How 5 Million Homeowners Can Save on Their Mortgages This Week

How 5 Million Homeowners Can Save on Their Mortgages This Week
Photo by Sean Locke Photography /

Mortgage interest rates are falling again, and that is good news for nearly 5 million homeowners who might be able to lower their monthly payment.

The average rate on a 30-year fixed-rate mortgage has tumbled to 4.06 percent — the lowest it’s been in more than a year. That means more than 4.9 million Americans could likely qualify for a refinance and lower their rate by at least 0.75 percent, according to Black Knight, a financial data and analytics company.

A CNBC report outlines the type of savings that are available to borrowers who refinance:

“On a $300,000 mortgage a refinance from 4.81 percent to 4.06 percent would save the homeowner about $133 per month. On a $600,000 loan, it would be twice that savings, or $267 per month.”

But it’s important to act fast. In the past week, the size of the population that can benefit from a mortgage refinance has increased by 50 percent, Black Knight says. But mortgage rates can change quickly. While they may continue to drift lower, they just as easily could zoom higher.

Getting the best refinance rate

Before seizing this opportunity to lower your mortgage costs, think through your own situation. As we note in “How to Refinance Your Home Loan,” a refinance to a lower rate does not always make financial sense:

“Refinancing to a lower rate lowers a monthly mortgage payment. But it only makes sense if the month-to-month savings exceed the cost of refinancing. In short, don’t do it unless you’ll stay in the home until you’ve saved more from the lower rate than you paid in refinancing fees.”

In other cases, you might want to refinance, but find yourself running into roadblocks. Even if you have good credit, lenders sometimes will give you the cold shoulder. To find out why, check out “Ask Stacy: Why Can’t I Refinance My Home?

Finally, if you are ready to explore a new mortgage, stop by our Solutions Center and search for the best mortgage rate.

Have you ever refinanced your mortgage? Share what you learned in the process in comments below or on our Facebook page.

Find cheaper car insurance in just minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
7 Effortless Ways to Make Extra Money
7 Effortless Ways to Make Extra Money

In the digital age, new ways of earning cash crop up all the time — and some require next to no effort on your part.

22 Purchases You Should Never Skimp On
22 Purchases You Should Never Skimp On

With some items, it makes sense to pay a little more rather than hopping on the lowest price.

10 Common Ways Seniors Get Scammed
10 Common Ways Seniors Get Scammed

Here’s what to watch for to make sure you don’t fall prey to some of the biggest rip-offs targeting seniors.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started


Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.