Blog – CTeBockhorst's Blog

Sweet Loans for Every Taste: Which Mortgage Treat Is Right for You?

May 29, 2025 by Coleen TeBockhorst

Let’s face it, picking the right mortgage can feel overwhelming. But what if we made it more fun? Think of home loans like candy bars: each one has a distinct flavor, a specific audience, and its own perfect time and place. Whether you’re buying your first home, building your dream house, or tapping into retirement equity, there’s a mortgage match made just for you.

So let’s have a little fun with this sweet comparison…

FHA Loan – Milky Way
Smooth, classic, and made for first-timers.
FHA loans are the Milky Way of the mortgage world, soft, reliable, and oh-so-comforting. Designed for buyers with lower credit scores or smaller down payments, they’re ideal for those just starting their homeownership journey. With as little as 3.5% down and more lenient qualification standards, FHA loans are the classic comfort treat that helps many get a taste of homeownership.

VA Loan – PayDay
Salty, sweet, and packed with benefits for our heroes.
Just like a PayDay bar, VA loans combine rich rewards with a solid core. Exclusively available to eligible veterans, active-duty service members, and some surviving spouses, these loans offer zero down payment, no private mortgage insurance (PMI), and competitive interest rates. It’s a well-deserved treat for those who’ve served.

USDA Loan – 3 Musketeers
Light, fluffy, and built for the rural dream.
USDA loans are like the airy 3 Musketeers bar, light on the budget, heavy on the benefits. Designed for eligible rural and suburban areas, these loans offer no down payment and low interest rates, making them ideal for buyers dreaming of more space and a slower pace.

Conventional Loan – Snickers
Tried and true. Satisfies almost every situation.
You can’t go wrong with a Snickers, and the same goes for conventional loans. Whether you’re a seasoned buyer or refinancing, conventional loans are flexible, widely accepted, and perfect for those with strong credit and stable income. They’re the all-around winner that works for most situations.

Non-QM Loan – Twix
A little unexpected, flexible, and full of surprises.
Non-QM (Non-Qualified Mortgage) loans are for the out-of-the-box borrowers. Like a Twix, they offer a bit of a twist, great for self-employed individuals, investors, or anyone with unique financial documentation. They aren’t bound by traditional rules but still satisfy your financing needs with flair.

1099 Loan – Butterfinger
Crunchy and built for self-employed hustlers.
Independent contractors and gig workers, this one’s for you. Just like a Butterfinger, a 1099 loan has that extra crunch and texture—meant for those who don’t fit into W-2 boxes. If you’ve got income from contracts, freelancing, or side hustles, this loan keeps things sweet and flexible.

Bank Statement Loan – Hershey’s Cookies ‘n’ Creme
Smooth but with all the necessary chunks (of proof!).
Forget pay stubs, bank statement loans are here for the entrepreneurs and business owners who prove income through deposits. Like a Hershey’s Cookies ‘n’ Creme bar, it’s a smooth solution with bits of evidence baked in. This one’s all about showing your worth in your own unique way.

Reverse Mortgage – Werther’s Original
Classic, comforting, and perfect for the golden years.
Just like those timeless golden candies, reverse mortgages are made for homeowners 62 and older who want to tap into their home’s equity without leaving the house they love. It’s about adding sweetness and security to retirement with no monthly mortgage payments.

Construction Loan – Kit Kat
Break it down, build it up, layer by layer.
If you’re building a home from the ground up or taking on a major renovation, the construction loan is your Kit Kat. It’s structured, strategic, and all about financing your home in phases. With each stage of building funded in steps, this loan breaks down big dreams into manageable bites.

Find Your Flavor, Find Your Fit
Just like your favorite candy bar, the best loan for you is the one that suits your unique tastes, lifestyle, and goals. Whether you need something soft and simple or layered and bold, there’s a mortgage treat waiting to be unwrapped.

Let’s talk sweets… I mean, solutions! 🙂

Message us anytime, and let’s find the right loan to satisfy your homebuying cravings.

Is Owner Financing Your Home the Smartest Move?

