Allen Reynolds · September 2, 2026

Understanding ARM adjustments

Mortgage Market Update

Allen Reynolds

Allen Reynolds

Wednesday, September 2, 2026

Understanding ARM adjustments

Hi there—I wanted to share something important this week about adjustable-rate mortgages and what homeowners should know before a rate adjustment happens.

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.


Smart Money

What to do when your rate adjusts

If you have an adjustable-rate mortgage or an ARM is coming up in your future, it helps to understand what happens when that initial fixed period ends. When your rate adjusts, your payment will likely change—sometimes significantly. The good news is you're not locked in forever. You'll have options: you can refinance to a new fixed rate, explore a different loan program, or make a plan to pay down principal faster. The key is not waiting until adjustment day to think about it. Starting that conversation now gives you time to understand your choices and move at your own pace, rather than feeling rushed.

If you have questions about how an ARM works or want to explore your options, I'm here to help.

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 Allen Reynolds team any time and we'll walk you through your options.

Your Mortgage Advisor

A

Allen Reynolds

Allen Reynolds

areynolds@power-lending.com

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