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Wednesday, September 2, 2026 |
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Mortgage Market Update
What does 'locking your rate' actually mean?
Hi there. This week I want to walk through a question I hear a lot from borrowers getting ready to close.
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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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Mortgage Basics
What actually happens when you lock your rate
A lot of borrowers ask me what 'locking' their interest rate really means—and why it matters. When you lock a rate, you're protecting yourself from changes in the market between now and closing. If rates jump up, your locked rate stays put. If rates fall, you typically have options depending on your loan agreement. It's one of the few things you control in a transaction that can feel pretty uncertain. Understanding your lock period and what it covers takes some mystery out of the process and helps you make moves with confidence. If you're curious about how a rate lock would work for your situation, let's talk.
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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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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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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 Jon Puente team any time and we'll walk you through your options.
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5860 Baker Road, Minnetonka, MN, 55345
269-599-3395
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