Owning an investment property in Utah can be a great way to build long-term wealth. However, buying a rental property is different from buying your primary home.

Before you start scrolling through listings and mentally spending your future rental income, it helps to understand the basics.

What Is an Investment Property?

An investment property is real estate purchased to generate income or grow in value.

Common examples include:

• Single-family rental homes
• Condos and townhomes
• Duplexes and other multi-unit properties
• Short-term vacation rentals

Some investors also purchase a home, live in part of it, and rent out the remaining space. This is often called house hacking.

How Do You Finance an Investment Property?

Financing depends on how you plan to use the property.

A traditional investment property loan usually requires a larger down payment than a primary residence. Lenders may also review your credit, income, cash reserves, and expected rental income.

However, you may have additional options when buying a property that will also be your primary residence. For example, someone purchasing a duplex may be able to live in one unit and rent out the other.

The right loan structure depends on the property and your long-term plan.

Calculate More Than the Mortgage Payment

A rental property may produce monthly income, but rent is not pure profit.

Your estimated expenses should include:

• Mortgage principal and interest
• Property taxes
• Homeowners insurance
• HOA fees
• Repairs and maintenance
• Property management
• Possible vacancies

It is also smart to keep money in reserve. Eventually, something will break—and the water heater rarely checks your budget first.

Research the Local Rental Market

Utah is made up of many different rental markets. Demand, home prices, and typical rent can vary by city and neighborhood.

Before buying, research:

• Average rent for similar properties
• Local vacancy rates
• Nearby employment and transportation
• School districts and neighborhood demand
• Planned construction or development

Avoid assuming that a property will rent for a certain amount simply because the listing agent or seller says it will.

Review Local Rental Rules

Rental requirements can vary between Utah cities. Short-term rental rules may also be different from rules for long-term rentals.

Before purchasing, review local zoning, licensing requirements, HOA restrictions, and rental regulations. Utah cities may regulate rental properties and place specific restrictions on short-term rentals or accessory dwelling units.

You should also speak with a qualified tax professional and consider having an attorney review your lease and ownership structure.

Choose the Right Property

The most exciting property is not always the best investment.

Instead, look for a property that fits your budget and has realistic income potential. Consider its location, condition, expected repairs, tenant demand, and ongoing expenses.

The goal is not simply to own another house. The goal is to purchase a property that supports your financial strategy.

Start With a Clear Plan

Before buying an investment property in Utah, decide what you want the property to accomplish.

Are you looking for monthly cash flow? Long-term appreciation? A future retirement asset? A home you can live in while renting out part of it?

Once you know the goal, you can compare financing options and decide how much cash you need to get started.

Let’s Run the Numbers

Real estate investing can be a powerful financial tool, but every property should be reviewed carefully.

At Houzd Mortgage, we can help you compare financing options, estimate the monthly payment, and understand how the property’s expected rental income may affect your qualification.

Contact our team and let’s run the numbers before you make an offer.

The post Investment Property in Utah: A Beginner’s Guide appeared first on Houzd.

The short answer is that it depends on your home value, current mortgage balance and the HELOC lender’s maximum combined loan-to-value ratio, also called CLTV.

Many HELOC programs allow homeowners to borrow up to a certain percentage of their home’s value after accounting for what they already owe.

Let’s break down how that works.

How Is a Utah HELOC Amount Calculated?

One of the most important numbers when qualifying for a HELOC is your combined loan-to-value ratio, or CLTV.

The basic formula is:

Home Value × Maximum CLTV – Current Mortgage Balance = Potential HELOC Amount

For example, suppose:

• Your Utah home is worth $600,000
• Your current mortgage balance is $350,000
• Your HELOC program allows up to 85% CLTV

First, calculate 85% of the home’s value:

$600,000 × 85% = $510,000

Then subtract your current mortgage:

$510,000 – $350,000 = $160,000

In this example, you could potentially qualify for a HELOC of up to $160,000, subject to credit, income and other lender requirements.

What Does CLTV Mean on a HELOC?

CLTV stands for combined loan-to-value.

It looks at all loans secured by your home compared with the home’s value.

If your first mortgage is $350,000 and you add a $100,000 HELOC, you would have $450,000 in total loans secured by the property.

On a $600,000 home:

$450,000 ÷ $600,000 = 75% CLTV

Different HELOC lenders have different CLTV limits.

For example, Mountain America Credit Union currently explains that many lenders limit HELOC borrowing to around 85% CLTV. Some programs may allow more or less depending on the borrower, property and loan structure.

Utah HELOC Examples

Here are a few simple examples using an 85% maximum CLTV:

These are examples only. Your actual available HELOC amount will depend on the specific lender and your qualification.

Can You Borrow 100% of Your Home Equity?

Sometimes, but not with every HELOC program.

Some lenders offer programs allowing homeowners to borrow at higher CLTV levels. America First Credit Union, for example, currently lists home equity products reaching as high as 100% LTV, although pricing and qualification can be different from lower-LTV programs.

