Mortgage Rates Are Over 7%—Should I Wait to Buy a House?”

Happy Monday!

My Friday update is arriving a little late this week—I was out of town and just got back. But with what's happened to mortgage rates, I didn't want to skip this conversation.

Every week I research the questions homeowners and buyers are asking Google and ChatGPT about home purchases, mortgages and the issues surrounding homeownership.

And this week's question is pretty obvious:

“Rates are back over 7%. Should I just stop looking?”

According to Freddie Mac, the national average 30-year fixed mortgage rate reached 7.03% last week, up from 6.76% just two weeks earlier.  And it is currently approaching almost 7.5%,

There's no question about it: higher rates affect affordability and purchasing power.

But before your buyers get discouraged—or automatically decide they need to dramatically lower their price range—let's run the numbers.

The interest rate is only ONE part of the equation.

When I work with a buyer, I'm looking at the complete monthly obligation:

Principal + Interest + Property Taxes + Insurance + HOA + Other Monthly Debt

Then we look at the entire transaction to see what we can adjust.

Could a seller credit help with closing costs or an interest-rate buydown?

Would a 2-1 temporary buydown make the first couple of years more manageable?

Would paying points for a permanent rate reduction make sense—or not?

Could gift funds allow the buyer to make a larger down payment or preserve their cash?

Does one property have significantly lower taxes, HOA dues or insurance costs than another?

Could paying off a monthly consumer debt have a greater impact on qualifying than putting those same dollars toward a larger down payment?

And are there other loan programs that better fit this particular borrower?

One size does NOT fit all.

Karen's Desk

This is exactly when I don't want buyers—or Realtors—making assumptions based on a headline about mortgage rates.

Let's say your buyer was comfortable with their payment two weeks ago and rates have now moved higher.

Before telling them, “We need to lower your price range,” call me.

I'll rerun the scenario.  Sometimes the answer WILL be that we need to adjust the purchase price.

But sometimes a different financing structure, seller concession, buydown, gift, debt payoff or simply a different property with lower taxes, insurance or HOA expenses can bring the total payment back into a comfortable range.

And sometimes the numbers tell us that the buyer really should wait.

That's okay too.

My job isn't to convince someone to buy a house. My job is to show them the numbers so they can make an informed decision.

Ask Karen

“My buyer was preapproved when rates were lower. Do we need to start over?”

Not necessarily—but we DO need to update the numbers.

A preapproval isn't something we should put in a drawer and forget about while rates are moving.

If your buyer is actively shopping, I want to keep evaluating their purchasing power as the market changes.

Before they write an offer, let's confirm:

• The current interest rate and payment

• Estimated property taxes

• Homeowners insurance

• HOA dues, if applicable

• Cash required to close

• Available reserves

• Seller concessions we may be able to negotiate

• And most importantly, whether the total monthly payment still works for the buyer

I'd much rather have that conversation before you write the offer than discover afterward that the payment is no longer comfortable.

Realtor Talking Point of the Week

When your buyer says:

“Rates are over 7%. Maybe I should just wait.”

Don't tell them rates are going to come down. None of us knows exactly what rates will do next.

Instead say:

“Before you give up, let's have Karen rerun the numbers based on today's rate and the house you're actually considering. Then you can make the decision based on facts rather than headlines.”

That's the conversation I want us having.

AI Prompt of the Week for Realtors

Copy and paste this into ChatGPT:

Act as an experienced Orange County Realtor communicating with a homebuyer who has become discouraged because mortgage rates have risen above 7%. Write a warm, educational and non-salesy email acknowledging that higher rates affect affordability, but explain that the interest rate is only one part of the total housing payment. Encourage the buyer to have their Realtor and mortgage professional review the complete transaction—including purchase price, down payment, seller concessions, possible rate buydowns, property taxes, insurance, HOA dues, other monthly debt and cash reserves—before deciding to stop their home search. Do not predict future mortgage rates or pressure the buyer to purchase. Keep the email under 250 words.

