Making Homeownership More Attainable: How Bank of Utah Helped a Logan Mom Save $255 a Month

For many Utah families, buying a home has become increasingly difficult as higher home prices and mortgage rates strain monthly budgets. At Bank of Utah, we believe homeownership should remain within reach, and we're always looking for ways to help make that possible.

For Katie, a single mom in Logan, that opportunity came at just the right time.

Katie was already under contract on a home and working with another lender when Bank of Utah loan officer John Neil reached out. Neil had previously connected with Katie about her interest in buying a home. He called when additional funding became available through the Federal Home Loan Bank of Des Moines' (FHLB Des Moines) Mortgage Rate Relief Program.

The program offers eligible borrowers who meet regional income requirements a 1.5-percentage-point reduction on their mortgage rate. Unlike other programs and forms of financial assistance, FHLB provides the funds to permanently lower the interest rate for qualifying buyers, and buyers never have to repay it.

For Katie, the potential savings were significant enough to take a closer look, even though she was already well into the homebuying process.

A Timely Opportunity

The transition happened quickly and collaboratively. Katie's existing loan officer was gracious and cooperative throughout the process and even provided the appraisal to Neil, helping Bank of Utah move the loan forward without delaying Katie's closing.

At a 6.5% interest rate, Katie's payment would have been $2,200 per month. With the Mortgage Rate Relief Program, her rate dropped to 5.125%, bringing her payment down to about $1,950 and saving about $255 per month.

"What makes this program unique is that borrowers don't have to pay back the cost of buying down the interest rate. That makes it a really great option, especially for first-time homebuyers. For a family navigating today's housing market, $255 a month can make a meaningful difference."

Addressing Today's Affordability Challenges

Affordability is one of the biggest challenges facing homebuyers today. Higher interest rates and elevated home prices make it harder for prospective buyers to find a monthly payment that works within their budgets.

"In Utah, the affordability factor is quite poor right now relative to other times in my career," Neil said. "There have been other times when house prices have been high, but interest rates have been lower. Right now, prices are higher, and interest rates are higher, too. It's just really hard right now, affordability-wise."

FHLB Des Moines developed the Mortgage Rate Relief Program in 2024 to help address these challenges. Through the program, participating financial institutions can provide eligible borrowers with a reduced mortgage interest rate, helping make homeownership more attainable. Bank of Utah participates in the program as part of its broader commitment to supporting Utah individuals, families and communities.

When additional funding became available in the third quarter, Bank of Utah had another opportunity to help eligible homebuyers who may not have received assistance during the program's initial funding round.

Helping Customers When It Matters

Neil encourages prospective homebuyers to focus less on trying to predict where interest rates will go and more on finding the right home and a payment they can comfortably afford.

"I don't advise homebuyers to try to time the interest rates in the market," Neil said. "If the right home comes up, it feels right, it's right for their family, and they're still comfortable with the payment, my advice is to jump on it."

At the same time, programs like Mortgage Rate Relief can create opportunities for buyers who might otherwise struggle to make the numbers work. "If waiting for FHLB funds makes it possible to get into a house, then it can make sense for some buyers to wait," Neil said.

Through its partnership with FHLB Des Moines, Bank of Utah has funded 25 loans totaling $8 million through the Mortgage Rate Relief Program, helping homebuyers and homeowners refinancing existing mortgages.

Katie's story is one example of how this program can make a difference. One phone call from a Bank of Utah loan officer led to a lower mortgage rate, putting $255 back in her family's budget every month. For Bank of Utah, those are the moments that make our work meaningful-finding opportunities to help team members and clients move forward and making homeownership a little more attainable.