Jeffrey Thomas Kenney · August 27, 2026

Your mortgage payment is doing more than you think

Mortgage Market Update

My Mortgage Company

Jeffrey Thomas Kenney

Thursday, August 27, 2026

Your mortgage payment is doing more than you think

I work with clients who sometimes feel their early mortgage payments aren't accomplishing much. I want to shed light on what's actually happening under the hood.

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

What your mortgage principal really does

Every payment you make builds equity—that's the difference between what your home is worth and what you owe. Early on, most of your payment goes to interest, which can feel frustrating. But over time, more of each payment chips away at principal, and your ownership stake grows. This matters because equity becomes a tool: you can borrow against it for improvements, a new car, or emergencies. It also gives you flexibility if your situation changes. Understanding how your equity builds helps you see your mortgage not just as a debt, but as forced savings that works quietly in your favor.

I'm happy to walk you through how your specific loan builds 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.

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My Mortgage Company

Jeffrey Thomas Kenney

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