May 28, 2025 by Coleen TeBockhorst

Owner Financing Your Home Deciding to sell your home can feel overwhelming, especially when you want to maximize profit and close quickly. One strategy gaining popularity is owner financing (also known as seller financing). But is it right for you? Let’s discuss how it works, when to consider it, and the key factors every seller should weigh.

Why Buyers Ask for Owner Financing

Most buyers secure a mortgage through a bank or credit union. When a prospective purchaser requests you to carry their loan, ask yourself:

Credit Constraints: Do they lack sufficient credit history or have a low credit score?
Down Payment Challenges: Are they unable to come up with the typical 10–20% down payment?
Unique Loan Needs: Are they self-employed, retired, or otherwise outside conventional underwriting guidelines?

If a buyer can’t obtain traditional financing, owner financing may open the door to more offers and potentially at a higher interest rate.

Evaluating Your Risk

Before you agree to seller financing, get crystal clear on your own financial standing:

Existing Mortgage Payoff
Unless you own the property outright, you must pay off any outstanding mortgage when the sale closes. If you cannot and don’t have enough in reserves, you may not be able to extend the financing.
Monthly Cash Flow
In the event of default, can you afford the monthly payment on your former home? Ensure you have a plan (or an escrow cushion) to cover the mortgage if you need to reacquire the property.
Interest & Terms
Seller financing typically commands a higher interest rate than a bank loan. This can boost your long-term returns, but be sure to set clear amortization schedules, late-payment penalties, and balloon payment dates.

Structuring a Win-Win Deal

If you own your home free and clear, you have more flexibility:

Partial Financing: Offer to carry 20–30% of the purchase price, with the buyer obtaining a conventional loan for the remainder. After 12–24 months of on-time payments, they can refinance the balance and send you a lump-sum payoff.
Full Financing: You act as the bank for the entire sale price. The buyer makes monthly payments (with interest) to you directly. This creates a passive income stream but requires careful vetting and clear contractual terms.

Always work with a skilled real estate attorney to draft a compliant promissory note and mortgage (or deed of trust). A professional agent can help screen buyers, verify incomes, and coordinate appraisals.

Benefits & Risks at a Glance

Benefits

Faster sale in a slow market
Potentially higher interest income
Access to a wider pool of buyers
Reduced carrying costs if you’ve paid off

Risks

Responsibility for property upkeep
Complexity of loan servicing
Buyer default leading to foreclosure
Responsibility for property upkeep

Owner financing isn’t for every seller, but for the right situation, it can be a powerful tool to accelerate your sale and increase profits. Do your homework:

Crunch your numbers: payoff, reserves, and projected returns.
Consult a real estate attorney to draft airtight documents.
Partner with an experienced agent to market and screen buyers.

Let’s discuss whether seller financing aligns with your goals and structure a deal that works for you and your buyer. Reach out today and unlock a smarter way to sell your home!

What’s Ahead For Mortgage Rates This Week – May 27th, 2025

May 27, 2025 by Coleen TeBockhorst

Despite the recent pause on tariffs for Europe and progressing talks with China, the economic outlook remains largely negative across all sectors and markets. Although this week was relatively light on economic reports, the most notable was the Leading Economic Indicators, which showed a significant decline in every measurable category for April. This decline is largely attributed to the tariff policies implemented recently. Overall, the outlook remains pessimistic, despite other markets showing a more favorable reaction to the recent pauses on tariffs.

U.S. Leading Economic Indicators

The Conference Board Leading Economic Index (LEI) for the US fell sharply by 1.0% in April 2025 to 99.4 (2016=100), after declining by 0.8% in March (revised downward from the -0.7% originally reported). The LEI declined by 2.0% in the six-month period ending April 2025, the same rate of decline as over the previous six months (April–October 2024).

