Tag: housing market (Page 1 of 6)

Mortgage Affordability in 2026: 7 Things You Can Control Before Buying a Home

July 28, 2026 / Tom Bonetto

Lately I’ve been getting the same question in conversations with clients: “Tom, how do we make housing affordable right now?”

It’s late July 2026. The first half of the year has been tough. Things looked a little better late last year and into January, but affordability remains the dominant conversation.

I wanted to address it directly—first the things none of us control, then the things you can control starting today.

A Quick Word on Perspective

Before we dig in, let’s hold two-time horizons at once.

In the long run I do believe rates are coming down. If that’s true, today’s payment is not necessarily your permanent payment. You can refinance later, shorten the term, or increase principal payments as your income and circumstances improve.

Short-term affordability and long-term affordability are related, but they are not the same calculation. Keep both in view.

The Things You Can’t Control About Affordability

When elected officials and media talk about “making housing more affordable,” I have to be honest—I often shake my head. Not because the problem isn’t real, but because the solutions they discuss rarely touch the actual cost drivers.

Property Taxes – A perpetual tax on an asset you already own and paid for with after-tax dollars is a strange policy. The property-tax structure is one of the biggest levers on true housing cost. If we were serious about affordability, this would be near the top of the list.
Capital Gains – At the federal level (and in many states) the tax friction on selling a property keeps inventory locked up. Reform here would increase supply and improve market function.
Over-Regulation of the Mortgage Industry – Yes, we need regulation. I am not arguing for a return to the pre-2008 environment. But the compliance burden that landed on mortgage companies, loan officers, and investors after the financial crisis is enormous. I spend a significant amount of time and money every year simply staying compliant. Those costs do not disappear—they get passed through to the borrower in the form of higher fees and higher rates.
Third-party Fees – Eleven years ago a credit pull cost roughly $30–$35. Today it routinely runs $150 or more. Automated verification of employment can add hundreds more. On a recent closing I saw more than $500 in combined credit and VOE costs alone. That’s a roughly 320% Cost of Credit Inquiries – There is no competition or efficiency gain being forced into that system, so the borrower pays.

These are macro and structural issues. Outside of voting and advocating, most of us cannot change them overnight. So let’s talk about what you can control.

What You Can Control Right Now About Affordability

1. Get the right mortgage product—and the right structure.

Not every loan is the same. Conventional conforming (Fannie/Freddie), FHA, VA, USDA, and non-QM products all carry different cost structures, different mortgage-insurance rules, and different long-term implications. The term matters too.

A 29-year loan is almost always less expensive over the life of the loan than a 30-year loan, even though the monthly payment is slightly higher. Down-payment amount changes both rate and monthly cost.

Work with a loan officer who will run the actual numbers side-by-side instead of defaulting to the product that is easiest to sell.

2. Negotiate the contract like it matters—because it does.

Three, four, five years ago almost every contract I saw came in above asking price. Appraisals were routinely waived. Inspection items were often left unaddressed. The interest rate was low, so the payment looked affordable—but buyers were financing a higher purchase price and accepting more risk.

Today the rate is higher, which makes the payment feel harder. But I almost never see a contract without meaningful seller concessions. Appraisals are not being waived. Inspection issues are being negotiated and frequently repaired.

Those concessions can be used to pay closing costs, buy down the rate, or both. A skilled real-estate agent who knows how to structure the offer is one of the highest-leverage tools you have for affordability right now.

3. Be careful with down-payment assistance.

roll of american dollar banknotes tightened with band

These programs can be excellent for the right buyer. They can also be expensive. In eleven years I have never seen a “grant” that truly never gets paid back in some form—either through a higher rate, a second lien, or repayment on sale or refinance.

If you need the assistance to close, use it. If you don’t, the extra cost is rarely worth it. Ask your loan officer to show you the true all-in cost before you commit.

4. Master your credit profile deliberately.

I hear this story constantly: “We paid off all our credit cards so we could buy a house.” In many cases that decision does two harmful things at once—it reduces the cash available for down payment and closing costs, and it can actually lower the credit score because of how utilization and length of credit history are calculated.

I am not advocating consumer debt. I dislike it. But before you start paying things off in the name of becoming a stronger buyer, sit down with a loan officer who has access to credit simulators.

We can model the effect of paying down one card versus another, or keeping balances where they are, against your debt-to-income ratio, available cash, and the pricing of the loan. Randomly “cleaning up” credit is one of the most common self-inflicted wounds I see.

5. Build the right team and understand their incentives.

Buying or refinancing a home is a complicated transaction. The people around you matter:

A real-estate agent who can negotiate price, concessions, inspections, and timeline.
A mortgage lender who will put you in the correct product and structure—not just the one that closes fastest.
A CPA who will help you understand the tax implications.
A financial advisor who can place real estate inside your broader plan for building wealth and legacy.

