6.03%
• 30-Yr VA rates saw a decrease of -0.05% for this week. Current rates at 6.05%

Jobless Claims
The unemployment data has been delayed, but expected claims are 222,000. The prior week landed at 218,000.

What’s Ahead
The key releases next week will include major inflation reports — the CPI and PPI — along with the delayed Unemployment Data report. The Federal Reserve’s Beige Book will also be a notable release.

Special Mortgage Programs for Heroes

October 3, 2025 by Coleen TeBockhorst

First responders and military families play vital roles in our communities, and there are mortgage programs designed to recognize their service. These programs often provide favorable terms, lower down payments, and unique benefits that make homeownership more accessible. Understanding these options can help heroes and their families achieve their dream of owning a home while taking advantage of benefits tailored to their service.

VA Loans for Military Families
One of the most well-known mortgage options for military personnel is the VA loan, which offers 100 percent financing with no down payment, competitive interest rates, and no private mortgage insurance requirement. VA loans are available to active-duty service members, veterans, and eligible surviving spouses. They can be used to purchase a primary residence or refinance an existing mortgage, making them a flexible option for military families.

Special Programs for First Responders
Many first responders, including police officers, firefighters, and emergency medical personnel, may qualify for local, state, or employer-assisted mortgage programs. These programs often offer reduced interest rates, down payment assistance, or grants to help offset the cost of purchasing a home. Researching programs specific to your profession and location can unlock significant savings and make homeownership more attainable.

Benefits Beyond Financing
In addition to favorable loan terms, some programs provide financial counseling, assistance with closing costs, and resources to help first responders and military families plan for long-term homeownership. Taking advantage of these resources can improve financial literacy, reduce stress during the homebuying process, and ensure a smooth transition into homeownership.

Choosing the Right Program
When exploring mortgage options, it is important to compare benefits, eligibility requirements, and costs. Working with a mortgage professional who understands first responder and military programs can help identify the best loan for your situation, maximize savings, and simplify the process. With the right program, heroes can secure a home that fits their familyís needs while taking full advantage of service-related benefits.

Financing Land and New Construction Homes

October 2, 2025 by Coleen TeBockhorst

Buying land or constructing a new home offers exciting opportunities for customization and investment, but the mortgage process differs from traditional home loans. Lenders often have stricter requirements for land and new construction financing, so understanding your options, planning ahead, and working closely with a mortgage professional is essential. By knowing what to expect, you can navigate this process smoothly and secure the financing needed to bring your vision to life.

Land Loans: What You Need to Know
Purchasing raw land typically requires a land loan, which differs from a standard mortgage. Lenders consider land riskier because it is not yet a livable property, which can result in higher interest rates, larger down payment requirements, and shorter loan terms. Factors such as location, zoning, and access to utilities influence loan approval and terms, so it is important to do thorough research before purchasing.

Mortgages for New Construction Homes
Financing a new build often involves a construction-to-permanent loan, which covers the cost of building your home and converts into a standard mortgage once construction is complete. This type of loan requires detailed plans, budgets, and timelines, and lenders typically disburse funds in stages as the construction progresses. Having a reliable builder and a clear financial plan is crucial to ensure the project stays on schedule and within budget.

Benefits of Financing Land and New Builds
Buying land and building a home allows you to customize your property, select your preferred location, and potentially increase long-term property value. A construction loan can also give you flexibility in managing funds and timelines, while land ownership provides opportunities for future development or investment. Proper planning and professional guidance can maximize these benefits and reduce financial stress.

Risks and Considerations
Land and construction loans carry unique risks. Construction delays, cost overruns, or changes in market conditions can impact your budget and financing. Lenders may require higher down payments and have stricter approval processes, so it is vital to maintain a strong credit profile, adequate savings, and contingency plans. Consulting with a mortgage professional can help you navigate these challenges and make informed decisions.

