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Mortgage Market Update
Mike Edwards
Mike Edwards
Tuesday, October 20, 2026
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Does paying extra principal actually help? |
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Hi there. I wanted to share something I hear about often—homeowners who want to pay down their loan faster but aren't quite sure how to do it right.
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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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Prepayment Strategy
What happens when you pay extra on your mortgage
One of the most powerful moves a homeowner can make is paying a little extra toward principal each month—but a lot of people aren't sure it's worth doing, or how it actually works. The truth is simple: extra principal payments reduce the amount you owe faster, which means less interest paid over the life of the loan and a shorter payoff timeline. Even small amounts add up. The catch is making sure your lender applies that money correctly, so it goes straight to principal and not just your next payment. Before you start, it's worth a quick conversation to confirm your loan allows it without penalty and to set up the right process. I'd love to walk you through whether this makes sense for your situation. Reach out if you'd like to explore how a prepayment strategy could work for your loan.
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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 Mike Edwards team any time and we'll walk you through your options. |
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