Blog – CTeBockhorst's Blog

The Hidden Life Moments That Impact Your Mortgage Journey

February 10, 2026 by Coleen TeBockhorst

Buying a home is rarely just about the house. It is about life happening at the same time. Career changes, family growth, health decisions, and financial habits all quietly shape your mortgage experience long before you ever tour a property. Many buyers are surprised to learn that choices made months or even years earlier can influence how smooth or stressful the process feels.

Career Shifts Matter More Than You Think
Changing jobs, becoming self-employed, or moving into commission-based income can alter how lenders view stability. This does not mean you should avoid growth opportunities, but it does mean timing matters. Understanding how employment history is reviewed can help you plan career moves without unintentionally slowing your homeownership goals.

Debt Behavior Tells a Story
It is not just about how much debt you have. It is about how you manage it. Consistent payments, responsible use of credit, and avoiding sudden large purchases all paint a picture of reliability. Small habits like paying down balances instead of moving debt around can make a meaningful difference.

Life Events Deserve Financial Planning
Marriage, divorce, having children, or caring for family members often change household income and expenses. These events can shift what feels comfortable for a monthly housing payment. Planning for these changes before buying helps ensure your home supports your life instead of stretching it too thin.

Preparation Builds Confidence
Working with a mortgage professional gives you clarity without pressure. It allows you to ask questions, understand your position, and make informed decisions before emotions enter the process. Preparation turns uncertainty into confidence.

Homeownership is not a single transaction. It is a reflection of your life choices aligning at the right moment. When those pieces come together intentionally, the experience becomes far more empowering.

What’s Ahead For Mortgage Rates This Week – February 9th, 2026

February 9, 2026 by Coleen TeBockhorst

While Consumer Sentiment has inched up slightly, Consumer Credit tells a different story. Credit usage has continued to rise, suggesting increased financial strain on consumers amid ongoing economic pressures such as inflation. Although another rate cut is still expected, its likelihood remains uncertain under the current administration.

Consumer Sentiment
Consumer sentiment was essentially unchanged, inching up less than one index point from last month and sitting about 20% below January 2025. Sentiment surged for consumers with the largest stock portfolios, while it stagnated and remained at dismal levels for consumers without stock holdings.

Consumer Credit
In 2025, consumer credit increased 2.4 percent, with revolving and nonrevolving credit increasing 3.4 percent and 2.0 percent, respectively. During the fourth quarter, consumer credit increased at a seasonally adjusted annual rate of 3.0 percent, while in December it increased at a seasonally adjusted annual rate of 5.7 percent.

Primary Mortgage Market Survey Index

15-Year FRM rates saw an increase of 0.01%, with the current rate at 5.50%
30-Year FRM rates saw an increase of 0.01%, with the current rate at 6.11%

MND Rate Index

30-Year FHA rates saw a decrease of -0.04%, with current rates at 5.75%
30-Year VA rates saw a decrease of -0.04%, with current rates at 5.77%

Jobless Claims
Initial Claims were reported to be 231,000 compared to the expected claims of 212,000. The prior week landed at 209,000.

What’s Ahead
GDP Estimates and PCE Index Inflation Data is set to release next week as the largest data releases.

Why a HELOC Works and When It Might Make Sense for Homeowners

February 6, 2026 by Coleen TeBockhorst

For homeowners looking to tap into the equity they have built over time, a Home Equity Line of Credit, also known as a HELOC, can be a flexible financing option. Unlike a traditional mortgage or one time loan, a HELOC gives borrowers access to a revolving line of credit that can be used as needed. Understanding how it works, along with the benefits and risks, can help homeowners decide whether it fits their financial goals.

What a HELOC Is
A HELOC is a type of loan that allows homeowners to borrow against the equity in their home. Equity is the difference between the home’s current value and the remaining balance on the mortgage. Because it is secured by the property, a HELOC is often considered a second mortgage. Lenders typically offer these through banks, credit unions, and other financial institutions.

How the Borrowing Process Works
A HELOC functions similarly to a credit card, but with your home as the collateral. Once approved, the lender provides a credit limit based on your credit profile and the amount of available equity. During the draw period, which often lasts 5 to 10 years, borrowers can withdraw funds, repay them, and borrow again within the established limit. Interest is only charged on the amount used, not the full credit line.

