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Is a mortgage refinance half a percentage point lower worth it? Experts weigh in

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Refinancing a mortgage to half a point lower could make sense in some cases, but it won’t in every case.

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While mortgage rates plummeted during the pandemic to below 3%, some homeowners were unable to lock in low rates at that time. But with many expecting that the Federal Reserve will start cutting the federal funds rate this year, that could trickle down into homeowners starting to get relief.

Still, most expect the Fed interest rate cuts to be modest, and it’s unclear if and when that will actually happen. Meanwhile, mortgage rates have bounced around a bit in recent months, such as by climbing above 7% in April and May, with the average 30-year fixed-rate mortgage rate now back down to 6.86%, according to Freddie Mac

Amidst these changes and expectations around rate cuts, some homeowners may be wondering whether a small drop in mortgage rates would still make refinancing worthwhile. Specifically, would a mortgage refinance to obtain a half-percentage-point lower rate be worth it?

Find out the top mortgage refinancing rates and get started today.

Is a mortgage refinance half a percentage point lower worth it? Experts weigh in

Here’s what real estate experts have to say about whether refinancing your mortgage to a rate that’s half a percentage point lower makes sense.

Yes, a mortgage refinance rate half a percentage point lower is worth it

In some cases, it makes sense to refinance a mortgage for half a percentage point from a financial standpoint. However, you have to do the math to see if you’ll stay in the property long enough to overcome the upfront costs.

“On a $200,000 loan, the difference in monthly payments between a 7% interest rate and a 6.5% interest rate is $67. While this savings is beneficial, you must consider the cost of refinancing relative to your planned duration in the property. If refinancing costs $2,500, it would take approximately 37 months to recoup the cost through the lower monthly payment,” says Jerry Koors, president of Merchants Mortgage at Merchants Bank.

Refinancing for a rate that’s 50 basis points lower could also make sense if it helps improve your loan terms.

“Refinancing for a half-point drop can be advantageous, but it’s not just about the rate decrease,” says Jim Breeze, SVP of mortgage product development at PNC Bank. 

“For example, if you’re in an adjustable-rate mortgage that’s about to adjust to a higher rate, switching to a fixed rate can be beneficial. If you want more payment stability, refinancing into a fixed rate is a good idea as well,” he adds.

You also might refinance to obtain a more affordable monthly payment, even if it extends your loan duration, says Breeze.

Another factor could be refinancing to get rid of private mortgage insurance (PMI). This could further reduce your monthly payment, says Koors. However, refinancing is not the only way to remove PMI from your current loan.

Explore the best mortgage refinancing rates available to you here.

No, a mortgage refinance rate half a percentage point lower isn’t worth it

While there can be situations where refinancing a mortgage for half a percentage point lower makes sense, sometimes it’s not worth it, particularly when accounting for closing costs.

“I don’t think refinancing a mortgage for half a percentage point is worth it. I wouldn’t recommend refinancing unless the rate was lowered at least .75%, given the closing costs, which could be somewhere between 2%-5% of the new loan,” says Dottie Herman, vice chair and former CEO for Douglas Elliman Real Estate.

Even if you don’t have to pay these closing costs right away, your total mortgage costs can go up.

“To avoid paying upfront costs, some borrowers choose to roll the fees into their new loan amount, which increases the payment and restarts the interest on a 30-year loan,” says Koors.

And if you don’t plan on living in your current home for a while, then the math on refinancing gets harder to justify. 

“For example, if refinancing costs $2,000 and reduces your payment by $200 monthly, it will take 10 months to break even. If you’re moving in six months, it may not be worth it. The best thing you can do is talk to a loan officer to review your options,” says Breeze.

The bottom line

The mortgage refinance rate isn’t the only factor behind why some people refinance, and you don’t always need a huge drop in rates to justify refinancing costs. However, it’s important to calculate the total costs, compare your options and see if you could put yourself in a better financial position by refinancing for half a percentage point less. Sometimes the math makes sense, but in other cases, you might decide to wait until rates potentially drop further.



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Children and adults injured in China as car hits crowd outside elementary school

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Taipei, Taiwan — Numerous children were injured by a vehicle outside an elementary school in central China’s Hunan province on Tuesday, reports said. Hours after the incident, the casualty count was unclear and authorities had yet to clarify if it was an accident or a deliberate attack. The incident follows a series of recent killings or attacks in China by people in vehicles or wielding knives, including others at schools.

Students were arriving for classes around 8 a.m. at Yong’an Elementary School in the city of Changde when a small white SUV drove into a crowd of children and adults, according to state media. Few details were released, reflecting China’s reflexive inclination to suppress news about crime, protests and major accidents that could erode public confidence in the ruling Communist Party’s self-declared ability to maintain social order.

