Mortgage Talk

Jun 05, 2024Lending

On our latest episode of the Dollars and Sense Podcast, I had the chance to chat with some of our Mortgage Loan Officers on our most recent podcast. Britany and Carol joined me to talk about the current mortgage landscape and how that might impact people's mortgage decisions.  We also got to cover some topics like how you might not have a choice.

There is a phrase that has been going around in the home buying world recently: “Marry the house; Date the rate.” This basically boils down to the concept that you are going to be with this house for 10+ years.  Rates on the other hand are constantly fluctuating. The opportunity to refinance at a better rate is always a possibility.  When that time comes around, sometimes homeowners will take advantage of it purely to drop their monthly mortgage payment, and other times to adjust the term, or even to pull cash out of their Equity in order to fund a project.

In our conversation on the podcast, I did mention that I am currently sitting at a very low rate on my own mortgage, having been in a good position to refinance when we had some record low rates available.  If I had a project coming up, I wouldn’t want to refinance and lose that rate just to pull my equity.  This is where a Home Equity Line of Credit would come into play.  I could leverage the equity in my home against an open line of credit, and not have to worry about my mortgage changing.

For people who find themselves in a situation where they are in need of making a move- due to a divorce, change of income, employment relocation, or other circumstances- this mentality is a must. We don’t always get the luxury of picking and choosing our timing, but that isn’t the end of the world.

We also talked about a brilliant budgeting strategy when preparing for a new mortgage. It is possible to have a hard time visualizing the monthly effect of a large mortgage payment on your budget. You may also be shocked when you see some of the extra items that you will have to pay for beyond just the cost of the house itself. A pre-approval meeting with a qualified Mortgage Loan Officer can help you better understand your purchasing power, and the impact it will have on your day-to-day spending habits.

This is also a good opportunity to see what down payment options are available to you. If you feel like the monthly payment might be too much, putting additional money down can lower that monthly cost. You can use this time as an opportunity to get used to that new monthly expense by paying your expected mortgage to yourself. Setting the monthly amount aside in a separate account will allow you to experience the budget shift without losing access to that money if it becomes necessary, as well as setting that aside with the intent of using it to increase your downpayment.

Make sure you check out our Mortgage Talk episode of Dollars and Sense for more tips and information, and if you have any questions, reach out to a HAPO Mortgage Loan Officer!

Scott Cowan

Scott Cowan

Podcast Host | HAPO Community Credit Union



Receive regular updates on new Blog posts and Podcast episodes


Debt / Saving / Building a Budget / Loans / Mortgage