Timothy Dial · September 2, 2026

Your down payment affects more than you realize

Mortgage Market Update

Timothy Dial

Timothy Dial

Wednesday, September 2, 2026

Your down payment affects more than you realize

Down payment questions come up all the time, and for good reason—it's one of the biggest pieces of the puzzle. Here's why it matters.

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

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 matters more than you think

Your down payment does more than just reduce what you borrow—it shapes your entire loan. A larger down payment can mean a lower interest rate, smaller monthly payments, and no mortgage insurance. It also builds equity faster and gives you more breathing room if your home's value shifts. Even if you're not buying right now, understanding how down payment works helps you plan smarter. Whether you're saving toward a first home or considering a move, I'd love to walk you through what makes sense for your situation.

Let's talk about your down payment strategy and what's realistic for your timeline.

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 Timothy Dial team any time and we'll walk you through your options.

Your Mortgage Advisor

T

Timothy Dial

Timothy Dial

tdial@nexamortgage.com

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