Thinking about moving can feel daunting in today’s housing market. Trading in your current mortgage rate — especially if it’s much lower than today’s — may give you pause. But a higher rate doesn’t always mean it’s the wrong decision. Sometimes, the long-term benefits of the right home outweigh the short-term comfort of a lower payment.

Here are a few reasons why giving up a low rate can sometimes make sense.

1. A Growing Family

Each new addition to your household (including pets) can make your once spacious home feel a little more cramped. Moving to a larger home with more yard space, bedrooms, bathrooms and closets can solve the problem. While it may stretch your budget initially, it can pay off long-term as the property appreciates. Plus, refinancing at a lower rate later is always a possibility.

2. A Shrinking Household

As the nest starts to empty, all that extra space can suddenly seem superfluous. Downsizing to a smaller home not only feels cozier, but can also save on maintenance costs, taxes and insurance. Plus, it’s an opportunity to choose a home designed for aging in place, with fewer stairs, ramp access and other safety features. Maintaining your independence with an improved quality of life can be well worth the higher monthly payment.

3. A Career Opportunity

While it can feel difficult to give up a lower rate, moving for a stronger career opportunity may make sense. Better pay and benefits not only help secure your financial future, but also help offset any increase to your monthly housing costs. It may feel like a tradeoff now, but it could lead to lasting gains.

Of course, the key consideration in all three scenarios is affordability. If giving up your lower rate will cause significant financial struggle, waiting is usually best. In the meantime, you can always focus on saving up for a down payment on a future home purchase when the time is right.

Any questions? Reach out to discuss your financing options.

Buying a new home isn’t a step to take lightly. From the upfront costs to the uncertainty of what lies ahead, there’s a lot to consider. But while stress and anxiety are only natural, these initial trepidations can be quickly offset by the rewards of homeownership.

Whether you’re settling into a new home or planning a future purchase, here are a few of the benefits homeowners can enjoy.

A Sense of Belonging

While renting puts a roof over your head, owning provides long-term security. When you know you’re in it for the long haul, it’s easier to invest in your property and community. Homeowners are more likely to do volunteer work and engage in civic activities.

Creative Freedom

As a renter, personalizing your living space isn’t typically an option. But when you own the home, you can landscape, decorate and remodel to your heart’s content. So hang those pictures, paint those walls, and feel free to rip out the carpet!

A Powerful Financial Tool

A home is a long-term investment. Whereas rent payments are simply an expense, mortgage payments build equity and increase your net worth. And since real estate tends to appreciate, your home can also become a valuable asset. Home equity can support retirement goals, fund home renovations, serve as loan collateral and even offset the financial impact of inflation.

Long-Term Cost Stability

Renters often face steep annual increases as market rates climb. Owners with fixed-rate mortgages keep a consistent monthly payment for the life of the loan (e.g., 30 years). Only the insurance premiums and property taxes may fluctuate.

Tax Benefits

When filing tax returns, deductions of mortgage interest and property taxes can result in significant savings. Some closing costs may also qualify. Consult a tax professional to determine your eligibility.

Any questions? If you’re considering a new home purchase, reach out to discuss your financing options.

Being your own boss has its perks. But when it comes to applying for a mortgage, nontraditional income can make things more complicated.

Traditional mortgage applications often favor W-2 income. If you don’t earn that way, it might be harder to prove your financial stability on a mortgage application. But that doesn’t mean you won’t qualify.

Fortunately, self-employed borrowers and those with irregular income streams still have plenty of options. Here are a few that might be worth looking into:

Bank Statement Loans

Instead of relying on your tax returns, bank statement loans let you qualify using 12 to 24 months of personal or business bank statements. This is helpful if your taxable income appears low due to deductions, even though your actual cash flow is strong.

1099 and Profit & Loss (P&L) Loans

Freelancers or independent contractors may be able to qualify using 1099 forms or a CPA-prepared P&L statement that shows steady income.

Debt Service Coverage Ratio (DSCR) Loans

If you’re a real estate investor, a DSCR loan uses the property’s rental income to determine eligibility — no personal income verification needed.

