Blog – CTeBockhorst's Blog

How to Remove PMI Without Refinancing

July 30, 2025 by Coleen TeBockhorst

Private mortgage insurance, or PMI, is often required when a homebuyer makes a down payment of less than twenty percent. While PMI helps lenders reduce risk, it adds extra cost to your monthly mortgage payment. The good news is that you may be able to remove PMI without refinancing your loan. Understanding the options available can help you save money and accelerate building equity in your home.

Understand When PMI Can Be Removed
Federal law, specifically the Homeowners Protection Act, requires lenders to automatically cancel PMI once your loan balance reaches eighty percent of the original home value. You can also request cancellation when you believe you have reached this threshold through paying down the loan or if your property has appreciated in value.

Request PMI Cancellation Through Your Lender
If you have built equity to at least twenty percent of the home’s original purchase price, you can formally request that your lender remove PMI. To do this, you typically need to submit a written request and may have to prove the home has not declined in value. Your lender may require a home appraisal to confirm current value.

Use Home Appreciation to Your Advantage
If your property value has increased significantly since purchase, you might qualify for PMI removal sooner. A professional appraisal can demonstrate this increase in equity. Keep in mind that lenders generally want to see that you have at least twenty percent equity in the home before canceling PMI.

Make Extra Principal Payments

Consider Loan Recast if Available
Some lenders offer loan recasting, which recalculates your monthly payments based on your current loan balance after a lump sum payment. While recasting does not remove PMI by itself, lowering your principal faster can bring you closer to that twenty percent equity goal.

Stay Informed and Keep Documentation
Keep track of your loan balance, home value, and payment history. Staying informed empowers you to know when you are eligible to request PMI removal. Document all communications with your lender to avoid misunderstandings.

Consult Your Mortgage Professional
Every loan and lender may have different rules regarding PMI removal. Working with your mortgage expert can help you understand your specific loan terms and options. They can guide you through the process and help you make decisions that save you money.

Removing PMI without refinancing is a smart way to reduce your monthly expenses without the cost or hassle of a new loan. By monitoring your equity and staying proactive, you can enjoy greater savings and faster progress toward full homeownership.

The Effect of Local Job Markets on Mortgage Lending

July 29, 2025 by Coleen TeBockhorst

When evaluating the housing market, many people focus on home prices and interest rates. However, one critical factor that often goes unnoticed is the strength of the local job market. Employment trends directly affect mortgage lending by influencing both buyer demand and lender confidence.

Why Local Employment Matters
A stable job market means more people have consistent incomes, making them more likely to qualify for home loans. Lenders assess local employment data when determining mortgage risk in a particular area. If job growth is strong, lenders are typically more willing to offer loans, knowing that borrowers are less likely to default. Conversely, areas with high unemployment rates may see more cautious lending practices.

Impact on Homebuyer Confidence
For buyers, job security builds confidence. People are more comfortable purchasing a home when they feel confident in their long-term employment prospects. In regions with expanding industries or new business developments, demand for housing often increases as more workers move to the area and existing residents feel financially secure enough to buy.

Lender Strategies Based on Job Trends
Mortgage lenders monitor local economic indicators closely. If job creation is booming, lenders may introduce more flexible loan programs or ease credit requirements to serve a growing base of potential buyers. In contrast, if layoffs or business closures rise, lenders may tighten lending standards to reduce risk. Your location can directly affect the loan options available to you.

Rural Versus Urban Markets
Urban areas with diverse industries usually offer more stable employment opportunities, supporting steady mortgage lending. In rural areas, where economies may depend on one or two major employers, a single business closure can lead to significant job losses and more restrictive lending. Homebuyers in smaller communities should understand how employment trends impact their local housing market.

The Role of Economic Development
Community development initiatives, such as infrastructure projects, new business openings, or technology hubs, can stimulate job growth and increase homebuyer demand. These developments not only create jobs but also boost property values over time. Buyers and lenders alike benefit from a growing economy, which supports sustainable homeownership.

Consider Your Local Market Before You Buy
When shopping for a home, consider not only the property itself but also the local job market. Employment stability can affect your home’s future value and your long-term financial security. A mortgage professional with local market knowledge can help you evaluate both your financing options and the economic trends that may impact your investment.

If you are curious about how your local job market affects your homebuying plans, connecting with a mortgage expert can help you understand your options.

What’s Ahead For Mortgage Rates This Week – July 28th, 2025

July 28, 2025 by Coleen TeBockhorst

Very little was released this week due to the major inflation data releases from the previous week. The Leading Economic Index was the most significant—and only—impactful release this week, showing a further decline in overall sentiment about the current economic situation. The majority of the decline was largely driven by expectations for business conditions. The decline was faster than expected, enough to warrant continued monitoring of the Leading Economic Index going forward.

