What rate difference is good for refinancing my existing loan?

[Ying Tang]

Hello everyone! I’ve received a lot of helpful responses on my recent posts—thank you all for your time and support! I have another question today. My husband currently has a 30-year fixed $315K mortgage that was secured around November/December 2023 at a rate of 7.99%. With mortgage rates trending downward lately, should we refinance now to secure a lower rate, or would it be better to wait until autumn for a potential further drop? I found several online opinions suggesting that high refinancing costs might negate any monthly savings for a couple of years. Given that a rate cut is anticipated later this year, do you think refinancing is the right move? For reference, his credit score is over 810.

[Erik Estrada]

Quote from @Mason Weiss:

Yes you can still get all those covered right now in a refinance and bring your rate to the high 6's with $0 out of pocket. Just watched one of my client's do it today.

 How is the bank making their money? Do they service the loan? Are they requiring opening up a checking/savings account? 

Typically most lenders will sell their notes after closing and they make their money from the fees, and the back end when they sell it. There are portfolio lenders however that do make their money through servicing, and checking/savings accounts. 

Trying to wrap my head around this. Do you happen to have a Loan Estimate to share showing this is the case?