How to know if you should refinance your mortgage — in one minute
2 Video Views·Jan 4, 2025
Mortgage rates have fallen, and refinancing could help you save on monthly mortgage payments. See if it’s right for you.
How to know if you should refinance your mortgage in one minute.
Wondering if you should refinance your mortgage? Mortgage rates have fallen since last year,
so refinancing to a lower interest rate could help you save on monthly payments.
Here's one rule of thumb. Consider refinancing if you can cut the mortgage rate by three-quarters
of a percentage point. To find out if or how much you could save, take these steps.
Step 1. Compare today's mortgage refinance rates with your current interest rate.
Step 2. Use our closing cost calculator to estimate the fees you'd pay to refinance.
Step 3. Calculate your potential savings using our refinance calculator. Be sure to consider
your break-even period as well. That's the time it takes for your monthly savings to exceed loan
fees. If you plan to stay in your house beyond that period, it might be worthwhile to refinance.
Now go see if refinancing is right for you. Like, share, and subscribe here. And visit nerdwallet.com