Every one of those professionals has a bias. A CPA is paid to minimize taxes. A financial advisor is often compensated for assets under management. A good loan officer is paid when the loan closes.

None of that is inherently bad—just know the incentives so you can weigh the advice!

Short-Term and Long-Term Affordability

If you cannot make the payment today, do not buy the house. That is non-negotiable.

But if the payment is workable and you believe—as decades of data support—that residential real estate remains a resilient long-term asset, then you also have tools for the years ahead: refinancing when rates allow, shortening the term as income grows, and making additional principal payments.

Affordability is not only the payment on day one. It is the total cost of ownership over the time you hold the property and the equity you build along the way.

Final Thought

As The Lending Coach, I enjoy talking to people on the phone, explaining the nuances, and helping clients make decisions that support the life and legacy they actually want. Honesty, transparency, and long-term relationships are the only way this business works for me.

If you’re trying to figure out whether a particular house or refinance makes sense in this market, do contact me. I’m happy to run the numbers, walk through the trade-offs, and help you see the full picture.

Reach out to me directly—I’d love to talk strategy and explore how we can best take advantage of market conditions to help you succeed.

As always, you can set up an appointment with me here…

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Starlight Mortgage. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

Should You Give Up Your 3% Mortgage Rate? 5 Questions Every Homeowner Should Ask Before Deciding to Stay Put

June 9, 2026 / Tom Bonetto

Over the past several years, one phrase has become increasingly common among homeowners: “I’d love to move, but I can’t give up my mortgage rate.”

It’s an understandable concern.

Millions of homeowners purchased or refinanced their homes when mortgage rates were at historic lows, and many now enjoy rates in the 2% to 4% range.

When current mortgage rates are significantly higher, it’s easy to feel as though moving simply isn’t an option.

While a low mortgage rate is certainly valuable, it shouldn’t be the only factor driving a major life decision.

A home is more than a loan attached to a piece of property. It’s where you raise a family, work remotely, entertain friends, pursue hobbies, and build your future.

Sometimes homeowners become so focused on the rate that they lose sight of the bigger picture.

If you’ve been considering a move but feel stuck because of your current mortgage, here are five important questions worth asking before deciding to stay put.

Does Your Current Home Still Meet Your Needs?

When many homeowners purchased their current home, their lives looked very different than they do today. Perhaps you were newly married, had young children, worked in an office every day, or simply had different priorities than you have now.

Fast forward a few years, and your situation may have changed dramatically. Maybe your family has grown.

Perhaps your children are teenagers who need more space. You may now work remotely and need a dedicated home office. Or maybe you’re approaching retirement and would prefer a single-story home that better suits your future needs.

One of the biggest mistakes homeowners make is allowing a mortgage rate to dictate their lifestyle.

While a 3% mortgage is attractive, it doesn’t create an extra bedroom, shorten your commute, provide a larger backyard, or place you in a neighborhood that better fits your goals.

Ask yourself a simple question: If interest rates were exactly the same today as they were when I bought my current home, would I still want to move?

If the answer is yes, then your desire to move may be based on legitimate lifestyle needs rather than market conditions. The reality is that homes should support your life, not the other way around.

How Much Equity Have You Built?

Many homeowners underestimate how much equity they’ve accumulated over the past several years. Between principal reduction and home appreciation, some homeowners are sitting on a substantial amount of wealth without fully realizing it.

That equity may create opportunities that didn’t exist when you purchased your current home. A larger down payment on your next property could significantly reduce the size of your new mortgage.

stack of coins in front of a porcelain house

In some cases, homeowners are able to put down enough money to avoid mortgage insurance, lower their monthly payment, or purchase a home that better fits their needs without dramatically increasing their housing expense.

I’ve had conversations with homeowners who initially assumed moving was financially impossible because of today’s rates. After reviewing their equity position, they discovered they had far more flexibility than expected.

Equity can also provide options beyond simply purchasing another home. Some homeowners use their accumulated equity to pay off other debt, create an emergency fund, or improve their overall financial position while making a move.

The key is understanding your numbers before assuming that a higher mortgage rate automatically makes moving a bad financial decision.

Have You Compared Payments or Just Interest Rates?

This may be the most important question on the list.

Many homeowners focus almost exclusively on the interest rate itself. While rates certainly matter, the monthly payment often matters more.

A homeowner might look at a 3% mortgage and compare it to a 6.5% mortgage and immediately conclude that moving doesn’t make sense. But that comparison only tells part of the story.

What if the homeowner has enough equity to make a much larger down payment?
What if they are moving to an area with lower property taxes?
What if they can negotiate seller-paid closing costs or a mortgage rate buydown?
What if their income has increased significantly since purchasing their current home?

