Mortgage Questions. Real Answers.

The FOMC does not meet the week of October 5. The next scheduled meeting is October 27–28, and the one after that is December 8–9. The federal funds target range is still 3.75% to 4.00% after the September 16 quarter-point increase. That overnight bank rate is not your mortgage rate. A 30-year fixed is priced off the 10-year Treasury yield. Bond markets move on what they already expect, so a decision that matches those expectations can leave mortgage rates close to where they already are. A surprise in the statement is what usually moves them. October is not a projections meeting, so there is no new dot plot that week.

Lock off your closing date, not the calendar headline. Freddie Mac's Primary Mortgage Market Survey for the week ending October 1, 2026 put the national 30-year average at 7.28%, up from 7.03% on September 24, and the 15-year average at 6.60%, up from 6.42%. Those are survey averages, not a quote. If you are inside 30 to 45 days of closing and the payment works at the rate you have, locking removes a move you cannot control. Waiting through October 27–28 in the hope that the meeting improves the payment is a bet, not a plan. If you are still shopping and the payment has room, watch until you have a number that makes the file work.

Not as a rule. The Federal Reserve sets the federal funds rate, an overnight rate between banks. It last moved on September 16, raising the target range a quarter point to 3.75% to 4.00%. The 30-year mortgage follows the 10-year Treasury, which trades every day on growth and inflation expectations. If traders have already priced a move, the rate you see now may barely change when the October 27–28 decision is announced. The survey backdrop is the Freddie Mac week ending October 1: 7.28% on the 30-year, up from 7.03% on September 24, and 6.60% on the 15-year, up from 6.42%. That is a national average, not your quote.

What can move mortgage rates is a surprise in the post-meeting statement, not a mechanical link from a hike to your note rate. A hike the market already expected can leave mortgage rates flat. Easier language than expected can pull yields down even if the funds rate goes up. The reverse is also possible. Nobody can tell you today which one October 27–28 will be. Treat a lender line that says rates will rise if they hike as a sales script until they show you the 10-year and explain what is already in the price. If your closing is inside 30 to 45 days, decide on the payment in front of you.

Run the math for your hold period. A 2-1 buydown temporarily lowers the note rate by 2 percentage points in year one and 1 point in year two, then the payment resets to the note rate. Illustrative example only, not a quote. Actual APR and terms vary. On a $400,000 loan, using the Freddie Mac 30-year survey average of 7.28% for the week ending October 1, 2026 as the note rate, year one (about 5.28%) saves roughly $520 a month and year two (about 6.28%) saves roughly $265 a month, about $9,400 over two years, paid up front by the builder. A $15,000 price cut that reduces the loan by that amount permanently lowers principal and interest by about $100 a month at that same rate.

For most buyers who keep the loan more than five years, the permanent price cut wins on total dollars. A buydown helps more if you expect to refinance or sell inside 12 to 24 months and you want the lower payment now. Ask the builder for both options on the same Loan Estimate, same day, same loan structure. The right pick is your timeline, not the builder's pitch.

There is no universal number, but here is the framework. Correctly priced homes still move. The ones sitting 30, 60, or 90 days are telling you something specific: the list price is above what buyers can clear at the current payment level, or condition and location are shrinking the buyer pool. Before deciding how far under to go, check the gap between list price and average sale price in your ZIP over the past 90 days, and how days-on-market has been trending this month compared to last spring.

A seller who has been through two or three open house weekends with no offers may accept 3 to 6 percent under list if their carry cost is real. Stacking a price reduction with a request for closing cost credits or inspection repairs can close a deal or kill it depending on how many other buyers are in the pool. The monthly payment math — what this house actually costs at today's rates on a 30-year fixed — is the anchor, not what the house might have sold for in 2021.

Start with the Freddie Mac Primary Mortgage Market Survey. For the week ending October 1, 2026, the national average 30-year fixed was 7.28%, up from 7.03% on September 24. The 15-year average was 6.60%, up from 6.42%. Those are smoothed averages across borrower profiles, published through FRED. They are not a BankPricer rate and not your quote. A borrower with strong credit, a larger down payment, and a conforming conventional loan can price differently from that average, sometimes below it. If your quote sits well above 7.28% on a clean conventional file, ask whether the gap is credit, loan size, property type, and loan-to-value, or the lender's margin.

Get at least two Loan Estimates on the same day with the same loan structure: one from a mortgage broker working with multiple investors and one from a direct lender. Compare APR, not just the note rate, because APR folds in origination fees. Illustrative example only, not a quote. Actual APR and terms vary. A 7.125% rate with $4,000 in origination fees is not automatically cheaper than a 7.375% rate with $500 in fees. The break-even depends on how long you keep the loan. The Loan Estimate is a standard federal form. If a lender will not give you one before you commit, that is part of the answer.

Probably not - and your lender knows it. Lenders approve you based on your gross income before taxes, not what actually hits your bank account. A $500k loan at today's rates means a monthly payment of roughly $3,000-$3,400, which doesn't include property taxes, insurance, or HOA fees.

On an $80k salary, your take-home is closer to $5,000-$5,500/month. That mortgage alone would eat 55-65% of what you actually have. That's the definition of house poor.

A better rule: keep your total housing payment (PITI - principal, interest, taxes, insurance) under 28% of your gross monthly income. On $80k/year, that's about $1,867/month. Work backwards from there to find what you can actually afford - not what a lender will approve.

Approval is about what a lender will let you borrow based on their risk model. Affordability is about what lets you still live your life.

