CFC Mortgage Blog

Mortgage rates are back in the headlines.

As of September 10–11, 2026, Mortgage News Daily’s daily index showed the average top-tier 30-year fixed rate moving above 7%: reaching approximately 7.07%, the highest level reported by that index in more than a year. At the same time, broader weekly surveys remained closer to the 6.8% range, with Freddie Mac reporting 6.76% for the week ending September 10.

So, what does this mean for you?

First, don’t assume the headline rate is automatically your rate. Mortgage rates have been climbing as markets react to Treasury yields and wait for new inflation information, including the Consumer Price Index (CPI). But the rate you may qualify for depends on your complete financial picture.

That includes your:

• Credit score and credit history
• Down payment or available equity
• Loan program
• Property type and occupancy
• Loan amount
• Debt-to-income ratio
• Income documentation
• Loan term and rate structure

The good news is simple: you still have options, and the right loan strategy can make a meaningful difference.

What Does a 7% Mortgage Rate Really Mean?

A mortgage rate above 7% can affect your monthly payment and purchasing power. It may also cause some buyers to reconsider their budget, compare more loan programs, or wait for a future opportunity to refinance.

But one national average never tells the whole story.

The 7.07% figure reflects a specific daily rate index for top-tier borrowers. Other national surveys around the same date were trending between approximately 6.7% and 6.9%. These numbers can also represent different loan products, credit profiles, down payment assumptions, and points.

You can review current national benchmarks through Mortgage News Daily, Freddie Mac’s Primary Mortgage Market Survey, and the Federal Reserve’s FRED mortgage rate series.

Your actual quote may be higher or lower than the headline average. That is why comparing personalized options is more useful than simply watching one number.

Are You Buying a Home? You May Have More Choices Than You Think

Higher rates do not eliminate the possibility of buying a home. They make it more important to choose the right loan program and understand your complete monthly payment.

At Coastal Funding Corporation, we help buyers compare options for primary residences, second homes, and eligible residential investment properties.

Conventional loans

Conventional financing can be a strong fit for borrowers with established credit, stable income, and funds for a down payment. Some programs offer down payments as low as 3%, along with fixed-rate and adjustable-rate options.

Explore conventional loan options and compare how the payment, mortgage insurance, and cash requirements may fit your goals.

FHA loans

FHA loans can help qualified buyers purchase a primary residence with a down payment as low as 3.5% and more flexible credit guidelines than some conventional programs.

FHA financing may be worth considering if you have limited savings, a shorter credit history, or need a more flexible qualification approach.

VA loans

Eligible service members, veterans, and surviving spouses may qualify for VA loans, including options with no down payment and no monthly mortgage insurance.

VA loans can offer competitive terms and valuable benefits. We can help you understand eligibility, funding fees, and the payment structure before you move forward.

USDA loans

USDA loans may provide up to 100% financing for qualified buyers purchasing an eligible primary residence in an approved area. You do not have to be a farmer, but income limits and property eligibility requirements apply.

Down payment assistance

Depending on your qualifications and the program selected, down payment assistance, gift funds, or other available resources may help reduce the amount of cash needed at closing.

The best mortgage rates are not always attached to the same loan type. The best option is the one that balances your rate, payment, upfront costs, mortgage insurance, flexibility, and long-term goals.

What If You’re Considering Refinancing Your Home Loan?

When rates rise, refinancing may not make sense for every homeowner. However, refinancing a home loan is not only about chasing a lower rate.

You may be exploring a refinance to:

• Change your loan term
• Move from an adjustable rate to a fixed rate
• Remove mortgage insurance when eligible
• Access equity for improvements
• Consolidate high-interest debt
• Change the borrowers on the loan
• Improve payment predictability

Rate-and-term refinance

A rate-and-term refinance replaces your current mortgage with a new loan that changes the interest rate, loan term, or both. Even when the market rate is not dramatically lower, a refinance may still be worth reviewing if your credit, equity, debt profile, or income has improved.

Cash-out refinance

A cash-out refinance allows you to replace your existing mortgage with a larger loan and receive a portion of your equity as cash. Homeowners may use the funds for renovations, major expenses, or debt consolidation.

However, you are using your home as collateral, and the new loan may increase your balance or extend your repayment period. We take the time to compare the immediate benefit with the long-term cost.

