HELOC & Holiday Expenses

The holidays often bring added expenses. For some homeowners, a Home Equity Line of Credit (HELOC) may be an option to help:

• Consolidate higher-interest balances
• Simplify monthly payments
• Improve short-term cash flow

Have questions? Margeate Work | Work & Associates Home Loans can help you explore whether a HELOC may be a fit for your goals.

*Educational purposes only. Not financial, tax, or legal advice. Loan programs, rates, and terms are subject to change and borrower qualification. Not all applicants will qualify. Your home is used as collateral.

Happy Holidays!

 

Happy Holidays!

Work and Associates Home Loans

1350 Old Bayshore Hwy Ste. 520

Burlingame,  CA  94010

margeate@workhomeloans.com

916-847-3090

Can the Inflation Drop Improve Mortgage Interest Rates?

Homebuyers and owners hoping to refinance may have become so accustomed to higher mortgage rates in recent years that they stopped looking for affordable opportunities. However, that may be a mistake worth correcting heading into the new year. Mortgage interest rates are down by around a full percentage point, on average, from where they started in January. And there's real reason to be optimistic about them declining further, perhaps even before the year is out.

The Federal Reserve has issued three interest rate cuts in the final four months of the year, combining for a federal funds rate that is 75 basis points lower than it was on September 1. Accordingly, mortgage interest rates have since been hovering around their lowest levels since 2022. And more encouraging news was released on Thursday.

In the first inflation report to be issued since the government shutdown concluded, inflation was shown to come at 2.7% in November, lower than the 3% it had been rising at and closing in on the 2% goal the Federal Reserve has long pursued. And this could be the kind of news that buyers and homeowners were looking for, as it has the potential to further improve mortgage interest rates. 

In short, yes, the inflation drop can improve the mortgage interest rate climate, even if it's in an indirect way. An inflation decline can be the motivation for the Federal Reserve to continue to cut interest rates, which can help drive mortgage interest rates lower.

While mortgage rates are influenced by multiple factors, including the 10-year Treasury yield, Fed rate activity can push rates up or down, even before a formal cut or hike is issued, as many lenders will adjust their offers preemptively. A lower inflation rate, in other words, can and likely will encourage the central bank to continue its interest rate cut campaign. This was one of the key reasons why the Fed lowered rates in 2024 and then paused in early 2025 as inflation ticked up again.

But that's not the only factor that may cause the Fed to continue cutting rates, perhaps as soon as the next Fed meeting in January. The unemployment report that was released this week showed an increase there. Now at 4.6%, that's the highest unemployment rate since September 2021. The Federal Reserve has some power here, however, to stimulate the economy via lower interest rates. And, combined with a lower inflation rate as justification, it may do just that.

So, two factors could spark further Fed rate cuts: a lower inflation rate and a higher unemployment one. That, in turn, could lead to a decline in mortgage interest rates. 

These are complicated and interwoven data points, however, and the path to a consistent decline in mortgage interest rates remains a convoluted one. The CME Group's FedWatch tool, for example, only lists a January Fed rate cut at a 26% likelihood right now. And the Fed may also interpret this week's new data as justification for keeping interest rates where they are, versus moving them downward again. That could stagnate any improvement in the mortgage rate climate as a result.  Still, the fact that additional Fed rate cuts are even possible now and that mortgage interest rates may decline again is a positive development for borrowers. It was only August 2023 when mortgage interest rates were at their highest level since 2000. So any movement here is encouraging, even if it will take more time and patience on behalf of borrowers to get mortgage rates as low as they'd prefer.

A lot has happened to cause mortgage rates to decline in 2025 and a variety of factors are in play for them to continue to fall in the weeks and months ahead. The good news for borrowers is that, right now, the interplay of these items (inflation, unemployment, Fed rate policy) are working in their favor and they're likely to result in even lower mortgage rates soon. This all being said, predicting the future of interest rates is impossible to do with precision. So if today's rates are already low enough to fit your budget, whether you're buying or refinancing, consider locking one in now. You can always refinance to an even lower one if and when they materialize in the future and you'll start saving on interest costs in the interim. Source

How to get a Mortgage Rate in the 5% Range for 2026

While home buying, mortgage interest rates and refinancing may not be at the top of mind for buyers and owners now, in the final days of 2025, they may be worth reconsidering. After years of being plagued by elevated mortgage interest rates that pushed many buyers and owners to the sidelines, there has been some real, tangible improvement in the space this year. And there could be more to come in 2026.