The Takeaway

Rates have changed. That doesn't automatically mean your buyer's goal has to change.

Maybe we restructure the financing.

Maybe you negotiate differently.

Maybe we look at a different price point.

Maybe we discover the buyer is still perfectly comfortable exactly where they are.

And yes—sometimes we determine that waiting really is the right answer.

But let's make that decision based on the actual numbers, not simply because your buyer heard that mortgage rates went over 7%.

If you have buyers who were preapproved before this latest rate move, send them back to me. Let's update their numbers before they give up on their home search.

Have a wonderful week!

Karen Card
The Card Team
Sr. Loan Officer | NMLS #235218
American Pacific Mortgage Corporation

Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, Families in Transition and Homeowners Navigate Today's Mortgage Market.

Can You Have Two VA Loans at the Same Time?

Happy Friday!

Every week I research the questions homeowners and buyers are asking Google and ChatGPT about home purchases, mortgages and the issues surrounding homeownership.

This week, we're back to VA loans—one of the most misunderstood, yet most valuable mortgage programs available.

And this time, the VA itself is helping clear up one of the biggest misconceptions.

On September 15, the Department of Veterans Affairs issued new consumer guidance reminding Veterans that:

The VA home loan is a lifetime benefit.

A Veteran who has used a VA loan in the past may be able to use the benefit again. And in some circumstances, a Veteran can even have two VA-backed home loans at the same time.

If the Veteran has enough remaining entitlement, meets the lender's credit and income requirements, and intends to occupy the new property as their primary residence, they may be able to keep the existing VA-financed property and use VA financing again to purchase another home.

If the Veteran doesn't have enough remaining entitlement to provide the required VA guaranty for the new loan, a down payment may be required.

This comes up frequently when life changes: A Veteran receives a job transfer.The family has outgrown the current home. They marry and need more space. They relocate but want to keep the existing property. Or their housing needs simply change.

Let's clear up some of the most common questions:

Can I use my VA loan benefit more than once?
YES. There is no limit to the number of times an eligible Veteran can use the VA home-loan benefit, provided the applicable requirements are met.

Can I keep my current house and use VA financing again?
POSSIBLY. It depends on remaining entitlement, qualification and occupancy requirements.

How much entitlement do I have left?
LET'S CHECK THE COE. The Certificate of Eligibility shows previously charged entitlement, and we can calculate remaining entitlement based on the county loan limit for the new property.

Do I have to sell my existing house first?
NO—not necessarily.

Can previously used entitlement be restored?
YES, under certain circumstances. If the prior VA-financed property has been sold and the loan paid in full, the Veteran may request restoration. There are also other restoration situations, including a one-time restoration when a prior VA loan has been paid in full but the Veteran still owns the property.

Will I need a down payment the second time?
NOT NECESSARILY. With full restored entitlement, VA itself doesn't impose a loan limit or require a down payment simply because the benefit has been used before. With partial or remaining entitlement, however, the amount being borrowed and available entitlement may result in a down-payment requirement.

From Karen's Desk

Here's a scenario I want every Realtor to recognize:

Your Veteran client owns House A, purchased with VA financing.

Now they've received a job transfer, their family has outgrown the home, or life is simply taking them somewhere else. They want to purchase House B.

The automatic response shouldn't be:

“You'll have to sell House A first.”

Instead, call me.

Depending on the numbers, your client may be able to keep House A AND purchase House B using another VA loan.

They may qualify with no down payment on the new home, or they may need some down payment depending on the amount of remaining entitlement and the new purchase price.

The important thing is that we don't assume the answer before we run the numbers.

Realtor Talking Point of the Week

Here's the one sentence I want you to remember:

“Never assume your Veteran has already ‘used up’ their VA benefit. Let me pull the COE and calculate the remaining entitlement before we decide what they can buy.”

