Mortgage refinance rates stayed flat at 6.94% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.92%. For 20-year mortgage refinances, the average rate is 6.74%.
Related: Compare Current Refinance Rates
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30-Year Refinance Rates
The average rate for a 30-year fixed-rate mortgage refinance is 6.94%, down 0.19 point from a week ago.
The 30-year fixed mortgage refi APR (annual percentage rate) is 6.97%. At this time last week, it was 7.16%. The APR represents the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage refi of $100,000 will pay $661 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 6.94%. The total interest paid over the life of the loan would be around $138,760.
20-Year Refinance Rates
The 20-year fixed mortgage refinance average rate stands at 6.74%, versus 6.97% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.79%. It was 7.02% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $760 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $83,030 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates
The average interest rate on the 15-year fixed refinance mortgage is 5.92%. A week ago, the 15-year fixed-rate mortgage was at 6.09%.
On a 15-year fixed refinance, the annual percentage rate is 5.97%. Last week, it was 6.14%.
A 15-year fixed-rate mortgage refinance of $100,000 at today’s interest rate would cost $840 per month in principal and interest. Over the life of the loan, you would pay $51,642 in total interest.
30-Year Jumbo Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) jumped up week-over-week to 7.37%. Last week, the average rate was 7.31%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $690 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.59% on average, down 0.14 point from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $876 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $58,009 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.
You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.
When Refinancing Makes Sense
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance – to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
Is Now a Good Time To Refinance?
Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.
While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.
There are multiple mortgage refinance options to consider and some that let you tap your home equity.
Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.
How To Get Today’s Best Refinance Rates
Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing get a good mortgage rate:
- Improve your credit
- Consider a shorter loan term
- Lower your debt-to-income ratio
- Watch mortgage rates
There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other financial institutions are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.
Frequently Asked Questions (FAQs)
How quickly can you refinance a mortgage?
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.
How do you find the best refinancing lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
How much does it cost to refinance a mortgage?
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.
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