The average mortgage interest rate is down by around a full percentage point from where it started in January, and mortgage refinance rates may already be low enough to justify making a move for current owners. And if both groups have been waiting to find a rate in the 5% range, they may not have to wait much longer. In fact, there are now multiple viable ways in which one can secure a mortgage rate in the 5% range for 2026. This will not only save interest costs and help reduce monthly payments, but it can expedite the payoff timeline, too.

So, how can you actually get a mortgage rate in the 5% range for the new year? 

Here are three effective and timely ways to secure a mortgage rate in the 5% range right now:

1.) Shop around online

It's arguably never been easier to shop around for mortgage interest rates with multiple online marketplaces listing numerous lenders, rates and terms, all in one easy-to-navigate location. Consider using these sites, then, to find a rate under 6%. The average mortgage interest rate on a 30-year term is currently 5.99%, according to Zillow. 

But that's the average, meaning that if you spend some time comparison shopping, you may be able to find one even lower right now. It will take some time and effort on behalf of the borrower, and it may require you to revisit select lenders to see if they can beat better offers found elsewhere, but if the end result is an average mortgage interest rate comfortably in the 5% range, it will be time well spent.

2.) Reconsider your refinancing options

Did you buy a home in recent years and get stuck with a mortgage rate over 7% as a result? Now you have options worth reconsidering. The average mortgage refinance rate on a 15-year term, for example, is currently just 5.68%, according to Zillow. And, again, that's the average meaning that qualified borrowers may be able to find one even lower by shopping around. 

While a 15-year term may result in higher monthly mortgage repayments thanks to the expedited payoff timeline, it can be worth exploring for many, thanks to the interest savings and the quicker path to becoming debt-free. The math may not work for everyone, but it's worth crunching the numbers to see if this rate and term now work for you.

3.) Boost your down payment

With mortgage purchase rates already available in the high 5% range, you may be able to secure one that's a bit lower by boosting your down payment. While most lenders will require a minimum 20% down payment (or make the homeowner pay for private mortgage insurance), a down payment significantly above that threshold could compel the lender to offer you a more competitive rate. 

The more you're willing to put down up front, the less risk the lender is taking in providing the balance of the loan. And that lower risk can often be reflected in the form of lower mortgage rates, potentially in the 5% range, for homebuyers.

Mortgage interest rates are not nearly as affordable as they were at this point in 2020 or 2021, but they're also much less expensive than they were in December 2024 or December 2023, too. And with realistic, viable ways to lock in a mortgage rate in the 5% range again, homebuyers and owners hoping to refinance may now feel comfortable reconsidering their options. 2026 is unlikely to bring back the sub-4% mortgage rates from the start of the decade, but if rates in the 5% range fit your budget and homeownership goals now, then it may be time to start rate shopping again. Source

​​Is a HELOC your best borrowing option now? Here's what experts say...

With inflation costs remaining elevated and many households facing rising expenses, more homeowners are turning to home equity borrowing to free up cash. A home equity line of credit, or HELOC, can offer flexibility, but experts say there's much to consider to determine if it makes sense for your personal financial situation. You will be leveraging your equity here, after all, but the much lower borrowing costs associated with the product can make it a worthwhile tool right now. That raises a key question for homeowners: Is a HELOC your best borrowing option now? We asked experts for their thoughts on the product currently, with the interest rate climate cooling heading into 2026. Below, we'll break down what they say to know now...

Is a HELOC your best borrowing option now?

