The old rule: wait for a 1% drop.
Because closing costs took years to earn back.
The old rule said to wait for rates to drop a full point.
Why that rule exists
ZERO Closing Costs
No fees to earn back, so a smaller drop can pay.
Typical lender
Thousands in fees, so you need a big drop to break even.
That rule exists because of closing costs. Without them, a smaller drop can pay off.
Example: $300,000 balance
| Current 7.875% | $2,175 | |
|---|---|---|
| New 7.375% | $2,072 | |
| Monthly savings | $103 |
A half-point drop on a $300,000, 30-year fixed loan saves about $103 a month.
Example details: $300,000 30-year fixed at 7.875% (7.909% APR): 360 monthly payments of $2,175.21; $300,000 30-year fixed at 7.375% (7.406% APR): 360 monthly payments of $2,072.03. Principal and interest only; taxes and insurance not included, so the actual payment will be higher. Unless noted, APR assumes ZERO Closing Costs, no discount points and 15 days of prepaid interest. Hypothetical example prepared November 4, 2026, not a current CapCenter rate offer; subject to credit approval.
Example details: $300,000 30-year fixed at 7.875% (7.909% APR): 360 monthly payments of $2,175.21; $300,000 30-year fixed at 7.375% (7.406% APR): 360 monthly payments of $2,072.03. Principal and interest only; taxes and insurance not included, so the actual payment will be higher. Unless noted, APR assumes ZERO Closing Costs, no discount points and 15 days of prepaid interest. Hypothetical example prepared November 4, 2026, not a current CapCenter rate offer; subject to credit approval.
Also weigh
- How long you’ll keep the home
- Years left on your loan
- Whether you pay mortgage insurance
- Today’s rate vs. yours
Also weigh how long you’ll stay and how many years you have left.
ZERO Closing Costs
With ZERO Closing Costs (restrictions apply), there’s nothing to earn back. See Offer details.