Several adults were also injured, the official Xinhua News Agency said, adding that the driver was subdued by parents and security guards and some of the injured were immediately sent to the hospital.

china-school-attack-victim.jpg
A woman is assisted after being injured when a vehicle hit people outside an elementary school in Changde, Hunan province, China, Nov. 19, 2024, as seen in a screengrab obtained from social media video.

Social Media/via REUTERS


Police in the city’s Dingcheng district, where the school is located, issued a statement saying no one had life-threatening injuries and identifying the driver as a 39-year-old man surnamed Huang, who was under detention. It said the incident was under investigation but gave no word on the cause or other details.

Footage posted on Chinese social media showed the injured lying on the road while terrified students ran past the gate and inside the schoolhouse.

Comments on Chinese internet sites reflected anger and frustration with recurring incidents of violence against citizens by those venting anger at society.

Car rammed into crowd outside China primary school
An infographic shows the location of an elementary school in China’s southern Hunan province where a car was driven into a crowd of people on Nov. 19, 2024, injuring an unconfirmed number of children and adults. 

Elif Acar/Anadolu/Getty


While China has much lower rates of violence than many countries — personal gun ownership there is illegal — knifings and the use of homemade explosives still occur.

Chinese schools have been subject to numerous attacks by people armed with knives or using vehicles as weapons. A stabbing attack at a vocational school in the eastern Chinese city of Wuxi on Saturday left eight people dead and 17 others injured.

That came shortly after a man drove his car into people at a sports facility in the southern city of Zhuhai, leaving 35 people dead and 43 others injured.

In September, three people were killed in a knife attack in a Shanghai supermarket, and 15 others were injured. Police said at the time that the suspect had personal financial disputes and came to Shanghai to “vent his anger.”

The same month, a Japanese schoolboy died after being stabbed on his way to school in the southern city of Shenzhen.

The Chinese government generally censors internet content it deems overly sensitive or political, and some images of the school incident were quickly taken down. Most Western social media sites and search engines like Google are blocked in China, limiting available content even while some people use tools like VPNs and send news through Chinese social media before the censors have time to catch it.



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Denzel Washington through the years

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Ahead of the release of “Gladiator II,” starring Academy Award-winner Denzel Washington, the “60 Minutes: A Second Look” podcast team searched through years of interviews with the acclaimed actor, digging up never before aired footage from throughout Washington’s career. 

Washington spoke with Ed Bradley in 1999, for a 60 Minutes piece aired in 2000, about why he didn’t initially like being compared to Sidney Poitier and why he wasn’t being offered romantic films. They spoke again in 2005, when Washington was performing on Broadway. Washington was also interviewed by Bill Whitaker in 2016, when they discussed his approach to directing “Fences,” whether he would ever join a superhero franchise and the role of race in his work.

Denzel Washington in 2000

Bradley first profiled Washington in 2000. Washington had done more than 20 movies by that point, but very few romantic films. 

“I’m not offered any,” Washington said at the time, adding that he thought it came down to business.

“I think that if it was a love story with myself and a Black woman, it’s not big business in Hollywood,” Washington said. “So they, maybe they’re not interested.”

While already an Oscar winner in the best supporting actor category at the time of the interview, Washington had not yet taken home the Academy Award for best actor. He was nominated for his role in that year’s “The Hurricane” and was previously up for the award in 1993 for “Malcolm X,” going up against Clint Eastwood, Al Pacino, Robert Downey Jr. and Stephen Rea. He recalled not expecting to win in ’93.

“Because I knew, I could see, I could read the leaves. I could see what was happening,” Washington said. “You know, there was a lot of, there was a groundswell of, uh, you know, Al Pacino had been, has, had been nominated for the eighth time. Had he not won, he would have been 0 for 8. You know, I voted for Al Pacino. I wanted to see him win.”

By 2000, Oscar or no Oscar, many considered Washington one of the greats, but it was another actor whose name came up time and time again. Sidney Poitier was the first Black performer to win the Academy Award for best actor in 1963. Initially, Washington said he would get upset when he heard the comparison. 

“And the reason was, I said, you know, isn’t it a shame that there’s only one person to be compared to? You know, I would almost be insulted by that to say, ‘Oh, you’re like the next Sidney.’ I’m like, ‘Oh, you mean there’s been nobody in between? He’s the only one? Who else was acting while Sidney was acting? Who else is acting now? I’m not one,’ I don’t, I’m not too keen on that,'” Washington said.  

However, Washington didn’t feel like he had to carry the torch.

“There are other actors now like Sam Jackson, or Lawrence Fishburne, or Michael Wright, or Will Smith. You know, and other young actors coming along,” Washington said. “I’m not the only one — I’m not even the biggest one of that group!”

Denzel Washington in 2005

Bradley interviewed Washington again in 2005. At the time, Washington was on Broadway, appearing in a modern day production of Shakespeare’s “Julius Caesar.” He played Brutus, one of the leaders of the plot to kill Caesar.