Understanding Interest Rates and Repayment Terms
Most HELOCs come with variable interest rates, meaning the rate can change over time depending on market conditions. This can make borrowing more affordable initially, but it may also lead to higher payments later. During the draw period, many lenders require interest only payments. After the draw period ends, the repayment phase begins, typically lasting 10 to 20 years. At that point, borrowers can no longer access additional funds and must begin repaying both principal and interest, which often increases the monthly payment.

Benefits of Using a HELOC
One of the biggest advantages of a HELOC is flexibility. Borrowers can use the funds for a wide range of needs, including home renovations, education expenses, emergency reserves, or debt consolidation. Because the loan is secured, HELOC interest rates are often lower than those of credit cards or unsecured personal loans. In certain situations, the interest may also be tax deductible when the funds are used for qualifying home improvements, but homeowners should consult a tax professional for guidance.
Important Risks to Consider

While a HELOC can be a valuable financial tool, it is not without risk. Since the loan is tied to your home, missed payments could potentially lead to foreclosure. Variable rates can also create uncertainty, especially during the repayment period. Additionally, borrowing more than you can comfortably repay may create long term financial strain and impact your overall stability.

A HELOC can be a smart option for homeowners who want access to funds while leveraging their home equity, but it requires careful planning and responsible use. By understanding the structure, repayment timeline, and potential risks, borrowers can make informed decisions and use this financing tool effectively as part of a long-term financial strategy.

What Homebuyers Need to Know About Mortgage Interest Rates and APR

February 5, 2026 by Coleen TeBockhorst

When applying for a mortgage, borrowers are often presented with several important numbers that determine the true cost of the loan. Two of the most discussed figures are the mortgage interest rate and the annual percentage rate, also known as APR. While these terms are closely related, they are not the same. Understanding the distinction between interest rate and APR is essential for comparing loan offers accurately and making informed financial decisions.

What a Mortgage Interest Rate Represents
The mortgage interest rate is the percentage a lender charges for borrowing money. This rate is applied directly to the loan principal and determines how much interest you will pay over the life of the mortgage. For example, a $300,000 loan with a 5% interest rate means the borrower will pay interest based on that percentage each year. The interest rate is the foundation of your monthly mortgage payment, but it does not include other loan related costs.

What APR Tells You About the Total Loan Cost
APR provides a broader view of what a mortgage truly costs. It includes not only the interest rate, but also many of the additional fees that may be required to obtain the loan. These costs can include loan origination fees, discount points, private mortgage insurance when applicable, and certain closing costs such as appraisal or title services. Because APR reflects both interest and fees, it is typically higher than the advertised interest rate.

Why Understanding Both Numbers Matters
Interest rate and APR serve different purposes. The interest rate tells you the direct cost of borrowing the loan amount, while APR helps you understand the full cost of the mortgage when fees are included. Two lenders may offer the same interest rate, but one loan could be significantly more expensive because of higher upfront charges. Comparing APR can help buyers identify which loan offer is truly more cost effective over time.

Borrowers should review both the interest rate and APR when evaluating mortgage options. Taking the time to compare multiple offers, ask questions, and understand the full cost structure of a loan can lead to stronger financial outcomes and more confident homeownership decisions.

What Every Homebuyer Needs to Know About Mortgage Origination Fees

February 4, 2026 by Coleen TeBockhorst

Buying a home is an exciting milestone, but it also comes with important financial details that can feel overwhelming. Along with your down payment and monthly mortgage payment, there are upfront costs that every buyer should understand before closing. One fee that often raises questions is the mortgage loan origination fee. Knowing what this fee covers and how it affects your overall loan costs can help you feel more confident throughout the mortgage process.

What Is a Mortgage Loan Origination Fee
A mortgage loan origination fee is an upfront charge from a lender for processing and underwriting your mortgage application. This fee helps compensate the lender for the work involved in evaluating your financial profile, verifying documentation, and preparing your loan for approval. Origination fees are one of the standard closing costs buyers may see listed on their loan estimate.

Why Do Origination Fees Exist
Origination fees exist because lenders invest time and resources into issuing a mortgage. From reviewing your credit history to confirming income, assets, and employment, the lender takes on operational costs and financial risk when providing a home loan. The fee helps cover those services and supports the overall lending process.