AI Prompt of the Week for Realtors

Copy and paste this into ChatGPT:

Act as an experienced Orange County Realtor writing to past clients who are Veterans or active-duty military homeowners. Write a warm, educational, non-salesy email explaining that the VA home-loan benefit is a lifetime benefit and that having an existing VA mortgage does not necessarily prevent a Veteran from using VA financing again. Explain that remaining or restored entitlement may allow a Veteran to purchase another primary residence—and in some circumstances have two VA loans at the same time. Encourage the homeowner to have a VA-experienced mortgage professional review their Certificate of Eligibility before assuming they need to sell their existing home. Do not calculate entitlement or provide individualized mortgage advice. Keep the email under 250 words.

The Takeaway

The VA benefit is not “one and done.”

That's the misconception I want us to eliminate.

If your Veteran client already owns a home with VA financing—or tells you, “I already used my VA loan”—please don't assume conventional financing is their only option.

Let's pull the COE and find out what they've actually earned and what is still available.

As a Certified Veteran Lending Specialist, I'm always happy to review the entitlement, run the numbers and help you and your Veteran client understand the options.

Have a wonderful weekend!

Karen Card
The Card Team
Sr. Loan Officer | NMLS #235218
American Pacific Mortgage Corporation

Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, Families in Transition and Homeowners Navigate Today's Mortgage Market.

Your 70-Year-Old Homeowner May Also Be Your Next Buyer!

Happy Friday!

Every week I research the questions consumers are asking Google and ChatGPT about home purchases, mortgages and the issues surrounding homeownership.

This week, I'm seeing a lot of questions involving senior homeowners, reverse mortgages and what happens to the family home when a parent passes away.

Questions like:

“Mom has a reverse mortgage. What happens to the house when she dies?”

“Can we inherit the house?”  “Can we keep it?”  “What happens to the equity?”

“Does the bank own the house?”

But there's another side of this conversation that Realtors shouldn't overlook:

Your 70-year-old homeowner may not just be your next listing. They may also be your next BUYER!

Many of our senior homeowners are sitting on substantial equity in homes that no longer fit their lives.

Maybe the house is too large. There are too many stairs. The yard has become a burden. They want to move closer to their children or grandchildren. Or perhaps they'd simply like a smaller home that better fits the next chapter of their lives.

The obvious assumption is:  “They'll sell and pay cash for the next house.”

But that isn't necessarily their only option.

Reverse Loans for Purchase

A reverse loan will allow an eligible homeowner age 55 or older to purchase a new primary residence using a combination of their own funds and a reverse mortgage—in a single transaction.

That can allow the homeowner to retain more of the proceeds from the sale of the previous home rather than putting all of that cash into the next property.  This provides them with additional savings for the future.

And there is no required monthly principal-and-interest mortgage payment with a reverse loan. The homeowner must continue to occupy the property as their principal residence, and pay their property taxes, homeowners insurance, maintenance and applicable HOA expenses.

This can completely change the conversation about right-sizing.

From Karen's Desk — This One Is Personal

Reverse mortgages aren't just something I work with professionally. My own family used one.

When my mother was 75, I helped her put a reverse mortgage on her home. Over the years, she used some of her equity for things that made her life better—including remodeling her bathroom and buying a car.

Later in her life, her needs changed. Near the end, she required 24-hour in-home assistance, and her home equity became another resource that helped us provide the care she needed while allowing her to remain at home.

After Mom passed away, my sister and I didn't lose the house to the reverse mortgage company.

We sold an aset and used a portion of those proceeds to pay off the reverse mortgage. We then kept her home and rented it for another ten years before eventually selling it.

A reverse mortgage is a loan secured by the property; it doesn't mean the lender owns the home. When the loan becomes due, the heirs can determine how they want to satisfy it based on the circumstances and applicable loan requirements.

For our family, Mom's home wasn't simply an asset to preserve for her children. It was her asset, and it helped take care of her when she needed it.

Ask Karen

“Mom has a reverse mortgage and just passed away. What do we do with the house?”

