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Mortgage Market Update
Maureen Martin
Maureen Caroline Martin
Tuesday, October 20, 2026
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How a smaller down payment affects monthly payments |
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Hi there. This week I'm breaking down something borrowers ask about all the time: what really changes when you put down less than 20%.
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National Mortgage Rates · October 16, 2026
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Conventional 30-Year
7.28%
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Source: Optimal Blue daily mortgage indices via FRED
Rates shown are national mortgage index rates 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.
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Down Payment Options
What happens to your payment when you put less down
A smaller down payment doesn't just mean borrowing more—it changes how your monthly payment breaks down. When you put down less, you're financing a larger loan amount, which increases both your principal and interest over time. You may also see mortgage insurance added to your payment until you build enough equity. The trade-off is worth understanding: a lower down payment gets you into a home sooner and keeps cash in your pocket for other needs, but it does mean a higher monthly obligation. The right choice depends on your situation, your timeline, and what makes sense for your finances right now. Let's talk through what a down payment scenario might look like for you.
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Tip of the Week
Your loan officer can run a credit simulator to show exactly which actions will move your score the most.
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Tips for Homeowners
Year-End Tax & Mortgage Planning
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1.
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Consider making your January mortgage payment in December to get an extra month of deductible interest in the current tax year (consult your tax advisor first).
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2.
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If you plan to sell next year, now is a good time to document improvements — receipts and records add to your cost basis and reduce taxable capital gain at sale.
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3.
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Review your W-4 withholding if you bought a home this year — your mortgage interest deduction may mean you're having too much withheld from each paycheck.
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Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Maureen Martin team any time and we'll walk you through your options. |
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