Two Cents: October Mortgage | Recast | Roof Coverage

 

October Mortgage Market

This afternoon, the Federal Reserve announced a 25-basis-point rate cut, which was largely in line with market expectations. Because this move had already been priced in by investors, it had little immediate impact on current mortgage rates.

Meanwhile, the Federal Reserve also announced that it will end Quantitative Tightening (QT) on December 1. This is generally positive news for mortgage rates.

Overall, apart from minor daily fluctuations, today’s mortgage rates remain near the lowest levels seen in the past three years. We are also proud to share that Bluebell Financial has once again been awarded the ASR Diamond-Level Recognition for Q4 2025. This honor not only reflects our team’s professionalism and service quality, but also enables us to continue securing better rates and loan terms for our valued clients.

Reminder: 90 bps Refinance Credit Ends October 31 (Midnight ET)

If you or your friends are considering a refinance, please be sure to lock your rate before the deadline to take advantage of this limited-time offer.

What Is a Loan Recast?

If you’ve recently received a lump-sum payment (such as a work bonus or home sale proceeds) and wish to lower your monthly mortgage payment, a loan recast could be a great option.

A recast allows you to apply a one-time principal payment, after which your lender recalculates your monthly payment based on the new, lower balance.
Your interest rate and loan term remain the same, but your monthly payment decreases significantly.

Compared with a refinance, a recast doesn’t require a new application, has minimal paperwork, and usually involves a small fee (e.g., around $150, with a minimum $5,000 principal reduction).
It’s ideal for homeowners who want lower monthly payments without changing their rate or loan structure.  For more details, please refer to our full blog post.

Home Insurance & Roof Coverage Reminder

We’ve recently seen several loan applications delayed due to home insurance coverage issues—specifically, policies that only cover the Actual Cash Value (ACV) of the roof instead of the Replacement Cost.

This small difference can have a big impact: it may cause your loan to be denied or require you to pay for roof repairs out of pocket.

Tip: Before applying for a mortgage, make sure your home insurance includes replacement-cost coverage for the roof.  Learn more in our detailed blog post.

Opt-Out Credit Monitoring Explained

During your mortgage application, you may notice a page labeled “Opt-Out for Credit Monitoring.” 
Here’s what it means:

• If you don’t sign (default option): The lender can continue to monitor your credit during the loan process, ensuring a smooth approval.

• If you sign (opt-out): The lender can only check your credit once, and your file will not auto-update afterward.

Generally, we recommend keeping the default option to avoid potential delays in processing your loan.  For more details, see our blog article on this topic.

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