First, don't panic—and don't ignore notices from the loan servicer.

They may sell the property, repay the reverse mortgage from the proceeds and retain the remaining equity.

They may choose to keep the property and satisfy the reverse-mortgage payoff, potentially using other assets or new financing.

And if the balance is greater than the property's value, in some cases the heirs can buy the property for 95% of its appraised value .

Timing matters, so as soon as a parent passes the heirs should bring in someone who understands reverse mortgages immediately, rather than waiting several months to decide what to do with the property.

Realtor Talking Point of the Week

Here's the question I'd ask your senior homeowners:

“If maintaining this house eventually becomes too much, have you thought about where you'd like to live next?”

Don't assume they're going to rent.  Don't assume they'll pay cash. And don't assume they're going to stay in the current home forever.

Start the conversation about what they actually want their next chapter to look like.

AI Prompt of the Week for Realtors

Copy and paste this into ChatGPT:

Act as an experienced Orange County Realtor writing to longtime homeowners age 62 and older. Create a warm, respectful, non-salesy email about whether their current home still fits the next chapter of their lives. Mention reasons someone might consider right-sizing, such as maintenance, stairs, wanting to travel more, or moving closer to family. Explain that selling does not necessarily mean they must become renters or put all of their sale proceeds into the next home. Mention that qualified homeowners may be able to use a HECM for Purchase to buy another primary residence, and encourage them to speak with a knowledgeable mortgage professional about their options. Do not provide financial, tax or legal advice. Keep the email under 250 words.

One More Important Conversation: Include the Kids

One thing I strongly encourage with reverse mortgages is including the adult children in the conversation.

Many of the fears surrounding reverse mortgages come from misunderstanding.

No, the bank doesn't own the house. The homeowner retains title.

Yes, the children can inherit the property. But the reverse-mortgage balance will eventually need to be satisfied.

And yes, there may still be substantial equity for the family. If the property is worth more than the loan balance when it is sold, the reverse mortgage is repaid and the remaining proceeds belong to the homeowner or estate.

Those are conversations I'd much rather have with the family today than have the children trying to figure everything out after Mom or Dad has passed away.

If you have a senior homeowner, an adult child helping Mom or Dad, or a family that has inherited a property with a reverse mortgage, please call me early.

These situations deserve thoughtful planning, and I'm always happy to help you and your clients understand the options.

Have a wonderful weekend!

Karen Card
The Card Team
Sr. Loan Officer | NMLS #235218
American Pacific Mortgage Corporation

Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, Families in Transition and Homeowners Navigate Today's Mortgage Market.

Need Your Equity -- But Love Your Mortgage Rate?

 All I hear these days is:

“How can I access some of my home equity without disturbing my low-interest first mortgage?”

There may be a simple solution: a second mortgage.

Instead of refinancing your entire first mortgage and giving up that great rate, we can explore borrowing against a portion of your equity while leaving your existing first mortgage in place.

There are two common options:

HELOC — Home Equity Line of Credit
A revolving line of credit, typically with a variable interest rate. You borrow what you need, when you need it, up to your approved limit.

HELOAN — Home Equity Loan
A lump-sum second mortgage, typically with a fixed interest rate and fixed monthly payment.

Both can be placed behind your existing first mortgage, allowing you to preserve that low rate.

And because one size does NOT fit all, we have a variety of programs for different borrower situations—including options for self-employed homeowners and other borrowers who may not fit neatly into the traditional lending box.

What about homeowners 62+?

We even have reverse mortgage second-lien options for qualifying older homeowners that can provide access to equity without requiring a monthly mortgage payment.*

So whether you're considering a remodel, paying off higher-interest debt, helping a child purchase a home, buying another property—or simply want to understand what your equity could do for you—give us a call.

Let's look at the numbers before you disturb that great first mortgage!

We are here to help.