That means it is important to compare more than one HELOC option.

A homeowner who is told they cannot access enough equity through one bank may have additional options available elsewhere.

What Else Determines How Much HELOC You Can Get?

Having enough equity is only one part of qualifying.

HELOC lenders may also look at:

• Credit score
• Income
• Debt-to-income ratio
• Employment history
• Property type
• Occupancy
• Current mortgage balance
• Requested HELOC amount
• Home value

Some programs also have minimum and maximum line amounts.

So even if your home equity supports a $150,000 HELOC mathematically, you still need to qualify for the loan.

How Is My Home Value Determined for a HELOC?

The lender needs to establish what your home is currently worth.

Depending on the HELOC amount and lender, that may involve:

• An automated valuation
• A property inspection
• A desktop appraisal
• A full appraisal

Utah homeowners who purchased several years ago may be surprised by how much equity they have accumulated, particularly if their property’s value has increased while they have continued paying down their mortgage.

Do I Have to Borrow the Entire HELOC Amount?

Usually, no.

One of the major differences between a HELOC and a traditional home equity loan is that a HELOC is generally a revolving line of credit.

For example, you might qualify for a $150,000 HELOC but initially draw only $40,000.

You generally pay interest based on the amount you have actually borrowed rather than simply the entire approved credit line.

That flexibility is one reason homeowners use HELOCs for projects where expenses happen over time.

How Much Equity Should I Take Out?

Just because you can access a certain amount of equity does not necessarily mean you should borrow all of it.

Before deciding how large your HELOC should be, consider:

• What you actually need the money for
• The expected monthly payment
• Whether the interest rate is variable
• How quickly you expect to repay it
• Whether another loan structure would make more sense

A HELOC can be a valuable financial tool, but your home is securing the debt.

Find Out How Much You Can Borrow With a Utah HELOC

If you are wondering how much you can borrow with a Utah HELOC, the first step is fairly simple.

We can look at your estimated home value, current mortgage balance and the HELOC programs available to determine approximately how much equity you may be able to access.

At Houzd Mortgage, we help Utah homeowners compare HELOC options from multiple lending sources rather than assuming the program at their existing bank is their only choice.

Whether you need $25,000 for a remodel or want to access a larger amount of your home’s equity, our Houzd Mortgage team can help you understand the options available.

Learn more about our Utah HELOC options or contact Houzd Mortgage to see how much equity you may be able to access.

The post How Much Can I Borrow With a Utah HELOC? appeared first on Houzd.

That is why we created the Houzd Community Giveback, a simple monthly program designed to support Utah organizations doing meaningful work in our communities.

Over the past few months, we have had the opportunity to donate to incredible organizations: Utah Food Bank, The Sharing Place and Wasatch Backcountry Rescue.

Supporting Utah Food Bank

Utah Food Bank has been fighting hunger across Utah for more than a century.

Today, the organization works throughout all 29 Utah counties and distributed the equivalent of 58 million meals last year through its statewide network of programs and partner agencies.

Their work reaches Utah families in a variety of ways, including food pantries, mobile food distributions, school programs and food assistance for people who may have difficulty accessing traditional resources.

We were grateful for the opportunity to make Utah Food Bank one of our Houzd Community Giveback recipients.

Supporting The Sharing Place

Another organization selected through our giveback program was The Sharing Place.

Since 1993, The Sharing Place has helped grieving children, teens and families find a safe place to process the death of someone they love. Their programs use age-appropriate support groups, art, play and discussion to help families navigate grief together.

The organization now serves families through locations in Salt Lake City, Taylorsville, Pleasant Grove and Southern Utah.

It is difficult work addressing a need that families often never expect to face, and we were proud to help support their mission.

Supporting Wasatch Backcountry Rescue

Living in Utah also means the mountains are a huge part of our community.

Wasatch Backcountry Rescue provides rapid response for avalanche rescue, winter mountain rescue and medical evacuation incidents throughout the Wasatch Mountains.

Their trained rescue professionals help make Utah’s backcountry safer for skiers, snowboarders and everyone else who enjoys our mountains.

Supporting an organization like Wasatch Backcountry Rescue felt especially fitting for a program centered around giving back to the communities where we live, work and play.

What Is the Houzd Community Giveback?

The idea behind the Houzd Community Giveback is intentionally simple.

Each month, our community can nominate a Utah charity or cause that matters to them. We select an organization and make a donation of up to $2,000 on behalf of the community.

We also do a drawing for to give away a Minky Couture blanket each month as a small thank-you to someone participating in the program. No purchase or referral is required.

More importantly, we want the organizations we support to come from the people around us rather than simply choosing every cause ourselves.

Help Us Choose Who We Support Next

Utah is full of nonprofits, charities and community organizations quietly doing incredible work.