“The U.S. LEI registered its largest monthly decline since March 2023, when many feared the US was headed into recession, which did not ultimately materialize,” said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board. “Most components of the index deteriorated. Notably, consumers’ expectations have become continuously more pessimistic each month since January 2025, while the contribution of building permits and average working hours in manufacturing turned negative in April.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw an increase of 0.09% for this week, with the current rate at 6.01%
• 30-Yr FRM rates saw an increase of 0.05% for this week, with the current rate at 6.86%

MND Rate Index

• 30-Yr FHA rates saw an increase of 0.18% for this week. Current rates at 6.53%
• 30-Yr VA rates saw an increase of 0.17% for this week. Current rates at 6.54%

Jobless Claims

Initial Claims were reported to be 227,000 compared to the expected claims of 230,000. The prior week landed at 229,000.

What’s Ahead

PCE Index data release, the Federal Reserve’s inflation indicator, the FOMC minutes giving us forward guidance for the Federal Reserve’s policy, and Univ. of Michigan Consumer Sentiment will be the most impactful releases of next week.

Honoring Our Heroes and Celebrating the Meaning of Home

May 26, 2025 by Coleen TeBockhorst

This Memorial Day, we pause to remember the brave men and women who gave their lives in service to our country. Their courage, sacrifice, and commitment to freedom have made it possible for all of us to pursue our dreams, including the dream of home ownership.

What Home Truly Means
Home is more than four walls and a roof, more than a place to lay your head at night, it is where memories are made, milestones are reached, and futures are built. It is the front porch where your friends and neighbors gather, the backyard where barbecues bring families together, and the neighborhood that welcomes you. None of that would be possible without the dedication of those who fought to preserve our freedom.

Our Role in Building Dreams
In both the real estate and mortgage world, we have the privilege of helping individuals and families find a place to call home, a place they can grow, thrive, and live out the freedom so many fought to protect.

With Gratitude to the Families
On this solemn day, we also extend our deepest gratitude to the families of fallen heroes. Your strength and sacrifice do not go unnoticed. As we help our clients find homes and build futures, we carry that gratitude with us in everything we do.

Support for Those Who Serve
If you or someone you know is a veteran or active-duty service member, don’t forget there are special mortgage programs available to make homeownership more accessible. It’s one small way we can give back to those who have given so much.

Looking Ahead with Purpose
This Memorial Day, as we honor the past, we also look forward to helping build a future, one home, one family, and one dream at a time.

Wishing you peace, reflection, and time with loved ones on this Memorial Day holiday.

How Much Down Payment Do You Need for a Mortgage When Buying a Home?

May 23, 2025 by Coleen TeBockhorst

If you’re considering buying a home, you’re likely wondering how much you’ll need for a down payment. The common belief is that you need to put down 20% of the home’s purchase price, but that’s not the only option and in many cases, it’s not even necessary.

Let’s break down what’s really required and explore your choices.

The Traditional 20% Rule
Traditionally, lenders prefer a 20% down payment. Why? Because it lowers their risk. If you’re purchasing a $200,500 home (the national median sales price), that is a down payment of $40,100. Understandably, many buyers, especially first-timer, struggle to save that much cash.

The good news is that a 20% down payment isn’t always required to qualify for a mortgage.

Low Down Payment Options
There are a number of loan programs that allow you to purchase a home with less than 20% down. For example:

FHA Loans typically require as little as 3.5% down.
Conventional Loans can offer down payments as low as 3%, depending on your credit score and financial profile.
VA Loans (for eligible veterans and military members) and USDA Loans (for certain rural areas) may require no down payment at all.

These programs are designed to make homeownership more accessible, especially for first-time buyers or those who qualify based on service or location.

The 80/20 Option
Another structure, though less common today, is the 80/20 loan. This involves taking out two mortgages: one for 80% of the home’s value, and a second, typically smaller loan for the remaining 20%. The benefit? No down payment is required upfront. However, the second loan usually comes with a higher interest rate, which can lead to higher monthly payments.

The 100% Financing Option
While 100% financing is harder to find due to tightened lending regulations, some lenders still offer it under specific conditions. These loans don’t require a down payment, but often come with:

Higher interest rates
Mandatory private mortgage insurance (PMI), which protects the lender
Stricter credit and income requirements

PMI is typically added to your monthly mortgage payment and continues until you’ve built at least 20% equity in the home.