Leading Economic Indicators
The Conference Board Leading Economic Index for the US declined by 0.3% in June 2025 to 98.8, after no change in May (revised upward from -0.1% originally reported). As a result, the LEI fell by 2.8% over the first half of 2025, a substantially faster rate of decline than the -1.3% contraction over the second half of 2024.

Primary Mortgage Market Survey Index

15-Yr FRM rates saw an increase of 0.05% with the current rate at 5.87%
30-Yr FRM rates saw an increase of 0.01% with the current rate at 6.74%

MND Rate Index

30-Yr FHA rates saw no change for this week. Current rates at 6.39%
30-Yr VA rates saw no change for this week. Current rates at 6.40%

Jobless Claims
Initial Claims were reported to be 217,000 compared to the expected claims of 227,000. The prior week was 221,000.

What’s Ahead
Personal Income & Spending and PCE Prices will lead the way for data releases next week. This will be followed by the Nonfarm Payrolls giving a strong indicator of where the economy is headed for the average consumer.

The Effect of Local Job Markets on Mortgage Lending

July 25, 2025 by Coleen TeBockhorst

Consider Your Local Market Before You Buy
When shopping for a home, consider not only the property itself but also the local job market. Employment stability can affect your home s future value and your long-term financial security. A mortgage professional with local market knowledge can help you evaluate both your financing options and the economic trends that may impact your investment.

If you are curious about how your local job market affects your homebuying plans, connecting with a mortgage expert can help you understand your options.

How to Determine Your Ideal Monthly Mortgage Payment

July 24, 2025 by Coleen TeBockhorst

Buying a home is one of the most exciting financial decisions you will ever make, but understanding what you can comfortably afford each month is essential for long-term success. Your ideal monthly mortgage payment should not just fit within your budget today, but also allow for financial flexibility and security in the future.

Start With Your Total Monthly Income
Begin by calculating your total monthly household income before taxes. This provides a clear foundation for your homebuying budget. Most financial experts recommend that your total housing expenses should not exceed twenty-five to thirty percent of your gross monthly income. This includes your mortgage payment, property taxes, homeowners insurance, and any applicable homeowners association fees.

Factor In All Monthly Expenses
Next, list all of your recurring monthly expenses. This includes car payments, student loans, credit card minimum payments, utilities, groceries, transportation, and personal spending. Subtract these amounts from your monthly income to determine how much is left over. This remaining amount represents your available funds for a mortgage payment, but remember to leave room for savings and emergencies.

Account for Future Goals and Unexpected Costs
It is important to think beyond your immediate needs. Consider your long-term financial goals, such as saving for retirement, building an emergency fund, or preparing for future expenses like college tuition or major home repairs. Do not stretch your budget so tightly that you have no financial cushion. Homeownership should provide stability, not stress.

Understand Your Loan Terms and Rates
Work with a mortgage professional to explore different loan options and interest rates. A lower rate may increase your borrowing power, while a higher rate could limit what you can afford. Factor in whether you plan to choose a fixed-rate or adjustable-rate mortgage, as this will impact your monthly payment both now and in the future.

Use Tools and Professional Guidance
Many online calculators can provide an estimate of your monthly payment, but nothing replaces the advice of a trusted mortgage expert. A professional can help you evaluate loan options, understand closing costs, and ensure that your payment aligns with your entire financial picture.

Your Ideal Payment Is Personal
Ultimately, your ideal monthly mortgage payment is not just a number based on guidelines. It is a personal decision that reflects your income, goals, lifestyle, and comfort level. Do not feel pressured to borrow the maximum amount you qualify for. Focus instead on what allows you to enjoy your new home without financial strain.

If you are ready to explore your options, a mortgage professional can help you calculate a payment that fits your life today and supports your goals for tomorrow.

The Benefits of Mortgage Rate Buydowns

July 23, 2025 by Coleen TeBockhorst

When purchasing a home, every detail matters, especially your interest rate. One strategy that many buyers overlook is the mortgage rate buydown. A buydown allows you to lower your interest rate for the first few years of your loan, or even permanently, by paying upfront fees at closing. This option can significantly reduce your monthly payments, offering financial relief when you need it most.

Types of Mortgage Rate Buydowns
There are two common types of buydowns. A temporary buydown, such as a two one buydown, reduces your interest rate for the first two years. For example, your rate might be reduced by two percent in the first year and one percent in the second year. After this period, your rate returns to the original fixed rate for the remaining term of your loan. A permanent buydown, on the other hand, involves paying points to lower your interest rate for the entire life of the loan.