How Origination Fees Are Typically Calculated
Origination fees are usually calculated as a percentage of the total loan amount. Most lenders charge between 0.5% and 1.5%, depending on the loan program and borrower qualifications. For example, a $200,000 mortgage with a 1% origination fee would result in a $2,000 charge at closing. The exact amount can vary, so it is important to review your loan estimate carefully.

Tips for Managing Mortgage Origination Fees
Homebuyers can often reduce costs by comparing multiple lender offers. Different lenders may structure origination fees differently, even when interest rates appear similar. Shopping around helps ensure you find the most competitive option for your financial situation.
Negotiation may also be possible. While some fees are fixed, others may have flexibility depending on lender policies and market competition. Having quotes from other lenders can provide valuable leverage when discussing loan terms.

Some borrowers also choose to pay discount points, which are upfront costs used to lower the interest rate. While points are separate from origination fees, understanding the difference can help you decide whether paying more upfront could lead to savings over the life of the loan.

Understanding mortgage origination fees is an important step in becoming a well prepared homebuyer. By knowing what the fee covers, how it is calculated, and what options you have to manage it, you can make smarter decisions during the mortgage process. Taking time to compare lenders, ask questions, and review your loan documents carefully will help ensure a smooth and financially sound path to homeownership.

5 Financial Signs You Are Ready to Qualify for a Mortgage

February 3, 2026 by Coleen TeBockhorst

Purchasing a home is one of life’s biggest milestones, but before you start touring properties, it is important to know whether you are financially prepared to qualify for a mortgage. Many buyers wonder if they are truly ready from a lender’s perspective or if they should spend more time strengthening their finances. Mortgage readiness is not about being perfect, it is about having the right financial foundation in place. When several key indicators align, you can move forward with greater confidence and clarity.

You Have Consistent, Verifiable Income
Mortgage lenders look for steady and reliable income as one of the first qualifications for loan approval. Whether you are salaried, hourly, self-employed, or commission based, the goal is to show consistency over time. Most lenders prefer a stable income history of at least 2 years, or a new position within the same field. Reliable earnings demonstrate your ability to handle long-term monthly mortgage obligations.

Your Credit Profile Is Strong or Improving
Your credit plays a major role in your mortgage eligibility and interest rate. A strong credit history signals responsible financial behavior, which helps lenders determine risk. Paying bills on time, keeping credit card balances low, and avoiding new debt before applying can strengthen your score. Even if your credit is still improving, upward progress is a positive sign that you are moving closer to qualification.

You Have Funds for More Than Just the Down Payment
A mortgage requires more than just a down payment. Buyers should also plan for closing costs, prepaid expenses, moving costs, and post purchase reserves. Lenders often like to see that you have savings available after closing, sometimes referred to as cash reserves. Having at least 1 to 2 months of living expenses set aside provides financial security and shows strong readiness.

Your Budget Supports the Full Monthly Mortgage Payment
Being mortgage ready means you can comfortably afford your total housing payment, not just the loan principal and interest. A full monthly payment includes property taxes, homeowners insurance, mortgage insurance if applicable, utilities, and ongoing maintenance. Mortgage professionals often review this through affordability ratios, ensuring your payment fits within a stable budget without financial strain.

Your Debt-to-Income Ratio Is Manageable
You do not need to be debt free to qualify for a mortgage, but manageable debt is essential. Lenders calculate your debt-to-income ratio by comparing your monthly debt obligations to your gross income. Lower credit card balances, limited installment debt, and responsible repayment habits can improve your mortgage approval chances. Reducing high interest accounts or consolidating debt can make a significant impact before applying.

Mortgage readiness is not just about the numbers, it is about financial stability, strong habits, and confidence in your ability to sustain homeownership long term. When your income is consistent, your credit is healthy, your savings are prepared, and your debt is under control, you are in an excellent position to take the next step toward mortgage approval and homeownership success.

What’s Ahead For Mortgage Rates This Week – February 2nd, 2026

February 2, 2026 by Coleen TeBockhorst

While many were optimistic about an additional rate cut, the Federal Reserve has decided to maintain current interest rates pending further data. They have previously stated that at least one more rate cut would follow the last one, but their stance now appears to depend on the availability of sufficient supporting data.

Recent Core PPI reports have also been released, and the data conflicted with earlier CPI and non-core PPI reports. The reports showed that inflation for producers along major production pathways has increased more than expected. This is likely to result in a noticeable increase in wholesale prices across the board.

