How Much Can You Save By Refinancing?
Mortgage rates are sitting at record lows and US homeowners are taking advantage by refinancing their mortgages. For those who haven’t refinanced, Zillow is offering a look at how much they could save on the typical house in markets across the country.
“Choosing whether to refinance your mortgage is ultimately a personal choice, but recent moves in mortgage rates have probably made that decision a whole lot easier for those who qualify,” Zillow economist Matthew Speakman said. “Mortgage rate declines have allowed many to lower their monthly mortgage payment or tap into the equity they’ve built in their home by refinancing their loan – offering some financial stability to many in a time of great economic uncertainty. With rates poised to stay relatively low for the immediate future, for many – including those paying mortgage insurance – a refi could remain a worthwhile endeavor.”
Zillow notes that the monthly mortgage payment on the typical U.S. home, worth $256,663 in August, would be $951 before taxes or insurance with a 3.75 percent mortgage rate and $868 with a 3.02 percent rate – or about $1,000 a year in savings. Over the life of a 30-year mortgage on that same home, that works out to $29,880.
Here is a look at the differences for a typical home in different markets, according to Zillow:
| Metro Area | Typical Home Value in August | Monthly Payment with a 3.75% Rate* | Monthly Payment with a 3.02% Rate | Annual Payment with a 3.75% Rate | Annual Payment with a 3.02% Rate |
| United States | $256,663 | $951 | $868 | $11,412 | $10,416 |
| New York, NY | $493,579 | $1,829 | $1,669 | $21,948 | $20,028 |
| Los Angeles-Long Beach-Anaheim, CA | $706,714 | $2,618 | $2,390 | $31,416 | $28,680 |
| Chicago, IL | $246,357 | $913 | $833 | $10,956 | $9,996 |
| Dallas-Fort Worth, TX | $261,739 | $970 | $885 | $11,640 | $10,620 |
| Philadelphia, PA | $262,437 | $972 | $887 | $11,664 | $10,644 |
| Houston, TX | $222,936 | $826 | $754 | $9,912 | $9,048 |
| Washington, DC | $452,030 | $1,675 | $1,529 | $20,100 | $18,348 |
| Miami-Fort Lauderdale, FL | $310,471 | $1,150 | $1,050 | $13,800 | $12,600 |
| Atlanta, GA | $251,454 | $932 | $850 | $11,184 | $10,200 |
| Boston, MA | $514,321 | $1,906 | $1,739 | $22,872 | $20,868 |
| San Francisco, CA | $1,127,066 | $4,176 | $3,811 | $50,112 | $45,732 |
| Detroit, MI | $188,420 | $698 | $637 | $8,376 | $7,644 |
| Riverside, CA | $400,664 | $1,484 | $1,355 | $17,808 | $16,260 |
| Phoenix, AZ | $312,317 | $1,157 | $1,056 | $13,884 | $12,672 |
| Seattle, WA | $559,226 | $2,072 | $1,891 | $24,864 | $22,692 |
| Minneapolis-St Paul, MN | $305,202 | $1,131 | $1,032 | $13,572 | $12,384 |
| San Diego, CA | $643,903 | $2,386 | $2,177 | $28,632 | $26,124 |
| St. Louis, MO | $187,795 | $696 | $635 | $8,352 | $7,620 |
| Tampa, FL | $242,924 | $900 | $821 | $10,800 | $9,852 |
| Baltimore, MD | $302,464 | $1,121 | $1,023 | $13,452 | $12,276 |
| Denver, CO | $458,600 | $1,699 | $1,551 | $20,388 | $18,612 |
| Pittsburgh, PA | $167,172 | $619 | $565 | $7,428 | $6,780 |
| Portland, OR | $429,608 | $1,592 | $1,453 | $19,104 | $17,436 |
| Charlotte, NC | $249,960 | $926 | $845 | $11,112 | $10,140 |
| Sacramento, CA | $444,733 | $1,648 | $1,504 | $19,776 | $18,048 |
| San Antonio, TX | $211,964 | $785 | $717 | $9,420 | $8,604 |
| Orlando, FL | $266,005 | $986 | $899 | $11,832 | $10,788 |
| Cincinnati, OH | $197,135 | $730 | $667 | $8,760 | $8,004 |
| Cleveland, OH | $168,298 | $624 | $569 | $7,488 | $6,828 |
| Kansas City, MO | $214,639 | $795 | $726 | $9,540 | $8,712 |
| Las Vegas, NV | $302,071 | $1,119 | $1,021 | $13,428 | $12,252 |
| Columbus, OH | $222,467 | $824 | $752 | $9,888 | $9,024 |
| Indianapolis, IN | $192,677 | $714 | $652 | $8,568 | $7,824 |
| San Jose, CA | $1,224,366 | $4,536 | $4,140 | $54,432 | $49,680 |
| Austin, TX | $357,346 | $1,324 | $1,208 | $15,888 | $14,496 |
| Virginia Beach, VA | $252,041 | $934 | $852 | $11,208 | $10,224 |
| Nashville, TN | $289,792 | $1,074 | $980 | $12,888 | $11,760 |
| Providence, RI | $333,191 | $1,234 | $1,127 | $14,808 | $13,524 |
| Milwaukee, WI | $212,166 | $786 | $717 | $9,432 | $8,604 |
| Jacksonville, FL | $240,785 | $892 | $814 | $10,704 | $9,768 |
| Memphis, TN | $164,254 | $609 | $555 | $7,308 | $6,660 |
| Oklahoma City, OK | $165,014 | $611 | $558 | $7,332 | $6,696 |
| Louisville-Jefferson County, KY | $189,706 | $703 | $641 | $8,436 | $7,692 |
| Hartford, CT | $246,821 | $914 | $835 | $10,968 | $10,020 |
| Richmond, VA | $256,417 | $950 | $867 | $11,400 | $10,404 |
| New Orleans, LA | $215,218 | $797 | $728 | $9,564 | $8,736 |
| Buffalo, NY | $183,071 | $678 | $619 | $8,136 | $7,428 |
| Raleigh, NC | $292,160 | $1,082 | $988 | $12,984 | $11,856 |
| Birmingham, AL | $174,875 | $648 | $591 | $7,776 | $7,092 |
| Salt Lake City, UT | $405,189 | $1,501 | $1,370 | $18,012 | $16,440 |