Is a mortgage refinance half a percentage point lower worth it? Experts weigh in

Sometimes even small changes to your mortgage rate are worth it, experts say.


While mortgage rates plummeted during the pandemic to below 3%, some homeowners were unable to lock in low rates at that time. But with many expecting that the Federal Reserve will start cutting the federal funds rate this year, that could trickle down into homeowners starting to get relief. Still, most expect the Fed interest rate cuts to be modest, and it's unclear if and when that will actually happen.

Meanwhile, mortgage rates have bounced around a bit in recent months, such as by climbing above 7% in April and May, with the average 30-year fixed-rate mortgage rate now back down to 6.86%, according to Freddie Mac . Amidst these changes and expectations around rate cuts, some homeowners may be wondering whether a small drop in mortgage rates would still make refinancing worthwhile.

Specifically, would a mortgage refinance to obtain a half-percentage-point lower rate be worth it? Find out the top mortgage refinancing rates and get started today . Is a mortgage refinance half a percentage point lower worth it? Experts weigh in Here's what real estate experts have to say about whether refinancing your mortgage to a rate that's half a percentage point lower makes sense. In some cases, it makes sense to refinance a mortgage for half a percentage point from a financial standpoint.

However, you have to do the math to see if you'll stay in the property long enough to overcome the upfront costs. "On a $200,000 loan, the difference in monthly payments between a 7% interest rate and .