Caitlin Garner · September 2, 2026

Your mortgage payment is building equity

Mortgage Market Update

Caitlin Garner

Caitlin Garner

Wednesday, September 2, 2026

Your mortgage payment is building equity

One of the smartest aspects of owning a home is often overlooked: every payment you make increases what you actually own. Here's how it works and 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.


Equity Building

How your monthly payment builds wealth

Every mortgage payment you make does two things: it covers interest and it chips away at your loan balance. That principal paydown is equity—real ownership you're building in your home. Early on, most of your payment goes toward interest, but as time passes, more and more goes straight into your pocket. Understanding this can help you see your mortgage as an investment in yourself, not just a monthly bill. If you're curious about where you stand with your equity right now, or whether a refinance could help you build it faster, I'd be happy to walk you through your options.

Let's talk about your equity position and what it means for your financial future.

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 Caitlin Garner team any time and we'll walk you through your options.

Your Mortgage Advisor

C

Caitlin Garner

Caitlin Garner

caitlin.garner@onerealmortgage.com

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