Why Consider a Buydown?
The primary benefit of a buydown is lower monthly payments, especially early in the loan term when expenses related to moving, furnishing, and settling into your home may be highest. For first-time buyers or those purchasing a larger home, this early savings can ease the transition and protect your budget.

Additionally, a lower interest rate reduces the total interest paid over the life of your loan, potentially saving you thousands of dollars. For buyers planning to stay in their home long-term, a permanent buydown can be an especially smart investment.

Builder and Seller Incentives
Builders and sellers sometimes offer to cover the cost of a buydown as an incentive, making it an even more attractive option. This is common in slower markets or with new construction homes, so it is worth asking about this possibility during negotiations.

Is a Buydown Right for You?
It is important to weigh the upfront cost against your long-term plans. If you do not expect to stay in the home for several years, the savings from a buydown may not outweigh the initial expense. Consulting a mortgage professional will help you understand if a buydown matches your specific situation.

Final Thoughts
Choosing a mortgage rate buydown is not just about saving money, but about creating financial comfort. Whether temporary or permanent, a buydown can offer breathing room when you need it most and long-term savings that benefit your financial future.

If you are curious about how a buydown could work for you, a mortgage expert can provide personalized guidance.

Are Low Down Payment Programs Right for You?

July 22, 2025 by Coleen TeBockhorst

Purchasing a home is a significant milestone, but for many buyers, saving for a large down payment can feel overwhelming. Thankfully, low down payment programs can offer a solution, making homeownership more accessible than ever before. However, before choosing one of these options, it is important to understand both the benefits and potential drawbacks.

Low down payment programs are designed to help buyers secure a home with as little as three percent to five percent down, depending on the loan type. Popular options include FHA loans, conventional loans with reduced down payment requirements, and programs backed by agencies such as Freddie Mac and Fannie Mae. In some cases, buyers may also qualify for zero-down loans, such as USDA and VA loans, if they meet specific eligibility criteria.

One major benefit of a low down payment program is that it can significantly shorten the time it takes to buy a home. Instead of spending years saving for a traditional twenty percent down payment, buyers can enter the market much sooner. This can be especially helpful in rising markets, where home prices may outpace savings growth.

However, there are important considerations. With a smaller down payment, buyers typically pay private mortgage insurance, known as PMI, which increases the monthly payment. Over time, this can add up to thousands of dollars. Additionally, smaller down payments result in higher loan amounts, which means paying more interest over the life of the loan.

Despite these factors, many buyers find that the benefits outweigh the costs, particularly when home prices are climbing. Building equity in a home often offsets the costs of PMI in the long run. Plus, some programs offer options to eliminate PMI once a certain amount of equity has been reached.

Another valuable feature of many low down payment programs is the flexibility in credit score requirements. While a higher score will generally yield better rates, many programs are accessible to buyers with less-than-perfect credit, opening doors for those who may not qualify for traditional loans.

If you are considering a low down payment loan, speaking with a mortgage professional can help you understand the best program for your situation. Factors such as your income, credit score, location, and long-term financial goals will all influence which loan type makes the most sense.

Remember, homeownership is not only about affording the monthly payment, but also about feeling financially secure. Choosing a low down payment program can help you get there faster, but only if it fits within your broader financial plan.

If you are ready to explore your options, a mortgage expert can help guide you toward the right program.

What’s Ahead For Mortgage Rates This Week – July 21st, 2025

July 21, 2025 by Coleen TeBockhorst

While inflation has slowed down since the pandemic, it is showing a faster-than-expected rise for consumers, as the CPI (Consumer Price Index) has reported a higher than expected 0.3% increase, contrasted to the 0.2% expected increase.

Meanwhile, the PPI (Producer Price Index) has proven to be entirely flat, with the largest takeaway being that signs of tariff-related inflation are — at best — scattered among data reports, leading to many speculating that the impacts have been overestimated.

Given continued inflation for consumers, it is very unlikely the Federal Reserve will make any adjustments to the rate as it adopts a “wait-and-see” approach to the administration’s policies. Another noteworthy data release is retail sales, which has shown to snap back after the concerns about tariffs and widespread price increases have eased.

Consumer Price Index
Consumer prices in June posted the biggest increase since the beginning of the year and are likely to keep the Federal Reserve from cutting interest rates later this month, but there were only scattered signs of tariff-related inflation. The consumer-price index rose 0.3% last month, the government said Tuesday, and matched Wall Street’s forecast. It was the biggest rise since January.

Producer Price Index
Wholesale prices were unchanged in June and showed only a mild effect from U.S. tariffs, adding to the growing view that trade wars won’t lead to a big surge in inflation. The flat reading in the producer-price index came in below the Wall Street forecast of a 0.2% increase.

