What to Do When Mortgage Rates Drop

When rates fall, the ads get loud. But a rate drop is a prompt to check your math , not an automatic signal to refinance. Here’s the short list to run the moment it happens.

The 4-step checklist

• Compare to your own rate, not the headline. If the new rate isn’t below the rate you already have, a refinance raises your cost, full stop.
• Run your break-even. Closing costs ÷ monthly savings = the months it takes to come out ahead. Will you stay that long?
• Check your term. Restarting a fresh 30 years at a lower rate can still cost more in total interest. Match the new term to your timeline.
• Consider equity instead. If your rate is already low, a falling rate may matter more for a HELOC than for refinancing your first mortgage.