Mortgage interest rates are now about 1% lower than one year ago. What are the real savings to you?

Quick “napkin math” using King County’s median sales price ($910,000):

If a buyer puts 20% down, the loan amount is about $728,000. On a 30-year fixed, a rate that’s ~1.0% lower can reduce the principal + interest payment by roughly $475–$500 per month.

Example: If last year was ~7.0% and today is ~6.0%

• $728,000 loan → about $479/month less (principal + interest)

Rule of thumb (easy shortcut):

On a 30-year loan, a ~1% rate change is about $66/month per $100,000 borrowed.

(Principal + interest only — property taxes, insurance, and HOA dues aren’t included.)

Practical guidance: 3 smart moves homeowners can make right now

1) If you bought or refinanced in the last 12–24 months…

It’s worth doing a quick “napkin math” check:

• What’s your current rate?

• How long do you plan to keep the home?

• Would a refi reduce your payment enough to be worth the closing costs?

Rule of thumb: The “right” refi isn’t about a magic number—it’s about your timeline and goals. (And you now have a quick yardstick: ~$66/mo per $100k borrowed for each ~1% shift.)

2) If you’re thinking about moving in 2026…

Lower rates can bring more buyers back, which can help sellers. But it also means more competition when you buy your next place.

Good question to ask:

“If we sold and bought again, what would our net monthly payment look like?”

(Using the median price as a reference, ~$475–$500/month can make a meaningful difference.)

3) If you’re staying put…

This is still useful: a lower-rate environment often improves financing options for:

• remodel loans / second mortgages

• HELOC strategies

• debt consolidation plans (in some cases)