Could a HELOC Be Better Than a Cash-Out Refinance?

If your current first mortgage has a favorable rate, replacing it with a new mortgage may not be the best way to access equity.

A Home Equity Line of Credit, or HELOC, may allow you to keep your existing first mortgage while accessing a revolving line based on available home equity.

You may use a HELOC for:

• Home repairs and renovations
• Debt consolidation
• Large planned purchases
• Education expenses
• Emergency financial needs
• Other permitted personal expenses

HELOC rates are often variable, meaning the payment can change over time. You typically pay interest only on the amount you draw during the initial draw period, rather than the entire approved credit limit.

The right choice depends on your current mortgage rate, available equity, credit profile, income, and how long you expect to use the funds. We can help you compare a HELOC with a cash-out refinance and other equity solutions.

Self-Employed or Paid on a 1099? Flexible Documentation May Help

Traditional underwriting can be frustrating when your income does not arrive through a standard W-2 paycheck. Business owners, contractors, freelancers, consultants, and commission-based professionals may have strong cash flow but complicated tax returns.

That does not mean homeownership or refinancing is out of reach.

Self-employed mortgage loans may use different ways to verify income, including:

• Business or personal bank statements
• 1099 income documentation
• Profit-and-loss statements
• CPA letters, where permitted
• Asset-based qualification
• Alternative income verification programs

Bank statement programs may be helpful when tax deductions reduce the income shown on your tax returns. Requirements vary by lender, including the number of months of statements, business history, credit, reserves, and down payment.

We work with many different borrower profiles. A conversation early in the process can help you understand which documents may be needed and whether an alternative program is appropriate.

Are You an Investor? Consider Residential DSCR Financing

For investors purchasing eligible residential rental properties, investment property financing may be available through a Debt Service Coverage Ratio, or DSCR, loan.

A DSCR loan focuses primarily on the property’s rental income compared with its projected housing expense. In some programs, the borrower may not need to qualify using traditional personal income documentation such as W-2s or tax returns.

DSCR financing may be useful for:

• Purchasing a single-family rental
• Financing a two- to four-unit residential property
• Growing a rental portfolio
• Refinancing an investment property
• Purchasing certain condos or short-term rentals

The property, projected rent, down payment, credit, reserves, and loan structure all matter. DSCR rates may differ from owner-occupied mortgage rates, so we compare the full payment and cash-flow impact: not just the interest rate.

How Can You Get the Best Mortgage Rate Available to You?

You may not be able to control the market, but you can strengthen your position.

1. Review your credit before applying

Paying bills on time, reducing revolving balances, and avoiding unnecessary new credit can help improve your profile. Even a modest change in credit may affect available pricing.

2. Compare loan programs

Do not assume a conventional loan is automatically best. FHA loans, VA loans, USDA loans, and alternative documentation programs may offer different benefits depending on your situation.

3. Consider your down payment carefully

A larger down payment may reduce your loan amount and monthly payment. However, using every dollar for the down payment may leave you without adequate reserves. We help you look at the full financial picture.

4. Keep your finances stable

Avoid changing jobs, opening new accounts, making large purchases, or moving money without documentation while your loan is in process.

5. Compare APR and total costs

The lowest interest rate does not always mean the lowest-cost loan. Review the annual percentage rate, points, lender charges, mortgage insurance, closing costs, and expected time in the home.

6. Get a personalized quote

Searching online for a “mortgage broker near me” may give you a list of companies, but the real value comes from speaking with a professional who can compare multiple lender options for your situation.

What Should You Do Next?

You do not need to make a decision based on a headline.

Whether you are buying a home, refinancing your home loan, using a HELOC, exploring self-employed mortgage loans, or considering DSCR investment property financing, we can help you compare more options and better solutions.

Coastal Funding Corporation brings more than two decades of mortgage experience, access to a broad lender network, and personal guidance from application through closing. On applicable programs, we also offer no broker fees, no origination fees, no points, and no underwriting fees.

Rates change. Your goals are personal. Let’s find the financing strategy that fits.

Call us at (833) 457-6500 or visit cfcmtg.com to get started. It’s that simple.

Mortgage rates, terms, fees, and program availability vary by borrower, lender, property, and market conditions. This article is for educational purposes only and is not a commitment to lend. Restrictions apply. Equal Housing Lender. NMLS #103035.