Option Mortgage · September 2, 2026

What rate changes mean for your budget

Mortgage Market Update

Option Mortgage

Option Mortgage

Wednesday, September 2, 2026

What rate changes mean for your budget

Interest rates and your monthly payment are linked in ways that catch a lot of borrowers off guard. Here's what you need to know.

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

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.


Home Affordability

When rates rise, your buying power changes

I talk to a lot of people who are surprised to learn that the same monthly budget doesn't stretch as far when rates move up. That's because a bigger chunk of each payment goes toward interest rather than building equity in your home. The good news: understanding this relationship helps you make smarter decisions about timing, down payment size, and which homes are realistic for your situation. Whether you're shopping now or thinking ahead, it's worth running the numbers with me so you know exactly what you can afford—not just what a calculator says, but what actually works for your life.

Let's talk through your specific situation and find out where you stand.

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

Your Mortgage Advisor

O

Option Mortgage

Option Mortgage

jarrod@optionmortgage.org

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