Key Takeaways A 1-point drop in mortgage rates can translate into hundreds of dollars in monthly savings.You can put extra money toward household bills, investing, or paying down debt faster.Closing ...

HUNTSVILLE, Ala. (WAFF) - Home mortgage rates have been significantly higher in recent years compared to the previous decade, leaving many homeowners wondering if and when they should refinance.

This week the Freddie Mac 30-year fixed interest rate averaged 6.35%. Sam Khater, Freddie Mac’s chief economist, noted the 15 basis point-drop from last week was the largest weekly drop in a year.

Both products provide financing with traditionally low rates, but there are unique benefits and downsides to both.

Your location, loan amount and chosen lender can impact your refinancing costs.