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Pet-Friendly Mortgages And How Owning Pets Could Affect Your Loan Choices

May 21, 2025 by Kay Monigold

We love our pets, they are part of the family. But did you know that your furry (or feathered) friend could play a surprising role in your homebuying journey? While your dog probably will not impact your credit score, being a pet owner can influence where and how you buy a home, and even the type of loan you choose.

As a mortgage originator, I have worked with many clients who did not realize their pets could affect everything from HOA rules to homeowners’ insurance policies. Here is what you need to know before you start the house hunt with your pet in tow.

1. HOA Restrictions Can Limit Your Options
If you are buying a home in a neighborhood governed by a homeowners association (HOA), it is crucial to review their rules regarding pets. Some HOAs have strict regulations about:

  • The number of pets you can have
  • Breed and weight restrictions, especially for dogs
  • Leash and noise policies
  • Exotic pet bans (such as reptiles, birds, or rodents)

Violating these rules can result in fines, or worse, being forced to rehome your pet. Always request the full HOA guidelines before submitting an offer on a property, and make sure the community is truly pet-friendly.

2. Insurance Matters, Especially for Certain Dog Breeds
Homeowners insurance providers often have breed-specific restrictions that could impact your coverage. Breeds considered “high-risk” by some insurers (like Rottweilers, Dobermans, or Pit Bulls) may result in higher premiums or denied coverage altogether.

Since most lenders require homeowners insurance before closing, this can influence your loan process. In some cases, you may need to shop around for more flexible insurance options or consider a different property altogether.

3. Pet-Proof Properties May Qualify Differently
When lenders assess a property, they consider its condition, safety, and insurability. Pet-related features like fencing, outdoor shelters, or even damage from previous pets could come under scrutiny during appraisals or inspections.

For example, if the home you are buying has excessive pet damage (like scratched floors or odor), the appraiser may lower its value. That could affect your loan-to-value ratio, and in some cases, even delay your closing.

4. Multifamily Properties and Pet Limits
Thinking of buying a duplex or triplex to live in one unit and rent the others? Be aware: pet rules often differ in multi-unit properties. Whether you are planning to house your own pets or rent to tenants with animals, check city ordinances and zoning rules first.

Lenders may also view these purchases differently, particularly if rental income is part of your loan qualification.
Your pet does not need to complicate your path to homeownership, but being informed can help you avoid surprises. As your mortgage originator, I will help you navigate these pet-related nuances to make sure your loan, insurance, and property are a great fit for everyone, paws and all.

Have questions about pet-friendly loan options or neighborhoods? Let’s chat. I’m here to guide you through the process, tail wags included.

Filed Under: Mortgage Tips Tagged With: Home Buying Tips, Mortgage Advice, Pet Friendly Living

Understanding the Role of the Federal Reserve in Mortgage Rates

April 4, 2025 by Kay Monigold

When you’re thinking about buying a home, you may hear a lot about mortgage rates going up or down. But have you ever wondered what causes these changes? One of the biggest influences on mortgage rates is the Federal Reserve, often called “the Fed.” While the Fed doesn’t set mortgage rates directly, its policies play a major role in how much you’ll pay for your home loan. Let’s break it down in simple terms:

What is the Federal Reserve?
The Federal Reserve is the central bank of the United States. Its main job is to keep the economy stable by managing inflation, employment, and interest rates. Think of the Fed as the “guardian” of the economy, adjusting financial policies to keep things running smoothly.

How the Fed Influences Mortgage Rates
The Fed doesn’t set mortgage rates directly. Instead, it controls something called the federal funds rate, which is the interest rate banks charge each other to borrow money overnight. Changes in this rate have a ripple effect on other interest rates, including those for mortgages.

Here’s how it works:

  • When the Fed raises rates – Borrowing money becomes more expensive for banks, and they pass that cost onto consumers in the form of higher mortgage rates.
  • When the Fed lowers rates – Borrowing becomes cheaper, and mortgage rates often decrease, making it more affordable to buy a home.

Why Does the Fed Raise or Lower Rates?
The Fed adjusts rates based on the overall health of the economy.

  • If inflation is high – The Fed raises interest rates to slow down spending and borrowing. This helps bring inflation under control but can make mortgage rates higher.
  • If the economy is struggling – The Fed lowers rates to encourage borrowing and spending, which can lead to lower mortgage rates and make homeownership more affordable.

How Fed Decisions Affect Homebuyers
Since mortgage rates influence your monthly payments, even a small increase can mean paying thousands more over the life of your loan. Let’s look at an example:

  • A $300,000 loan at 3% interest – Monthly payment: approximately $1,265
  • A $300,000 loan at 6% interest – Monthly payment: approximately $1,798

That’s a significant difference. Keeping an eye on Fed rate changes can help you decide when to lock in a mortgage rate.

Tips for Homebuyers in a Changing Rate Environment

  • Get Pre-Approved Early – Locking in a rate when they’re low can save you money.
  • Consider Adjustable-Rate Mortgages (ARMs) – If rates are high, an ARM might offer lower initial payments.
  • Work on Your Credit Score – The better your credit, the better the rate you’ll qualify for.
  • Talk to a Mortgage Professional – An expert can help you navigate the market and choose the best loan for your situation.

While the Federal Reserve doesn’t directly control mortgage rates, its decisions have a significant impact on the housing market. Understanding how the Fed influences interest rates can help you make informed decisions when buying or refinancing a home.

Filed Under: Mortgage Rates Tagged With: Federal Reserve, Mortgage Advice, Mortgage Rates

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Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Ron MartinRon Martin
Residential Mortgage Loan Originator

NMLS#316821

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

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