TJ Gray · September 2, 2026

Down payments: smaller than you think

Mortgage Market Update

TJ Gray

TJ Gray

Wednesday, September 2, 2026

Down payments: smaller than you think

Hi there. This week I want to clear up something I hear wrong a lot when people are thinking about buying their first home.

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.


First-Time Buyer

What nobody tells you about down payments

One of the biggest myths I hear is that you need twenty percent down to buy a home. The truth is, plenty of borrowers buy with much less — and they do it responsibly. The real story isn't about hitting a magic number; it's about understanding what down payment size means for your loan, your monthly payment, and your financial picture. A smaller down payment might mean mortgage insurance or different loan terms, but those are tools, not roadblocks. What matters most is that you're borrowing what you can actually afford and choosing terms that fit your life. If you're thinking about buying and unsure where to start, I'd love to walk through your options with no pressure.

Let's talk about what a realistic down payment looks like 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 TJ Gray team any time and we'll walk you through your options.

Your Mortgage Advisor

T

TJ Gray

TJ Gray

TJ@DestinationMTG.com

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