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Mortgage Market Update
Amy Velsh
Amy Velsh
Tuesday, November 3, 2026
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Paying off debt before buying a home |
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Hi there. This week I want to talk about something that matters just as much as your down payment: the debt you already have.
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National Mortgage Rates · November 2, 2026
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Conventional 30-Year
7.13%
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Source: Optimal Blue daily mortgage indices via FRED
Rates shown are national mortgage index rates and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.
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Debt & Borrowing
Your other debts shape what you can borrow
Most people focus on their down payment and credit score when they're ready to buy or refinance—but lenders care just as much about what you already owe. Student loans, car payments, credit cards, personal loans: all of these factor into how much home you can actually afford. The reason is simple: lenders want to know that your total monthly obligations won't overwhelm your income. A lower debt-to-income ratio gives you more borrowing power and often better terms. If you're thinking about a mortgage soon, paying down existing balances—even a little—can open up real options. I'd love to walk you through how your specific situation looks and what moves make sense for you. Reach out anytime, and we can talk through where you stand.
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Tip of the Week
Refinancing resets your amortization clock. If you're 10 years into a 30-year loan, consider a shorter term to avoid paying more total interest.
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Tips for Homeowners
Co-Signing a Mortgage: What You're Really Agreeing To
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1.
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Co-signing makes you equally responsible for the debt. If the primary borrower misses payments, your credit score takes the same hit and the lender can pursue you for the full balance.
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2.
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The co-signed mortgage debt appears on your credit report and counts toward your DTI. This can limit your ability to qualify for your own financing until the loan is paid off or refinanced out of your name.
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3.
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There's no automatic way to remove yourself as a co-signer — the primary borrower must refinance the loan in their name alone. Get this understanding in writing before you sign.
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Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Amy Velsh team any time and we'll walk you through your options. |
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