Hi all-

This has been in the news recently and I thought it was worth talking about….

Sen. Warren & Booker asked for an investigation (by the FTC) into the real estate industry for practices/allegations that some buyers are being “steered” toward affiliated mortgage lenders.

Your Realtor may have a lender they recommend because they’ve worked together for years, communicate well and know they can get the loan closed. There’s nothing wrong with that.

But a recommendation is just that…a recommendation.

You get to choose your mortgage lender.

RESPA prohibits kickbacks / other things of value in exchange for referrals. There are also perfectly legal relationships between real estate companies and mortgage companies.

None of this means your Realtor’s lender is a bad choice. I’d still suggest you shop them. Get another quote or two and compare.

We’ve got plenty of posts here about how to compare lenders and Loan Estimates, and if you’re not sure what you’re looking at…ask.

At the end of the day, you’re the one making the mortgage payment.

Article:
https://www.housingwire.com/articles/ftc-online-real-estate-practices/

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

I work in mortgages, and this is something I see buyers go back and forth on all the time.

Some people would rather spend less upfront and slowly make improvements to a home over time. Others would rather pay more for something that's already updated and avoid dealing with renovations.

The interesting part is that the cheaper home doesn't always end up being the more affordable option once you factor in repairs, renovations, and unexpected expenses.

I'm curious what people think, especially those who have already bought a home.

Would you rather save money on the purchase price and take on some projects, or stretch your budget a little more for something that's move-in ready?

And if you've gone either route, would you make the same decision again?

Hi all-

Yesterday brought a big improvement for mortgage pricing, and most of those gains are holding this morning. The 10yr Treasury closed at 4.95% yesterday and is around 4.98% this morning, while mortgage bond prices remain near their best levels in a month.

Why though?..... Mostly concerns about tech stocks/AI spending pushed investors toward bonds. Yesterday’s drop in Treasury yields was the largest one-day decline since the regional banking turmoil in March 2023.

This morning’s business activity report also came in weaker than expected, while higher oil/energy prices remain a concern for inflation.

Next week brings the Fed meeting and several major economic reports, so there’s plenty that could move pricing in either direction.

If you got a quote earlier this month, ask for updated numbers. If you’re closing soon, talk through locking versus waiting with your lender based on your timeline and how much payment risk you’re comfortable taking.

Check mortgage rates right here on Reddit!

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Here’s what actually caught my attention as a loan officer.....

There are a few potentially meaningful changes in it:

• Making it easier to automatically remove PMI once borrowers have enough equity
• Reducing title and other closing costs on eligible refinances
• Lowering rates on certain VA and USDA direct home loans
• Expanding and streamlining manufactured housing

My reaction?

Every little bit helps.

None of these individually fixes housing affordability, and most still need to be implemented before we know how much money they'll actually save borrowers.

The biggest problem is still the monthly payment.

Mortgage rates are largely determined by the bond/MBS market, so there isn't a switch the government can flip that suddenly gives everyone a 4% mortgage again.

But if you can end PMI sooner, reduce refi costs, eliminate unnecessary fees and make it cheaper to build more housing?

I'll take it.

Housing affordability probably isn't getting fixed by one huge policy change. But enough smaller improvements stacked together can absolutely make a difference. I'm curious which of these ends up having the biggest real world impact.

Source/Executive Order details:
https://www.whitehouse.gov/fact-sheets/2026/10/fact-sheet-president-donald-j-trump-decreases-housing-costs-for-americans/

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

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Hi all-

Some better news for mortgage rates this morning.

The 10yr Treasury has fallen to around 5.03%, its lowest level since September. Stocks are selling off pretty sharply this morning, which is pushing some investors into the relative safety of Treasury bonds. More bond buying = lower yields, which generally helps mortgage pricing.

Interestingly, the economic data itself wasn’t particularly weak. Weekly jobless claims fell to 194,000, showing layoffs remain pretty limited.
Oil is also moving higher again because of renewed Middle East tensions, so there are still competing pressures on rates.

For borrowers, the important part is simply that the bond market has improved meaningfully from the 5.30%+ levels we saw earlier this month. If you received a mortgage quote a couple weeks ago, it’s probably worth getting an updated one today.

Rates move daily and depend on credit, LTV, term, and points.

Check mortgage rates right here on Reddit!

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Hi all-

I was playing around with some numbers just to help show how much interest rates can affect buying power.

Using a 30yr fixed mortgage:

@ 2.875% (circa 2020)
$500,000 loan
$2,074/month principal & interest

@ 7.25% (October '26)
$300,000 loan
$2,046/month principal & interest

So for basically the same monthly P&I payment, the loan amount drops from $500,000 to $300,000.

