Mortgage Biz · August 27, 2026

Your home equity explained (simply)

Mortgage Market Update

My Mortgage Company

Mortgage Biz

Thursday, August 27, 2026

Your home equity explained (simply)

Hi there. This week I want to address a question I hear often from long-time homeowners: "What do I actually do with the equity I've built?"

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 Questions

What your home equity can actually do for you

If you've owned your home for a few years, you've likely built up equity—the difference between what your home is worth and what you owe on your mortgage. A lot of borrowers sit on that equity without realizing it's a financial tool. Depending on your situation, you might tap it for a major expense, consolidate higher-interest debt, or fund a home improvement. The key is understanding which option makes sense for your goals and your numbers. Not every homeowner should use their equity, and not every use case is the right fit. That's where an honest conversation comes in handy.

If you're curious whether your equity could work for you, I'd be happy to walk through your options—no pressure, just clarity.

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

Mortgage Biz

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