The Trade-Off of No Down Payment Loans
While zero-down loans make it easier to buy a home sooner, they also come with trade-offs. You may qualify for a smaller loan amount, face higher monthly payments, and pay more in interest over time. In contrast, a larger down payment reduces your loan balance, improves your interest rate, and lowers your monthly payments.

If saving for a down payment feels overwhelming, don’t let that stop your homeownership goals. There are many programs available to help. Work with a loan officer who can help you explore the options that best match your financial situation and long-term goals.

Whether you’ve saved 3%, 10%, or the full 20%, there’s likely a mortgage option out there that fits your needs.

What To Do When Your Mortgage Loan is Declined

May 22, 2025 by Coleen TeBockhorst

Getting turned down for a mortgage can be discouraging, but it doesn’t mean the dream of homeownership is over. In fact, understanding why your application was declined is the first step toward making a stronger comeback. Let’s look at some of the most common reasons a mortgage might be denied and what you can do about it.

1. Loan-to-Value (LTV) Ratio
Your loan-to-value ratio is the percentage of the property’s appraised value that you want to borrow. For instance, if you’re buying a $300,000 home and requesting a $270,000 loan, your LTV is 90%.

Lenders typically prefer a lower LTV because it means you’re less of a risk. If your LTV is too high, consider increasing your down payment or looking into mortgage insurance. While mortgage insurance adds to your monthly cost, it can be a path to loan approval in some cases.

2. Debt-to-Income (DTI) Ratio
Your debt-to-income ratio compares your monthly debt payments to your gross monthly income. If you’re using too much of your income to cover existing debts, such as credit cards, car loans, or student loans as it can raise a red flag for lenders.

A general rule of thumb is to keep your total DTI ratio under 43%, though the lower, the better. If your DTI is too high, you may need to reduce your debt before reapplying. Paying off credit cards or consolidating loans can help lower this number.

3. Credit Challenges
Poor credit or no credit can significantly impact your ability to get a mortgage. Late payments, collections, or a limited credit history make it harder for lenders to assess your reliability.

If this is the case, take time to repair your credit. Pay all bills on time, reduce outstanding balances, and consider using secured credit cards to rebuild your profile. For those with little credit history, lenders may look at alternative data, like on-time rent or utility payments, to assess your reliability.

4. Incomplete Documentation or Employment Issues
Sometimes, a loan is denied simply because the paperwork wasn’t complete, or income and employment history couldn’t be verified. Make sure you’re providing accurate, complete information. If you’re self-employed, you may need additional documentation to prove consistent income.

5. The Property Itself
Occasionally, it’s not your finances that are the problem, it is the property. If the appraisal comes in low or there are issues with the condition of the home, the loan may be denied.

In that case, you might be able to renegotiate the purchase price, ask the seller to make repairs, or walk away and find a property that meets lending standards.

Don’t Give Up!
A mortgage denial doesn’t mean you can’t buy a home. It just means you might need to make a few changes and try again. Talk to your loan officer about what went wrong and how to fix it. With the right guidance, you’ll be better prepared for approval next time, and one step closer to the keys to your future home.

Pet-Friendly Mortgages And How Owning Pets Could Affect Your Loan Choices

May 21, 2025 by Coleen TeBockhorst

We love our pets, they are part of the family. But did you know that your furry (or feathered) friend could play a surprising role in your homebuying journey? While your dog probably will not impact your credit score, being a pet owner can influence where and how you buy a home, and even the type of loan you choose.

As a mortgage originator, I have worked with many clients who did not realize their pets could affect everything from HOA rules to homeowners’ insurance policies. Here is what you need to know before you start the house hunt with your pet in tow.

1. HOA Restrictions Can Limit Your Options
If you are buying a home in a neighborhood governed by a homeowners association (HOA), it is crucial to review their rules regarding pets. Some HOAs have strict regulations about:

The number of pets you can have
Breed and weight restrictions, especially for dogs
Leash and noise policies
Exotic pet bans (such as reptiles, birds, or rodents)

Violating these rules can result in fines, or worse, being forced to rehome your pet. Always request the full HOA guidelines before submitting an offer on a property, and make sure the community is truly pet-friendly.

