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Mortgage Market Update
Todd Libby
Todd Libby
Wednesday, September 2, 2026
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What's the right down payment for you? |
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Hello,
I want to share something that comes up in almost every conversation I have with new buyers and refinancing homeowners.
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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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Smart Money
Why your down payment size still matters
I talk with a lot of people who assume a bigger down payment is always better, but the truth is more nuanced. Yes, a larger down payment can lower your monthly payment and help you avoid mortgage insurance, but it also ties up cash you might need for emergencies, home repairs, or life. The right down payment for you depends on your savings, your comfort level, and what else matters to your financial picture. Some borrowers do better putting down 10 or 15 percent and keeping a healthy reserve. Others prefer to put down more and own their homes with less debt hanging over them. There's no universal "right" answer—only what's right for you. Let's talk through what makes sense for 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 Todd Libby team any time and we'll walk you through your options. |
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