Your Lower Mortgage Rate Is Worth Keeping
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A fixed rate under 6.75% still beats our network’s best 30-year refinance rate on October 3. In FreeRateUpdate’s lender network, the best advertised 30-year fixed refinance rate was 6% on September 1, and on October 3 it was three quarters of a point higher.
It was 6.25% on September 15 and 6.625% on September 28. On October 3 that best rate came with 1.513 points, and it’s an advertised interest rate, not an APR or a quote.
| Date | Rate | Points |
|---|---|---|
| September 1 | 6% | 1.806 |
| September 15 | 6.25% | 1.952 |
| September 21 | 6.375% | 1.639 |
| September 28 | 6.625% | 1.573 |
| October 3 | 6.75% | 1.513 |
What keeping a lower rate is worth
Take a $300,000 balance with 30 years to run at 6.25%, and the same balance refinanced at the October 3 best of 6.75%, both paid on schedule with no extra payments. The principal and interest payment at 6.25% is about $1,847 a month against $1,946, about $99 less.
The scheduled interest the 6.25% loan saves, not counting points or the closing costs a refinance carries, comes to about $35,500. And in this example the 6.25% loan also carries no new points.