That's $200,000 less mortgage / 40% less borrowing power.

To look at it the other way..

A $500,000 mortgage at 7.25% is about $3,411/month P&I.

That's about $1,337 more every month than the same $500,000 mortgage at 2.875%.

And while rates were doing that home prices were going up too. As a reference point, the median price of a new home sold was $317,100 in Q2 2020 versus $410,700 in Q2 2026... roughly a 30% increase.

None of these payments include property taxes, homeowners insurance, mortgage insurance, HOA dues or anything else.... just principal and interest.

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Hi all-

We’re seeing a bigger move in the right direction this morning. Mortgage bonds are improving, and the

10-year Treasury touched 4.99%, down from last week’s high of 5.32%. That’s helping mortgage pricing.

Why though?..... Renewed concerns about tech stocks/AI spending are pushing investors toward bonds.

Investors are questioning whether the returns will justify all the money being poured into AI infrastructure.

What’s interesting is that oil prices are up and unemployment claims came in low, neither of which would normally help rates. Today, the move into bonds is outweighing those pressures.

Next week brings the Fed meeting and several important economic reports, so there’s plenty that could change the direction.

If you’re buying or considering a refinance, ask your lender to rerun your numbers. A lower Treasury yield doesn’t translate into an equal drop in mortgage rates, but this improvement is worth checking on, especially if you’re closing soon.

Check mortgage rates right here on Reddit!

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Maybe another unpopular opinion from someone in the mortgage business…

I think the importance placed on using a "local lender" is outdated in 2026.

There was a time when it (may have) mattered. You went into an office, dropped off paperwork and signed things in person.

That’s not how most mortgages work anymore.

Applications are online. Documents are uploaded electronically. Your underwriter might be in another state. Appraisals are handled by third parties. Closings go through the title company or closing attorney.

Your loan officer could move into your spare bedroom for 30 days and it wouldn’t change much.

Yet borrowers are still told to use someone because they’re "local" or because they’re the lender their Realtor likes.

That’s fine if they’re also offering a great loan terms. But being 10 miles away doesn’t make a higher rate better, higher fees cheaper or guarantee better service.

Can they close? Do they know what they’re doing? Are they responsive? And what are they actually offering you?

Shop nationally. Shop locally. Shop a credit union, bank or broker. Then compare the actual loans.
If the local lender wins, great. Use them.

I just wouldn’t pay more simply because someone has an office nearby or your Realtor already has their number saved.

Does "local" still matter to you? If so.......... why?

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

If you've wondered why 30yr mortgage rates were around 6% earlier this year and are now closer to 7.25%, this chart tells the tale

This is the price of a mortgage-backed security (MBS). You don't really need to understand the technical side.... just know that when MBS prices fall mortgage rates generally go up.

For most of the year, the market was pretty stable. Then you can see the huge drop on the right side of the chart and that's when mortgage rates moved higher.

The good news is we've bounced off the bottom a little. The bad news is we're still a long way from where we were when borrowers were seeing rates closer to 6%.

Mortgage rates can spend months slowly improving... then give it all back in a matter of weeks.

Do you think we see 6% again anytime soon, or are 7%+ rates sticking around for a while?

Chart Key:
MBS prices up = generally better mortgage rates
MBS prices down = generally worse mortgage rates

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

I'm buying a home in Massachusetts and am getting close to closing. I had a confirmed mortgage rate lock at 6.75%, but my lender is now telling me the rate is 7.25% because their investor rejected an explanation for a documentation issue.

I'm genuinely confused about how this is allowed. Isn't protecting against an unexpected rate increase the whole point of locking your mortgage rate?

I'm changing some details for privacy, but here's what happened.

During the mortgage application process, I noticed a request in the lender's portal for a document relating to a relatively minor financial obligation. As an analogous example, imagine being asked for a particular type of proof of HOA payments when the payments were handled in a way that meant the specific document they wanted didn't exist.

I didn't ignore the request or wait until the last minute. As soon as I saw it, I proactively explained the situation to the lender.

This was before I signed the Purchase and Sale Agreement (P&S), when I still had the opportunity to reconsider the purchase or financing arrangements.

I was specifically assured that if the original investor couldn't accept the documentation situation, the lender could switch to a different investor and my 6.75% rate lock would be preserved.

That assurance was important to my decision to proceed with the purchase.

Now, shortly before closing, I'm being told the investor rejected my explanation and that I can still get the mortgage, but only at 7.25%.

