Sam Cotton, Loan Officer - The Mortgage House

04/07/2026

Mortgage reviews like this are always a pleasure to receive ===
How would you rate the level of service you received from your Loan Officer? Excellent
How would you rate the level of service you received from our processing staff? Excellent
How would you rate your level of satisfaction with the overall experience working with us? Very Satisfied
Would you mind providing a testimonial about your overall experience? I got my initial mortgage from Sam Cotton, so he was the obvious choice for my refinancing. He is always available for questions and makes the process easy.

03/02/2026

The Homebuyers Privacy Protection Act (H.R. 2808) is a new federal law designed to better protect your personal information when your credit is run as part of a mortgage loan application. The law limits the sale and use of so called “trigger leads,” which historically caused borrowers to receive a flood of unsolicited calls, texts, and emails after a credit inquiry.
What this means for you:
• Fewer unwanted solicitations after your credit is pulled
• More privacy and less confusion during the loan process
• A smoother experience working with the lender you’ve chosen
Because this law significantly reduces the misuse of credit inquiries, it also lessens the need for lenders to rely on credit soft pulls as a workaround to protect borrowers from unwanted outreach. In many cases, lenders can move forward more confidently with a traditional credit review—without triggering unnecessary noise or disruption.
The Homebuyers Privacy Protection Act officially goes into effect on March 5, 2026.
We’re excited about this change and what it means for creating a more respectful, transparent, and borrower focused mortgage process. If you have any questions about how this impacts your loan, we’re always here to help.

805 550-5000

02/26/2026

Subject: Good News for Mortgage Customers: Lower Costs, More Stability Ahead
Hello,
You may have seen recent news that the Federal Reserve is considering changes that would ease how banks are required to hold capital and reserves against mortgage servicing rights (MSRs). In simple terms, this could be a positive development for homeowners and buyers who work with independent mortgage banks like ours.
Why does this matter to you?
When regulations more accurately reflect the true risk of mortgage servicing, lenders can operate more efficiently. For our customers, that can mean more competitive pricing, improved service, and greater long term stability throughout the life of your loan. These changes are intended to support responsible lending while encouraging institutions to stay invested in servicing loans and supporting borrowers well after closing.
As a small, independent mortgage bank, our focus has always been on relationships, not volume. Regulatory changes like these help level the playing field so we can continue to deliver personalized guidance, consistent servicing, and dependable execution—especially in changing market conditions.
We’ll continue to monitor developments closely and, as always, remain committed to helping you make confident, informed mortgage decisions.
Please don’t hesitate to reach out if you have questions or would like to discuss your options.
Warm regards,

Sam Cotton\805-550-5000

12/11/2025

Is this the last rate cut for a while?
The Federal Reserve Board cut policy rates by a quarter point at its December meeting, the third cut this year. In their quarterly economic projections, Board members lowered their expectations of future cuts.

What exactly did the Fed say?

The Fed's statement described moderately expanding economic activity but slowing labor market gains, while inflation is up and somewhat elevated. Board members continue to observe elevated uncertainty around the overall economic outlook.

In their quarterly economic projections, the median expectation was down to just one rate cut in 2026 and one in 2027. The projections showed more optimism for economic growth but downward expectations for the labor market.

What does this mean for mortgage rates?

While the Fed doesn't set mortgage rates directly, its decisions influence investor behavior. Projections of fewer future cuts could have the effect of leading to higher, rather than lower, mortgage rates.

If you've been waiting for more cuts, is it time to make your move? Here are some considerations:
• Future cuts are likely already priced into the current mortgage market, so even a future cut to policy rates may not lead to a drop in mortgage rates.
• Rates are unpredictable. They're impacted by economic data and world events in addition to Fed actions. Making a move now can help you lock in today's advantages.
• If rates fall further, the effect will likely be to drive up both demand and prices. Purchasing at current rates and a lower price could save money in the long run.
• If you're currently renting, now could be the time to start building up equity.

11/15/2025

Let’s Talk Loans -Opinions from Duane Gomer-R.E. guru

Some people are talking about a new concept: a 50 Year Loan. It was mentioned in a President's Press Conference. There are many opinions on the topic. I wanted to present two sides from the "pundits", and I found articles on both sides of the question. Surprisingly, they were from one source, Forbes. The links are listed below. Continue your research and then form your own opinion.