Additionally, despite the policy intentions behind the tariffs, the trade deficit has remained firmly elevated amid recent policy changes. It is unlikely that even more significant tariff adjustments will lead to a narrowing of the trade deficit. Consumer confidence has also declined for another consecutive week, despite the economy continuing to show signs of strength.

Core PPI
The cost of wholesale goods and services rose sharply at the end of last year, underscoring that the battle against inflation is far from over as President Donald Trump names his pick for chair of the Federal Reserve. Producer prices jumped 0.5% in December, an index published by the government showed. The report was delayed by the government shutdown last fall.

Trade Deficit
The trade deficit fell a few months ago to a 16-year low, but it was fool’s gold. The U.S. is still running a trade gap near historically high levels. In November, the deficit almost doubled to $56.8 billion from just $29.2 billion in October.

Consumer Confidence
The stock market keeps hitting record highs, unemployment is low and the economy is growing surprisingly fast, but Americans were in a foul mood as the new year got under way. A long-running survey of consumer confidence fell in January to a 12-year low, dipping below even the worst readings during the pandemic.

Primary Mortgage Market Survey Index

15-Year FRM rates saw an increase of 0.05%, with the current rate at 5.49%
30-Year FRM rates saw an increase of 0.01%, with the current rate at 6.10%

MND Rate Index

30-Year FHA rates saw a decrease of -0.06%, with current rates at 5.79%
30-Year VA rates saw a decrease of -0.06%, with current rates at 5.81%

Jobless Claims
Initial Claims were reported to be 209,000 compared to the expected claims of 205,000. The prior week landed at 210,000.

What’s Ahead
Unemployment Data, Consumer Credit, and U.S. Hourly Wages are set to release next week, with an additional Consumer Sentiment report by the Univ. of Michigan.

Tips to Remember When Shopping for a New Home Loan

January 30, 2026 by Coleen TeBockhorst

Finding a new home loan can seem challenging, but if you take the proper steps before you start applying for loans, you’ll have no difficulty finding a mortgage that works for you and a lender that would love to have you as a borrower. Shopping for a mortgage isn’t like shopping for a couch, and there’s a lot that goes into the process.

So how can you shop for your new home loan in a way that saves you time and gets you the best loan for your needs? Here’s what you need to know.

Research Loan Types
A lot of home buyers, especially first-time buyers make the mistake of not doing their research and not asking enough questions. A fixed-rate mortgage isn’t right for every homebuyer. Neither is an adjustable-rate mortgage. If you plan to stay, put in a home to raise a family, you might consider a 30-year loan.

Conversely, if you’re moving in 10 years or less, an adjustable-rate mortgage, or ARM, could better suit you. It’s advised that you research loan types then prepare a list of questions to ask your mortgage agent to ensure you select the loan that’s best for you.

Get Pre-Qualified Before You Start Looking
It can be tempting to start looking for mortgages online and start seeing what kinds of rates and limits you can afford, but if you start your mortgage hunt with Internet window-shopping, you may end up sorely disappointed. A pre-qualification is a vital first step that can help you to find the mortgage that works best for you. With a pre-qualification, you’ll have a good idea of what you can reasonably afford to spend on a home, so you won’t waste time viewing homes that are outside of your price range.

Hold Off On Major Life Changes Until You Have Your Mortgage
Once you’ve been pre-qualified and pre-approved, the next step is the approval process, the part of the process where the lender you’ve chosen evaluates your application and decides whether or not to lend to you. One mistake that a lot of homebuyers make is allowing significant changes in their income to happen during the approval process. If you quit your job to start a business, or if you go down to part-time hours so you can spend more time with the kids, your lender will need to start the approval process again with your new financial information in mind, so hold off on any big changes until you’ve been approved.

Finding a new home loan can seem like a challenge, but a qualified mortgage advisor can help. Contact your local mortgage professional to learn more.

Why Co-Signing a Car Loan Can Affect Your Mortgage Application

January 29, 2026 by Coleen TeBockhorst

Co-signing a car loan may seem like a small favor for a family member or friend, but many homebuyers do not realize how much it affects their own mortgage approval. Even if you never drive the car, never make a payment, and never see the vehicle, the loan becomes legally and financially tied to you. Understanding how co-signing affects your credit, your debt, and your loan options can help you protect your mortgage eligibility.

