Mortgage Do's And Don'ts
Mortgages can be tricky, and it's easy to make mistakes that can end up costing you dearly. That's why we've put together this list of Mortgage Do's and Do not's to help you navigate the process with ease - and a little bit of humor.
DO: Shop around for the best mortgage rates
DON'T: Assume your bank will give you the best rate just because you have a checking account there. Remember, loyalty is a two-way street.
DO: Have a budget in mind
DON'T: Get in over your head. Just because you can technically afford a million-dollar mansion doesn't mean you should buy one. You don't want to be house-poor and unable to afford groceries.
DO: Get pre-approved before house-hunting
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DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
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DO: Consider your future plans
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DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Get pre-approved before house-hunting
.
DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
.
DO: Consider your future plans
.
DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
.
DO: Be prepared for unexpected expenses
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DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
.
DO: Be prepared for unexpected expenses
.
DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Have a good sense of humor
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DON'T: Take everything too seriously. Yes, buying a house and getting a mortgage can be stressful, but try to find the humor in the situation. After all, laughter is the best medicine for a stressful day.
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By following these Mortgage Do's and Do not's, you'll be well on your way to successfully navigating the mortgage process - with a smile on your face. Good luck, and happy house hunting!
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🔓 The Mortgage Lock-In Is Breaking — What It Means for Buyers & Sellers in 2026 🏡📉
🔓 The Mortgage Lock-In Is Breaking — What It Means for Buyers & Sellers in 2026 🏡📉
🏠 Housing Supply Is Finally Thawing — How Higher Rates Are Unlocking the Market 🔑📊
The Mortgage Lock-In Effect Is Fading — and That Changes Everything
For nearly three years, the U.S. housing market has been frozen by one powerful force: the mortgage lock-in effect. Millions of homeowners with ultra-low pandemic-era mortgage rates simply refused to move, choking off inventory and keeping prices elevated despite higher interest rates.
That dynamic is now beginning to change.
According to reporting by The Washington Post, for the first time since 2022, more homeowners now hold mortgage rates above 6% than below 3%. This shift materially reduces the financial penalty of selling a home—and signals a gradual thaw in U.S. housing supply.
Why the Lock-In Effect Mattered So Much
During 2020–2021, millions of homeowners locked in fixed mortgage rates below 3%. When rates surged in 2022–2024, selling became prohibitively expensive:
A homeowner trading a 2.75% rate for a 6.5–7% loan often faced 40–60% higher monthly payments
Even buyers with strong equity hesitated to reset their debt at higher rates
Inventory stalled, especially in move-up and downsizing segments
This wasn’t about affordability alone—it was about rate psychology.
What’s Changed in 2025–2026
The mortgage rate landscape looks very different today.
As Redfin notes, while rates below 5% still discourage mobility, the growing share of homeowners already carrying 5.75–7% loans makes selling far less painful than before. In short:
Fewer owners are “giving up” golden handcuff rates
More households are rate-neutral when moving
Life events (job changes, family needs, downsizing) are regaining priority
That shift matters.
Data Confirms a Slow Supply Rebound
Housing market data from the National Association of Realtors, published via the Federal Reserve Bank of St. Louis FRED, show a modest but meaningful pickup in existing-home sales in mid-to-late 2025 after years of stagnation.
At the same time:
Home price appreciation has slowed
Sellers are becoming more flexible
Days on market are stabilizing in many regions
This is not a housing crash—but it is a normalization.
What This Means for Buyers
For buyers, the fading lock-in effect creates opportunity:
More listings mean better selection
Less competition reduces bidding wars
Negotiation power improves, especially on move-in-ready homes
For borrowers, this is where strategy matters. Rate buydowns, ARM structures, and future refinance planning are increasingly important tools—not afterthoughts.
What This Means for Sellers
Sellers no longer have the luxury of assuming instant demand. Pricing correctly, understanding buyer financing constraints, and working with mortgage professionals early in the process will be critical in 2026.
The market is shifting from scarcity-driven to execution-driven.
Bottom Line
The mortgage lock-in effect hasn’t disappeared—but it is weakening. As higher-rate borrowers replace ultra-low-rate holders, housing mobility improves, inventory rises, and transactions resume.
For buyers, sellers, and investors alike, 2026 will reward preparation—not hesitation.
If you want to understand how to navigate this transition with the right loan strategy, this is exactly what we cover on our channel.
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