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Mortgage Market Update
Kristen Williams
Kristen Williams
Wednesday, September 2, 2026
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Your down payment—what's actually the right call? |
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Hi there. This week I want to talk about one of the biggest decisions homebuyers and refinancers face: how much cash to put down. It's more nuanced than most people realize.
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National Mortgage Rates · August 27, 2026
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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.
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Smart Money
Why your down payment size matters more than you think
When you're saving to buy or refinance, the amount you put down affects more than just your monthly payment. A larger down payment can mean better interest rates, lower insurance costs, and faster equity buildup. It also gives you more breathing room if life happens. That said, there's no one-size-fits-all answer—sometimes keeping cash in reserve is smarter than maxing out your down payment. The key is understanding the real tradeoffs for your specific situation. I'd love to walk through what makes sense for you and your goals. Let's talk about your down payment strategy and what it means for your finances.
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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.
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Tips for Homeowners
Understanding Mortgage Points
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1.
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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.
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2.
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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.
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3.
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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.
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Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Kristen Williams team any time and we'll walk you through your options. |
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