If you bought a home in the last 24 months, you may be sitting on an opportunity for what many call “found money.” Last week, mortgage rates experienced the largest single-week drop in over a year — and that means even homeowners who purchased just six months ago could potentially save hundreds of dollars per month by refinancing.

Why Homeowners Should Pay Attention

When you purchased your home, you locked in a rate based on the market at the time. Mortgage rates, like credit card rates, are a commodity product — it rarely makes sense to pay a higher rate than necessary. With today’s lower rates, a refinance may free up thousands of dollars each year in reduced monthly payments.

Example:

• Loan balance: $800,000
• Previous rate: 7.25%
• New rate: 6.25%
• Monthly savings: ~$530

That’s more than $6,000 per year in “found money” — cash that can go toward savings, renovations, or family expenses.

But What About Fees?

One of the biggest reasons people avoid refinancing is concern about closing costs and escrow fees. While there are fees involved, the math has shifted. At today’s lower rates, the savings often outweigh the upfront costs within the first 12–18 months of the new loan. After that, it’s pure savings.

Who Should Refinance Now?

• Buyers from the last 24 months: If you purchased at the peak of higher rates, now may be your chance to reset.
• Homeowners with rates above 6.5%: You could see meaningful savings with current averages.
• Borrowers planning to stay put: The longer you keep your home, the more refinancing pays off.

Key Takeaways

• Mortgage refinancing in Los Angeles is one of the fastest ways to reduce your monthly housing expenses.
• Escrow fees and refinance costs are no longer a barrier when compared with the potential monthly savings.
• Found money from refinancing can add up to thousands in savings for LA homeowners who purchased in the last 24 months.

The Bottom Line

Mortgage rates move quickly — and last week’s drop has created a unique opportunity. Just like with credit cards, there’s no reason to pay more than you have to. If you bought a home in the past two years, talk to a lender about refinancing. Even after escrow fees and closing costs, the numbers may surprise you.