Shake Some Savings Out Of Your Mortgage

Take advantage of low rates and eager lenders

On Jan. 3, Deepa Bhat decided it was time for her and her husband, Ghanshyam, to refinance the $100,000-plus mortgage on their five-bedroom home. With interest rates falling, her lender was offering to cut their 30-year fixed-rate mortgage from 8.25% to 7.5%--with no closing costs. That lowered the Bhats' monthly payment by $130. "The amount is not that big, but savings is savings," says Deepa, 49, a homemaker in Holmdel, N.J.

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