If there is an organization that has helped your family, your neighborhood or a cause you care about, we would love to hear about it.

Visit our Houzd Community Giveback page to learn more about the program and nominate a Utah organization for an upcoming monthly donation.

A little support can go a long way, especially when our community gets to decide where it goes.

The post Houzd Community Giveback: Supporting Utah Organizations Making a Difference appeared first on Houzd.

For many homeowners, that is the biggest advantage.

Instead of refinancing the entire mortgage, a HELOC is typically added as a second loan. You can then use the funds for home improvements, debt consolidation, major purchases, investments or other financial needs.

What Is a HELOC?

A Home Equity Line of Credit is a revolving credit line secured by your home.

It works somewhat like a credit card. You are approved for a maximum credit limit, but you generally only borrow what you actually need. As you pay the balance down, those funds may become available to use again during the draw period.

What Can You Use a HELOC for in Utah?

One of the benefits of a HELOC is flexibility. Utah homeowners commonly use home equity for:

• Home renovations or remodeling
• Paying off higher-interest credit cards
• Consolidating other debts
• College or education expenses
• Large unexpected expenses
• Investment opportunities
• Down payments on another property
• Creating an emergency reserve

There generally is not one “right” reason to open a HELOC. The better question is whether using your home equity makes sense for your specific financial plan.

How Much Can You Borrow With a Utah HELOC?

The amount you may qualify for depends heavily on your home’s value and how much you currently owe.

Lenders look at your combined loan-to-value ratio, or CLTV.

For example, imagine your Utah home is worth $600,000 and you owe $350,000 on your current mortgage. You have approximately $250,000 in equity.

That does not necessarily mean you can borrow the entire $250,000. Each HELOC lender has its own maximum CLTV, credit, income and property requirements.

This is one reason comparing HELOC programs can matter. Different lenders may allow different levels of equity access.

HELOC vs. Cash-Out Refinance

A HELOC and a cash-out refinance can both allow you to access home equity, but they work very differently.

With a cash-out refinance, you replace your existing mortgage with a new, larger mortgage.

With a HELOC, you typically leave your current first mortgage alone and add a second lien behind it.

That distinction can be especially important if you already have a favorable interest rate on your first mortgage.

For example, replacing a low-rate mortgage simply to access $50,000 or $100,000 of equity may not always make sense. In that situation, a HELOC could allow you to access the money while keeping the original mortgage intact.

However, every situation is different. The interest rate, payment structure, loan amount and how long you expect to carry the debt should all be compared.

HELOC vs. Home Equity Loan

A HELOC is also different from a traditional home equity loan.

A HELOC generally gives you a revolving credit line that you can draw from as needed.

A home equity loan normally provides one lump sum with scheduled payments over a set term.

If you are remodeling a home over several months, for example, having access to a line of credit may be useful. If you know you need exactly $75,000 for one specific expense, a fixed home equity loan may be worth comparing.

Can You Use a HELOC to Pay Off Credit Card Debt?

Yes. Debt consolidation is one of the more common reasons homeowners consider a HELOC.

Credit cards and unsecured personal loans can carry much higher interest rates than home-secured financing. Moving those balances into a HELOC may reduce interest costs or monthly payments.

However, this strategy should be approached carefully.

We wrote a separate guide specifically about using a HELOC to consolidate debt in Utah if that is your primary goal.

Do Utah HELOC Rates Vary by Lender?

Yes, sometimes significantly.

HELOC pricing can depend on your credit score, combined loan-to-value ratio, loan amount, property type and the lender itself.

Some Utah banks and credit unions also advertise introductory rates or fixed-rate lock options. For example, current Utah HELOC programs show meaningful differences in introductory periods, maximum CLTVs and how rates are structured.

That is why comparing more than just the advertised rate matters.

You should also look at:

• How long the introductory rate lasts
• The rate after the introductory period
• Annual or maintenance fees
• Closing costs
• Minimum draw requirements
• Maximum CLTV
• Draw and repayment periods
• Whether part of the balance can be converted to a fixed rate

Is a Utah HELOC Right for You?

A HELOC can be a useful financial tool, but it is still debt secured by your home.

Before opening one, it helps to understand how much equity you actually need to access, what the payment could look like and whether another option may work better.

At Houzd Mortgage, we help Utah homeowners compare HELOC and home equity options based on the bigger financial picture, not simply the first advertised rate they see.

If you are considering a HELOC in Utah, reach out to our Houzd Mortgage team. We can review your equity, what you want to accomplish and which options may make the most sense.

Written by Anthony VanDyke, Utah Mortgage Broker — NMLS #247102 — President at Houzd Mortgage in Draper, Utah.

A mortgage broker since 2006, Anthony has helped thousands of Utah families build a stronger financial future, one home at a time. He believes a mortgage isn’t just a loan — it’s a long-term financial strategy that can shape a family’s wealth and peace of mind.

