Blog | Archives for April 2026

Mortgage Rate Locks: How to Secure Your Interest Rate

By Kiley Belanga
April 30, 2026

Mortgage Rate Locks: How to Secure Your Interest Rate

If you’ve ever applied for a mortgage or followed the housing market, you know that interest rates are the most critical factor in your homebuying journey. Mortgage rates fluctuate daily; even a slight shift can mean a difference of hundreds of dollars in your monthly payment.

That’s why lenders watch rates closely to advise borrowers of when to lock in. Read on to learn about what a rate lock is, what they are, why it matters, and how to decide between locking or floating your rate.

What is a Mortgage Rate Lock?

Once you begin the mortgage process, your interest rate can still change daily, even after your initial quote. To avoid any surprises at closing, your loan officer can lock your rate. This is a guarantee from your lender that your interest rate will not change for a specific period, given that your loan closes within that timeframe and there are no major changes to your application.

How Long Does a Rate Lock Last?

Most rate locks stay in effect for 30 to 120 days, depending on your lender and loan program. Your lock will be conditional based on your lender’s guidelines. If your lock expires before you close, you may have to pay a fee to extend or risk losing your rate to current market conditions.

The Alternative: What Does it Mean to “Float” a Rate?

If you choose not to lock, you are “floating” your rate. This means that you will receive whatever the market interest rate is at the time of your closing.

The Risk: Your rate could be higher than what was quoted during pre-approval.

The Reward: If market rates drop significantly while you are under contract, you could secure a lower payment.

What if Rates Drop After I Lock? (The Float-Down Option)

Many lenders offer a float-down option. If interest rates drop after you’ve locked but before you close, you can float your rate downwards to match the new market low. Keep in mind that lenders usually have specific rules for float-downs, and you may also have to pay a fee if you do float-down your rate.

To Lock or To Float?

If you are in the process of buying your home, deciding on locking your rate depends on your budget and the current economic climate.

Strategy	Best For…	Primary Benefit
Rate Lock	Rising rate environments or strict budgets.	Predictability and peace of mind.
Floating	Downward trending markets.	Potential for a lower monthly payment.

Professional Guidance for Your Mortgage

Degerming the perfect moment to lock your rate can be stressful. Our loan officers stay up-to-date on market trends and will provide personalized advice based on your unique financial situation.

Ready to get started? Contact us today!

Blog | Archives for April 2026

Real Estate Marketing Strategies: Generate Leads in Today’s Market

By Wendy Lewis
April 22, 2026

Real Estate Marketing Strategies That Actually Generate Leads in Today’s Market and Boost Business Growth.

Missed our recent Agent Hangout? Here’s what’s working right now and how agents are turning everyday activity into real conversations and closings.

If you’re a real estate agent right now you are probably having these feelings of what can I do differently. You are posting each day, you are trying to stay visible on social and you are adding content each day checking that marketing box.

But the real question is…

Are your posts turning into conversations?

Because in today’s market, the agents who are growing their business aren’t just more visible. Instead, they are more intentional.

That was the theme of our recent Southern Trust Mortgage Agent Hangout, and it’s something we’re seeing across multiple markets: The agents winning right now are focused on one thing: starting conversations.

Social Media for Realtors: Focus on Conversations, Not Just Content

Most real estate social media posts are built for visibility. But visibility alone doesn’t create business. That’s why the agents who are growing right now are doing something different.
Instead, they’re sharing insight and creating curiosity through their content.

If you want to generate real estate leads in today’s market, your content needs to create a conversation instead of just filling space.

Instead of:

Just listed
Market update
Interest rates are changing.

Shift to:

Curious what your home is actually worth right now vs. online estimates?
If you could buy before you sell in today’s market, would you want to see how that works?

This small change moves your content from passive to productive and as a result your content is gaining more attention, more comments and more organic results.

Top Realtors Are Creating Opportunities to Stand Out.

There’s more noise than ever in real estate marketing. Successful agents stand out by sharing insight, not just posting homes.

Examples:

What a deal I found this week; share the story
Where buyers are actually finding the real value right now
What I told my first-time buyer in today’s market

Creating experiences and conversations shows you as a busy professional, not just another agent posting listings.

And that’s what drives conversations.

How to Generate Off-Market Opportunities

Housing inventory continues to be one of the biggest challenges in today’s market.

Top agents aren’t waiting for listings. They’re creating opportunities.

Try this:
“I have a buyer looking in [your market] between [price range] with a flexible timeline. Is anyone thinking about selling or knows someone who might be?”

This approach:

Activates your network
Creates off-market opportunities
Reinforces that you’re actively working with buyers

It’s simple but effective! Use your social fans to create conversation.