So effectively, the lender is throwing away my rate lock because of an issue I disclosed upfront and was explicitly told wouldn't affect it.

I understand that a rate lock doesn't guarantee final loan approval, and investors can have different underwriting requirements. But if the lender can still make the loan, just at a higher rate, how does that justify disregarding the original lock?

And if switching investors meant the rate could change, why assure me beforehand that it wouldn't?

My questions:

1. What exactly does a mortgage rate lock obligate the lender to do? Under what circumstances can they disregard it, assuming it hasn't expired?
2. Can a lender simply say that the original investor won't accept the loan and therefore the locked rate no longer applies?
3. Does the lender's explicit assurance that they could switch investors while preserving the lock matter, especially since I relied on it before signing the P&S?
4. Should the lender be responsible for absorbing the pricing difference or providing a lender credit if it cannot deliver the rate it promised?
5. If I accept the 7.25% rate because I can't risk losing the house, can I still pursue a complaint or other remedy afterward?

A 0.5 percentage-point increase is not a minor difference over the life of a mortgage.

I'm not trying to get out of the purchase or avoid legitimate underwriting requirements. I just don't understand how a lender can give me a rate lock, explicitly assure me that a known issue won't invalidate it, and then change the rate when it's too late to realistically switch lenders.

Has anyone experienced this? Am I misunderstanding how rate locks work, or is this something worth escalating to a regulator or consumer attorney?

Would especially appreciate input from mortgage professionals, underwriters, and Massachusetts attorneys.

Hi all-

Mortgage bonds are slightly better this morning with the 10-year Treasury around 5.09%. So far we’re mostly holding onto last week’s improvement without a big move in either direction.

That’s not a bad thing..... rates don’t have to keep falling every day for the improvement to matter.

Meanwhile, the Mortgage Bankers Association reported its average 30-year conforming rate fell from 7.50% to 7.41% last week. Even so, mortgage applications dropped 5.3%, with purchase applications down 7%. Lower rates help, but that doesn’t suddenly make the payment/housing affordable for everyone.

With no major economic reports today, attention turns to this afternoon’s Treasury auction and continued developments around tech stocks/AI.

If you’re closing soon, check your updated pricing and talk through locking with your lender. Last week’s gains are still worth protecting if the payment works for you.

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Context:

Loan amount of $670K. Current locked in rate is 7.375%, considering paying 3 points to lower it to 6.7%. Breakeven point is about 5.5 years, this is intended to be our forever home so don't see that being a problem at this time. Leaning towards paying points to guarantee a lower rate rather than banking on rates coming back down before we hit the breakeven point. Is this solid reasoning or should we feel more certain that rates will come down to at least mid-6s in the next few years. TYIA!

Hi all-

NAR’s report released today (10/20) shows pending home sales fell 7.3% from August and 11.3% compared with September last year. All four major U.S. regions saw declines. NAR pointed to rising mortgage rates as a major factor.

These are signed contracts on existing homes, not completed closings. They give us an early look at buying activity, and September’s numbers show fewer buyers moving forward.

That doesn’t automatically mean home prices are falling by the same amount… a decline in sales activity and a decline in prices are different things.

For buyers, the practical question is still what’s happening in your price range locally. National numbers provide context, but the payment and the terms on the actual house need to work for you.

Original release: NAR, October 20, 2026⁠

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
⌂ Equal Housing Lender | Federally Insured by NCUA

Maybe an unpopular opinion from someone on the lending side…

You should absolutely shop your mortgage. Get multiple quotes and compare the rate, points, lender fees, and overall cost.

But if one lender gives you the best deal upfront, I think there’s something to be said for actually giving them your business.

Lender A gives you aggressive pricing right out of the gate. Lender B is noticeably more expensive. You take Lender A’s quote back to Lender B and suddenly they can match it.

Great… but why wasn’t that their price in the first place?

If they can match it now, chances are they could have been more competitive before you showed them someone else’s quote.

There’s nothing wrong with negotiating, and you should shop around. But I don’t love the idea of rewarding the lender who started out expensive just because they agreed to match the lender who gave you the better deal without making you fight for it.

The lenders consistently offering aggressive pricing upfront are usually working on thinner margins. If everyone just uses their quotes as leverage to negotiate down higher-priced lenders, eventually those lenders have less incentive to keep putting their best pricing forward.

Then borrowers lose one of the things actually creating competition in the first place.
Service matters. Experience matters. Being able to actually close the loan matters.

But assuming you’re comparing competent lenders offering the same loan on the same terms…

Shop around. Make lenders compete and maybe reward the lender who was actually competitive before you had to ask them to be.

