One percent represents a significant reduction in your rate, which could result in significant monthly savings. For example, if you have a $250,000 loan and your interest rate drops from 3.75 percent to 2.75 percent, you could save $250 per month, which is nearly a 20% reduction in your monthly payments.
However, you should always compare your current mortgage terms to any new deal. Remember to account for closing costs and any fees in your calculations. For example, if you are locked into a deal and must pay an early repayment fee, the potential savings may be significantly offset.