See what you qualify for with Anthony’s Purchase Qualifier Tool.

The post Utah HELOC Options: How to Use the Equity in Your Home appeared first on Houzd.

A major update from Freddie Mac could make that easier.

Freddie Mac has expanded its asset depletion mortgage guidelines, allowing more borrowers to use accumulated assets as qualifying income when purchasing or refinancing a home.

The official changes become mandatory for eligible mortgages with settlement dates on or after February 3, 2027, but Freddie Mac is allowing lenders to adopt the new guidelines immediately.

That could create new opportunities for retirees, investors, business owners and other borrowers who have significant assets but comparatively limited traditional income.

What Is an Asset Depletion Mortgage?

Asset depletion allows certain eligible assets to be converted into a monthly income amount for mortgage qualification.

Instead of looking only at income such as salary, Social Security or self-employment earnings, the lender may be able to use funds held in eligible accounts as another source of qualifying income.

Under Freddie Mac’s updated calculation:

Net Eligible Assets ÷ 180 = Monthly Qualifying Income

Previously, Freddie Mac used a 240-month divisor. The new 180-month calculation generates more qualifying income from the same amount of assets.

How Much More Income Can Your Assets Generate?

Here is a simple example.

Imagine that after required deductions, a borrower has $900,000 in net eligible assets.

Under the previous calculation:

$900,000 ÷ 240 = $3,750 per month

Under the new Freddie Mac calculation:

$900,000 ÷ 180 = $5,000 per month

That is $1,250 more qualifying income every month without the borrower actually earning another dollar.

The change from 240 months to 180 months means the same eligible asset balance can generate approximately 33% more qualifying monthly income.

Freddie Mac Removes the Age Requirement for Certain Assets

This may be one of the most important changes.

Previously, Freddie Mac placed age restrictions on the use of certain depository accounts and securities.

Under the updated guidelines, that age restriction has been removed for eligible depository accounts and securities.

That means a younger borrower with substantial savings or investments may potentially use those assets to qualify.

For example, someone in their 40s who owns a large brokerage portfolio but has recently retired, sold a business or reduced their traditional employment income may now have another conventional mortgage option to consider.

Are Retirement Accounts Included?

Retirement accounts work differently.

Accounts such as:

• 401(k)s
• IRAs
• Similar retirement accounts

generally must be accessible to the borrower without an early-withdrawal penalty before they can be used under the applicable asset-income calculation.

For many retirement accounts, unrestricted access begins around age 59½, although the exact treatment depends on the account and borrower circumstances. Freddie Mac’s new removal of the age restriction for depository accounts and securities does not eliminate the accessibility requirements for retirement assets.

Investment Properties Are Now Eligible

Another major change is the expansion of eligible occupancy types.

Under the updated guidelines, accumulated assets may potentially be used as qualifying income for:

• Primary residences
• Second homes
• Investment properties

Previously, Freddie Mac’s asset-based qualification rules were limited to primary residences and second homes.

For asset-heavy real estate investors, this could create an entirely new conventional financing option.

Freddie Mac Removes the Previous 80% LTV Limit

The previous guidelines generally limited these mortgages to a maximum 80% loan-to-value ratio.

That specific restriction is being removed.

Instead, the mortgage can follow Freddie Mac’s normal LTV requirements for the applicable transaction and occupancy type.

In plain English, using asset depletion no longer automatically means you need at least 20% down simply because you are qualifying with assets.

That could be particularly useful for borrowers who have substantial assets but do not want to liquidate a large portion of those assets for their down payment.

Freddie Mac Establishes a $30,000 Minimum

Under the updated guidelines, borrowers must have at least $30,000 in net eligible assets available for the asset-income calculation.

The important word here is net.

The amount sitting in your account is not necessarily the amount that gets divided by 180.

Freddie Mac requires certain amounts to be deducted before calculating qualifying income, including funds needed to complete the mortgage transaction.

Who Could Benefit From the New Asset Depletion Guidelines?

These changes may be particularly useful for borrowers who are financially strong but do not fit neatly into the traditional W-2 income box.

Examples could include:

• Retirees
• Early retirees
• Investors
• Business owners
• Borrowers who recently sold a business
• Borrowers with substantial brokerage accounts
• People living primarily from investments
• High-net-worth borrowers with limited taxable income

Having a strong balance sheet has always mattered when getting a mortgage. These changes simply give lenders another way to potentially turn that financial strength into qualifying income.

Asset Depletion vs. Traditional Mortgage Income

Asset depletion does not necessarily replace your other income.

Depending on the loan, qualifying asset income may be combined with other acceptable sources such as employment income, Social Security, pension income or rental income.

That can be powerful.

For example, a borrower may already have enough regular income to qualify for a $500,000 home but fall short of qualifying for the $650,000 property they actually want.

Converting eligible assets into additional monthly qualifying income could potentially help bridge that gap.

