American Mortgage · September 2, 2026

Should you refinance? Here's what to consider

Mortgage Market Update

My Mortgage Company

American Mortgage

Wednesday, September 2, 2026

Should you refinance? Here's what to consider

Good morning. This week I want to tackle a question I hear a lot: when is refinancing actually a smart move?

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.


Refinancing Basics

When refinancing makes sense (and when it doesn't)

Refinancing isn't always the right move—even when rates drop or your financial situation improves. The real question is whether the benefits you'll gain over time outweigh the costs of refinancing itself. A lower rate sounds great, but you'll want to understand how long it takes to break even, what your new payment would be, and whether you're staying in your home long enough to benefit.

Sometimes refinancing to tap home equity for a major expense makes sense. Other times, staying put and building equity is the smarter path. The answer depends on your timeline, your goals, and your numbers. I'd love to walk through your specific situation and help you figure out whether refinancing is worth it for you right now.

Let's talk through whether refinancing could work in your favor.

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 My Mortgage Company team any time and we'll walk you through your options.

Your Mortgage Advisor

M

My Mortgage Company

American Mortgage

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