All of these factors can influence the overall financial impact of a move.

attentive young couple packing stuff while relocating in new flat

I’ve seen homeowners assume their payment would increase dramatically, only to discover that the actual difference was far less than they expected.

I’ve also seen situations where a homeowner’s payment did increase, but the benefits of the new home justified the additional expense.

The lesson is simple: don’t compare interest rates in isolation. Compare the entire financial picture.

Could Your Current Home Become an Investment Property?

For some homeowners, the decision isn’t necessarily between staying and moving. Sometimes there is a third option.

Depending on your financial situation, you may be able to keep your current home and convert it into a rental property while purchasing another primary residence.

This strategy allows some homeowners to retain their existing low-rate mortgage while continuing to benefit from potential rental income and future appreciation.

Of course, becoming a landlord isn’t the right choice for everyone. Rental property ownership comes with responsibilities, risks, and additional financial considerations.

Some homeowners prefer the simplicity of selling their current home and moving on.

real estate investment and currency exchange concept

However, for those who have sufficient equity, stable finances, and an interest in long-term real estate investing, keeping a low-rate mortgage on a rental property can be an attractive wealth-building strategy.

The important thing is understanding that you may have more options than you initially think.

Before automatically assuming your current home must be sold, it’s worth discussing all available possibilities with your mortgage professional and financial advisors.

What Is the Cost of Waiting?

When people talk about moving, they often focus on the cost of taking action. Far fewer people consider the cost of doing nothing.

Waiting can be the right decision in some situations. But waiting is not free.

If your current home no longer fits your needs, every year spent delaying a move may mean another year of compromise. If you’re commuting farther than you’d like, working in an inadequate home office, or living in a space that no longer supports your family, those costs may not appear on a spreadsheet—but they’re still real.

There are also financial considerations. No one knows exactly where mortgage rates, home prices, or inventory levels will be in the future. Waiting for the “perfect” market environment can sometimes result in missed opportunities.

Many homeowners who delayed purchases in previous years because they expected rates to fall or prices to decline discovered that markets don’t always move as predicted.

The goal shouldn’t be to perfectly time the market. The goal should be to make a housing decision that aligns with your family’s needs and long-term financial objectives.

The Bottom Line

A low mortgage rate is a valuable asset. There’s no question about that. But it should be viewed as one piece of a much larger puzzle.

Before deciding that you’re permanently locked into your current home, take time to evaluate your lifestyle needs, your equity position, your monthly payment options, and your long-term goals. The best housing decision is rarely based on a single number.

The key is making the decision based on a complete analysis rather than allowing one factor—your current interest rate—to make the decision for you.

As with most financial decisions, clarity comes from understanding all of your options. And sometimes, what appears to be a mortgage rate trap may simply be an opportunity to take a closer look at the bigger picture.

Reach out to me directly—I’d love to talk strategy and explore how we can best take advantage of market conditions to help you succeed.

As always, you can set up an appointment with me here…

Mortgage Rate Shopping Mistakes

May 5, 2026 / Tom Bonetto

Mortgage markets don’t sit still. Rates can shift daily, sometimes even multiple times within the same day.

At the same time, lenders structure loans differently. What looks like a lower rate on one quote may come with higher fees, fewer credits, or stricter terms. Without a consistent framework for comparison, you’re not evaluating apples to apples—you’re juggling entirely different financial products.

a pink piggy bank beside a stack of wooden scrabble blocks

Most homebuyers assume that collecting more mortgage quotes automatically leads to a better deal. On paper, it sounds logical. More options should mean more savings, right?

In reality, rate shopping without a clear strategy often creates confusion, delays decisions, and can even cost you the home you want.

While you’re busy collecting quotes and trying to decode them, the market keeps moving.

Sellers aren’t waiting around for buyers who are still “figuring things out.” In competitive situations, they tend to favor buyers who are fully prepared, pre-approved, and backed by a lender who can move quickly and confidently.

This is where many buyers get it wrong. The best deal doesn’t always go to the person who found the lowest advertised rate.

It goes to the buyer who is organized, informed, and ready to act at the right moment.

The Right Lending Coach

A strong loan officer plays a much bigger role than simply quoting numbers. They analyze your full financial picture, guide you through different loan structures, and help you decide when to lock your rate based on market conditions.

That kind of guidance can make the difference between securing a home or losing it to another buyer.

Instead of chasing the lowest rate blindly, it’s more effective to focus on the overall strategy behind your loan. That includes timing, structure, and execution—not just the headline number.

