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Is a mortgage rate half a percentage point lower worth it? Here’s how much you’d save.

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A mortgage rate that’s just half a percentage point lower than average can still result in big savings over time.

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Homebuyers in the last few years haven’t had many great options. They could either purchase a home at today’s elevated interest rates (which hit their highest point since 2000 last summer) or they could sit on the sidelines and wait for rates to fall (and hope that prices would stay where they were). In this scenario, many buyers have looked for ways to secure a below-average mortgage interest rate.

Fortunately, there are a few ways to do this including the purchase of mortgage points and/or the use of an adjustable-rate mortgage. Before proceeding with either, however, buyers should first understand what they stand to save with a lower mortgage rate – even if it’s just half a percentage point below the average. Below, we’ll detail how much you could save by going this route  and why it may be worth pursuing right now.

See what mortgage rate you’re eligible for here now.

Is a mortgage rate half a percentage point lower worth it? Here’s how much you’d save

On the surface, a mortgage rate that’s just half a percentage point lower than the average rate doesn’t seem to offer substantial savings. But while the savings won’t be huge each month they will add up over the year and decades to come, especially considering that the average mortgage loan term is set for 30 years. Using Bankrate’s mortgage calculator, here are three different rate scenarios that emphasize the savings potential (assuming a 20% down payment of $80,000):

  • A 30-year, $400,000 mortgage at 7.29%: $2,191.00 monthly with the total cost of the loan being $789,603.
  • A 30-year, $400,000 mortgage at 6.79%: $2,084.00 monthly with the total cost of the loan being $750,275.
  • A 30-year, $400,000 mortgage at 6.29%: $1,978.00 monthly with the total cost of the loan being $712,747. 

As can be seen in the difference between a 7.29% rate and a 6.79% rate, the buyer would save $107 each month and $39,328 over the life of the loan. That’s a substantial amount of savings that can be secured simply with a mortgage rate that’s half a point lower. So, for many, it may be pursuing now, even if rates are less than ideal.

Get started with a mortgage today.

Why you should get a mortgage rate half a percentage point lower now

As the above calculations demonstrate, a mortgage rate half a percentage point lower will save you money each month and year, resulting in tens of thousands of dollars saved over the life of the loan. So, if you can secure a rate that much lower, whether it be via an adjustable-rate mortgage, mortgage points or simply by searching for the best lenders, it could be worth it for you now.

The context here is also important. Anticipation was high at the start of 2024 that a cut to the benchmark interest rate range – currently sitting at a 23-year high – was imminent. That would have naturally led to a cut in corresponding mortgage rates. But the inflation report for December showed inflation at 3.4%, significantly above the Federal Reserve’s 2% goal. And January’s report was better but at 3.1%. So more work needs to be done and interest rate cuts hoped for as soon as March may not now come until May or June, if not later.

All of this is to say that waiting and hoping for mortgage rates to be reduced may be fruitless right now. Instead, buyers ready and willing to act should strongly consider moving now, even if it means getting a rate just half a percentage point below today’s averages. As the above calculations show, that rate difference can still add up to significant savings over time. And when the rate market inevitably stabilizes, buyers can always explore their refinancing options at that moment.

The bottom line

Today’s rate climate isn’t ideal but there are still ways for buyers to save money. Adjustable-rate mortgages and mortgage points both offer ways to do just that. And while neither will result in the 3% to 4% rates from recent years, they can potentially lower your mortgage rate by half a percentage point or more, resulting in substantial savings for the months and years to come. 

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At least 1 dead, records shattered as heat wave continues throughout U.S.

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A long-running heat wave that has already shattered previous records across the U.S. persisted on Sunday, baking parts of the West with dangerous temperatures that caused the death of a motorcyclist in Death Valley and held the East in its hot and humid grip.

An excessive heat warning — the National Weather Service’s highest alert — was in effect for about 36 million people, or about 10% of the population, said NWS meteorologist Bryan Jackson. Dozens of locations in the West and Pacific Northwest tied or broke previous heat records.

Many areas in Northern California surpassed 110 degrees, with the city of Redding topping out at a record 119. Phoenix set a new daily record Sunday for the warmest low temperature: it never got below 92 F.

A high temperature of 128 F was recorded Saturday and Sunday at Death Valley National Park in eastern California, where a visitor died Saturday from heat exposure and another person was hospitalized, officials said.

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A visitor reacts as he poses next to a thermometer reading 131 degrees Fahrenheit at the visitor center in Death Valley National Park.

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The two visitors were part of a group of six motorcyclists riding through the Badwater Basin area amid scorching weather, the park said in a statement.

The person who died was not identified. The other motorcyclist was transported to a Las Vegas hospital for “severe heat illness,” the statement said. Due to the high temperatures, emergency medical helicopters were unable to respond, as the aircraft cannot generally fly safely over 120 F, officials said.

