Shannon Palmer · September 2, 2026

Picking the right mortgage type for you

Mortgage Market Update

Shannon Palmer

Shannon Palmer

Wednesday, September 2, 2026

Picking the right mortgage type for you

Hi there. This week I want to cover something that often gets overlooked when people are shopping for a mortgage—but it shouldn't be.

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

VA 30-Year

6.38%

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.


Mortgage Basics

Why your loan type matters more than you think

When you're shopping for a mortgage, it's easy to focus only on the interest rate. But the type of loan you choose—fixed-rate, adjustable-rate, FHA, conventional, or VA—shapes your entire borrowing experience. Each has different rules about what you pay upfront, how your payments work over time, and what flexibility you have later. A fixed-rate mortgage gives you payment stability. An adjustable-rate loan might start lower but can change. Government-backed programs like FHA loans help borrowers with smaller down payments qualify. Understanding which loan type fits your situation, timeline, and comfort level is just as important as chasing the lowest rate. I'd be happy to walk you through the pros and cons of each program and help you find the right fit.

Let's talk about which loan program makes sense for your goals.

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 Shannon Palmer team any time and we'll walk you through your options.

Your Mortgage Advisor

S

Shannon Palmer

Shannon Palmer

shannon@evolvecl.com

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