Real Estate Marketing Strategy Content That Converts: Build Curiosity First

Most agents give information. Top agents create curiosity.

Instead of:
Here are the top homes under $500K this week

Try:
“I spent the morning reviewing homes under $500K. Want me to send you the best opportunities?”

That shift:

Creates conversation & comments
Inspires thinking
Leads to calls, messages & direct leads

And those conversations are what convert.

The Fastest Way to Get More Real Estate Conversations

If there’s one thing to focus on, it’s this:

Reduce friction.

A lot of agents are asking questions that feel like either a yes or no question and as a result people hesitate to respond. So instead of, Are you ready to buy or sell?

Try:

Would it help to see what your options look like right now?
Want a quick breakdown of what’s possible in today’s market?

This lowers pressure and boosts response and also creates curiosity and thinking.

What This All Means for Agents Right Now Building Their Real Estate Marketing Strategy?

The market is shifting.
However, the opportunity is still strong.
That’s why the agents who are growing right now are consistent in their outreach.

If you missed our Agent Hangout, this is exactly what we covered: real strategies that agents are using right now to generate business.

You can catch the full session here: Youtube Channel

If you are looking for a strategy built around your specific business and your sphere of influence; here’s how we can help you grow.

Through our Partner Perks platform, we collaborate with agents to:

Build consistent lead flow.
Create co-branded marketing strategies.
Turn databases into repeat and referral business.
Stay in front of clients long after closing.

If you’re looking for a more intentional way to grow your business, this is where we can help.

Explore more here: southerntrust.com/partner-perks

Blog | Archives for April 2026

Adjustable-Rate Mortgages (ARMs): What Homebuyers Should Know

By Kiley Belanga
April 16, 2026

To put it simply, an adjustable-rate mortgage (ARM) is a home loan option that offers a fixed rate for an initial set period. Once the introductory period ends, the rate is then adjusts periodically based on current market conditions until the next adjustment date.

While fixed-rate mortgages have long been the standard, ARMs are returning to the forefront in today’s high-rate environment. Because they often start with a lower interest rate than 30 year fixed loans, they can be a strategist tool for the right buyer.

ARM vs Fixed-Rate Mortgage: What’s the Difference?

An adjustable-rate mortgage has an interest rate that fluctuates throughout the loan term. The rate during the introductory is fixed until the adjustment period, where the rate changes based on the market. On the other hand, fixed-rate mortgage interest rates stay the same throughout the entire term of the loan.

Feature	Adjustable-Rate (ARM)	Fixed-Rate Mortgage
Interest Rate	Changes over time after initial period.	Stays the same for the life of the loan.
Initial Payment	Typically lower than fixed-rate options.	Typically higher than an ARM’s intro rate.
Risk Level	Higher (payments can increase later).	Lower (predictable monthly payments).

Common Types of Adjustable-Rate Mortgages

ARM names are usually expressed as two numbers (Example: 5/1). The first number is the length of the initial fixed-rate period. The second number is how often the rate adjusts after that.

5/5 ARM: Fixed for 5 years, then adjusts every 5 years.

3/1 ARM: Fixed for 3 years, then adjusts for every 1 year.

Other types of ARMs include: 5/1, 7/1 and 10/1 ARMs.

During the adjustment period your rate can either go up or down depending on the market at the time.

The Break-Even Math: Why Consider an ARM?

Many buyers choose an ARM for the short-term savings. For example, on a $400,000 loan, a 0.75% difference in rate could save you roughly $200 per month. Over a 5-year introductory period, that is $12,000 in total savings compared to a fixed-rate loan. If you plan to sell or refinance before those 5 years are up, that is money back in your pocket.

How is Your New Rate Determined? (The Index and Margin)

When the fixed rate period ends, your new rate is calculated using two components.

The Index: A benchmark interest rate set by neutral third parties based on the economy.

The Margin: A set percentage added by your lender that stays the same for the life of the loan.

Index + Margin = Your New Interest Rate

Rate Caps: Your Built-In Protection.

To prevent your payment from skyrocketing during your adjustment period, ARMs include interest rate caps. These limits dictate how much your rate can move.

Initial Cap: Limits how much the rate can rise the very first time it adjusts

Periodic (Annual) Cap: Limits how much the rate can change from one adjustment period to the next.
Lifetime Cap: Sets a ceiling for the maximum interest rate you will ever pay on the loan.

These protections can help ease some of the uncertainty that surrounds adjustable-rate mortgages.

Pros and Cons of an ARM

Pros:

Lower Initial Payments: Save money during the first few years of homeownership
Flexibility: Great for buyers who plan to move or refinance before the adjustment period
Rate Drops: If the market rates decrease, your mortgage payment could actually go down without a refinance.

