How to Money · Monday, August 10, 2026
Mike and his wife moved to a larger home and now have a mortgage at 6.5%, up from 3.9%. He's exploring refinancing options and found a potential rate of 5.75%, which would save them about $100 per month. A drop to 5% would save $200 monthly, and he's asking the hosts for advice on how much of a rate drop to target before refinancing.
“Also, when we moved. We went from a three point nine percent mortgage rate to a six and a half percent, so that's stung a little bit too. Recently, I've casually looked into refinancing, and the best I could see was about a five point seventy five percent. In rough calculations, that three quarter of a percent drop nets us about one hundred dollars.”
“In savings a month. If we got it down to A one and a half percent drop, getting to an even five percent, we would save around two hundred dollars a month. So, in your guys' experienced minds, how much of an interest rate drop should we target before we pull that REFI trigger.”