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
Source: Zillow

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