When Do the New Freddie Mac Guidelines Start?

Freddie Mac’s new accumulated-assets-as-income requirements become mandatory for eligible mortgages with settlement dates on or after:

February 3, 2027

However, Freddie Mac expressly allows lenders to implement the changes before that date.

That distinction matters because not every mortgage lender adopts optional guideline changes at the same time.

One lender may offer the expanded program immediately while another may wait until the mandatory implementation date.

Could Asset Depletion Help You Qualify for More?

If you have significant savings or investments but your traditional income does not fully represent your financial position, the expanded Freddie Mac asset depletion guidelines may create another path to mortgage qualification.

At Houzd Mortgage, we can look beyond just one loan program or lender.

We can review your income, assets, down payment and overall financial picture to determine whether conventional asset depletion or another asset-based mortgage strategy makes sense.

If you’re buying a home in Utah and wondering whether your assets could help you qualify, reach out to our Houzd Mortgage team and we can run the numbers.

The post Freddie Mac Expands Asset Depletion Mortgage Guidelines appeared first on Houzd.

Pinkbox Doughnuts is opening its new Sandy, Utah location on Saturday, August 15, 2026, at 10235 State Street. The grand opening celebration includes a ribbon cutting at 9:00 a.m., followed by the public celebration beginning at 10:00 a.m.

What Is Pinkbox Doughnuts?

Pinkbox Doughnuts started in Las Vegas and has become known for colorful shops and some seriously over-the-top doughnuts.

The menu goes well beyond the standard glazed doughnut, with more than 70 varieties ranging from classics to elaborate specialty creations. Pinkbox already has Utah locations in St. George and American Fork, making Sandy its third location in the state.

What’s Different About the New Sandy Pinkbox?

The Sandy location is introducing something new for the company: Pinkycade, Pinkbox Doughnuts’ first interactive arcade experience.

The idea is to make the Sandy shop more of a destination than simply a place to grab a box of doughnuts and leave.

Considering the doughnuts already look like something created after giving a pastry chef unlimited sugar and zero adult supervision, adding an arcade feels pretty appropriate.

Pinkbox Doughnuts Sandy Grand Opening

The grand opening celebration on Saturday, August 15 will include:

• A ribbon cutting beginning at 9:00 a.m.
• Public festivities starting at 10:00 a.m.
• A live DJ
• Raffles and giveaways
• Doughnut-eating contests
• Limited-edition T-shirts with qualifying purchases while supplies last
• A chance to find a Pink Ticket and win free doughnuts for a year

Pinkbox will also recognize and make a donation to Sandy-based nonprofit Shelter the Homeless during the opening celebration.

Where Is Pinkbox Doughnuts in Sandy?

Pinkbox Doughnuts Sandy
10235 State Street
Sandy, Utah 84070

The location sits right along State Street, making it convenient for people coming from Sandy, Draper and other communities throughout the south end of the Salt Lake Valley.

Another New Spot to Try in Sandy

We love seeing new businesses and restaurants continue to pop up around Sandy and Draper, especially when they give us another excuse to explore what’s happening locally.

And yes, the Houzd Mortgage team already has a Pinkbox field trip planned. We’re heading in with the intention of ordering an unnecessarily ridiculous assortment of doughnuts.

If you live in Sandy, Draper or anywhere nearby, Pinkbox Doughnuts officially gives you one more local spot worth checking out.

The post Pinkbox Doughnuts Is Finally Opening in Sandy, Utah appeared first on Houzd.

Not everyone earns income through a traditional W-2 paycheck.

Some people are retired. Others own businesses or rely heavily on investments. In many cases, a large portion of their wealth may be sitting in retirement accounts, savings, brokerage accounts, or other assets.

If that sounds familiar, don’t assume you can’t qualify for a mortgage.

In fact, asset depletion mortgage programs may allow us to use certain assets as income to help you qualify for a home loan.

What Is an Asset Depletion Mortgage?

Asset depletion is a way of calculating qualifying income based on assets you already have.

Rather than relying entirely on a salary, some lender guidelines allow qualifying assets to be converted into a monthly income amount for mortgage qualification.

For example, you may have substantial savings and investments even though your tax returns or paychecks do not show a large amount of traditional monthly income.

As a result, asset depletion can create financing options that many borrowers do not realize are available.

What Assets Can Be Used for Asset Depletion?

Depending on the loan program and your individual situation, qualifying assets may include:

• Checking and savings accounts
• Investment and brokerage accounts
• Stocks and bonds
• Retirement accounts
• Certain cryptocurrency assets
• Other eligible liquid assets

Of course, not every asset is treated the same way. However, significant savings or investments can sometimes make a major difference when determining whether you qualify.

Therefore, it is worth looking at your complete financial picture before assuming that limited traditional income automatically prevents you from buying a home.

Who Is Asset Depletion Good For?

Asset depletion can be especially helpful for people who are financially strong but do not fit neatly into the traditional income box.

