Nick Germano · August 27, 2026

How much equity are you building?

Mortgage Market Update

My Mortgage Company

Nick Germano

Thursday, August 27, 2026

How much equity are you building?

Hi there. This week I want to touch on something that sneaks up on homeowners: the equity in their home, and why understanding it matters.

National Mortgage Rates · August 20, 2026

30-Year Fixed

6.65%

FHA 30-Year

6.53%

VA 30-Year

6.32%

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 Basics

Your home's equity is real money—here's why it matters

Every mortgage payment you make builds equity in your home. That's the difference between what your home is worth and what you still owe on the loan. Over time, as you pay down your balance and your home appreciates, that number grows. And here's the practical part: equity can become a tool. Some homeowners tap into it through a refinance or a home equity line of credit when they need cash for big expenses, home improvements, or consolidating debt. The stronger your equity position, the more options you have down the road. If you're not sure how much equity you've built, or whether it might make sense to use it, I'm happy to walk you through the numbers.

Let's talk about what your equity could mean for your financial goals.

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

Nick Germano

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