Craig Barton · September 2, 2026

When rates drop, what changes for you

Mortgage Market Update

My Mortgage Company

Craig Barton

Wednesday, September 2, 2026

When rates drop, what changes for you

Hi there—thanks for staying in touch. This week I want to clear up a common question I hear a lot.

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.


Smart Money

What happens to your payment when rates drop

When mortgage rates fall, homeowners often wonder: does my payment go down automatically? The answer depends on your loan type. If you have a fixed-rate mortgage, your payment stays the same—rate changes don't affect what you owe each month. But a falling-rate environment does create an opportunity: refinancing lets you lock in a lower rate and potentially lower your monthly payment. Even a small rate reduction can add up to real savings over time. If you're curious whether refinancing makes sense for your situation, I'd be happy to walk you through the numbers and see what options might be available to you.

Let's talk about whether a refinance could work for you.

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

Your Mortgage Advisor

M

My Mortgage Company

Craig Barton

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