For instance, it may be worth exploring if you are:

• Retired or approaching retirement
• A business owner
• Self-employed
• An investor
• Living primarily from investments
• Cash rich but showing limited taxable income
• Someone without a traditional W-2 job

Many people in these situations have built substantial wealth while intentionally keeping their taxable income relatively low.

Because of that, a traditional income calculation may not tell the full story.

Asset depletion gives us another way to evaluate your ability to qualify.

You May Not Need to Liquidate Everything

Another common misconception is that you have to sell your investments or drain your retirement account before those assets can help you qualify.

Fortunately, that is not the case.

Depending on the program, the assets may simply be used as part of the qualification calculation.

In other words, you may be able to demonstrate your financial strength without converting your entire investment portfolio into cash.

Traditional Income Isn’t the Only Way to Qualify

Mortgage qualification is not always as simple as looking at your paycheck.

For some borrowers, a traditional conventional mortgage works perfectly. On the other hand, alternative income strategies may make more sense for someone whose wealth is structured differently.

Asset depletion is one of those strategies.

Ultimately, the goal is to look at your complete financial picture instead of assuming you do not qualify simply because your income does not come from a normal salary.

Have Assets but Not Traditional Income? Let’s Look at Your Options.

If you have money sitting in savings, investments, retirement accounts, crypto, or other qualifying assets, you may have more mortgage options than you realize.

More importantly, don’t count yourself out just because your income doesn’t fit inside the traditional box.

Before you assume you cannot buy a home, let’s look at what you have available and determine whether an asset depletion mortgage or another financing strategy could work for you.

Contact Houzd Mortgage today and let’s run the numbers.

The post Asset Depletion Mortgage: Use Assets to Qualify for a Home Loan appeared first on Houzd.

PMI helped you purchase the home without waiting years to save a larger down payment. That is the good news.

The less exciting news is that you may still be paying for it long after you have built enough equity to explore removing it.

Many Utah homeowners assume PMI will automatically disappear as soon as their home value increases. Unfortunately, mortgage companies generally need confirmation that your house is worth more now.

However, there may be several ways to remove PMI in Utah, depending on your loan type, current balance, payment history, home value, and loan servicer.

What Is PMI?

Private mortgage insurance protects the mortgage lender—not the homeowner—if the borrower stops making payments.

PMI is typically required on a conventional loan when the buyer puts down less than 20%. The cost is generally included in the monthly mortgage payment, although other payment structures may also be available.

PMI is not necessarily a bad thing. It allows qualified buyers to purchase a home without putting 20% down.

For example, waiting to save a 20% down payment could take several years. During that time, home prices, rent, and interest rates may change. PMI can help a buyer enter the market sooner while keeping more money available for moving expenses, repairs, emergencies, or furniture purchases.

Still, PMI is not meant to remain on every conventional mortgage forever.

When Can You Request PMI Removal?

For many conventional mortgages on a primary residence, homeowners can request PMI cancellation when the loan balance reaches 80% of the home’s original value.

The original value generally means the lower of the purchase price or appraised value when the home was purchased. If the mortgage was later refinanced, the original value is usually based on the appraisal completed during that refinance.

To approve the request, the mortgage servicer may require that:

• You submit the request in writing.
• Your mortgage payments are current.
• You have an acceptable payment history.
• There are no additional liens against the property.
• The home has not declined below its original value.

Your servicer may also require a property valuation or appraisal before removing PMI.

In other words, reaching 20% equity does not always make PMI vanish overnight. You may need to ask.

Does PMI Automatically Go Away?

For many conventional mortgages, PMI must automatically terminate when the loan balance is scheduled to reach 78% of the home’s original value.

This calculation is generally based on the original amortization schedule—not the home’s current market value.

The homeowner must also be current on the mortgage. If the loan is not current when it reaches the scheduled cancellation date, PMI may remain until payments are brought current.

PMI must also generally end after the loan reaches the midpoint of its original amortization period, provided the loan is current. On a 30-year mortgage, that midpoint would usually occur after 15 years. This rule can matter for loans with interest-only periods, balloon payments, or other features that slow down principal reduction.

Thankfully, most homeowners would prefer not to wait 15 years to save money.

Can Rising Utah Home Values Help You Remove PMI?

Possibly. Utah homeowners may build equity in several ways:

• Making regular mortgage payments
• Paying additional money toward principal
• Completing meaningful home improvements
• Benefiting from an increase in the home’s market value

If your Utah home has increased in value, you may be able to request PMI removal based on its current value rather than its original value.

However, the rules can vary depending on who owns your mortgage and who services it.

For example, Fannie Mae’s current guidelines generally require a one-unit primary residence or second home to have:

• An LTV of 75% or less when the loan is between two and five years old
• An LTV of 80% or less when the loan is more than five years old

The two-year minimum may sometimes be waived when substantial improvements made by the homeowner increased the property’s value.

