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Mortgage Market Update
Matthew Ridley
Matthew Ridley
Wednesday, September 2, 2026
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The power of paying a little extra |
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Hi there. This week I want to revisit something I see make a real difference for homeowners who take it seriously: the impact of extra principal payments on your equity and long-term costs.
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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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Building Equity
Why your extra payment matters more than you think
Every dollar you put toward principal—whether through your regular payment or an extra lump sum—builds real ownership in your home. Over time, those small moves compound into significant equity. I've seen borrowers who decided to round up their payments or apply bonuses to their mortgage end up years ahead, with thousands more in home equity and lower interest costs over the life of the loan. It's not dramatic or flashy, but it's one of the most reliable wealth-building tools available to homeowners. If you're curious about what your current equity position looks like, or whether a prepayment strategy makes sense for your situation, I'd love to walk through the numbers with you. Reach out if you'd like to talk through how small adjustments to your payment could reshape your timeline.
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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 Matthew Ridley team any time and we'll walk you through your options. |
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Your Mortgage Advisor
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Matthew Ridley
Matthew Ridley
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