For many reasons, not everyone can pick up and move to a lower cost of living situation. But one thing many homeowners can do is reduce their housing costs by refinancing their mortgage to a lower rate.
A rule of thumb to consider when evaluating whether to refinance is this: If you can reduce your mortgage rate by three-quarters of a point — going from 4% to 3.25%, for example — then it’s usually a good idea.
The Federal Reserve found $500 to be the magic number in helping people experience less financial and emotional difficulties. While you’ll want to save more than that one day, $500 is a great goal to start with.