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.
.
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: 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
.
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
.
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.
.
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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đ Refinancing in 2026: Rate vs. Term vs. Cash-Out vs. HELOCâWhat Actually Wins? đ°
đ Refinancing in 2026: Rate vs. Term vs. Cash-Out vs. HELOCâWhat Actually Wins? đ°
đ Refinance Smarter in 2026: Rate & Term, Cash-Out, or HELOCâWhich Strategy Fits You? đ
Refinancing in 2026: Rate, Term, Cash-Out, and HELOCs Compared
Refinancing is back on the table in 2026âbut it looks very different than it did during the ultra-low-rate era. Todayâs borrowers are no longer refinancing just to chase lower rates. Instead, homeowners are using refinancing strategically to improve cash flow, restructure debt, unlock equity, or prepare for future investment opportunities.
Understanding the differences between rate-and-term refinances, cash-out refinances, and HELOCs is essential. Each option serves a different financial purpose, and choosing the wrong one can limit flexibilityâor cost you significantly over time.
Rate-and-Term Refinance: Payment Optimization
A rate-and-term refinance replaces your existing mortgage with a new loan that adjusts the interest rate, loan term, or bothâwithout pulling equity out.
Best for borrowers who want to:
¡Reduce monthly payments
¡Shorten the loan term (e.g., 30-year to 15-year)
¡Switch from an adjustable-rate mortgage to fixed
¡Remove mortgage insurance
In 2026, rate-and-term refinances are most effective for borrowers who originated in late 2023â2024 and can now improve their rate, term, or loan structure without increasing balance.
Key advantage: Lowest pricing and strongest lender execution
Limitation: No access to equity
Cash-Out Refinance: Liquidity and Leverage
A cash-out refinance replaces your mortgage and allows you to pull equity as cash at closing. This strategy is increasingly popular as homeowners deploy capital for renovations, debt consolidation, investments, or business expansion.
Best for borrowers who want to:
¡Fund renovations or construction
¡Consolidate high-interest debt
¡Invest in real estate or businesses
¡Build liquidity while keeping long-term financing fixed
In 2026, lenders remain disciplined. Cash-out refinances typically require:
¡Strong credit profiles
¡Conservative loan-to-value limits
¡Clear use-of-funds explanations
Key advantage: Large, fixed-rate capital at scale
Limitation: Higher rate than rate-and-term; resets loan clock
HELOCs: Flexible, Short-Term Capital
A Home Equity Line of Credit (HELOC) provides revolving access to equity without replacing your existing first mortgage. This option is increasingly attractive for homeowners with low existing rates who donât want to refinance their primary loan.
Best for borrowers who want to:
¡Preserve a low first-mortgage rate
¡Access capital gradually
¡Use funds short-term or opportunistically
Many HELOCs in 2026 offer interest-only draw periods but carry variable rates tied to prime. This makes them powerfulâbut not permanentâfinancing tools.
Key advantage: Flexibility without refinancing
Limitation: Variable rates and payment risk
Which Refinance Strategy Wins in 2026?
There is no universal âbestâ refinanceâonly the right strategy for your balance sheet.
Goal
Best Option
Lower payment
Rate-and-Term
Shorten loan
Rate-and-Term
Access large equity
Cash-Out
Keep existing low rate
HELOC
Renovate or invest
Cash-Out or HELOC
Flexibility
HELOC
The right decision depends on rate exposure, liquidity needs, tax strategy, and long-term plans. This is where working with a mortgage broker mattersâbecause structuring the loan correctly is more important than simply quoting a rate.
Final Takeaway
Refinancing in 2026 is no longer a one-size-fits-all decision. The borrowers winning today are those using refinancing as a strategic financial tool, not a reaction to headlines.
If you are considering a refinanceâwhether rate-and-term, cash-out, or a HELOCâthe structure matters just as much as the rate.
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Š 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Refinancing youe loan and when to do it
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