Know How a Co-Signed Loan Shows Up on Your Credit Report
When you co-sign a car loan, the lender reports the account to the credit bureaus under your name as well as the primary borrowerís name. This means the loan appears on your credit report exactly as if it were your own. Lenders see you as legally responsible for the full balance, not just a backup payer. Even if the primary borrower pays on time every month, the loan still becomes part of your financial picture and affects how lenders evaluate your profile.

Understand How Co Signing Impacts Your Debt-to-Income Ratio
Your debt-to-income ratio plays a major role in mortgage approval because it shows how much of your income goes toward existing debt. A co-signed car loan adds the full monthly car payment to your debt load, even if someone else is making the payment. This can reduce your borrowing power, limit your loan options, or even lower the amount you qualify for. Lenders must count the payment unless you meet strict documentation rules proving someone else has paid it consistently.

Consider the Risk of Late Payments by the Primary Borrower
When you co-sign, your credit is linked to the borrowerís payment habits. If they pay late, your credit score drops as well. If they miss payments, the debt becomes delinquent on your report. These negative marks can make mortgage approval more difficult and may lead to higher interest rates. Since you cannot control someone elseís financial behavior, co-signing always carries the risk of sudden, unpredictable damage to your credit.

Know When Lenders Can Exclude the Payment
Some lenders may exclude the co-signed car payment from your debt-to-income ratio, but only with very specific proof. You must show that the primary borrower has made the last twelve months of payments directly from their own account with no involvement from you. Without that documentation, lenders must count the full payment as your responsibility. This makes good record keeping essential if you have already co-signed.

Protect Your Mortgage Plans Before You Co Sign
If you are planning to buy a home soon, think carefully before agreeing to co-sign. A car loan can reduce your buying power, raise your rate, or delay your home purchase. If you have already co-signed, pay close attention to the borrowerís payment habits and keep clear records. The more proactive you are, the smoother your mortgage process will be.

Co-signing may help someone you care about, but it can also create challenges during mortgage approval. By understanding the risks and planning ahead, you can protect your credit, maintain your borrowing power, and move toward homeownership with confidence.

Mortgage Tips for Recent Graduates Entering the Workforce

January 28, 2026 by Coleen TeBockhorst

Starting your career is an exciting milestone, and for many recent graduates, the idea of becoming a homeowner feels closer than ever. While student loans, new job transitions, and building credit can make the mortgage process feel overwhelming, you have more options and advantages than you may realize. With the right preparation, you can move toward homeownership confidently and avoid common first-time buyer mistakes.

Understand How Your New Income Plays a Role
Lenders want to see stable and predictable income, and recent graduates often worry that a new job will make that difficult. The good news is that most lenders allow recent graduates to qualify using their new employment contract or job offer. As long as you can show future income and the job is related to your degree or training, you may qualify sooner than expected. This makes planning ahead essential and gives you a head start on the homebuying timeline.

Start Building and Strengthening Your Credit Early
Credit becomes one of the most important factors when applying for a mortgage. Even if you do not have long credit history, you can begin building it with responsible habits. Keep credit card balances low, pay bills on time, and avoid opening multiple new accounts at once. A few months of smart credit behavior can make a meaningful impact. Higher credit scores often lead to lower interest rates, which saves you money over the life of your mortgage.

Creating a Realistic Budget Based on Your New Lifestyle
Your budget as a student and your budget as a working professional are completely different. When planning for a home purchase, look at your take home income and create a housing budget that fits comfortably within it. Include not only the mortgage payment, but also utilities, transportation, food, insurance, and savings goals. A clear budget helps you understand how much home you can afford and prevents financial stress once you move in.

Explore First Time Buyer Programs Designed for New Professionals
Recent graduates often qualify for programs that reduce the upfront cost of buying a home. Down payment assistance, low down payment loans, and state or local first-time buyer programs can make homeownership more affordable. Some employers even offer housing benefits or credits for new employees. Researching these options early helps you take advantage of valuable support that many graduates do not even know exists.

Start Saving With a Purpose
Even small, consistent savings can create momentum toward homeownership. Set aside a portion of each paycheck for a down payment, closing costs, or future home expenses. Building a savings habit early gives you flexibility when you are ready to buy and helps you avoid reliance on high interest debt. The goal is not perfection, it is consistency.

Entering the workforce is the perfect time to start preparing for your first home. By focusing on credit, income, budgeting, and available programs, you can move confidently toward homeownership and turn your early career years into a strong financial foundation.

« Previous Page