Mortgages Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

2026/07/172026/07/17

Mortgage Rates

30-year fixed-rate (Conforming – $832,750 or less)
● Average contract interest rate increased to 6.65% from 6.58%.
● Highest level since August 2025.
● Points increased to 0.67 from 0.64 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (Jumbo – greater than $832,750)
● Average contract interest rate increased to 6.62% from 6.50%.
● Points increased to 0.54 from 0.42 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (FHA)
● Average contract interest rate increased to 6.33% from 6.28%.
● Points increased to 0.81 from 0.79 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
15-year fixed-rate
● Average contract interest rate increased to 6.05% from 5.99%.
● Points increased to 0.88 from 0.71 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
5/1 ARM
● Average contract interest rate decreased to 5.75% from 5.84%.
● Points decreased to 0.93 from 0.94 (including the origination fee) for 80% LTV loans.
● Effective rate decreased from last week.

Joel Kan, MBA’s Vice President and Deputy Chief Economist: “Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday. Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively.”

2026/07/082026/07/08

Debt to Income Ratios (DTI) Being Approved by Banks at Higher Percentage (40%) Than in 2007 (39%)

Not since right before the Great Financial Crisis have we seen this! It just appears to me that lenders are trying to get you to play with fire again.

BUYERS! This is a dangerous move at today’s real estate prices. Prices must come down, or you need to offer less on a property that fits your criteria, by finding a seller who is realistic on price and needs to sell (motivated.)

Or WAGES need to increase. Wages are NOT keeping up with inflation. The median income in the US today is approximately $85,000. The income needed to get that DTI under 30% is $110,000 for a wage gap of 28%!

Traditionally, DTI was 28/36%. These days, my recommendation is to keep your DTI under 20% if you can because of the problems with property taxes and property insurance.

Locally here in Florida, many insurnace companies are dictating that costly home improvements be made before renewing your policy. Don’t ignore this. Shop around for new insurance quotes immediately. Don’t let this slide into a situation where you end up with forced insurance placement from your lender.

Sellers would be wise to price their properties correctly from the beginning of marketing.

Remember, your property really isn’t on the market unless it’s on the list…the MLS…and is AVAILABLE to the public for showing to the entire market.

2026/06/072026/06/10

Downsizing Checklist – With Housing Costs Surging Is This a Good Move to Reduce Expenses?

What are your total transaction costs on the sale AND the purchase
What are the holding costs on the new home
Will you have to pay a capital gains tax on the sale of your current home
What are the moving costs
If you will be using your equity from the sale of your home to purchase the new home without a mortgage, how will losing the interest deduction affect your personal taxes
Will you need to store any of your belongings
Be sure to factor in your health care costs & inflation in your new location
It’s MUCH easier to accomplish a down sizing in your 50s & 60s than in your 70s & 80s
What repairs & delayed maintenance will be necessary of your current home to bring it to move-in condition
Can you afford the repairs & potential staging costs
If you will be purchasing your new home before your old home is sold can you afford the overlapping holding costs
Don’t waive a home inspection if you are buying a new build
Can you afford the inflation on home services in your new neighborhood
Will you regret getting rid of your “stuff”
You’re going to get decision fatigue
Will you have seller’s remorse
Make sure you’re not down sizing too small – you don’t want to have to move twice
If you are moving to a completly new area, consider renting before buying

Property taxes, hazard insurance and HOA fees are all increasing and up to 65% of homeowners with mortgages have “escrow shortages” — many were qualified at higher percentages of their income. In my opinion, I would not originate a mortgage (principal and interest) at more than 20-22% of my income because of it. With escrow shortages, your lender keeps the money on a monthly basis that was your old escrow PLUS the amount needed for your new escrow to meet ongoing payments. The average shortage in escrow balances was $2,157.00!!! Property taxes have increased by approximately 15% between 2019 and 2024 (Cotality.) Property insurance has increased approximately 70% between 2019 and 2025, says the Dallas Fed (March.)

This insurance issue is enough on its own to force some homeowners into falling behind on mortgage payments because they cannot move/downsize or otherwise lower their costs.

2026/04/242026/04/24

How to Use Your Down Payment Money

These days, when you’re buying property, you’re probably already aware that you can get concessions from the seller in a lot of instances. So brush up on how to get the most valuable concessions from the seller that will help you, depending on your situation.

What many do not consider: your best bet may NOT be using all of your down payment money for a down payment. If you want to be more sure that you are going to be able to afford the housing costs of the property you are buying, consider this strategy.

Figure out the maxium principal & interest amount you can comfortably pay. Determine the loan amount & THEN shop for your property with the understanding that you will only pay a minimal down payment to get the loan. This will probagly result in a lower purchase price.

Once you have closed & are in the property, after your first payment is due take the REMAINDER (majority) of your down payment & apply it to the principal balance of your new loan. For instance, If you have 20% to put down, put down only 0-3%, get all the best seller concessions for your situation & then take the remaining 15-17% & apply it to the princpal of your loan. When you check your amortization schedule, you may have wiped out about 10 years of INTEREST on your mortgage!

2026/02/282026/02/28

End of February 2026 Observations

Why Do I Use a Letter B Logo?

My initial logo is to remind you to B present and design your life. I’ll B your professional guide. I’m a lifestyle design pro for finding your best nest financially, in your ideal location with the features you need. I scour all properties, including those not actively listed. As a consultative broker, there’s no pressure. I can refer you to the best real estate professionals in any part of the country. Just keep in mind that many agents have been licensed for less than 18 months and may not know what they don’t know. This can create many problems if their depth of experience about what could be a major problem is limited.

New Construction is Now Cheaper Than Existing Homes!

Median Sales Prices by County on the Treasure Coast

As of December 2025:

Martin County: $600,000; St. Lucie County: $395,000; Indian River County: $396,015

The marketplace is trending toward more balance; however, financing, insurance & property taxes are presenting financial hurdles for prospective homebuyers.

Difficult Transactions

It’s actually a really good thing to have a real estate professional direct your transaction, whether selling or buying. They can be the logical, cool headed professional who brings clarity to an emotionally charged, high stress, personal transaction. They should explain the entire real estate contract to you & point out terms & conditions that could cause problems. This helps prevent bottlenecks & they help you by keeping track of all the moving parts.

Paper Trails

A great agent keeps track of all required documentation & discloses things you might not think about yourself. Transparency & clarity are important to completing a successful real estate transaction.

A Resource and Advocate on Call

If you have a great broker, they’ll answer any questions you might have about your situation & help you with any information to enable you to make the best business decisions possible.

Florida Has More than 50,000 Homeowner Associations!