Zompetti Team · September 2, 2026

What your down payment actually does

Mortgage Market Update

Dante Zompetti

Zompetti Team

Wednesday, September 2, 2026

What your down payment actually does

Hi there. This week I want to talk about something that often gets overlooked in the home-buying conversation, but shouldn't.

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

VA 30-Year

6.38%

Rate trend

Source: Freddie Mac PMMS & Optimal Blue via FRED

Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.


Mortgage Basics

Why your down payment size still matters

The amount you put down when you buy isn't just about the initial approval—it shapes your entire loan. A larger down payment lowers the amount you borrow, which means smaller monthly payments and less interest paid over time. It can also affect your loan terms and whether you'll need mortgage insurance. Even if you're not buying right now, understanding how down payment works helps you plan ahead. If you're thinking about a home purchase or refinance, knowing your options around this piece of the puzzle makes a real difference.

I'd be happy to walk you through how down payment options could work for your situation.

Tip of the Week

Your mortgage interest may be tax-deductible if you itemize. Check with your tax professional to see if it benefits you.

Tips for Homeowners

Understanding Mortgage Points

1.

One mortgage point equals 1% of your loan amount. Paying points ("buying down the rate") reduces your interest rate — typically 0.25% per point, though this varies by lender and market.

2.

Calculate your break-even: divide the cost of the points by your monthly savings. If it takes 4 years to break even and you plan to stay 10 years, buying points makes sense.

3.

Points paid on a home purchase are generally tax-deductible in the year paid (if you itemize). Points on a refinance must be deducted over the life of the loan.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Dante Zompetti team any time and we'll walk you through your options.

Your Mortgage Advisor

D

Dante Zompetti

Zompetti Team

Dante@A-ZLending.com

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