Todd Libby · August 1, 2026

How much equity have you actually built?

Mortgage Market Update

Todd Libby

Todd Libby

Saturday, August 1, 2026

How much equity have you actually built?

I work with a lot of homeowners who are curious about their equity but aren't sure how to measure it. This week, let's talk about what's really happening with your monthly payment.

National Mortgage Rates · July 30, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.43%

VA 30-Year

6.25%

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 much of your mortgage payment actually goes to equity?

When you make a mortgage payment, you're splitting it between interest (going to the lender) and principal (building your equity). Early in your loan, most of that payment covers interest—which is why the first few years feel slow. But as time goes on, the balance shifts. More and more of each payment chips away at what you owe and builds ownership in your home. Understanding this helps explain why staying in a home longer pays off, and why refinancing at the right time can reset this math in your favor. If you've been in your home a few years, you might be surprised at the equity you've already built.

Let me walk you through where your payments are going and whether a refinance makes sense for you.

Tip of the Week

Landscaping maintenance protects your home's value — overgrown yards are the number one curb appeal issue buyers notice.

Tips for Homeowners

HOA Fees and How They Affect Your Mortgage

1.

HOA dues are included in your debt-to-income ratio calculation when you apply for a mortgage. High HOA fees reduce how much home you can qualify for.

2.

Before buying in an HOA, review the financials: reserve fund balance, any pending special assessments, and recent meeting minutes. A depleted reserve fund can mean a large unexpected charge.

3.

HOA dues are generally not tax-deductible for a primary residence. If the home is a rental property, dues may be deductible as a business expense.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Todd Libby team any time and we'll walk you through your options.

Your Mortgage Advisor

T

Todd Libby

Todd Libby

todd@3keyslending.com

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