Posts on Coastal Funding Blog

Best Mortgage Company? How Home Buyers and Owners Choose

Thu, 22 Oct 2026 15:30:00 -0500

The best mortgage company for you is the one that offers the right loan for your situation, a clear and fair Loan Estimate, and real people who answer your questions quickly. Compare at least three offers on the same day, check licenses on NMLS Consumer Access, and look past the advertised rate to the APR, fees, and service.

Whether you’re buying your first home, moving up, or a current homeowner thinking about a refinance, this guide shows you how to choose a mortgage company with confidence. It also explains what Coastal Funding Corporation (NMLS 103035) offers and why so many borrowers make us their go-to for mortgage needs and questions.

What Moves Mortgage Rates? The Fed, Inflation and Bonds

Wed, 21 Oct 2026 06:45:00 -0500

Mortgage rates are driven mostly by the bond market, not directly by the Federal Reserve. Investors buy mortgage-backed securities, and the yields they demand rise or fall with inflation, economic news, and expectations about the Fed. That’s why mortgage rates can move even on days when the Fed does nothing.

Key Takeaways

The Fed sets short-term rates, not mortgage rates.
Mortgage rates follow mortgage-backed securities (MBS) and tend to move with the 10-year Treasury yield.
Inflation data is one of the biggest rate movers.
Freddie Mac’s 30-year average was 7.40% the week of October 15, 2026, up from 6.27% a year earlier.
The Fed raised rates on September 16, 2026, and meets again October 27-28.

Does the Federal Reserve Set Mortgage Rates?

No. The Fed sets the federal funds rate, the rate banks charge each other for overnight loans. That rate affects things like credit cards and home equity lines of credit more directly.

Mortgage Broker vs. Bank: Which Is Better for Your Loan?

Wed, 21 Oct 2026 06:30:00 -0500

A mortgage broker compares loans from many wholesale lenders for you, while a bank can only offer its own loans. Banks may be convenient if you already bank there. Brokers give you more choices with one application. Freddie Mac research shows that comparing more rate quotes can save borrowers real money.

Key Takeaways

Banks (retail lenders) offer only their own loan products and pricing.
Mortgage brokers shop multiple wholesale lenders on your behalf.
Freddie Mac found borrowers with four or more quotes could have saved more than $1,200 a year during high-rate months in late 2022.
Compare offers using the official Loan Estimate, which lenders must send within three business days of your application.
Always check a broker’s license on NMLS Consumer Access.

What Is a Mortgage Broker?

A mortgage broker is a licensed company or loan officer that works between you and the lenders. You fill out one application. The broker then compares programs and pricing from several wholesale lenders, which are lenders that work through brokers instead of directly with the public.

What Is a DSCR Loan? A Plain-English Guide for Investors

Wed, 21 Oct 2026 06:15:00 -0500

A DSCR loan is an investment-property mortgage that qualifies you mainly on the property’s rental income instead of your personal income. Lenders divide the monthly rent by the monthly housing payment. If the rent covers the payment, you may qualify, even if your tax returns don’t show a big salary.

Key Takeaways

DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and HOA dues).
A DSCR of 1.0 or higher means the rent covers the payment. Many lenders look for that.
DSCR loans are for investment properties only, not your primary home.
They’re popular with self-employed borrowers and investors who own several rentals.
Coastal Funding Corporation offers DSCR loans nationwide.

What Is a DSCR Loan?

Most home loans look at your debt-to-income ratio (DTI). That means your pay stubs, W-2s, or tax returns. A DSCR loan flips that around. It asks one main question: Does this property pay for itself?

VA Home Loan Guide for Veterans Day: Benefits and Costs

Wed, 21 Oct 2026 06:00:00 -0500

A VA home loan is a mortgage backed by the U.S. Department of Veterans Affairs for eligible veterans, service members, and some surviving spouses. Most borrowers can buy with no down payment and no monthly mortgage insurance. In exchange, most pay a one-time VA funding fee. This Veterans Day, here’s how the benefit works and what it costs.

Key Takeaways

No down payment is often required for borrowers with full entitlement.
No monthly mortgage insurance, ever. Most borrowers pay a one-time funding fee instead.
Funding fee: 2.15% of the loan for a first-time purchase with less than 5% down (VA.gov).
Rates: Mortgage News Daily’s 30-year VA index was 7.04% on October 20, 2026.
Veterans with a service-connected disability rating are usually exempt from the funding fee.

Why Veterans Day Is a Good Time to Talk About the VA Loan

Veterans Day falls on November 11. It began as Armistice Day, marking the end of World War I fighting on the 11th hour of the 11th day of the 11th month in 1918. Congress renamed it Veterans Day in 1954 to honor veterans of all wars.

5 Scary Mortgage Myths Busted This Halloween (2026)

Sun, 18 Oct 2026 00:00:00 +0000

The biggest mortgage myths are that you need 20% down, perfect credit, and a perfect time to buy. They don’t hold up. Many loans allow 0% to 3.5% down, government-backed programs have flexible credit rules, and waiting has risks too. Here are five scary mortgage myths, busted, plus where rates stand this October.

Key Takeaways

You don’t need 20% down. Conventional loans can start at 3%, FHA at 3.5%, and eligible VA and USDA borrowers may put 0% down.
Credit doesn’t have to be perfect. FHA guidelines are built to be flexible.
Rate shopping won’t haunt your credit. Multiple mortgage inquiries in a short window generally count as one.
Rates: Freddie Mac’s 30-year average was 7.40% the week of October 15, 2026.
Investors may qualify on rental income with a DSCR loan.

Halloween is the one time of year when a little fright is fun. Buying a home shouldn’t be scary, though. Below, we bust five of the most common mortgage myths, share where rates stand, and lay out the tricks and treats of buying a home this fall.