"HELOCs are ideal for short-term borrowing that the homeowner intends to pay back quickly," says Melissa Cohn, regional vice president at William Raveis Mortgage.  Cohn says borrowers should focus heavily on pricing when comparing options. "Rate, rate, rate," she said. "When looking for a new loan, compare the rates, closing costs and how long you need to borrow the money. A HELOC or home equity loan may be tax-deductible, while personal loans are not." The best option depends on how long you expect to carry the balance and how much payment volatility you can tolerate. Not sure if it makes sense for you right now? Here are some signs that indicate a HELOC could be the smart way to borrow currently:

You have a good amount of equity and reliable income

A HELOC typically is a better fit for homeowners with stable income and solid home equity. Borrowers can assess readiness by looking at how much home equity they currently have. Consistent income can help project how much you can repay over time. If you're able to repay your line of credit quickly, a HELOC can be an excellent value proposition right now. Nicole Rueth, market leader at Movement Mortgage, agrees that HELOCs tend to benefit borrowers who can repay quickly: "A HELOC makes a ton of sense if you need flexible access to cash and plan to pay it back in a short period of time — think short-term renovations, tuition or bridging a liquidity gap." Beyond income and equity, how you plan to use the funds also affects whether a HELOC is the right fit.

Your expenses are spread out over time

Because HELOCs allow borrowing in stages, they can be helpful for renovations, phased projects, tuition or significant recurring expenses. Many homeowners can use HELOCs to cover costs they otherwise couldn't afford or as a way to finance projects that will help boost their home's value further.

You expect rates to fall

Homeowners watching inflation trends often consider how rising inflation could affect future HELOC rates. If rates fall later, carrying a variable rate may be less costly. However, if rates don't decrease, borrowing could end up costing you significantly more over time. But with three Fed rate cuts issued in the final four months of 2025, this is a less pressing concern than it may otherwise normally be. Just don't get started assuming rates will continually decline, either. Rueth cautions against assuming rates will fall. "It can be risky if you can only pay the minimum required or if you're banking on rates staying low," she said. "HELOC's variable rates can climb fast and squeeze budgets."

You need flexible funds

Borrowers may rely on HELOCs when flexible financing is beneficial, especially if emergencies arise. Flexible access to funds helps borrowers manage a variety of circumstances with peace of mind. Bruce McClary, spokesman for the National Foundation for Credit Counseling, notes that flexibility is a key advantage when used strategically. "A HELOC is most effective when used to increase the value of a property or to bridge temporary financial gaps, provided there's a clear exit strategy in place," McClary notes.

Why a HELOC may not be the right move now

While the above factors may indicate that a HELOC is the smart way to borrow now, there are all some signs that it may be worth avoiding. Specifically, a HELOC may not be the right move now if:

You need to borrow too much

Borrowing aggressively during the draw phase can leave homeowners with sticker shock once principal payments begin. HELOC flexibility can be problematic if you don't have the discipline to borrow only within your means. Cohn says she has seen borrowers run into trouble when they treat a HELOC as long-term debt. "If you keep a HELOC beyond the 10-year draw period, the payment will increase sharply," she says. "That can create hardship if the borrower is not prepared."

You're consolidating debt without a payoff plan

Using a HELOC to pay off credit cards may lower interest costs and consolidate debt, but it also shifts unsecured debt onto your home. Without a clear repayment timeline, this can be risky. If you fall too far behind, you could put your home at risk of foreclosure. McClary warns that using a HELOC for lifestyle inflation or chronic overspending is especially dangerous: "A homeowner who treats their home equity like a bottomless piggy bank may encounter financial stress. Using a HELOC to support an unsustainable lifestyle is not a wise strategy."

Your income isn't consistent

Irregular earnings can make fluctuating payments harder to manage. HELOC payments rise and fall with rates, which can be tricky to plan around if your income varies. If rates climb and your income drops for a time, you could find yourself unable to make payments, and interest could accumulate faster than you can pay it off.

Home values in your area are softening

If property values fall, your available equity may shrink, reducing your ability to borrow or refinance later. Falling prices can reduce how much equity you have — or possibly leave you owing more than your home is worth. Homeowners should be aware of housing trends in their area to assess their risk. 