Lenders allow up to 43-50% DTI (debt-to-income ratio) on many loan programs. That means nearly half your gross income going to debt payments. What it doesn't account for: childcare, groceries, car repairs, retirement savings, or anything unexpected.

A better target: Keep your total debt payments (mortgage + car + student loans + credit cards) under 36% of gross income. Anything over 40% starts to create real financial stress, even if a lender signs off on it.

CFPB data shows median total loan costs rose 21.8% between 2021 and 2022 - from about $4,800 to nearly $6,000. In high-cost markets like Chicago, total closing costs often run 2-5% of the purchase price, with buyers typically landing in the 2.5-4% range.

The real question isn't the total - it's what's inside it. Closing costs break into three buckets:

• Government fees - recording fees, transfer taxes. Fixed. Non-negotiable.
• Third-party fees - title insurance, appraisal, attorney. Somewhat shoppable.
• Lender fees - origination, processing, underwriting, doc prep. These are where the markup lives.

If you see a line item for "processing fee," "administrative fee," or "underwriting fee" from the lender - those are not government-required. They are lender revenue. Some are legitimate overhead. Some are pure margin. Always ask what each fee is for.

This is one of the most common surprises in the mortgage process. Down payment and total cash to close are two different numbers.

Here's what makes up your total cash to close:

• Down payment - 3.5% for FHA, 3-5% for conventional first-time buyer programs
• Prepaids - homeowner's insurance (first year upfront), prepaid interest for the days between closing and your first payment
• Escrow setup - 2-3 months of property taxes and insurance deposited into escrow at closing
• Lender and third-party fees - origination, title, appraisal, attorney

On a $350,000 FHA purchase, your 3.5% down is $12,250 - but your total cash to close might be $18,000-$22,000 once prepaids and fees are included. Plan for it.

One option: Seller concessions. In a buyer's market, you can ask the seller to cover some or all of your closing costs. On FHA loans, sellers can contribute up to 6% of the purchase price.

Nobody knows when - or if - rates hit 5% again. Here's the math on waiting.

Suppose you buy a $400,000 home today at 6.5%. Your principal and interest payment is about $2,528/month. If you wait 12 months hoping for 5.5% rates, and home prices in your market appreciate just 4%, that same home now costs $416,000. At 5.5%, your payment is $2,362/month - you save $166/month.

But you paid $16,000 more for the house. It takes 8 years of payment savings just to break even on the price increase. And you spent 12 months renting in the meantime.

The phrase "marry the house, date the rate" exists for a reason. If you find the right house at a payment you can afford, waiting on rate predictions is a gamble on a timeline nobody controls. Refinance when rates drop - and they eventually will.

Yes - and more buyers should consider it. Being under contract does not lock you into your lender. You can switch at any time before closing.

The practical considerations:

• Timing - switching lenders takes 7-14 days for processing. Make sure your closing date gives you enough runway.
• Appraisal - most appraisals are transferable between lenders. Ask your new lender before ordering a second one.
• Credit pull - the new lender will pull your credit again. Multiple pulls within a 45-day window count as one inquiry for scoring purposes.
• Earnest money - switching lenders is not a financing contingency issue. Your earnest money is not at risk simply because you changed lenders.

If a new lender can save you 0.5% on your rate, the math almost always favors the switch even with the hassle.

Depends on the issue, the market, and how much you want the house. Here's how to think through it:

Walk if: The issue is structural (foundation, load-bearing walls), the repair estimate is large relative to the purchase price, or the seller won't negotiate at all in a buyer's market.

Negotiate a credit if: The issue is real but fixable, you have a trusted contractor who can give you an accurate repair estimate, and the credit is sized to cover actual repair cost - not a round number.

The mortgage angle: If you're getting a credit from the seller, one of the best uses is a 2-1 buydown. Instead of taking $10,000 as a price reduction (which slightly lowers your payment forever), you use it to temporarily buy your rate down 2% in year one and 1% in year two. On a $400k loan, that can save you $400-$600/month in the early years when cash flow matters most.

Yes - with the right lender and the right loan program. This is evolving quickly.

Some non-QM (non-Qualified Mortgage) lenders now let eligible cryptocurrency holdings count toward qualifying - in some cases without requiring you to sell your position first. This is a significant shift from the previous standard, which required crypto to be converted to cash before it counted.

What typically qualifies: Bitcoin (BTC) and Ethereum (ETH) held in U.S.-regulated exchanges. Exotic altcoins and DeFi positions generally do not qualify.

How it's used: Primarily as reserve assets (proof you have enough to cover several months of payments), not necessarily as down payment funds. Specific thresholds vary by lender and are updated regularly.

The tradeoff: Non-QM programs carry slightly higher rates than conventional loans. The question is whether avoiding liquidation (and a potential taxable event) is worth the rate premium.

Yes. Bank statement loans are specifically designed for self-employed borrowers who have strong cash flow but whose tax returns don't reflect it.

Instead of W-2s and tax returns, bank statement programs use 12-24 months of personal or business bank statements to calculate your qualifying income. Lenders typically use 50% of gross deposits for business accounts or 100% of personal deposits, depending on the program.

Current landscape: Minimum down payments as low as 10% are available on some programs. Credit score minimums vary but 680+ generally reaches the top pricing tier. Rates run 0.5-1.5% higher than conventional loans.

If your business is profitable but your write-offs make your taxable income look small, a bank statement loan may be the cleanest path to homeownership.