Wade Willers · September 2, 2026

Your loan term shapes everything

Mortgage Market Update

Wade Willers

Wade Willers

Wednesday, September 2, 2026

Your loan term shapes everything

Hi there. This week I want to walk you through one of the most important—and most overlooked—decisions in getting a mortgage.

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.


Smart Money

Why your loan term matters more than you think

When you're shopping for a mortgage, the interest rate gets all the attention. But the length of your loan—15 years, 30 years, or something in between—shapes your entire financial picture. A shorter term builds equity faster and costs less interest overall, but increases your monthly payment. A longer term spreads payments out, making them more manageable month to month. There's no universal "right" answer; it depends on your income stability, long-term plans, and what fits your budget without stress. The best choice is the one you can actually afford to pay on time, every time.

Let's talk about which term makes the most sense 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 Wade Willers team any time and we'll walk you through your options.

Your Mortgage Advisor

W

Wade Willers

Wade Willers

wade@barrettfinancial.com

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