You prefer fixed terms

Fixed-rate home equity loans may be a better fit for borrowers who want predictable payments and a clear payoff timeline right now. Some homeowners may want to compare the costs of a fixed home equity loan and a HELOC for the same amount to decide between predictable payments and rate flexibility. HELOC payments can increase because the product's rate is variable. This uncertainty can strain budgets, especially during periods of economic volatility. If rates climb in the future, you could be stuck paying significantly higher amounts than you would with a fixed-rate loan. Rueth says borrowers should prioritize structure over convenience if they're unsure about payment swings: "If stability is the goal, a fixed-rate home equity loan or even a personal loan may be smarter," she says. "But if you're disciplined and want flexibility, a HELOC can be a powerful tool."

Source

NMLS ID 394275 | DRE ID 01769353

5 Tips for Negotiating a Better Home Deal

With home prices and mortgage rates still relatively high, many people in the market for a home—particularly first-time buyers and those hoping to downsize in retirement—are looking to curtail costs wherever possible. Fortunately, many homebuying expenses are negotiable. Here are five tips to get you started...

Tip 1: Know your market

Before you attend your first open house, make sure you understand the landscape. Are homes in your desired area selling above or below asking price? What's the average cost per square foot? This data, available online or through your real estate agent, can help set realistic expectations for how much bargaining room you may have.

Tip 2: Scrutinize a home's listing history

Consider how long a particular property has been on the market; if it's been more than a few weeks, you may be able to negotiate a better price. "Our most recent Profile of Home Buyers and Sellers report shows that many sellers are willing to lower the price after five or more weeks,"1 says Brandi Snowden, director of member and consumer survey research at the National Association of Realtors®.

Also, pay attention to a property's price history. If the status has changed from pending to active one or more times, it may indicate that the home is in need of repairs—which could give you additional leverage. If an inspection report is available, have your agent ask to see it. An inspection can reveal issues that may justify a lower price, seller-paid improvements, or credits to cover future costs. "Home repairs are one of the most common seller-offered incentives we see," Brandi says.

Tip 3: Make a cash offer

When evaluating offers, a seller might entertain a lower all-cash offer since there's no waiting on appraisals or fear of financing falling through. "According to our data, all-cash home sales remain near historic highs, comprising 26% of home transactions in 2024," Brandi says.

Tip 4: Think beyond list price

Sellers often resist lowering their sale price but may be willing to negotiate in other ways. Consider asking them to cover:

• Closing costs: These fees, which typically include title insurance, transfer taxes, and other administrative costs, are generally rolled into your mortgage. By getting the seller to cover all or even part of these expenses, you can reduce your loan amount, along with the interest owed over the life of the loan.
• An interest rate buydown: In some market environments, a seller might be willing to pay "points"—a percentage of the mortgage amount—to secure you a lower rate. Again, the savings over the life of the loan can be meaningful.

"That said, if you come out of the gate with a lowball offer, the seller may be unwilling even to entertain negotiations," says Sanel Duranovic, CFP®, a Certified Private Wealth Advisor®. "An experienced agent can advise you on how to submit a palatable offer."

Tip 5: Be willing to walk away

Don't let your fear of missing out cloud your judgment. "If a deal doesn't meet your needs, it's probably better to move on," Sanel says. "In fact, your willingness to walk might make the seller more open to negotiations."

Source

NMLS ID 394275 | DRE ID 01769353

The Effects of Tree Inequity on a Home

America has a tree problem. It may not be obvious, but as it turns out, trees are unevenly distributed, a situation known as tree inequity. Urban areas have fewer trees, while suburban areas have more trees. Although these different environments lend themselves to varying amounts of tree cover, the lack of trees in urban centers is harming people in many ways.

The Roots of Urban Heat Islands

Heat islands are areas where the temperature consistently exceeds that of the surrounding areas. This is generally due to an abundance of impervious surfaces, like concrete, brick and asphalt, that absorb heat and then radiate it back after dark. It seems obvious that no one would want this, especially in the summer, but there are deep historical and structural reasons that heat islands persist today.