Asset-Based Loans

These loans are ideal for borrowers with significant savings or investments, such as stocks or retirement accounts. Future earnings from contracts (like with athletes or entertainers) may also qualify.

Even with variable income, some borrowers still qualify for conventional loans or government-backed options like FHA, VA or USDA loans.

Eligibility Requirements

Requirements vary, but you’ll typically need:

• 12-24 months of steady, documented income history (e.g., tax returns, bank statements, P&L statements, 1099s)
• A minimum credit score of 580-640
• A debt-to-income ratio below 50%
• A minimum down payment of 0-20%
• Strong savings/cash reserves

Have questions? Let’s talk and find the best financing option for your situation.

Thinking about upgrading your kitchen, building a backyard oasis or tackling a long-overdue repair? Home renovations can be exciting, but they’re rarely cheap. The good news: You may not need to drain your savings or take out a personal loan.

Two common options — cash-out refinancing and home equity lines of credit (HELOCs) — can help you tap into your home’s value to fund your plans.

Home renovations may seem like a pipe dream in today’s economy. But the average mortgage holder has $319K in home equity — $207K of which is tappable. That’s a lot of purchasing power, and accessing it may be easier than you think.

Here’s how each option works:

Cash-Out Refinance

A cash-out refinance replaces your current mortgage with a new, larger loan. The new loan pays off the original, and the difference between the two goes to you in cash. You can use it for home improvements, debt consolidation or other needs.

Before refinancing, check your interest rate. If your new rate is higher than your existing one, a refi may not be your best option.

HELOC

A HELOC lets you tap into your equity without replacing your existing mortgage. Since it’s a second mortgage, you’ll keep your current rate and have a second monthly payment.

Most HELOCs come with a variable rate and a 10- to 15-year draw period, during which you can borrow funds as needed while making interest-only payments. After that, a repayment period begins with monthly payments on both principal and interest.

Which One Is Right for You?

Cash-out refis tend to offer lower rates and simpler repayment, while HELOCs give you long-term flexibility. The right fit depends on your financial situation, goals and timeline.

Still have questions? Reach out anytime to talk through your options.

When you embark on securing home financing, your credit report plays a crucial role. However, we believe you should be aware of an important aspect of this process. When we pull your credit report, the major credit bureaus—Experian, Equifax, Innovis, and TransUnion—can legally sell your information to other companies. This practice, known as “trigger leads,” results in your contact information being shared with potentially hundreds or even thousands of lenders. The outcome? An overwhelming avalanche of unsolicited offers, arriving via calls, texts, and emails.

What Are “Trigger Leads”?

“Trigger leads” are a marketing strategy used by credit bureaus to help consumers compare offers from different lenders. While the intention is to provide you with options, the reality is that this can quickly become overwhelming. Imagine your phone suddenly lighting up with constant notifications, emails flooding your inbox, and voicemails piling up from lenders you’ve never heard of. This can happen because your contact information has been sold, without your explicit consent, to numerous companies who see you as a potential customer.

How to Opt-Out and Regain Control

We understand how frustrating this can be, and while America One Mortgage Corporation has no control over this process, we want to ensure you have the knowledge and tools to protect your privacy. Here’s how you can opt-out:

1. Opt Out Online:
   Visit optoutprescreen.com. You can opt-out electronically for five years or mail in a form to opt-out permanently.
2. Call to Opt Out:
   Dial 1-888-5-OPT-OUT (1-888-567-8688). This is another quick way to remove your information from these lists.
3. Do Not Call Registry:
   Register your phone number at donotcall.gov or 1-888-382-1222 to stop telemarketing calls from any company.

Please note that it can take up to five days or more for these requests to be processed and for databases to be updated. Therefore, if you wish to opt-out, we suggest doing so as soon as possible.

We’re Here to Help

As your real estate financing specialist, we are committed to finding the best financing options for you by accessing hundreds of lenders nationwide. If you choose not to opt out, please be prepared for the incoming calls, texts, and emails that may follow after your credit report is pulled.

If you have any questions or need further assistance, don’t hesitate to let us know. Your privacy and peace of mind are important to us.

Best regards,

Mark Luciani
President, America One Mortgage Corporation