I thought it was a great opportunity to get back on the stage, to get back to my roots,” Washington said at the time. “And I get so few opportunities to get on the stage, So when I do, I really like tackling Shakespeare, which is the toughest and the most rewarding.”

Washington was making big money for acting, but he was also venturing into the world of directing with “Antwone Fisher,” which he directed and starred in. Bradley asked if Washington preferred acting or directing. 

“I look at Clint Eastwood as the model. That’s, I like the way he’s doing things and that’s how I’d like to do it,” Washington said. “Just, you know, segue right on into, into more and more filmmaking.”

Denzel Washington in 2016

In 2016, Bill Whitaker interviewed Washington while he was in the middle of directing and acting in the film adaptation of August Wilson’s play, “Fences.” Wilson insisted on a Black director for “Fences.” At the time, Washington told Whitaker that for him, it was not so much about race as it was about culture. 

“I’m sure Scorsese could have directed ‘Schindler’s List.’ And Spielberg probably could have directed ‘Goodfellas,'” he said. 

He went on to explain: “You know, there’s things specific to the Italian American culture that Scorsese understands that you and I may not understand or Spielberg may not understand. And there are things specific to Jewish American or whatever culture that you and I may not understand that Spielberg would understand,” Washington said, adding, “So I know what it smells like when hair is being hot combed on a Sunday morning when my sister’s getting ready to go to church or something. There’s a particular smell that’s specific to our culture, I think.”

By 2016, Washington was fronting big budget movies like “The Equalizer,” “American Gangster” and remakes of “The Manchurian Candidate” and “The Magnificent Seven.” Studio executives told Whitaker that Washington was a game changer, an actor who defied categorization and had appeal across the board. 

“I guess you can cultivate it to a degree, but fundamentally, I’m just trying to be the best actor I can be. To do the best I can with the ability that I have,” Washington said during the 2016 interview. 

They also touched on superhero movies, but Washington felt he “may be a little beyond the tights years.”

Denzel Washington now

Washington will turn 70 in late December, and will have been acting for nearly 50 years. Despite his success and experience, he says “Gladiator II,” also starring Paul Mescal, is the biggest film he has ever worked on. He stars as Macrinus, a wealthy arms dealer hungry for power. 

“Every scene I did with him was never how I expected it to go,” Mescal told podcast host Seth Doane during a “CBS Sunday Morning” interview. Mescal called it a dream and said it was “very thrilling to be five feet in front of his face watching him do that.”

Next year, Washington will return to Broadway to star in “Othello.”



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Proposal to allow Bible teachings in Texas public grade schools draws intense fire, praise

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Austin, Texas — Texas public schools could use teachings from the Bible in lessons as an option for students from kindergarten through fifth grade under a proposal that drew hours of testimony Monday and follows Republican-led efforts in other states to incorporate more religious teaching into classrooms.

Teachers and parents gave impassioned testimony for and against the curriculum plan at a meeting of the Texas State Board of Education, which is expected to hold a final vote on the measure later this week.

The Board heard from more than 150 people about the new proposed curriculum during more than 8 hours of testimony, CBS Houston affiliate KHOU-TV reported.

Testimony was expected to resume Tuesday, CBS Austin affiliate KEYE-TV said.

The curriculum – designed by the state’s public education agency – would allow teachings from the Bible such as the Golden Rule and lessons from books such as Genesis into classrooms. Under the plan, it would be optional for schools to adopt the curriculum though they would receive additional funding if they did so.

Some complained that the proposal contradicts the public school mission.

“This curriculum fails to meet the standard of an honest, secular one,” educator Megan Tessler said. “Public schools are meant to educate, not indoctrinate.”

Others strongly backed the idea.

“Parents and teachers want a return to excellence,” Cindy Asmussen, one of those testifying, told the panel. “Stories and concepts in the Bible have been common for hundreds of years,” and that, she said, is a core part of classical learning.

Education officials were expected to vote Friday on whether public schools would be given the option to teach the curriculum.

The proposal to incorporate religious teaching in Texas public schools mirrors a similar trend elsewhere in the country. In Oklahoma, state officials are seeking to include the Bible into public school lesson plans. In Louisiana, a federal judge recently quashed a requirement to have the Ten Commandments displayed in all public classrooms.

Educators, parents and advocates weighed in at the State Board of Education’s final meeting of the year, where many opponents argued that the proposal’s emphasis on Christian teachings would alienate students of other faiths. Those in favor testified that it would give students a more holistic educational foundation.

Religious experts and the Texas Freedom Network, a left-leaning watchdog group that monitors the state’s education board, said the curriculum proposal focuses too much on Christianity and dances around the history of slavery.

The program was designed by the Texas Education Agency earlier this year after passage of a law giving it a mandate to create its own free textbook. Republican Gov. Greg Abbott has publicly supported the new materials.

Republican lawmakers in Texas have also proposed displaying the Ten Commandments in classrooms and are likely to revisit the issue next year.



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