These are not universal requirements for every mortgage. Freddie Mac, private investors, mortgage insurers, and individual servicers may have different standards.

That is why the first step is identifying your loan type and asking your mortgage servicer about its specific PMI removal process.

Do You Need an Appraisal to Remove PMI?

You may need one, but do not order an appraisal on your own before speaking with your mortgage servicer.

The servicer may require that the valuation be ordered through its approved process. An appraisal completed independently may not satisfy the investor’s requirements.

Depending on the loan, the servicer might use:

• An automated valuation model
• A broker price opinion
• A drive-by valuation
• A full interior and exterior appraisal

The homeowner may also be responsible for the valuation fee.

Before paying for anything, ask the servicer:

1. Can I request PMI removal based on the original value or current value?
2. What LTV is required?
3. Is there a minimum amount of time I must have the loan?
4. What payment history is required?
5. What type of property valuation will you accept?
6. How much will the valuation cost?
7. Will you order it, or should I?

This five-minute phone call may prevent you from purchasing an appraisal that your servicer cannot use. Mortgage paperwork already gives us enough opportunities to pay for the wrong thing.

Should You Refinance to Remove PMI?

Refinancing may make sense if you have enough equity to qualify for a new conventional loan without PMI.

It may also create opportunities to:

• Change the loan term
• Consolidate higher-interest debt
• Remove or add a borrower
• Switch from an adjustable rate to a fixed rate
• Access equity for improvements or other needs

However, refinancing is not automatically the best solution.

Before refinancing, compare at least two scenarios:

How Much Could Removing PMI Save?

The potential savings depend on the mortgage balance, PMI rate, and loan structure.

For example, if a homeowner pays $175 per month in PMI, removing it could save:

• $2,100 per year
• $6,300 over three years
• $10,500 over five years

That is real money.

It could help cover home maintenance, utilities, property taxes, insurance increases, or approximately four trips to Costco where you only went in for paper towels.

Your actual savings will depend on how long PMI would otherwise remain on the loan.

Is It Time for a Utah Mortgage Review?

You may have a path to remove PMI if:

• You purchased your Utah home with less than 20% down.
• Your home has increased in value.
• You have made substantial improvements.
• You have paid down your mortgage balance.
• Your loan is at least two years old.
• You have a strong mortgage payment history.
• You currently have an FHA loan and may qualify for a conventional refinance.

Not every homeowner will qualify immediately. Still, it may be worth reviewing the numbers.

Sometimes the answer is to request PMI removal now. Sometimes it is to wait a few more months, pay the balance down to a specific amount, or complete a refinance when the savings justify the costs.

The important part is knowing your options instead of continuing to pay mortgage insurance simply because no one told you to check.

Let’s Review Your Mortgage and Equity

Not sure whether you can remove PMI from your Utah mortgage?

Houzd Mortgage can help you review your current loan, estimated equity, mortgage insurance, and available options. We can also help you compare requesting PMI removal with refinancing so you can see which path may make the most financial sense.

There is no universal answer because every loan, property, servicer, and homeowner is different.

But if there is an opportunity to lower your monthly payment, it is worth running the numbers.

Contact Houzd Mortgage at 801-206-4343 to start the conversation.

This article is for general educational purposes only and is not a commitment to lend. PMI and MIP cancellation requirements vary by loan program, investor, mortgage insurer, servicer, property type, payment history, and other factors. Contact your loan servicer for the requirements that apply to your current mortgage. Equal Housing Opportunity. Company NMLS 888979.

See what you qualify for with our Purchase Qualifier Tool.

The post Can You Remove PMI Early? A Guide for Utah Homeowners appeared first on Houzd.

LTV stands for loan-to-value ratio. It compares the amount of your mortgage loan to the value of the property.

How Is LTV Calculated?

To calculate LTV, divide the loan amount by the home’s value. Then multiply that number by 100.

Loan amount ÷ Property value = LTV

For example:

• Home value: $500,000
• Loan amount: $400,000
• LTV: 80%

In this example, the buyer has 20% equity in the home.

For a purchase, lenders usually use the lower of the purchase price or appraised value when calculating LTV.

Why Does LTV Matter?

Your LTV can affect several parts of your mortgage, including:

• Your available loan programs
• Your interest rate
• Mortgage insurance requirements
• The amount of equity you have in the home

In general, a lower LTV means you are borrowing less compared to the property’s value. This can give you access to better loan terms.

However, you do not always need a 20% down payment to buy a home. Many conventional, FHA, VA, and down payment assistance programs allow buyers to purchase with much less.

Mortgage Insurance

On many conventional loans, private mortgage insurance may be required when the LTV is higher than 80%.

Mortgage insurance helps protect the lender, but it can also make homeownership possible with a smaller down payment.

FHA loans calculate mortgage insurance differently, while eligible VA loans typically do not require monthly mortgage insurance.

