Navy Federal No Refi Rate Drop: Save Money on Your Mortgage

If you're a Navy Federal credit union member, you're in luck - they've recently dropped their no-refinance mortgage rate, making it an even more attractive option for those looking to save money on their mortgage.

The new rate is a full percentage point lower than the previous rate, which can add up to significant savings over the life of the loan.

For example, on a $200,000 mortgage, this rate drop can save you around $1,500 per year in interest payments.

This is a great opportunity for Navy Federal members to refinance their existing mortgage and take advantage of these lower rates, potentially saving thousands of dollars over the life of the loan.

Broaden your view: Interest Rate for Federal Subsidized Loan

The Navy Federal No-Refi Rate Drop is a game-changer for homeowners looking to save on their mortgage payments. It allows you to refinance your high-interest rate mortgage into a lower-rate mortgage without the hassle and costs of refinancing.

You can take advantage of this offer if you initially use Navy Federal for your home purchase loan, and then qualify for the No-Refi Rate Drop in the future. This means you'll need to compare loan rates and fees with Navy Federal versus other options to see if it's the best choice for you.

A $250 fee to lower your rate by 0.25% or more sounds like a pretty good value, especially considering the time savings involved.

Navy Federal's No-Refi Rate Drop is a game-changer for homeowners who want to take advantage of lower mortgage rates without refinancing. This innovative program waives closing costs on subsequent refinances if you use Navy Federal initially.

You can refinance your high-interest rate mortgage into a lower-rate mortgage without refinancing, saving you time and hassle. This is a huge perk, especially considering the average rate on a 30-year mortgage rose from below 3% in September 2021 to a 23-year high of 7.8% last October.

For more insights, see: 30 Year Fixed Mortgage Refi

Even a modest drop in mortgage rates can translate into significant savings over the long run, with a buyer in Los Angeles saving about $312 a month compared to the cost of buying the same home in May. This is especially true for a home listed at last month's median U.S. sales price of $416,700.

The No-Refi Rate Drop is a pretty good value, especially considering the mere $250 fee to lower your rate 0.25% or more. This fee is a small price to pay for the potential savings and time savings that come with this program.

Related reading: Refi Home

You're weighing whether to buy a home now or wait for lower mortgage rates. Sales of previously occupied U.S. homes have been in a deep slump dating back to 2022.

Many home shoppers are waiting for mortgage rates to fall below 6%. Nick Young, an attorney, is one of them, but he's also renting after seeing how competitive the homebuying market was last spring.

A fresh viewpoint: Refi My Home

The pullback in mortgage rates and a pickup in the supply of homes on the market make for a favorable backdrop for home shoppers this fall, typically a slower time of the year for home sales. However, waiting for rates to possibly ease further next year could leave buyers facing heightened competition for the home they want.

Real estate agents, like Mike Opyd, are advising buyers to get in now, as timing the market is a fool's errand. He warns that if you're serious about buying, don't wait for rates to drop further.

Only 24% of people with a mortgage have a rate above 5%, according to Leo Pareja, CEO of eXp Realty. This means that many homeowners are already benefiting from lower rates, making it harder for buyers to find a good deal.

Recommended read: Market Exchange Rate

Demand for home loan refinancing has been growing, with refinance applications surging 24% last week, according to the Mortgage Bankers Association.

One rule of thumb to consider when refinancing is whether you can reduce your current rate by half to three-quarters of a percentage point. This means if you're currently at a 7% rate, you could aim for a 3.5% to 5.25% rate.

Lenders are increasingly offering refinancing incentives, such as Navy Federal Credit Union's "no-refi rate drop" program, which allows buyers to lower their rate for a $250 fee while maintaining the rest of the terms on the original loan.

Many homebuyers are opting for temporary rate buydowns and free refinancing, said Darik Tolnay, branch manager of CrossCounty Mortgage in Lakewood, Colorado. They want to make their home more affordable, and these options give them a way out of their current rate once it comes back down.

Refinancing can also help lower your monthly payment, with some homeowners potentially saving around $300 a month if they refinance their home loan to a lower rate.

Mortgage rates have been declining since July, with the average rate on a 30-year mortgage now at 6.09%, down from 7.22% in May.

For a buyer in Los Angeles making a 20% down payment, a modest drop in mortgage rates can translate into significant savings, about $312 a month compared to the cost of buying the same home in May.

Mortgage rates would have to drop back to near rock-bottom lows from three years ago, or home prices would have to fall sharply for many buyers to afford a home, neither of which is likely to happen soon.

Economists and mortgage industry executives expect mortgage rates to remain near their current levels, at least this year, with Fannie Mae projecting the rate on a 30-year mortgage will average 6.2% in the October-December quarter.

The pace of mortgage and Fed rate declines will be dictated by economic data, with future data showing that the economy is slowing more than expected increasing pressure for the Fed to take more aggressive action with rate cuts.

Curious to learn more? Check out: 10 Year Adjustable Mortgage Rates