Matt & Eliesha Cavanaugh · August 27, 2026

Your mortgage payment is building equity

Mortgage Market Update

My Mortgage Company

Matt & Eliesha Cavanaugh

Thursday, August 27, 2026

Your mortgage payment is building equity

Hi there—this week we're talking about something that often flies under the radar for homeowners: the real wealth you're building with every payment you make.

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 Building

How your monthly payment builds real wealth

Every mortgage payment you make does two things: it covers the interest your lender charges, and it chips away at what you actually owe. That second part—paying down your loan balance—is equity, and it's yours to keep. Over time, as you pay down your mortgage, that equity grows, and so does your financial flexibility. You can tap into it later for home improvements, education, or other big expenses through a home equity line of credit or loan. The sooner you understand how your payments are split between interest and principal, the better you can see the long-term picture of homeownership. I'd be happy to walk you through how this works with your specific loan.

Reach out if you'd like to see a breakdown of how your payments build equity over time.

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

Matt & Eliesha Cavanaugh

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