Retail Sales
Receipts at retail cash registers rose 0.6% last month, the government said Thursday, based on seasonally adjusted numbers. That was three times the Wall Street estimate.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw an increase of 0.06% for this week, with the current rates at 5.92%
• 30-Yr FRM rates saw an increase of 0.03% for this week, with the current rates at 6.75%

MND Rate Index
• 30-Yr FHA rates saw an increase of 0.04% for this week, with the current rates at 6.39%
• 30-Yr VA rates saw an increase of 0.03% for this week, with the current rates at 6.40%

Jobless Claims
Initial Claims were reported to be 221,000 compared to the expected claims of 234,000. The prior week landed at 228,000.

What’s Ahead
After inflation reports, there will only be the Leading Indicators report in the schedule for next week.

Could You Save Money by Refinancing Right Now?

July 18, 2025 by Coleen TeBockhorst

Understanding the Real Benefits
The most common reason to refinance is to lower your monthly payment by getting a better interest rate. But refinancing can also help you pay off your loan faster, switch from an adjustable to a fixed rate, or tap into your home equity for important expenses. If your credit score has improved, or if your home has gained value, you may qualify for better loan terms now than when you originally purchased.

Lower Monthly Payments or Faster Payoff
Even a small drop in your interest rate can make a big difference over the life of your loan. For example, reducing your rate by half a percent could save thousands over the years. On the other hand, if your goal is to be mortgage-free sooner, you could refinance into a shorter term and build equity faster, sometimes with only a slight increase in your monthly payment.

Accessing Home Equity Wisely
Refinancing can also allow you to access the equity in your home through a cash-out refinance. This can be a smart option for major renovations, debt consolidation, or even funding education. However, it is important to treat home equity with care and work with a mortgage professional who can walk you through the pros and cons based on your long-term goals.

Is Now the Right Time for You
Refinancing is not one-size-fits-all. Your decision should depend on your current interest rate, how long you plan to stay in your home, closing costs, and your financial goals. Even with rates higher than they were a few years ago, refinancing may still offer financial advantages depending on your situation.

Let’s Run the Numbers Together
Before you decide, it helps to see the numbers clearly. I can review your current mortgage, compare options, and show you exactly what refinancing could mean for you. There is no pressure, just real information to help you make the best choice for your future.

The One Number More Important Than Your Credit Score for Mortgage Approval

July 17, 2025 by Coleen TeBockhorst

When it comes to getting approved for a mortgage, most people immediately think of their credit score. While it is definitely important, there is another number that can play an even bigger role in your approval, our debt-to-income ratio. Also known as DTI, this number gives lenders a clearer picture of your ability to manage monthly payments and overall debt.

What Is Debt-to-Income Ratio
Your debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts. This includes things like credit cards, car loans, student loans, and the projected mortgage payment. It does not include groceries, utilities, or other everyday expenses. Lenders use this number to assess whether you can realistically afford to take on a new mortgage without becoming overextended.

Why DTI Matters More Than You Think
You could have a great credit score, but if your debt-to-income ratio is too high, it could still disqualify you from getting approved. That is because lenders want to be sure that you can comfortably handle another monthly payment. A strong DTI shows that you are living within your means and that you are in control of your financial obligations.

What Is a Good Debt-to-Income Ratio
As a general rule, most lenders look for a DTI below 43 percent, but lower is always better. If your DTI is 36 percent or under, you are in a strong position. That said, different loan programs may allow for higher ratios based on other factors, such as credit score or savings. This is where working with a mortgage professional really helps—we can explore the loan options that best match your financial picture.

How to Improve Your DTI
Improving your DTI takes a combination of increasing income and reducing debt. If possible, pay down credit card balances, avoid taking on new loans, and look for ways to boost your monthly earnings. Even small adjustments can make a meaningful difference. If buying a home is your goal, give yourself time to improve your numbers and set yourself up for success.

Let’s Take a Look at Your Numbers Together
You do not have to guess where you stand. We can help you understand your debt-to-income ratio, review your credit profile, and give you a clear idea of what kind of mortgage you can qualify for. The more you know, the more confident you can feel moving forward.

« Previous Page

How to Remove PMI Without Refinancing

The Effect of Local Job Markets on Mortgage Lending

What’s Ahead For Mortgage Rates This Week – July 28th, 2025

The Effect of Local Job Markets on Mortgage Lending

How to Determine Your Ideal Monthly Mortgage Payment

The Benefits of Mortgage Rate Buydowns

Are Low Down Payment Programs Right for You?

What’s Ahead For Mortgage Rates This Week – July 21st, 2025

Could You Save Money by Refinancing Right Now?

The One Number More Important Than Your Credit Score for Mortgage Approval

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