Michael Perlman · September 2, 2026

Should you borrow against your home equity?

Mortgage Market Update

My Mortgage Company

Michael Perlman

Wednesday, September 2, 2026

Should you borrow against your home equity?

Hi there. This week I want to talk about a tool many homeowners have but don't always think about—and when it's actually worth using.

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.


Equity Strategy

When it makes sense to tap your home's equity

As you pay down your mortgage, you're building equity—that difference between what your home is worth and what you owe. Many homeowners don't realize they can access that equity if they need it, whether for a major repair, education costs, or consolidating debt. There are a few paths: a home equity line of credit, a home equity loan, or a cash-out refinance. Each has different terms and trade-offs, so it's worth understanding which might fit your situation. The key is borrowing thoughtfully, only when you have a clear reason and a plan to repay.

If you're curious whether tapping your equity makes sense for you, I'd be happy to walk through your options.

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

Michael Perlman

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