“The main reason that tree cover is so unequal in the U.S. has to do with where we live,” says Robert McDonald, lead scientist for nature-based solutions at The Nature Conservancy. “Low-income neighborhoods have about 15% less tree cover on average than high-income neighborhoods and are about three degrees Fahrenheit hotter on average. Ninety-two percent of US communities have this pattern where high income neighborhoods have more tree cover than low income neighborhoods.” This is often due to neighborhood design and population density, McDonald explains.

“Most low-income households and most households of color live in the urban center, and more wealthy households have tended to move out to suburban settings. When you're in a suburban setting, you have a lawn, it might have some tree cover, and you're just settled less densely, whereas when you're in a city center, you're often in apartment buildings. There's more pavement nearby, so there's less green and there's more heat, because there's more pavement that's absorbing the energy from the sun.” Urban versus suburban areas are a structural reason for heat islands to exist, but researchers have been curious about the actual roots of these heat islands and have been comparing them to maps of traditionally redlined neighborhoods. Stephen Fong, a professor of chemical and life science engineering at Virginia Commonwealth University in Richmond, Virginia, and his team, for example, went street by street in Richmond, mapping heat islands that they later compared to historical maps. “You can see which areas were redlined and which weren't historically,” says Fong. “To me, one of the most eye-opening things was that you see that these policies that are 100 years old still have an impact today.”

What’s the Problem With Tree Inequity?

Although it can be argued that real estate prices are influenced by the presence or absence of tree cover and green space, larger functional issues are at play when it comes to tree inequity. Trees cure, or contribute to improving, several issues facing modern humans simultaneously.

“Trees cool primarily by shading impervious surfaces so they're preventing that pavement from absorbing the sun,” says McDonald. “They also cool because they transpire water. So just like on a hot day when you sweat, and the sweat evaporates off you, making you feel cooler, trees transpire water. That's about equally as important for cooling. There's also interesting work on how trees regulate air quality, they can help reduce particulate matter.”

However, it’s not just air quality or the heat island effect that trees can improve – they have actually been shown to enhance both physical and mental health, contributing to a sense of well-being for people. “When you ask people to think about some place that's peaceful and calm and quieting, that they can just center themselves and be away from the bustle of life, most of the time, people think of something that is quiet in nature,” says Michael Austin, senior associate with urban design firm Cooper Robertson in New York City. “A lot of people would think about a forest or a tree. It's just actually a mental relief, too, to be surrounded by trees.”

Solving the Problem of Tree Inequity

If trees are so beneficial to humans, shouldn’t it be as simple as having every person plant a few to improve the quality of life for everyone? Someone has to pay for the trees and commit to their upkeep, which requires major long-term investment. Unfortunately, simply planting trees doesn’t address some of the larger structural and socioeconomic problems that go hand-in-hand with urban heat islands.

“Even if there's an investment in an area that's typically been depressed or economically impoverished – you hear about the gentrification of certain neighborhoods – then it can actually push out the people that were living there because they can't afford to live there any longer,” says Fong. “Even for those that are well-intentioned, there are secondary unintended consequences.”

How does a municipality approach tree inequity without displacing residents who should benefit? Getting affected neighborhoods involved is a first step. “When it comes to residential communities, the first thing I would always ask is ‘Has anyone talked to the community?’” says Austin. “It’s important to ask questions like: ‘What does the community want? What are their goals and what are their concerns?’ Is it a concern that if we start to do a tree planting strategy that may improve the quality of life, will it increase the risk of displacement? Does it lead to increasing affordability, or increasing land value and decreasing affordability?

Source

Tips for Buying a Home During the Holidays

If you do opt to buy a home during the holiday season, real estate pros say there are a few strategies that can make your journey easier.

1. Enlist a good agent.

Having a good agent on your side is critical during any point in the year – but it’s particularly important around the holidays. First and foremost, you’ll want one who’s experienced and well-connected in your area.

“Fewer houses are often listed from Halloween to the New Year,” says Jon Sanborn, co-founder of real estate investment company SD House Guys in Philadelphia, Pennsylvania. “You will need someone to find those key properties and utilize their network.”