Karen Card
The Card Team
Sr. Loan Officer | NMLS #235218
American Pacific Mortgage Corporation
📞 714-290-6940
www.card-team.com

Don’t Just Negotiate the Price—Negotiate the Payment

Happy Friday!

Every week I research what buyers are asking Google and ChatGPT about mortgages and homebuying, and this week there is a clear theme:

Buyers aren't just asking, “Can I get the house for less?”

They're asking:

“How can I make the payment—and the cash needed to close—work?”

And that creates an opportunity for Realtors.

46.2% of U.S. home sellers gave buyers some type of concession in May, the highest May percentage since Redfin began tracking the data. Even more interesting, about 16% of sales included BOTH a price reduction and a concession.

Here in Southern California, concessions were even more prevalent in some markets: 62.3% in San Diego and 54.8% in Los Angeles.

So, what should we negotiate?

This is where Realtors and lenders can work together:

Let's say your buyer is negotiating on a property and the seller is willing to give another $10,000.

The natural reaction may be:

“Great! Let's reduce the price by another $10,000.”

But is that actually the best use of the seller's $10,000?

Maybe.

Or perhaps that same negotiating power could be more valuable to your buyer if it's used toward allowable closing costs, prepaid expenses, discount points or an interest-rate buydown.

The important point is:

Don't automatically negotiate the price. Negotiate what creates the greatest benefit for THIS buyer.

Karen's Desk

Here's how I would approach the conversation.

Your buyer loves an $800,000 home. After some negotiation, the seller is willing to give another $10,000.

Before you automatically write the counter call me.

I can quickly compare the alternatives.

• What happens to the payment with a $10,000 price reduction?
• What if we keep the purchase price at $800,000 and negotiate an allowable seller credit instead?
• Could some of that money be used toward closing costs, allowing your buyer to retain more cash?
• Would paying discount points for a lower permanent interest rate create a greater long-term benefit?
• Would a temporary buydown help the buyer manage the payment during the first year or two?

There isn't one answer that works for every borrower.

And that's exactly the point.

Let's do the math BEFORE you write the counteroffer.

That's where a five-minute conversation between Realtor and lender can make a real difference.

Ask Karen

“Karen, my buyer wants another $10,000 off the price. Would they be better off asking for a credit?”

Maybe—and let's calculate it before you ask.

I want to know:

• What loan program are we using?
• How much is the buyer putting down?
• How much cash do they have available?
• What are their closing costs and prepaids?
• What is the cost of reducing the interest rate?
• How long does the buyer expect to own the home?
• Is the buyer more concerned about cash to close or monthly payment?

There are also limits on how much a seller can contribute depending upon the loan program, occupancy and transaction structure. Don't structure the concession in a vacuum.

Call me while you're negotiating.

That's when I can help you determine how to get the most value for your buyer from the dollars already on the negotiating table.

AI Prompt of the Week for Realtors

Copy and paste this into ChatGPT:

Act as an experienced Orange County Realtor representing a homebuyer in today's market. My buyer is considering making an offer on a home where we may have room to negotiate with the seller. Help me prepare a list of questions to discuss with my buyer's mortgage professional before deciding whether to negotiate a lower sales price, seller credit toward closing costs, or funds toward an interest-rate buydown. Focus on the buyer's monthly payment, cash to close, available reserves and long-term financial goals. Do not calculate loan terms or give mortgage advice; identify the questions I should ask the lender before structuring the offer.

The Takeaway

Your buyer may not need a dramatically cheaper house.

They may need a better way to structure the transaction.

So when you have negotiating room, bring me into the conversation before the counteroffer is written. Let's look at the buyer's financing and determine where those negotiating dollars can do the most good.

Have a wonderful weekend!

Karen Card
The Card Team
Sr. Loan Officer | NMLS #235218
American Pacific Mortgage Corporation

Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, Families in Transition and Homeowners Navigate Today's Mortgage Market.

Back to School, Back to Reality! And, What about Rates??