2. Insurance Matters, Especially for Certain Dog Breeds
Homeowners insurance providers often have breed-specific restrictions that could impact your coverage. Breeds considered “high-risk” by some insurers (like Rottweilers, Dobermans, or Pit Bulls) may result in higher premiums or denied coverage altogether.

Since most lenders require homeowners insurance before closing, this can influence your loan process. In some cases, you may need to shop around for more flexible insurance options or consider a different property altogether.

3. Pet-Proof Properties May Qualify Differently
When lenders assess a property, they consider its condition, safety, and insurability. Pet-related features like fencing, outdoor shelters, or even damage from previous pets could come under scrutiny during appraisals or inspections.

For example, if the home you are buying has excessive pet damage (like scratched floors or odor), the appraiser may lower its value. That could affect your loan-to-value ratio, and in some cases, even delay your closing.

4. Multifamily Properties and Pet Limits
Thinking of buying a duplex or triplex to live in one unit and rent the others? Be aware: pet rules often differ in multi-unit properties. Whether you are planning to house your own pets or rent to tenants with animals, check city ordinances and zoning rules first.

Lenders may also view these purchases differently, particularly if rental income is part of your loan qualification.
Your pet does not need to complicate your path to homeownership, but being informed can help you avoid surprises. As your mortgage originator, I will help you navigate these pet-related nuances to make sure your loan, insurance, and property are a great fit for everyone, paws and all.

Have questions about pet-friendly loan options or neighborhoods? Let’s chat. I’m here to guide you through the process, tail wags included.

What Your Coffee Habit Can Teach You About Paying Off Your Mortgage Faster

May 20, 2025 by Coleen TeBockhorst

As your mortgage advisor, I am not here to tell you to give up your favorite coffee, but I am here to show you how something as simple as your daily coffee run can reveal some powerful lessons about how to pay off your mortgage faster.

The Cost of Coffee and the Opportunity It Hides
Let’s say you spend $5 a day on coffee, five days a week. That is $25 a week, about $100 a month, and $1,200 a year. Over 10 years? That adds up to $12,000.

Now imagine if you took just a portion of that and applied it toward your mortgage principal instead. That small, daily choice could save you thousands in interest and shave years off your loan.

Small Choices, Big Results
You do not need to make big changes to see an impact. Something as simple as adding $100 a month to your mortgage can make a big difference. For example, on a $300,000 loan at 6%, adding $100 extra to your principal each month could save you over $38,000 in interest and help you pay off your mortgage more than five years earlier. That is your coffee habit at work, just redirected with purpose.

Create a “Mortgage Mindset”
Think about all the little expenses that sneak into your monthly budget like food delivery, unused subscriptions, extra shopping trips. These small amounts can become powerful tools when applied consistently to your mortgage.

Try automating extra payments or rounding up your monthly payment. Use your tax refund, work bonuses, or even income from a side hustle to chip away at your loan. These little decisions really do add up.

It’s Not About Deprivation, It’s About Direction
This is not about cutting all the fun out of your life. It is about being more intentional. Maybe you still enjoy your morning coffee, but cut back in another area. It is all about choosing what matters most in the long run.

Let’s Build Your Plan
As your loan originator, I’m here to help you explore strategies to pay down your mortgage faster, without feeling like you are giving everything up. Together, we can create a plan that fits your budget and brings you closer to financial freedom.

Have questions? Let’s talk. Sometimes it just takes a new perspective and a little coffee math to get you on the right path.

What’s Ahead For Mortgage Rates This Week – May 19th, 2025

May 19, 2025 by Coleen TeBockhorst

The latest inflation data has been released, offering insight into the near-term impact of the recent tariff measures. The results indicate that despite deflationary pressure on the economy, inflation continues to trend upward with the recent, ongoing tariff wars.

While the tariffs have been temporarily suspended, their effects are already being felt—consumers are experiencing price increases, and retailers have already been positioning themselves to increase prices due to the impacts of the tariff policies. While wholesale and producer inflation has seen a modest decline, this was expected as the market adjusts to the shifting economic landscape. Economists broadly predict that consumer prices will rise in the near term.