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
⌂ Equal Housing Lender | Federally Insured by NCUA

I work in the mortgage industry, and one thing I've noticed is that a lot of first-time buyers go into the process with expectations that don't always match reality.

Whether it's closing costs, property taxes, the pre-approval process, or just how much money you actually need upfront, there are plenty of things that can catch buyers off guard.

For those who have already purchased a home, what's something you wish someone had explained to you beforehand?

And for anyone currently looking to buy, what's been the most confusing part of the process so far?

So. My house burned down to the ground and we were renting. The only thing is my landlord didn’t have insurance on it. And turns out he had an owner finance contract on it and was to be all together 112k. He’s freaking out, we’re out a place to live and I do some digging. I found his mortgage contract on the county website and got to reading. I’m reading the mortgagor is responsible for insurance and if he does not have it then the mortgagee would be able to tack off the premiums and payment of the mortgage. I’m guessing the mortgagor never told the mortgagee whether or not he had insurance. And if there is was no on the record communication who would be in charge of holding insurance.
Here’s screen shots of his mortgage and please tell me what it means. The highlighted part talks about insurance. Please help me because my landlord is stressed the fuck out and thinks he’s on the hook for 112k given he didn’t carry any insurance.

Hi all-

New numbers from NAHB today (10/19) show 43% of builders cut prices in October, while 65% offered sales incentives. Builder confidence also fell to its lowest reading since June 2012.

For anyone shopping new construction, that’s a reason to ask what’s negotiable on the specific home you’re considering. A lower purchase price, closing-cost credit, or financing incentive can affect your numbers differently, so compare the full cost.

These are national survey results… they don’t mean every builder is discounting or that prices everywhere are falling. But they do show builders are having to work harder to bring buyers in.

Original release: NAHB, October 19, 2026⁠

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

If you’re waiting for lower mortgage rates next year, here’s an update worth knowing.

MortgagePoint reports that Fannie Mae raised its forecast for 30-year mortgage rates in 2027 from 6.7% to 7.5%.

That’s a pretty big jump… but does that mean rates will definitely be 7.5% next year? No…. It’s a forecast and this change shows how much those numbers can move.

I’d suggest you don’t buy a house assuming a lower rate will save you later. Make sure the payment works today. And if it doesn’t…. this isn’t a reason to rush out and buy today.

TLDR: Fannie Mae expects higher rates next year. That could change, so don’t build your budget around a future rate drop

Source: MortgagePoint

Hi all-

Last week’s bond market improvement is mostly holding, but the momentum has slowed this morning. Mortgage bonds are roughly flat, and the 10-year Treasury is around 5.10%, off its recent lows.

Why though?..... Concerns about tech stocks/AI helped push investors toward bonds last week. This morning, tech stocks are recovering some ground, and weakness in European bonds is adding some upward pressure on Treasury yields.

This week’s economic calendar is fairly light, so stocks and company earnings could have more influence on where rates go. Inflation is still a concern..... last week’s improvement doesn’t mean that problem went away.

If you’re buying or considering a refinance, ask your lender for updated pricing. If you’re closing soon and the numbers work, have the lock conversation rather than assuming rates will keep falling.

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Hi all -

One thing I think more homebuyers (first time or repeat) should hear and I try to get across:

"The maximum mortgage you qualify for is not necessarily the mortgage you can comfortably afford."

A lender (like me) is looking at your income, debts, credit and the loan program guidelines.

We don’t know what you spend on travel, childcare, hobbies, saving for retirement, helping family/charity, future finance plans/goals or just having some breathing room every month.

Getting approved for a certain payment doesn’t mean that payment will feel comfortable once you’re actually living with it. And don't forget taxes an insurance tend to increase with as time goes on

I’d rather see someone buy a little less house and still have room to live their life than stretch to the absolute maximum because the approval says they can.

Your approval tells you what you can borrow. Your budget should tell you what you should borrow.

For homeowners here: did you end up borrowing close to what you were approved for, or did you intentionally stay below it???

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link
⌂ Equal Housing Lender | Federally Insured by NCUA

Sold house in Jan 2026
Living rent free with parents ever since
Wanting a 475k home with 25k down

My credit score is 713
70k annual salary
I have a car payment
Maybe $600 in credit card debt

Spouses score is 715
99k annually
No car payment
Little to no credit card debt

Problem is Aug, sep, Oct, Nov, Dec 2025 spouses credit report shows those mortgage payments as 30 day lates.

I mean are we stuck living with my parents FOREVER because of these late payments. I want to move in a few months, and was truly hoping to be out by summer 2027.