Blog – Fred Gruber - First Rate Financial Group

25

Nov

Mortgage Tips

How Non-Occupant Co-Borrowers Can Help with Mortgage Qualification

Many hopeful homebuyers find that their income alone does not quite meet the requirements for a mortgage. This challenge is especially common for people early in their careers, those recovering from financial setbacks, or buyers facing higher home prices. One option that can make a meaningful difference is bringing in a non-occupant co-borrower.

What a Non-Occupant Co-Borrower Is
A non-occupant co-borrower is someone who agrees to apply for the mortgage with you but does not plan to live in the property. Their income, credit history and financial stability are reviewed alongside yours. This added support can help strengthen the entire application.

How Income Support Works
When a non occupant co borrower is added, their qualifying income is blended with yours. This can reduce your debt to income ratio, which is a key factor lenders review. With stronger combined income, you may qualify for a loan amount that was previously out of reach.

Impact on Credit and Responsibility
Both you and the non-occupant co-borrower are equally responsible for the loan. This means that any late payments or default will impact both credit profiles. It is important to choose someone who understands the commitment and feels confident in your ability to manage the payments.

Who Commonly Serves in This Role
Non-occupant co-borrowers are often family members who want to support a relative as they purchase a home. Parents, adult children or siblings are common examples. Even though they will not live in the home, they help strengthen the financial side of the application.

Long Term Considerations
Before moving forward, it is helpful to have an open conversation about expectations. Some buyers may later refinance to remove the co borrower once their income increases or their credit improves. Planning ahead can help everyone feel comfortable with the arrangement.

Adding a non-occupant co-borrower can make homeownership more achievable for buyers who are close to qualifying but need a little extra support. With the right partner and the right plan, it can be a valuable path toward securing a mortgage that fits your goals.

24

Nov

By Fred Gruber

Financial Reports

What’s Ahead For Mortgage Rates This Week – November 24th, 2025

This week finally got a strong release of regularly scheduled data, with unemployment figures coming out first, along with employment-rate data.

The prior week included the Consumer Price Index, which came in favorable. Some of the unemployment-related numbers, however, weren’t as telling as they could be: the forecast was roughly 50,000, but the actual figure landed closer to 110,000. That’s an order-of-magnitude miss, suggesting we may need to allow some time for the data to self-correct.

The coming week is slated to include both the PPI—which has drifted out of sync with the CPI—and the PCE Index. These are the two major releases to watch. The Federal Reserve has repeatedly mentioned that the PCE Index is their preferred inflation indicator, and that is likely to remain the case going forward.

Unemployment Report
The long-delayed September employment report showed the U.S. created 119,000 new jobs, a surprisingly robust increase that could give the Federal Reserve more reason to shelve a third interest-rate cut in a row next month. The increase in new jobs was the largest since April, but hiring has slowed down sharply this year. Indeed, the economy lost jobs in June and August.

Jobless Reports
The first jobless-claims report since the government shutdown shows no spike in layoffs. Initial jobless claims fell by 8,000 to 220,000 in the week ended Nov. 15, the Labor Department said Thursday. The last jobless-claims report prior to the shutdown showed claims at 219,000.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw an increase of 0.05% for this week, with the current rate at 5.54%
• 30-Yr FRM rates saw an increase of 0.02% for this week, with the current rate at 6.26%

MND Rate Index
• 30-Yr FHA rates saw a decrease of -0.08% for this week. Current rates at 5.94%
• 30-Yr VA rates saw a decrease of -0.09% for this week.Current rates at 5.95%

Jobless Claims
Initial Claims were reported to be 220,000 compared to the expected claims of 227,000. The prior week landed at 232,000.

What’s Ahead
PPI and PCE Index inflation reports are the biggest data releases next week. They should be very impactful.

21

Nov

By Fred Gruber

Mortgage Tips

Understanding the Conversation Around Longer Mortgage Terms

The idea of extending mortgage terms well beyond the traditional thirty years is gaining new attention. With rising home prices and tightened affordability, many buyers are wondering whether a much longer loan could help lower the monthly payment enough to make homeownership more achievable. Before deciding if this type of option makes sense, it is important to look at why the concept is being discussed and what it could mean for buyers in the real world.

Why Longer Mortgage Terms Are Being Discussed
The primary reason is affordability. Home prices have increased across many markets, and even with modest rate improvements, buyers still feel squeezed. A loan that stretches across five decades would lower the monthly payment by spreading the balance over a longer period. This can help certain buyers qualify more easily, particularly those facing high living costs or limited savings.

How Longer Terms Affect Monthly Payments
A longer loan term does offer short term relief. By dividing payments across additional years, the monthly cost drops. On a large loan amount, the difference can be a few hundred dollars per month. That amount can make a real impact on a household budget, especially for first time buyers who are navigating both loan approval and the ongoing cost of owning a home.

The Hidden Cost Over Time
The tradeoff is significant. A lower payment today means higher total interest paid over the full life of the loan. Equity builds at a much slower pace, and borrowers can remain close to the original loan balance for many years. This can affect future financial decisions, including refinancing or selling the home. Lower payments offer comfort, but the long-term numbers still matter.

Will Longer Mortgage Terms Become Common
Right now, the idea of a fifty-year mortgage is still a discussion rather than a standard lending option. Current guidelines for most traditional loans go up to thirty years, and some private programs extend to forty. Moving beyond that would require cooperation across agencies and lenders, and it may only apply to specific loan types if it becomes available at all.

What Buyers Should Do Today
Even without a fifty-year option on the market, buyers can still take steps to improve monthly affordability. Rate buydowns, adjustable-rate programs, and down payment assistance can make a meaningful difference. A conversation with a loan professional can reveal programs that fit both present needs and long-term goals. Understanding the full cost of the mortgage, not just the payment, remains essential.

The bottom line is simple: longer mortgage terms may help with monthly affordability, but they come with long-term financial considerations. Staying informed and exploring all available options is the best path forward for any buyer.