These findings reinforce what consumers have already been experiencing: sentiment has declined for the fifth consecutive month. Consumers are among the first to feel the direct effects of policy shifts.

Consumer Price Index

Consumer prices showed only a mild increase in April, but inflation probably won’t slow much further this year as the effects of the Trump trade wars ripple through the economy. The consumer-price index increased 0.2% last month, the Bureau of Labor Statistics said Tuesday, matching Wall Street expectations. Prices had posted a rare decline in March.

Price Producer Index

Wholesale prices posted the biggest drop in April, a -0.5% decline, since the pandemic in 2020, but economists say the decline in inflation appeared to be a one-off that might not be sustained if tariffs persist at current levels.

Consumer Sentiment

The University of Michigan’s popular gauge of U.S. consumer sentiment edged down to 50.8 in a preliminary May reading from 52.2 in the prior month. This is the index’s fifth straight monthly drop. Expectations for inflation spiked. Economists polled by the Wall Street Journal had expected sentiment would rise to 53.5.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw an increase of 0.03% for this week, with the current rate at 5.92%
• 30-Yr FRM rates saw an increase of 0.05% for this week, with the current rate at 6.81%

MND Rate Index

• 30-Yr FHA rates saw an increase of 0.10% for this week. Current rates at 6.35%
• 30-Yr VA rates saw an increase of 0.12% for this week. Current rates at 6.37%

Jobless Claims

Initial Claims were reported to be 229,000 compared to the expected claims of 226,000. The prior week landed at 229,000.

What’s Ahead

A very light week with the Economic Leading Indicators, Job Data, and Manufacturing PMI dotting the landscape. The leading indicators are expecting a deflationary impact.

Eco-Friendly Mortgages To Finance Green Homes

May 16, 2025 by Coleen TeBockhorst

As more homeowners seek sustainable living options, eco-friendly mortgages have become a valuable tool for financing energy-efficient homes. These specialized loans offer financial incentives to buyers and homeowners who invest in environmentally friendly properties or upgrades. Understanding how these mortgages work can help you determine if they align with your homeownership and sustainability goals.

What Are Eco-Friendly Mortgages?
Eco-friendly mortgages, also known as green mortgages, are designed to encourage energy-efficient homeownership. Lenders offer these loans to homebuyers purchasing energy-efficient properties or homeowners making upgrades to improve energy conservation. These loans often come with lower interest rates, higher borrowing limits, or flexible repayment terms as incentives for sustainable housing investments.

Types of Green Mortgages

Energy-Efficient Mortgages (EEMs) – Available for purchasing, refinancing, or renovating a home to improve energy efficiency. Borrowers can include the cost of energy upgrades in the mortgage, reducing the need for separate financing.
Green Home Loans – Specifically for buying newly built green-certified homes that meet energy efficiency and sustainability standards.
FHA and VA Energy-Efficient Loans – Government-backed mortgage programs offering additional loan amounts to cover energy-efficient improvements.

Benefits of Eco-Friendly Mortgages

Lower Utility Bills – Energy-efficient upgrades reduce electricity and heating costs.
Potential Tax Credits & Rebates – Many states and local governments offer incentives for green home improvements.
Increased Home Value – Sustainable features can make a home more attractive to buyers, potentially boosting resale value.
Lower Interest Rates & Better Terms – Some lenders provide favorable loan conditions for energy-efficient properties.

Common Green Home Improvements

Solar panels for renewable energy production.
Energy-efficient windows and insulation to reduce heating and cooling costs.
Smart home technology for better energy management.
High-efficiency HVAC systems to lower energy consumption.
Water-saving appliances to reduce waste.

Is an Eco-Friendly Mortgage Right for You?
A green mortgage makes sense if:

You are buying a certified energy-efficient home or planning upgrades.
You want to lower long-term energy costs while financing improvements.
You qualify for lender incentives such as reduced interest rates or higher loan limits.

Financing a green home through an eco-friendly mortgage not only benefits the environment but also enhances your financial well-being. If sustainability is a priority for your homeownership journey, exploring these options could be a smart investment.

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