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Mortgage Market Update
Abiel Sanchez
Abiel Sanchez
Wednesday, September 2, 2026
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Should you refinance? A straightforward answer. |
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Hi there. This week I want to cover a question I hear a lot: when does it actually make sense to refinance your mortgage?
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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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Refinancing Basics
When refinancing makes sense for your situation
Refinancing isn't right for everyone, but it's worth understanding when it might work in your favor. The main reasons people refinance are to lower their monthly payment, shorten their loan term, or switch from an adjustable rate to a fixed one. The catch is that refinancing involves closing costs and a new application process, so you want to make sure the benefit outweighs what you'll pay upfront. I always tell clients to think about how long they plan to stay in their home — if you're refinancing to save fifty bucks a month but the closing costs are three thousand, you need to do the math. If you're curious whether refinancing could work for you, I'm happy to walk through your specific numbers and show you what the real impact would be. Let's talk through whether refinancing might make sense for your loan.
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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 Abiel Sanchez team any time and we'll walk you through your options. |
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