Tyson Mortensen remembers the beautiful chaos of moving with his 3.5-month-old son in tow. The boxes piled high, the sleepless nights, the overwhelming exhaustion — it wasn’t easy, but he knew the memories they’d create in their new townhome would make it all worth it. Tyson and his wife had long dreamt about this moment. After two years of renting a basement apartment, they finally had a home to call their own, made possible in September 2024 through Bank of Utah’s participation in the Federal Home Loan Bank of Des Moines (FHLB Des Moines) Mortgage Rate Relief program.

Overcoming Challenges

Mortgage interest rates climbed significantly across the nation in the summer of 2024, reaching levels much higher than just three years ago. As the Federal Reserve raised interest rates to combat inflation — 11 times between March 2022 and July 2023 — the cost of borrowing for homebuyers increased substantially. Coupled with Utah's already elevated home prices, which soared rapidly during the pandemic housing boom, homeownership became a formidable challenge for many families.

In response, FHLB Des Moines launched its Mortgage Rate Relief program in 2024, aiming to make homeownership more attainable for families like the Mortensens. As part of a nationwide network, FHLB Des Moines provides crucial funding to financial institutions, enabling them to support affordable housing and community development. Through this initiative, eligible borrowers — those who meet certain income criteria based on regional guidelines — were able to benefit from a permanent reduction of 2 percentage points on their mortgage rates.

Supporting Families

As a high school math teacher in Logan, Tyson had been carefully balancing the demands of his career and his growing family. Although he and his wife had been casually looking for homes, they never felt comfortable enough to put in an offer. “Every time we’d get more serious about buying, we’d worry about stretching ourselves too thin financially and talk ourselves out of it,” Tyson explained.

That all changed when their landlord, a real estate agent, attended a meeting where she heard about the mortgage rate relief program. Recognizing the opportunity, she pointed them to Bank of Utah’s Home Loans Office in the Logan City Center, where they met Mortgage Loan Officer John Neil. With his help, the couple successfully applied for the Mortgage Rate Relief program. Based on the program's qualifications and approval, Bank of Utah was able to offer them a reduced interest rate of 4.75 percent, approximately 2 percent below the market rate at the time, making their dream of homeownership a reality.

“John was incredible — he felt like a friend right from the start,” Tyson said. “He was knowledgeable, friendly and always available to answer our questions.”

Through the Mortgage Rate Relief Program, Bank of Utah was able to fund 34 loans, totaling $10 million, to help first-time homebuyers like the Mortensens, as well as those looking to refinance their existing mortgages.

Another notable success was a single mother who was struggling to afford her monthly mortgage payments. Bank of Utah helped her refinance her existing high-rate mortgage and significantly reduce her monthly payments, allowing her to stay in her home.

Building Communities

“At Bank of Utah, we’re committed to supporting our community and helping families achieve their dreams of homeownership,” said John Serfustini, Vice President and Secondary Marketing Manager of the Mortgage Department at Bank of Utah. “Through the Mortgage Rate Relief program, we’ve been able to make homeownership a reality for a number of Utahns and their families. It’s stories like Tyson’s that remind us why this work is so meaningful — it’s not just about houses; it’s about creating a home for families and future generations.”

Bank of Utah, a longstanding member of the Utah community since 1952, actively engages in initiatives with the Federal Home Loan Bank of Des Moines (FHLB Des Moines). This organization supports local banks and credit unions by providing funding and resources for affordable housing and economic development. Bank of Utah is involved with the FHLB Des Moines Mortgage Rate Relief program and participated in the Member Impact Fund initiative, providing grants to nonprofits in 2023. This commitment underscores both Bank of Utah and FHLB Des Moines’ dedication to supporting community needs.