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Mortgage Market Update
Colt Lending Powered by Edge Home Finance
Colt Lending Powered by Edge Home Finance
Wednesday, September 2, 2026
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You probably don't need 20% down |
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The 20%-down rule keeps a lot of would-be buyers renting — and it's mostly a myth. Here's the real picture.
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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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First-Time Buyers
The Down Payment Myth That Keeps Buyers Renting
One of the biggest reasons people keep renting is the belief that you need 20% down to buy a home. You don't. Plenty of loan programs let qualified buyers get in with 3% to 5% down, and some — like VA and USDA loans — allow zero down for those who qualify. There are also down payment assistance programs that provide grants or low-cost second loans to help cover the upfront cost. The catch is that these programs vary by area and have limited funding, so it pays to know your options early. If you've been waiting to save a huge lump sum, you might already be closer to ready than you think. A short conversation can map out exactly what you'd need and which programs fit 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 Colt Lending Powered by Edge Home Finance team any time and we'll walk you through your options. |
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112 Queen Anne Dr, Leander, TX 78641
(682) 270-9245 | https://coltlending.com/
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