Mortgage industry estimates suggest that over four million borrowers could save at least $200 per month by refinancing at current rates. Homeowners who obtained mortgages during the rate peak of late 2023 and early 2024 stand to benefit the most from a rate-and-term refinance.
The break-even period for refinancing depends heavily on closing costs, which typically range from two to five percent of the loan amount. Borrowers who plan to stay in their homes for at least three to four years are most likely to recoup these expenses through monthly savings.
Lenders are competing aggressively for refinance business, with some offering reduced origination fees and credits toward closing costs to attract borrowers.