Refinancing

LTV is also important when refinancing.

The lender compares your current loan balance to the appraised value of your home. Your LTV may affect whether you qualify for a refinance, how much cash you can take out, and which interest rates are available.

As your home value increases or your loan balance decreases, your LTV may improve.

Let’s Run the Numbers

Understanding LTV can help you compare your mortgage options, but it is only one part of the full picture.

At Houzd Mortgage, we can help you review different down payment options and see how each one affects your monthly payment, mortgage insurance, and available loan programs.

Contact our team and let’s run the numbers.

Written by Anthony VanDyke, Utah Mortgage Broker — NMLS #247102 — President at Houzd Mortgage in Draper, Utah.

A mortgage broker since 2006, Anthony has helped thousands of Utah families build a stronger financial future, one home at a time. He believes a mortgage isn’t just a loan — it’s a long-term financial strategy that can shape a family’s wealth and peace of mind.

See what you qualify for with Anthony’s Purchase Qualifier Tool.

The post What Is LTV? A Simple Mortgage Guide appeared first on Houzd.

“When can I remove PMI?“

The good news is that PMI does not have to last for the life of your loan. In many cases, homeowners can remove PMI sooner than they realize, saving hundreds of dollars every month.

Here’s what you need to know.

What Is PMI?

PMI, or Private Mortgage Insurance, is typically required on a conventional loan when you put less than 20% down.

It protects the lender—not the homeowner—if the loan goes into default.

While PMI makes it possible to buy a home with a smaller down payment, most homeowners want to eliminate it as soon as they qualify.

When Can You Remove PMI?

There are several ways PMI can come off your loan.

1. Reach 20% Equity

The most common way to remove PMI is by reaching 20% equity in your home.

This can happen by:

• Paying down your mortgage balance
• Your home’s value increasing
• A combination of both

Once you reach this point, you can typically request that your loan servicer remove PMI.

2. Your Home Has Increased in Value

Utah homeowners have seen significant appreciation over the past several years.

If your home’s value has increased enough, you may already have 20% equity—even if you haven’t owned the home very long.

In many cases, your lender may require:

• A new appraisal
• A good payment history
• Confirmation that there are no additional liens on the property

Every loan servicer has its own requirements, so it’s worth asking what documentation is needed.

3. PMI Automatically Ends

Federal law requires conventional lenders to automatically cancel PMI once your loan reaches 78% loan-to-value (LTV) based on the original purchase price, provided you’re current on your payments.

That means even if you never request removal, PMI won’t stay forever.

However, many homeowners qualify to remove it earlier by requesting a review.

How Much Can Removing PMI Save?

The amount varies, but PMI commonly costs between $30 and several hundred dollars per month, depending on:

• Loan amount
• Down payment
• Credit score
• Type of mortgage

Removing PMI could reduce your monthly housing payment without changing your interest rate.

What About FHA Mortgage Insurance?

If you have an FHA loan, the rules are different.

Most FHA loans include Mortgage Insurance Premium (MIP) instead of PMI.

Depending on when you obtained your loan and how much you originally put down, MIP may last for many years—or even for the life of the loan.

In many situations, refinancing into a conventional loan is the best way to eliminate mortgage insurance.

Should You Refinance to Remove PMI?

Sometimes refinancing makes sense.

Other times, keeping your current interest rate and simply requesting PMI removal is the better financial move.

It depends on factors such as:

• Your current interest rate
• Your home’s value
• Your loan balance
• Today’s mortgage rates
• Your long-term plans

Running the numbers can help determine which option saves the most money.

How to Find Out if You Can Remove PMI

If you’re not sure where you stand, start by answering these questions:

• How much is your home worth today?
• What is your current mortgage balance?
• Is your loan conventional or FHA?
• How long have you owned the home?

With that information, it’s usually possible to estimate whether you’re eligible to remove PMI or if another strategy makes more sense.

Final Thoughts

Removing PMI can be one of the easiest ways to lower your monthly mortgage payment.

If your home has appreciated or you’ve built enough equity, you may qualify sooner than you think.

Before refinancing or making major financial decisions, it’s worth reviewing your options. A quick mortgage review can help determine whether requesting PMI removal, ordering an appraisal, or refinancing will save you the most money.

If you’d like to see whether you’re eligible to remove PMI, we’d be happy to help you review your mortgage and explore your options.

Written by Anthony VanDyke, Utah Mortgage Broker — NMLS #247102 — President at Houzd Mortgage in Draper, Utah.

A mortgage broker since 2006, Anthony has helped thousands of Utah families build a stronger financial future, one home at a time. He believes a mortgage isn’t just a loan — it’s a long-term financial strategy that can shape a family’s wealth and peace of mind.

See what you qualify for with Anthony’s Purchase Qualifier Tool.

The post How to Remove PMI From Your Mortgage and Lower Your Monthly Payment appeared first on Houzd.