The other four members of the party were treated at the scene.

“While this is a very exciting time to experience potential world record-setting temperatures in Death Valley, we encourage visitors to choose their activities carefully, avoiding prolonged periods of time outside of an air-conditioned vehicle or building when temperatures are this high,” said park Superintendent Mike Reynolds.

Officials warned that heat illness and injury are cumulative and can build over the course of a day or days.

“Besides not being able to cool down while riding due to high ambient air temperatures, experiencing Death Valley by motorcycle when it is this hot is further challenged by the necessary heavy safety gear worn to reduce injuries during an accident,” the park statement said.

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A sign warning of excessive heat at Mesquite Flat Sand Dunes in Death Valley National Park.

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The soaring temperatures didn’t faze Chris Kinsel, a Death Valley visitor who said it was “like Christmas day for me” to be there on a record-breaking day. Kinsel said he and his wife typically come to the park during the winter, when it’s still plenty warm — but that’s nothing compared with being at one of the hottest places on Earth in July.

“Death Valley during the summer has always been a bucket list thing for me. For most of my life, I’ve wanted to come out here in summertime,” said Kinsel, who was visiting Death Valley’s Badwater Basin area from Las Vegas.

Kinsel said he planned to go to the park’s visitor center to have his photo taken next to the digital sign displaying the current temperature.

Across the desert in Nevada, Natasha Ivory took four of her eight children to a water park in Mount Charleston, outside Las Vegas, which on Sunday set a record high of 120 F.

“They’re having a ball,” Ivory told Fox5 Vegas said. “I’m going to get wet too. It’s too hot not to.”

Jill Workman Anderson also was at Mount Charleston, taking her dog for a short hike and enjoying the view.

“We can look out and see the desert,” she said. “It was also 30 degrees cooler than northwest Las Vegas, where we live.”

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A man walks near the Las Vegas strip during a heatwave in Las Vegas, Nevada on July 7, 2024. According to the US National Weather Service, high temperatures in Las Vegas on Sunday could reach up to 117 degrees Farenheit.

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Triple-digit temperatures were common across Oregon, where several records were toppled — including in Salem, where on Sunday it hit 103 F, topping the 99 F mark set in 1960. On the more humid East Coast, temperatures above 100 degrees were widespread, though no excessive heat advisories were in effect for Sunday.

“Drink plenty of fluids, stay in an air-conditioned room, stay out of the sun, and check up on relatives and neighbors,” read a weather service advisory for the Baltimore area. “Young children and pets should never be left unattended in vehicles under any circumstances.”

Rare heat advisories were extended even into higher elevations including around Lake Tahoe, on the border of California and Nevada, with the weather service in Reno, Nevada, warning of “major heat risk impacts, even in the mountains.”

“How hot are we talking? Well, high temperatures across (western Nevada and northeastern California) won’t get below 100 degrees until next weekend,” the service posted online. “And unfortunately, there won’t be much relief overnight either.”

More extreme highs are in the near forecast, including possibly 130 F around midweek at Furnace Creek, California, in Death Valley. The hottest temperature ever officially recorded on Earth was 134 F in July 1913 in Death Valley, though some experts dispute that measurement and say the real record was 130 F, recorded there in July 2021.

Tracy Housley, a native of Manchester, England, said she decided to drive from her hotel in Las Vegas to Death Valley after hearing on the radio that temperatures could approach record levels.

“We just thought, let’s be there for that,” Housley said Sunday. “Let’s go for the experience.”

In Arizona’s Maricopa County, which encompasses Phoenix, there have been at least 13 confirmed heat-related deaths this year, along with more than 160 other deaths suspected of being related to heat that are still under investigation, according to a recent report.

That does not include the death of a 10-year-old boy last week in Phoenix who suffered a “heat-related medical event” while hiking with family at South Mountain Park and Preserve, according to police.

In California, crews worked in sweltering conditions to battle a series of wildfires across the state.

In Santa Barbara County, northwest of Los Angeles, the growing Lake Fire had scorched more than 25 square miles of dry grass, brush and timber after breaking out Friday. There was no containment by Sunday. The blaze was burning through mostly uninhabited wildland, but some rural homes were under evacuation orders.



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Companies harness AI power for mental health support | 60 Minutes

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Companies harness AI power for mental health support | 60 Minutes – CBS News


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Artificial intelligence is being used as a way to help those dealing with depression, anxiety and eating disorders, but some therapists worry some chatbots could offer harmful advice.

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Havana Syndrome evidence suggests who may be responsible for mysterious brain injuries

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Havana Syndrome evidence suggests who may be responsible for mysterious brain injuries – CBS News


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Efforts continue to investigate brain injuries suffered by U.S. officials. This is the fourth 60 Minutes Havana Syndrome report and, for the first time, there’s evidence of who might be responsible.

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