Common Rate Shopping Mistakes:

Comparing inconsistent quotes – Different lenders present rates, fees, and credits in ways that aren’t directly comparable, leading to misleading conclusions.
Focusing only on the interest rate – A slightly lower rate can be offset by higher closing costs or less favorable loan terms.
Waiting too long to decide – Delays can cause you to miss favorable market conditions or lose out in competitive home-buying situations.
Ignoring lender reliability – A low quote doesn’t help if the lender can’t close on time or communicate effectively.
Overlooking rate lock timing – Locking too early or too late without guidance can impact your final cost.
Spreading your efforts too thin – Working with too many lenders at once can create unnecessary complexity and slow you down.

A Smarter Approach

Work with a trusted loan officer who understands your full financial picture
Focus on total loan cost, not just the rate
Be ready to act quickly when the right opportunity appears
Prioritize reliability and execution over minor rate differences

At the end of the day, buying a home isn’t about winning a rate-shopping contest. It’s about securing the right loan, at the right time, with a professional who can help you navigate the process smoothly.

The lowest number on paper doesn’t always win. The best-prepared buyer does.

Let’s talk. Reach out directly—I’d love to run your personalized scenarios and explore how we can best take advantage of market conditions to help you succeed.

As always, you can set up an appointment with me here…

Navigating Real Estate Uncertainty: Proven Strategies for Buyers, Sellers, and Investors

March 4, 2026 / Tom Bonetto

Real estate markets move in cycles, and uncertainty is a natural part of that rhythm. Headlines may highlight shifting rates, changing home prices, or economic questions, but uncertainty shouldn’t mean inactivity.

In fact, some of the best opportunities emerge when others are hesitant. For buyers, sellers, and investors who take a thoughtful, strategic approach, today’s market offers meaningful advantages.

Buyers

For buyers, one of the most important realities to understand is competition. When the market feels overheated, bidding wars become common and emotions drive pricing.

In a more balanced or uncertain environment, competition often softens. That can translate into fewer multiple-offer situations, more reasonable pricing, and stronger negotiating power.

Buyers may secure seller concessions, rate buydowns, repair credits, or flexible closing timelines that were nearly impossible to obtain in ultra-competitive markets.

Another advantage of buying now is price stabilization. In uncertain markets, home price growth tends to moderate. That creates breathing room for thoughtful decision-making.

Instead of rushing into a purchase out of fear of being priced out, buyers can evaluate properties carefully and make confident, informed offers.

Over time, real estate has consistently proven to be a strong wealth-building asset, particularly when held for the long term. Find out more on that here…

Mortgage Rates

Interest rates are always a central concern, but perspective matters. Rates fluctuate over time, and what feels elevated compared to recent historic lows may still be reasonable in a long-term context.

More importantly, financing is not permanent. A home purchase is long-term; a mortgage is a financial tool that can be refined. Buyers who purchase now can often refinance later if rates improve, but they cannot go back in time to purchase at today’s home values if prices rise again.

Find out more on that here: Marry the House but Date the Rate

Investors

Investors may find especially compelling opportunities in times like these.

When fewer people are aggressively competing for properties, investors can identify assets with stronger cash flow potential and better long-term appreciation prospects. Rental demand often remains steady, particularly as some potential buyers pause their plans.

This dynamic can create favorable conditions for those focused on income-producing real estate.

Sellers

For sellers, uncertainty does not eliminate opportunity. It simply shifts strategy.

Proper pricing, thoughtful presentation, and strong marketing become even more important. Serious buyers remain active in every market cycle. When a home is positioned correctly, it attracts motivated buyers who are ready to move forward.

Sellers who understand current conditions and adapt accordingly can still achieve excellent results.

The Right Strategy

Financing strategy is where real clarity can make a difference.

Creative solutions such as temporary rate buy-downs, adjustable-rate products for shorter holding periods, or structured refinance plans can significantly improve affordability and flexibility.

When financing is approached strategically rather than reactively, buyers and investors gain control over their long-term financial trajectory.

It is also important to remember that life events do not pause for market cycles. Families grow, careers change, relocations happen, and investment goals evolve.

The right time to buy is frequently when the property fits your needs, the numbers make sense, and you have a solid financial plan in place.

Waiting for a “perfect” market often means delaying personal and financial progress.

In Conclusion

Uncertainty rewards preparation and guidance. With a clear strategy, realistic expectations, and thoughtful financing, today’s market can present exceptional opportunities.

Buyers can negotiate more effectively, sellers can stand out with the right positioning, and investors can secure long-term assets with confidence.

Real estate remains one of the most powerful tools for building wealth, and with the right coaching and planning, now can be an excellent time to move forward.

If you’d like help translating these ideas into a personalized strategy, a focused conversation can help clarify next steps — based on your goals, timeline, and financial picture.

Do reach out directly to me to begin crafting your plan!

As always, you can set up an appointment with me here…