How Much Can You Save by Refinancing in Today’s Market?

If you’re a homeowner, you’ve probably asked yourself: “Should I refinance my mortgage?” The right refinance can save you thousands over the life of your loan, reduce your monthly payment, or even help you access cash from your home’s equity.

At Trust Lending, we guide homeowners through today’s market, helping them figure out whether refinancing now is a smart financial move. Let’s break down the potential savings and show you how to make refinancing work for you.

1. How Lower Interest Rates Can Save You

The most obvious way refinancing saves money is by locking in a lower interest rate. Even a small drop can make a big difference.

Example:

• Original loan: $300,000 at 6.5% for 30 years

• Refinanced loan: $300,000 at 5.5% for 30 years

Result: Your monthly payment drops from $1,896 to $1,703, saving almost $200 per month. Over 30 years, that’s a total savings of $69,000 in interest.

2. Shortening Your Loan Term

Refinancing isn’t just about lowering rates — it can also mean paying off your loan faster.

Example:

• Original loan: 30-year mortgage at $1,896/month

• Refinance to 15-year mortgage at 5.5%: $2,430/month

Result: You pay off your home in 15 years instead of 30 and save roughly $123,000 in interest, even with a higher monthly payment.

3. Lowering Your Monthly Payment

If your goal is to reduce your monthly payment, refinancing to a longer-term loan or a lower rate can give you more breathing room in your budget.

Example:

• Original loan: $350,000 at 6.5% for 30 years → $2,211/month

• Refinance: $350,000 at 5.25% for 30 years → $1,939/month

Monthly savings: $272, which could cover utilities, debt payments, or savings.

4. Cash-Out Refinances

Need money for home renovations, debt consolidation, or other expenses? A cash-out refinance lets you tap into your home’s equity while potentially locking in a lower rate.

Example:

• Home value: $400,000

• Remaining mortgage: $250,000

• Cash-out refinance: $300,000

  
  

You can access $50,000 in cash while potentially reducing your interest rate, providing you with financial flexibility and potential savings.

5. How Trust Lending Helps You Maximize Savings

Refinancing isn’t one-size-fits-all. Factors such as closing costs, remaining loan term, and your financial goals determine whether a refinance is worthwhile.

At Trust Lending, we:

• Analyze your current mortgage and interest rate.

• Compare multiple loan options.

• Show you clear savings scenarios so you can make an informed decision.

The right refinance in today’s market can save you thousands, reduce your monthly payment, or help you tap into your home’s equity. Timing, strategy, and guidance are key.

📞 Want to see how much you could save by refinancing? Contact Trust Lending today for a personalized review of your mortgage options.