Salt Lake City, UT, October 8, 2025
News Summary
A 0.25% cut to the federal funds rate and signals of further easing have pushed mortgage rates lower and spurred refinancing interest. A regional credit union promoted a fee‑waived refinance program allowing qualifying borrowers to redeem an origination fee waiver after six on‑time payments and within three years, capped at 1% of the loan or $4,000. The lender also launched an after‑hours mortgage help line to connect members with specialists outside normal business hours and offers online application options. The development arrives as insurance costs and affordability pressures persist in Salt Lake and denial‑rate disparities remain a concern.
Fed signals more rate cuts in 2025 as credit union pushes no‑fee refinance and after‑hours mortgage help
Quick take
Estimated read time: 7–8 minutes. A recent Federal Reserve reduction in the target federal funds rate and guidance of additional cuts in 2025 have lifted interest in mortgage moves. A regional credit union is promoting a limited‑time no‑origin‑fee refinance option and expanded after‑hours mortgage support as buyers and current homeowners watch shifting rates and local costs for insurance and housing continue to affect affordability.
Top line details
Last month the Federal Reserve lowered its target federal funds rate by 0.25 percentage points and signaled more rate reductions could come at two remaining meetings in 2025. That guidance, together with a recent slide in average mortgage pricing to roughly 6.58 percent, has encouraged more consumers to consider purchase and refinance options. Mortgage application activity has risen nationally, driven mostly by people seeking to refinance.
What the credit union is offering
The credit union has highlighted a program that allows borrowers to refinance without paying lender origination fees for up to three years after the note date, provided certain conditions are met. The offer becomes eligible after six on‑time payments and must be redeemed before three years from the note date. The program applies to 15‑ to 30‑year conventional loans (portfolio loans excluded), requires use of the lender’s affiliated title services, and limits the origination fee waiver to 1 percent or $4,000, whichever is less. Borrowers still pay third‑party fees such as title, appraisal, credit reporting, and recording charges. The program is restricted to owner‑occupied properties, cannot be combined with other offers, and may be rescinded or changed without prior notice. Rates and terms in the provider’s disclosures are shown as accurate as of September 9, 2025.
After‑hours access and member support
To help members act quickly when a favorable window appears, the lender introduced an after‑hours mortgage line that connects callers to a specialist outside normal business hours, including evenings after 5 p.m., weekends and holidays. The service can answer questions, start applications, and provide step‑by‑step support. The advertised contact number for that service is 801‑786‑8400, and appointments or expert consultations can be arranged via the credit union’s site.
Lot loan and construction offerings
The lender also promoted lot and construction financing specials available through 2025: a one‑year balloon lot loan example at 5.55 percent (with a 30‑year amortization) and a three‑year balloon improved lot loan starting at 6.49 percent (also amortized over 30 years). A 20 percent down payment is required to qualify for the lot loan specials. Example construction and one‑time‑close rates and APRs were provided in the disclosures based on typical credit and loan‑to‑value scenarios.
Local affordability headwinds: insurance and price gaps
Insurance prices are adding to local housing costs. In one mountain‑west metro area, home insurance rose from making up 4.8 percent of the average mortgage payment three years earlier to 6.8 percent most recently. Over the last decade average monthly home insurance in that metro climbed from roughly $61 to $135. Analysis suggests more frequent natural disasters and higher rebuilding costs are contributing to rising premiums. Projections indicate insurance premiums may increase across all states by the end of 2025, with a single‑state projection of about a 9 percent rise.
Buy vs rent: a widening local premium
Recent analysis comparing median mortgage payments to median rent shows buying in that metro is substantially more expensive than renting. The median monthly mortgage payment was calculated at $3,463 versus a median rent of $1,627, creating a buying premium of roughly 113 percent — more than double the national buying premium in the study. The city ranked near the expensive end among hundreds of U.S. cities analyzed, and only a small share of cities were found where buying was cheaper than renting.
Mortgage rates, demand and buyer readiness
Average mortgage rates dropped to the lowest level in nearly a year, sparking a rise in applications, with refinances driving much of the lift. Lenders and real estate professionals noted that even small dips in rates can save an average borrower several hundred dollars a month; however, they also reported that many buyers start processes and then step back after reviewing affordability in high‑priced markets. Advice from industry professionals focused on getting preapprovals, documents and loan files in order so borrowers can act quickly during brief favorable rate windows.