Cons:

Market Volatility: Your payment could increase significantly after the introductory period.
Complexity: ARMs are more difficult to understand and compare than fixed-rate loans.

Can you Refinance an ARM?

Absolutely. Most homeowners choose to refinance their ARM into a fixed-rate mortgage if they decide to stay in the home longer than expected or if interest rates drop significantly during their introductory period.

Who is an ARM Best For?

An ARM might be the right choice if:

You plan to sell the home within 5 – 7 years.
This is a starter home rather than a forever home.
You expect a significant increase in your income before the adjustment period begins.
You want to maximize your monthly cash flow in the short term.

Ready to Find the Right Mortgage?

Choosing between an ARM and a fixed-rate mortgage depends entirely on your financial goals and how long you plan to stay in your home.

Contact us today! Our experienced loan officers are ready to help you run the numbers and find the perfect loan to fit your needs.

Learn more about ARMs by visiting the U.S. Department of Housing and Urban Development’s website.

Blog | Archives for April 2026

How Much House Can I Afford? A Guide to Calculating Your Budget

By Kiley Belanga
April 2, 2026

It’s the age-old question every homebuyer asks: How much house can I actually afford? If you have been wondering how to crunch the numbers, you’ve come to the right place.

Ideally, you should speak with a mortgage loan officer to help determine your specific price point, but we understand you might not be ready to take that step just yet. Here we will break down exactly what lenders factor into their consideration when qualifying you for a mortgage.

How to Determine Your Homebuying Budget

To get a realistic view of your buying power, you first need to look at your current spending habits compared to your gross income. This helps you understand your debt-to-income (DTI) ratio. Once you have an idea of your baseline budget, you can begin looking into how a monthly mortgage payment, home maintenance, and insurance will factor into your long-term financial goals.

Monthly Costs to Consider When Buying a Home

Mortgage Payment (Principal & Interest): This is the core cost of your loan and likely your largest monthly expense.

Mortgage Insurance (PMI/MIP): Depending on your loan type and down payment amount, you may need to pay a monthly insurance premium. This protects the lender but adds to your monthly mortgage total.

Homeowner’s Insurance: Your lender will require you to maintain insurance n the property. This payment is typically “escrowed” meaning it is included in your monthly mortgage statement.

Utilities: Remember to account for recurring costs like electricity, water, sewer, and gas.

Maintenance and Repairs: Owning a home comes with maintenance and unexpected repairs. It’s a good rule of thumb to keep a separate “house fund” for when these inevitable cost come up.

Additional Costs: Some neighborhoods require an HOA fee or Condo fee. Your real estate agent will help you identify these fees before you make an offer.

While this list may seem long, keep in mind that mortgage insurance and homeowner’s insurance are usually bundled into your single monthly mortgage payment, making it easier to manage your cashflow.

Factors That Affect Your Borrowing Power

Current Interest Rates:

Interest rates are one of the most significant factors in determining your borrowing power. Higher rates result in higher monthly payments, which can sometimes price buyers out of homes they could otherwise afford.

If current interest rates are a concern, you might consider an Adjustable-Rate Mortgage (ARM). These loans offer a reduced interest rate for an initial set period, which can help homeowners ease into their monthly payments before the rate adjusts based on market conditions.

Your Credit Score:

Your credit score is a key metric lenders use to set your interest rates. Generally, higher scores lead to more favorable rates. However, if your credit is less than perfect, don’t worry! Southern Trust Mortgage’s in-house Credit Specialist, Mike McNamara, has years of experience helping borrowers improve their scores to secure the best possible terms.

Debt-to-Income (DTI) Ratio:

Your lender will look at your DTI Ratio to see how much of your monthly income is already committed to other debts (like car loans or student loans). Every loan program has different DTI requirements; some offer more flexibility than others depending on your overall financial profile.

How Much Should I Borrow?

There is a big difference between how much you can borrow and how much you should borrow. Your lender will qualify you for a maximum loan amount, but that doesn’t mean you have to spend it all. Buying at your absolute limit can lead to becoming “house poor”. This is a situation when your housing costs are so high that you struggle to save money or enjoy other activities.

This is where your pre-determined budget becomes invaluable. Since you’ve already crunched the numbers, you likely have a comfort zone for your monthly payment. Share this number with your loan officer; they can work backward from that payment to find the perfect home price point for your lifestyle.

Ready to run the numbers? Determining your budget is the first step toward homeownership, but you don’t have to navigate the math alone. Whether you want to get started with a pre-approval or just want to run the numbers, give us a call.