Karen Cely Chavez · September 2, 2026

Picking the right loan type matters more than you think

Mortgage Market Update

Karen Cely Chavez

Karen Cely Chavez

Wednesday, September 2, 2026

Picking the right loan type matters more than you think

Hi there. This week I want to walk you through something that doesn't always get the attention it deserves: the loan program itself, and how it affects your financial picture.

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.


Loan Programs

What your loan type actually costs you

Not all mortgages are built the same. The program you choose—whether it's a fixed rate, an ARM, an FHA loan, or something else—shapes your monthly payment, your long-term costs, and how much flexibility you have down the road. I've seen borrowers pick a loan type based on a single factor (like the lowest starting rate) and miss out on programs that would've served them better over five, ten, or thirty years. The right choice depends on your timeline, risk tolerance, and financial goals. If you've never walked through the trade-offs side by side, it's worth a conversation. I can show you how different programs compare for your situation.

Let's talk through which loan type makes the most sense 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 Karen Cely Chavez team any time and we'll walk you through your options.

Your Mortgage Advisor

K

Karen Cely Chavez

Karen Cely Chavez

karen@strategicmortgageadvisors.com

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