Mortgage rates have dropped, but refinancing is not always the right move.

The first rule is to check if your current rate is at least 1% higher than today’s average. For example, refinancing a $300,000 mortgage from 6.5% to 5.5% could save you about $190 per month, or more than $2,200 annually.

Second, consider how long you will stay in your home. Refinancing comes with significant upfront costs, so if you are planning to move within a year or two, it may not be worth it.

Finally, always run the numbers. Free refinance calculators on reputable sites like NerdWallet, Bankrate or Zillow can help you determine if refinancing will save you money. If you can recoup closing costs within two to three years, it’s typically a smart choice.

Do not forget to negotiate fees to maximize your savin

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