National denial disparities for Black applicants
Separate analysis of mortgage denial rates found Black applicants nationwide were denied at a higher rate than applicants of all races. The 2024 denial rate for Black applicants stood near 19 percent versus about 11.3 percent overall, meaning Black applicants were roughly 1.7 times more likely to be denied. The most common denial reason across applicants remained failure to meet debt‑to‑income ratio standards, followed by credit history problems. A handful of metros showed especially large denial gaps between Black applicants and all applicants, while several others exhibited much smaller gaps; some small gaps may reflect low sample sizes in those metros.
Bottom line for buyers and homeowners
Interest rate guidance and recent rate declines are creating new windows of opportunity for purchase and refinance activity. Programs that waive certain lender fees for a limited time and expanded after‑hours support can lower friction for busy borrowers, but restrictions, third‑party costs, and membership or credit requirements still apply. Rising insurance and high home prices mean that in some markets, buying remains significantly less affordable than renting. Prospective buyers and owners should review current costs, verify eligibility, and consider speaking with a mortgage expert to understand timing and total costs before moving forward.
Frequently Asked Questions
How does the no‑origin‑fee refinance option work?
Borrowers who make six on‑time payments on an eligible 15‑ to 30‑year conventional loan can refinance without a lender origination fee up to three years from the note date, subject to eligibility, use of affiliated title services, and payment of third‑party fees. The waiver is capped at 1 percent or $4,000, whichever is less.
Who can use after‑hours mortgage support?
Members and prospective borrowers can call the after‑hours line to ask questions, begin an application, or get guided help outside regular business hours at 801‑786‑8400.
Do the lot loan specials require a large down payment?
Yes. The lot loan offers require a 20 percent down payment and include balloon features (one‑year balloon for raw lots, three‑year balloon for improved lots) with 30‑year amortization.
Will lower Fed rates immediately lower mortgage rates?
Not always. Fed policy influences broader interest rate conditions, but mortgage rates respond to many factors, including bond markets and lender risk assumptions. Recent Fed guidance and a modest drop in average mortgage pricing have increased consumer interest, but rate windows can be brief.
How do rising insurance costs affect affordability?
Higher insurance premiums increase monthly housing costs and can widen the gap between monthly mortgage payments and rent. In some metros, insurance now makes up a larger share of the mortgage payment than it did a few years ago.
Are Black applicants being denied more often?
Analysis shows higher denial rates for Black applicants nationally. Common reasons include debt‑to‑income shortfalls and credit history issues. Denial gaps vary widely by metro and are influenced by income, credit access, and legacy lending patterns.
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Key features at a glance
| Feature | Details |
|---|---|
| No‑origin‑fee refinance (Free‑Fi) | Eligible after six on‑time payments; redeem before three years from note date; applies to 15–30 year conventional loans; origination fee waiver capped at 1% or $4,000; borrower pays third‑party fees. |
| After‑hours mortgage support | Specialist standby after 5 p.m., weekends and holidays; can answer questions, start applications, and guide applicants; phone: 801‑786‑8400. |
| Lot and construction loan examples | One‑year balloon lot loan example at 5.55% (30‑year amortization); three‑year improved lot loan at 6.49% (30‑year amortization, 3‑yr balloon); 20% down required. |
| Market signals | Fed cut of 0.25% with guidance for further cuts in 2025; mortgage average rates near 6.58%; refinance demand rising. |
| Affordability pressures | Rising home insurance and high median prices increase monthly housing costs; local buying premium in one metro exceeds 100% over renting. |
| Denial disparities | Black applicants denied at higher rates nationally (about 19% vs 11.27% overall in 2024); common denial reasons include DTI and credit history. |
Deeper Dive: News & Info About This Topic
Additional Resources
- Axios: Home insurance costs rising in Salt Lake City
- Wikipedia: Home insurance
- KSLTV: What to know about Utah’s housing market as mortgage rates dip
- Google Search: Utah housing market mortgage rates dip
- TechBuzzNews: Utah mortgage team harnesses AI
- Google Scholar: Utah mortgage AI
- Moneywise: Salt Lake City couple’s rent‑to‑own cautionary tale
- Encyclopedia Britannica: rent-to-own
- Deseret News: Renting increasingly cheaper than buying in Salt Lake
- Google News: Salt Lake renting vs buying study
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
