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Mortgage Market Update
Derek Niday
The Niday Lending Team
Wednesday, September 2, 2026
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How extra mortgage payments can work for you |
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Hi there. This week I want to share a strategy that can be a real game-changer for homeowners who have some financial breathing room.
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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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Prepayment Strategy
Small extra payments can shorten your loan by years
One of the most powerful tools you have as a homeowner is the ability to pay down your mortgage faster than your loan requires. Even modest extra payments toward principal—whether monthly or when you have a bonus or tax refund—can significantly reduce the time you carry the loan and cut the total interest you'll pay over its life. The earlier you start, the bigger the impact, because extra principal payments go straight to reducing what you owe, not just covering interest. This isn't right for everyone, and it's worth talking through with someone who knows your full financial picture. But if you have the cash flow and want to own your home free and clear sooner, this strategy deserves a closer look. Let's discuss whether accelerated payoff makes sense for your situation.
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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 Derek Niday team any time and we'll walk you through your options. |
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