Making the Right Choice
Financing land purchases and new builds require careful planning, thorough research, and professional guidance. By understanding loan options, preparing financially, and working closely with lenders, homeowners and investors can successfully secure financing, build their dream property, and potentially increase long-term wealth through smart real estate decisions.

Building Wealth Through Your Mortgage

October 1, 2025 by Coleen TeBockhorst

Your mortgage is more than just a monthly bill; it can be a powerful tool for building long-term wealth. By understanding how to leverage home equity strategically, homeowners can create opportunities for investments, financial growth, and increased net worth. Using your mortgage wisely requires planning, patience, and a clear understanding of how equity works.

Understanding Home Equity
Home equity is the portion of your home that you truly own, calculated as the difference between your property’s current market value and the balance of your mortgage. As you make payments and property values increase, your equity grows. This equity can be tapped into for financial purposes, making it a critical component of long-term wealth building.

Leveraging Equity Strategically
There are several ways to use your mortgage and home equity to build wealth. One common approach is using a home equity line of credit or cash-out refinance to fund home improvements that increase your property’s value. Another strategy is to invest the funds into other real estate properties or financial instruments that offer a higher return than your mortgage interest rate.

Benefits of Using a Mortgage as a Wealth Tool
Using your mortgage to build wealth can offer significant advantages. It allows you to access funds without selling your home, potentially creates passive income streams through investments, and can provide tax benefits when used for qualifying purposes. Additionally, strategically leveraging equity can accelerate your overall financial growth compared to simply paying down the mortgage aggressively.

Risks to Consider
While leveraging your mortgage can be advantageous, it is not without risks. Borrowing against your home increases your debt and could put your property at risk if investments do not perform as expected. It is crucial to maintain a budget, understand interest rates, and plan repayment strategies to avoid financial strain. Consulting with a mortgage or financial professional is essential to ensure that your strategy aligns with your long-term goals.

Making Informed Decisions
Ultimately, using your mortgage as a tool for wealth building requires careful planning and smart decision-making. By understanding equity, leveraging funds strategically, weighing risks, and consulting experts, homeowners can turn their mortgage into a vehicle for long-term financial growth, increased net worth, and greater financial security.

Protecting Your Mortgage During Job Loss

September 30, 2025 by Coleen TeBockhorst

Losing a job can be stressful, and the thought of keeping up with your mortgage payments may feel overwhelming. The good news is that there are steps homeowners can take to protect their home and maintain financial stability during periods of unemployment. Understanding your options, communicating with your lender, and planning ahead can help you navigate this challenging time without risking your home.

Contact Your Lender Immediately
The first step after losing your job is to notify your mortgage lender as soon as possible. Lenders can often provide temporary solutions, such as forbearance, loan modifications, or repayment plans, to help you stay current on your mortgage. Being proactive shows responsibility and can prevent late fees, penalties, or potential foreclosure.

Explore Forbearance and Loan Modification Options
Forbearance allows you to pause or reduce your mortgage payments for a specific period, while a loan modification may adjust the terms of your mortgage to make payments more manageable. Both options are designed to provide relief during financial hardship, but it is essential to understand the terms and repayment responsibilities once the forbearance period ends.

Use Emergency Funds Wisely
If you have an emergency savings fund, now is the time to use it strategically. Prioritize mortgage payments and essential living expenses while minimizing non-essential spending. Maintaining your mortgage payments, even partially, can protect your credit score and prevent long-term financial consequences.

Consider Unemployment Assistance Programs
Government or employer-provided unemployment benefits can help bridge the gap during job loss. Some programs may provide direct financial support, while others offer temporary mortgage relief options. Research available resources in your area to see what assistance you may qualify for and how it can help you stay current on your home loan.

Plan for the Future
Losing a job can also be an opportunity to reassess your budget, emergency funds, and long-term financial plan. Consider ways to increase income, reduce expenses, or refinance your mortgage if appropriate. Working with a financial advisor or mortgage professional can help you create a strategy to protect your home and recover financially once employment is secured.