2025 Mortgage & Lending Q&A

With so much noise around rates, refinancing, and buying strategies heading into 2025 and beyond, I wanted clarity, not headlines. So I sat down with Felisa Schlosser, lender at JMJ Financial, and asked the real questions I hear every week from buyers and homeowners. Below is our full Q&A, shared exactly as discussed.

Q: When should someone start looking into refinancing, what factors matter, and how much does it typically cost?

A: Honestly, there’s never a bad time to check in. I offer my clients an Annual Mortgage Review where we simply “run the numbers” to see if a refinance makes sense. If it doesn’t, we set a “strike rate”, a target interest rate where it would make sense, so we’re ready to move when the market gives us the opportunity.

Refinances typically cost $3,000–$5,000, depending on loan size and program, and many clients choose to roll costs into the loan or use lender credits to offset them BUT there are ways to do a no cost or a very low cost refinance as well.

Q: Do lenders become more strict with credit scores or debt ratios at the start of a new year?

A: They don’t

Q: What are some common struggles you have helped clients overcome when it comes to buying, refinancing, or running the numbers?

A: Using the temporary buydown has been my most popular strategy for helping buyers get into a home this year. It gives them immediate payment relief during the first 1–3 years, which is incredibly helpful when they’re adjusting to a new mortgage or waiting for rates to improve. It also creates a smoother transition into homeownership without the financial “sticker shock” of the full payment on day one.

Sellers and builders often cover the cost of the buydown, which means buyers can keep more of their own cash for moving expenses, renovations, or reserves. And if rates drop in the meantime, buyers can refinance early, without ever fully experiencing the higher payment.

Temporary buydowns continue to be one of the most powerful tools in a higher-rate market because they create affordability today while keeping options open for the future.

Q: What are nuggets of info you think every homeowner or buyer should know heading into the New Year?

A: If I were a first-time homebuyer heading into 2026, I would…

…get pre-approved early and understand my true buying power.
Loan limits have increased, seller credits are back on the table, and the market is shifting month by month. Knowing exactly what you qualify for, and how your payment changes with each price point, eliminates surprises and puts you in a stronger negotiating position.

…take advantage of temporary buydowns and seller credits.
Builders and sellers tend to be more flexible in Q4 and early Q1. A temporary buydown can make the first few years dramatically more affordable while still leaving the door open for future refinancing.

…keep my down payment strategy flexible.
In many cases, putting less down and keeping more cash in reserves creates a safer, more strategic financial picture, especially with rising rents, inflation, and uncertain timelines.

…remember that buying a home is a long game.
The biggest wealth-building jump for most first-time homeowners still comes from getting into the market, not waiting for the “perfect” conditions that rarely show up.

Q: What are the new San Diego loan limits, and how do they affect buyers looking ahead to 2026?

A: The new Conventional loan limits for San Diego County are:

$1,104,000 – 1 unit
$1,413,350 – 2 unit
$1,708,400 – 3 unit
$2,123,100 – 4 unit

(We expect FHA and VA to announce their updated limits at the end of the year.)

Here’s the big takeaway: an owner-occupied buyer can now put as little as 5% down up to a $1,104,000 loan amount. That’s a huge advantage for buyers trying to stay in conventional financing in 2026.

Q: Does it make sense to pay points right now with where rates are?

A: It can. Redfin’s early 2026 forecast suggests rates may not change dramatically next year. If that proves true, then paying points could make sense, especially for buyers planning to stay put without any immediate plans to sell or refinance.

We’re still waiting on updated projections from Fannie Mae, NAR, and Zillow, but in the meantime, running a breakeven analysis helps clarify whether buying points creates real long-term savings.

Q: How does someone decide between keeping their current mortgage and using a HELOC to buy a second home or investment property?

A: This is one of the trickier decisions, but here’s the general rule of thumb:

If you have a low rate on your current mortgage, it usually makes the most sense to leave that loan untouched and:

• Put as little down as possible on the new purchase
• Avoid adding a second loan to your departing residence that would likely carry a higher interest rate than the new mortgage

A HELOC or other equity-access option can sometimes work, but structure matters. We typically model side-by-side scenarios to see which approach keeps total cash flow and long-term returns strongest.

To get in contact with Felisa - 

Felisa Schlosser
Mortgage Banker
www.jmj.me/Fschlosser
[email protected]
NMLS # 255612
Mobile 619.772.2206