Refi Regret? Here’s Your Chance to ‘Buy the Dip’

Remember last fall when mortgage rates finally dipped — and you almost refinanced?

If you’ve been kicking yourself ever since for not locking in a lower payment, good news: you might just get another shot.

Mortgage rates just fell to their lowest point since December, and if you’re still sitting on a loan with a 7%+ interest rate, this could be your moment to finally refi the dip — and make your monthly payment way more manageable.

Let’s break it down

Let’s say you bought your home in 2023 with a $450,000 mortgage at 7.5%.

Refinancing today at 6.64% could lower your monthly principal and interest payment from $3,148 to $2,891 — saving you about $257 each month. That’s more than $3,000 a year, or over $15,000 in just five years.

Want to stretch those savings even further? Here’s how you could do that.

If you decide to buy down your interest rate to 6.25% by paying one discount point at closing, your monthly payment could drop to about $2,770 — a $378 monthly savings compared to your original loan. That’s $4,500 a year back in your budget, or more than $22,000 over five years.

Don’t wait for the next dip — this could be it

This current rate drop came on the heels of a market reaction to new trade tariffs — a reminder that mortgage rates can change fast and unpredictably. If you missed the brief window in fall 2024, you’re not alone — but now’s your chance to act.

But like before, there’s no guarantee it’ll stick around. The market can turn on a dime, and refinancing opportunities like this don’t often linger.

Is refinancing worth it?

Refinancing isn’t one-size-fits-all. You’ll want to consider your closing costs, how long you plan to stay in your home, and how long it’ll take to break even. But if you’re in your home for the long haul and your current rate is north of 7%, this dip could be the opening you’ve been waiting for.

Even a modest rate reduction — such as a 0.5% drop — can free up serious cash: hundreds each month, thousands each year, and tens of thousands over the life of the loan.

That’s real money that could go toward paying off debt, padding your savings — or even offsetting a higher car payment, especially with prices expected to rise under the new 25% imported vehicle tariff.

It’s not too late

It’s easy to feel like you missed your moment. But the truth is, refinancing isn’t about timing it perfectly — it’s about recognizing when the math works in your favor.

And right now, the math looks pretty good.

If you’re thinking about it? Run the numbers. Talk to a lender. Refi the dip — and make the most of your second chance.