Life Kit: Money How to refinance your mortgage
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Oct 8, 2024 
Laurel Walmsley, an NPR personal finance correspondent, dives into the world of mortgage refinancing. With recent drops in mortgage rates, she discusses how many homeowners could save hundreds monthly. Listeners learn the essentials of evaluating refinancing options, including potential costs and savings. Walmsley emphasizes the importance of comparing lender quotes and using online tools. She also highlights strategies to maximize benefits, especially for low to moderate income homeowners, making refinancing a smart financial move.
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What Refinancing Actually Is
- Refinancing means paying off your current mortgage with a new loan at a lower rate.
- A new lender pays your old loan and you cover closing costs for the new loan.
Run The Break-Even Math First
- Calculate the break-even point by comparing refinance costs to monthly savings using online calculators.
- Only refinance if your savings exceed the closing costs within the time you plan to keep the home.
Use Online Calculators To Estimate Savings
- Start with a Google search and use online refinance calculators that use your zip code and loan balance.
- Those calculators will estimate your new monthly payment and potential savings.