Most people look at a product like this and approach it from their perspective. Could be the Lenders, the Investors, the Loan Brokers, Realtors, the Public, or most importantly, the Homeowners and the Young Prospects. At this time, I believe the chance of 50 Year Loans being consummated soon is Slim and None, and Slim just left town.

I am forming my own opinion and hope to publish it next week. Be sure to stay connected, and please remember that our business is Real Estate Education. Any referrals to prospective Licensees, and Brokers, plus any candidates for license renewals for Real Estaters, Notaries, or Mortgage Loan Originators would be most appreciated. Yes, this is Duane Gomer, and I am still writing these emails. No AI at this time.

Trump’s 50-Year Mortgage: Lower Payments, Higher Lifetime Cost

Why Trump’s 50 Year Mortgage Idea Deserves A Second Look

Duane Gomer's Views on ARMs

Before I give any opinions on the 50-year, I would first like to rant about the worst loan in history, the Adjustable Rate Mortgage. Even if the 50 Year was adopted and proved to be horrific, it would never match the ARM.Don't believe me, ask Merrill Lynch, Lehman Brothers, Downey Savings, IndyMac, and a leader of the dance, Countrywide.

In my experience, Trustors never looked at all the ramifications of the ARM when they signed up. They normally looked at one thing: "How Much Will We Pay Each Month?" So they were given a low teaser rate for 3 to 5 years. This low teaser rate would last 3 to 5 years, and then Judgment Day came when the low-interest period expired. Then, the interest rate would adjust to a different rate. In the early 2000s, it adjusted higher most of the time.

Suddenly, the Trustor's monthly payment skyrocketed. And then fancy Margins, Indexes, etc. were used to establish new rates that were from a group out of London called the London Inter-Bank Offered Rate. LIBOR was involved in a scandal because its rate calculations were based on fraud and collusion. Yes, the British banks were dishonest. And their rates were used to set ARM rates.

Everyone blames the homeowners for the market being destroyed. However, the homeowners did not design the ARM. The Realtors recommended them and presented them to buyers, and MLOs recommended them to buyers and existing homeowners. Appraisers gave the proper values. Lender Committees said the loans were great. Lenders packaged the loans and sold them to Banks, etc. The Banks sold them to Investors. The Investors sold them to their clients. So there were a lot of parties working on these loans.

And then the market collapsed. Everyone said that it was not their group's fault, but a lot of nice homeowners lost their properties. Even homeowners who did not have ARM loans. Let's hope and pray and plan that this never happens again.

Till next week.

10/30/2025

10/08/2025

Mortgage Rates Hold Steady in Tight Range
By: Matthew Graham
Tue, Oct 7 2025, 3:57 PM
Mortgage rates have been in a very narrow range for nearly 3 weeks with the last major move seen on September 17th and 18th following the Fed rate cut. Paradoxically but not surprisingly, rates actually moved higher after the Fed cut the Fed Funds Rate.

Contrary to popular belief, Fed comments and policy changes are not the biggest consideration for rates. That honor goes to big ticket economic data like the jobs report. Case in point, the rate drop in early September after the jobs report was bigger than the jump in rates following the Fed. Moreover, the post-Fed jump was driven mainly by upbeat economic data the following morning.

With the government in shutdown mode, we haven't had the same sort of heavy-hitting econ data--a fact that largely contributes to the recently narrow range. There was some non-government data today from the NY Fed that showed a weaker view of the jobs market among consumers, thus helping rates hold in line with yesterday's levels. Before that data, rates were set to open the day slightly higher.

09/22/2025

Mortgage Rates Roughly Unchanged to Start New Week
By: Matthew Graham
2 Hours, 29 Min ago
After hitting the lowest levels in nearly a year (and nearly the lowest levels in 3 years) last Tuesday, rates lurched higher following Wednesday's Fed announcement. While the Fed cut rates as expected, and while the Fed's rate forecasts were well-received, Powell's guidance pushed back in the other direction. Economic data on Thursday morning made things worse making for a fairly sharp 2-day spike.

Things calmed down after that. Friday's rates were a hair lower and now today's rates are right in line with Friday's. In other words, the volatile reaction to last week's Fed announcement is over and the market is waiting for the next source of inspiration.