Summer Doesn't Seem Ready to Leave!

Although we are turning the calendar to September, apparently Mother Nature didn't get the memo! The heat continues to break records, the kids are heading back to school, and we're all trying to get back into our normal routines.  

I just returned from Paso Robles, where I did my best to survive the heat by conducting some very important research into Albariños, Picpouls and other crisp white wines. Someone had to do it! 🍷

But September always feels like a reset to me. Vacations are mostly over, school starts, and suddenly we're looking at the last four months of the year.  How did it fly by so fast?

So, this is actually a very good time to take another look at your real estate and financial plans.

1. RATE UPDATE — “Still Waiting for Rates to Drop?”

Rates have been remarkably stubborn. The national Freddie Mac average finished August at 6.66%, after spending essentially the entire month in the mid-6s.

Everyone keeps asking me when mortgage rates are finally going to come down. My answer remains the same: I threw away my crystal ball many years ago!

The Fed meets again September 15–16, so we'll certainly be watching. But remember—the Fed does not directly set mortgage rates. Inflation, wars, employment, the bond market and expectations about the economy all play a role.

Rather than putting your life on hold waiting for the “perfect” rate, let's determine whether a move makes sense at today's numbers. If rates improve later, we can always evaluate refinancing.

2. REAL ESTATE — “Fall May Be a Buyer's Opportunity.”

Since families often move during summer before school starts, September offers opportunities. Some buyers disappear—but sellers who are still on the market may have a reason they need to sell.

Don't assume fall is a bad time to buy. It may actually be the time when you have more negotiating power.

Seller credits, price negotiations, 2-1 buydowns and inspection concessions will all work in the favor of buyers going into this Fall.

3. SEPTEMBER FINANCIAL CHECKUP — “Four Months Left in 2026.”

Is there something you intended to accomplish financially this year but haven't?

It could be accessing equity for a remodel, consolidating expensive consumer debt, buying an investment property, purchasing a first home, helping an adult child buy, downsizing, or finally evaluating whether a refinance makes sense.

Don't wait until December to start planning. Give me a call and let's spend 20 minutes looking at where you are and what you'd like to accomplish before year-end.

FROM KAREN'S DESK: One Family, Two Generations

Last month I told you about parents who wanted to use some of the equity in their home to help their adult son purchase his first home.

This is exactly why I love what I do. A mortgage isn't always simply about buying or refinancing a house. Sometimes we're coordinating multiple financial pieces to help a family accomplish a much bigger goal.

The son closed on his first home, and is enjoying the first steps in making it his own...from new furniture to painting and creating a workspace in the garage.

As for Paso? I did find some wonderful whites—and perhaps a few bottles followed me home. My personal faves:  Brecon and Cairjn.  Loved their Assyrtiko and Albariños.  

More importantly, I'm back at my desk and ready for fall. If there's a real estate or mortgage question you've been putting off all summer, now is a great time to call me.

You Love Your Mortgage Rate. But You've Outgrown Your House

Happy Monday!

My Friday update is arriving a little late this week—I took a few days off for vacation! But this is a conversation I didn't want to skip.

Every week I research the questions homeowners and buyers are asking Google and ChatGPT before they ever contact a Realtor or lender. One question keeps coming up:

“I have a great mortgage rate—but I need to move. What do I do?”

Many homeowners are sitting on mortgage rates far below today's market. Understandably, they don't want to give them up.

But sometimes life doesn't care what your mortgage rate is.

Families grow. Jobs change. Couples divorce. Parents need caregiving. Stairs become a problem. Commutes change. Or perhaps the house simply doesn't fit the life they're living anymore.

A 3% mortgage is valuable.

But it isn't necessarily a reason to stay in the wrong house forever.

Instead of asking, “Should I give up my 3% mortgage?”

Let's ask:

“What would have to happen financially for this move to make sense?”

That's where we have options to explore.

