In 2025, 87% of all mortgage borrowers paid above the most competitive rate available to them, and 78.7% of refinance borrowers overpaid, typically costing them $3,343 a year, or $278 a month, according to Bankrate's Hidden Homeownership Tax research.
Refinancing isn't free. Expect closing costs of 2% to 5% of your new loan amount, and the savings only outweigh that cost once you cross your break-even point.
While a lower interest rate sounds tempting, keep an eye on fees – they can overwhelm your savings from lower monthly payments.
Despite the rise in interest rates in the last few years, refinancing may still make sense for some homeowners. If you're a first-time refinancer, though, you might have a lot of questions about what the process is like — and might also have picked up some misinformation. Let's dispel some common myths about mortgage refinancing.
Myth
#savings
Refinancing isn't free. Expect closing costs of 2% to 5% of your new loan amount, and the savings only outweigh that cost once you cross your break-even point.
While a lower interest rate sounds tempting, keep an eye on fees – they can overwhelm your savings from lower monthly payments.
Despite the rise in interest rates in the last few years, refinancing may still make sense for some homeowners. If you're a first-time refinancer, though, you might have a lot of questions about what the process is like — and might also have picked up some misinformation. Let's dispel some common myths about mortgage refinancing.
Myth
#savings
10 days ago