The most prevalent top tier 30yr fixed rate is now closest to 6.375% after briefly hitting 6.125% last week.

We'll hear from almost every other member of the Fed via various speeches this week. This could create volatility on a smaller scale, but it will be next week's jobs report that has the power to either push rates back toward recent lows or reinvigorate last week's unfriendly rebound.

09/05/2025

The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% Friday, according to Mortgage News Daily, following the release of a weaker-than-expected August employment report.

It marks the lowest rate since October 3 and the biggest one-day drop since August 2024. Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.

“This was a pretty straightforward reaction to a hotly anticipated jobs report,” said Mortgage News Daily Chief Operating Officer Matt Graham. “It’s a good reminder that the market gets to decide what matters in terms of economic data, and the bond market has a clear voting record that suggests the jobs report is always the biggest potential source of volatility for rates.”

Graham said in a post on X that many lenders are “priced better” than October 3 and would be quoting in the high 5% range.

The drop is a major change from May, when the rate on the 30-year fixed peaked at 7.08%. It’s big for buyers out shopping for a home today, especially given high home prices.

Take, for example, someone purchasing a $450,000 home, which is just above August’s national median price, using a 30-year fixed mortgage with a 20% down payment. Not including taxes or insurance, the monthly payment at 7% would be $2,395. At 6.29%, that payment would be $2,226, a difference of $169 per month.

And remember, our rates are just a bit better............'

Sam Cotton The Mortgage House 805 550-5000

07/17/2025

New Tax Bill benefits for homeowners

The recently passed tax and reconciliation bill (H.R. 1) could bring meaningful savings for homeowners and buyers. Here’s a quick look at how you might benefit:
+ Mortgage insurance deductions are back
Private mortgage insurance (PMI), FHA mortgage insurance, and USDA fees are now permanently deductible (with income limits). This deduction had expired in 2021 — but now it’s back for good.
+ Mortgage interest deductions made permanent
The mortgage interest deduction was scheduled to expire in 2025, but it is now permanent and available to homeowners who itemize deductions.
+ Bigger break on state and local taxes
The SALT (state and local tax) deduction cap is now $40,000 (up from $10,000), phasing out for incomes over $500K. This is good news if you live in a high property tax area.
+ Tax perks for real estate investors
If you own rental property or plan to invest in real estate, many of the tax benefits you rely on are now permanent.
+ More take-home pay for many workers
If you earn tips, work overtime, or receive Social Security, you may see a lower tax bill — which could free up more money for your home goals.
Let’s talk about how these changes could work for you. I’m here when you’re ready!
This information is for educational purposes only and is not intended as tax advice. We are not tax advisors or preparers. Consult a tax professional for more information.


Sam Cotton
Sr. Loan Officer | NMLS #263585

P: (805) 550-5000
[email protected]

www.themortgagehouse.com/SamCotton.html
The Mortgage House
1115 Toro Street Unit C | San Luis Obispo, CA 93401

Results | Integrity | Experience. Buying a home requires the right team by your side.

07/01/2025

Mortgage Rates Take Another Step Toward April Lows
By: Matthew Graham
Mon, Jun 30 2025, 3:28 PM
April 3rd and 4th saw the average top tier 30yr fixed mortgage rates well into the "mid 6's." Many lenders were able to quote 6.5% at the time. Just a few days ago, we noted there was still a ways to go before breaking below those early April levels, but the past few days have taken us within striking distance.

The average lender is now only 0.07% higher than they were on April 4th and that's a gap that can be traversed in as little as one day under the right circumstances. If it is destined to be traversed in the near feature, it would likely be due to exceptional weakness in the forthcoming economic data--especially Thursday's big jobs report.

Conversely, if this week's economic data surprises to the upside, it would likely coincide with rates bouncing here and headline back into the recent range. And lastly, if this week's data doesn't cast a decisive vote in either direction, next week's inflation reports could easily break the tie.


The most interesting aspect of today's movement was the movement itself. It didn't happen due to any interesting data or news headlines. Both stocks and bonds (which dictate rates) improved as traders moved portfolios into position for the end of the month/quarter. This can cause market movement independent of economic data/news.