• A homeowner might be able to use a HELOC or home-equity loan to access equity for the next down payment before selling.
• Some borrowers may qualify to buy the new home before selling the existing one, avoiding the pressure of trying to perfectly coordinate two transactions.
• Bridge financing may be another possibility for the right borrower.
• Some clients may decide to sell first, use their proceeds and then purchase.

And occasionally, keeping that low-rate mortgage and converting the existing home to a rental may make sense.

There isn't one answer for everyone.

The important thing is not to assume your client is trapped until we've run the numbers.

From Karen's Desk

This is where I think a mortgage professional can add tremendous value to a Realtor's relationship with a past client.

When someone tells me, “I'd love to move, but I can't give up my 3% mortgage,” I'm not going to immediately try to talk them into selling.

Instead, I want to model the choices.

Let's say your client has substantial equity but needs a larger home. I may compare several scenarios:

• Sell first and use the proceeds toward the new purchase.
• Buy first, if they can qualify carrying both properties temporarily.
• Open a HELOC on the existing home to help fund the next down payment.
• Consider bridge financing to cover the period between the two transactions.
• Keep the current home as a rental and determine whether the rental income and overall financial picture support the next purchase.

Then we compare the numbers—not just the rates.

What is the new total monthly housing expense? How much cash remains in reserves? What other debt could potentially be eliminated with sale proceeds? What happens to monthly cash flow? And what does each choice accomplish for the client's family and lifestyle?

Sometimes the best answer is to move. Sometimes it's to stay.

My job is to give your client enough information to make that decision intelligently.

And for you, that planning conversation may uncover a future listing and purchase that otherwise would never have happened.

Ask Karen

“Can my client really buy their next home BEFORE they sell their current one?”

YES! And this is something I'd much rather determine before they begin house hunting.

I want to look at:

• Income and existing monthly obligations
• Equity in the current property
• Estimated net proceeds from a future sale
• Cash available for the next down payment
• Whether a HELOC or bridge strategy is feasible
• Potential rental income if they're considering keeping the existing property
• Cash reserves after closing
• And the complete monthly payment on the new home

If they can qualify to purchase before selling, it can completely change the Realtor's strategy.

Instead of writing an offer contingent upon selling their current home—or selling first and scrambling to find the next property—we may be able to give the family time to find the right home, move, and then prepare the existing home for sale.

Realtor Talking Point of the Week

Here's a question I'd encourage you to ask your past clients:

“If your mortgage rate weren't part of the equation, would this still be the right house for you today?”

If the answer is no, don't immediately ask:

"Are you willing to give up your 3% mortgage?"

Instead ask:

“What would have to happen financially for a move to make sense?”

Then bring me into the conversation and let's find out. Your client may be much less “rate locked” than they think.

AI Prompt of the Week for Realtors

Copy and paste this into ChatGPT:

Act as an experienced Orange County Realtor writing to a past client who purchased or refinanced when mortgage rates were very low. Write a warm, conversational email asking whether their current home still fits their lifestyle. Acknowledge that giving up a low mortgage rate can make moving feel financially impossible, but explain that substantial home equity, sale proceeds, a HELOC, bridge financing, buying before selling, or potentially retaining the current home as a rental may create options. Do not recommend a specific financing strategy. Encourage the homeowner to have their Realtor and mortgage professional run the numbers before deciding they are “stuck.” Keep the email non-salesy and under 250 words.

The Takeaway

Your past clients may not be calling you because they've already decided they can't move.

That's the opportunity.

We don't need to convince them to sell. We simply need to help them answer:

Does this house still work for my life—and if it doesn't, what are my options?

If you have a past client who loves their mortgage but has outgrown their house, send them my way. I'll be happy to model the possibilities with you and let the numbers tell us whether a move makes sense.

Have a wonderful week!

Karen Card
The Card Team
Sr. Loan Officer | NMLS #235218
American Pacific Mortgage Corporation

Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, Families in Transition and Homeowners Navigate Today's Mortgage Market.