Choosing an agent who has colleagues you can lean on is wise, too. As Bennett explains, “I would recommend working with a brokerage that has several agents on staff. That will ensure that your search does not need to slow down, even as agents take time off to be with their families.”

2. Get preapproved.

You should also get preapproved for your mortgage. This gives you an accurate idea of what price you should be shopping in and also helps you act fast when it’s time to make an offer.

“If you see the right house, that will help your agent make an offer regardless of the day,” Bennett says. “You won’t need to spend time tracking down various stakeholders over the holidays.”

Getting preapproved can also help you in a rising-rate market, when you may need to make budget adjustments quickly.

“The most important step that a buyer can take to ensure a smooth transaction is to get preapproved for a mortgage loan,” Budnick says. “With interest rates changing rapidly, it will be important to understand how much home you qualify for and what it will mean to your buying power if rates increase during your home search.”

3. Plan ahead.

When buying during the holidays, you can expect to encounter some absences. Maybe your agent will leave to visit family, or you have a vacation planned as well.

“Right as you enter the Thanksgiving holiday, people's minds are in full holiday swing,” says Christian Ross, managing broker at Engel & Völkers in Atlanta, Georgia. “People aren't taking two days off; they are taking a week off. Make sure you have additional points of contact so you can get any questions or concerns answered in a timely manner.” You should also line up other professionals early on in case they have other plans, too. This might include cleaners, painters, moving companies and, most importantly, a home inspector.

“Keep a home inspector on notice the closer you get to landing your dream home,” says Christa Kenin, an agent with Douglas Elliman in Connecticut. “A delayed inspection can hold up your mortgage process and will frustrate the seller.”

4. Know the seller and be aggressive.

Since demand is down this time of year, agents say buyers have leverage – leverage they should use to get the best deal possible.

“Sellers would much prefer to unload a home before winter arrives,” Kenin says. “Buyers can capitalize on this anxiety. I encourage my holiday house hunters to aggressively negotiate the closer we get to the holidays.” To help in those negotiations, work with your agent to understand the seller and their motivations for selling. As Budnick puts it, “Determine the seller’s hot buttons. Are there things that are important to the seller that don’t matter to you? If so, use them to your favor during negotiations.”

Source

Home Loan Alternative Documentation

Whether you are a business owner or have a unique financial situation, we can help. Using bank statements and other non-traditional documents we can help you get  the home of your dreams.

Give us a call or contact us today to see what we can do.

Phone: 916-847-3090

1350 Old Bayshore Hwy Ste. 520

Burlingame,  CA  94010

NMLS ID 394275 | DRE ID 01769353

Your Home Readiness Checklist

Tips from Margeate Work to Help You Enjoy a Cozy, Stress-Free Season

The holidays are the perfect time to make your home shine — both for guests and for your own peace of mind. Whether you’re hosting family, decorating for the season, or just enjoying quiet time at home, here’s a simple checklist to help you get ready:

Home Comfort & Maintenance

• Check your heating system and replace filters before the cold sets in
• Test smoke and carbon monoxide detectors
• Clean out gutters and downspouts to prevent winter clogs
• Seal windows and doors to keep warmth in and energy bills low
• Schedule any small repairs you’ve been putting off

Decor & Ambiance

• Give high-traffic areas a quick refresh — entryway, guest rooms, living room
• Add cozy touches: blankets, warm lighting, and seasonal scents
• Decorate safely — keep cords secure and avoid overloading outlets
• Set out a few “signature” decorations that make your home feel personal and welcoming

Guest & Gathering Prep

• Deep clean kitchen appliances (especially the oven and fridge)
• Stock up on essentials — paper goods, cleaning supplies, and baking staples
• Prepare guest spaces with fresh linens and little comforts
• Make room for extra coats, shoes, and gifts

End-of-Year Homeowner To-Dos

• Review your mortgage and home equity options before year-end
• Save receipts for any home improvements (they can help at tax time!)
• Start a list of goals for your home in 2026 — remodels, upgrades, or a possible move

A little preparation now means more time to enjoy what matters most — good food, good company, and the comfort of home.

NMLS ID 394275 | DRE ID 01769353