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The rate on a 30-year fixed refinance decreased today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 6.75%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 5.75%, and for 20-year mortgages, the average is 6.59%.
Related: Compare Current Refinance Rates
The average rate for the 30-year fixed-rate mortgage refinance slipped to 6.75% from yesterday. Last week, the 30-year fixed was 6.70%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 6.77%. At this time last week, it was 6.72%. APR is 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 $649 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 6.75%. You'd pay about $133,495 in total interest over the life of the loan.
The average interest rate on the 20-year fixed refinance mortgage is 6.59%. This same time last week, the 20-year fixed-rate mortgage was at 6.45%.
The APR on a 20-year fixed is 6.61%. One week ago, it was 6.48%.
A 20-year fixed-rate mortgage refinance of $100,000 with today's interest rate of 6.59% will cost $751 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $80,141 in total interest.
The average interest rate on the 15-year fixed refinance mortgage inched up to 5.75%. Yesterday, it was 5.69%. Last week, the 15-year fixed-rate mortgage was at 5.73%.
The annual percentage rate on a 15-year fixed is 5.79%. This time last week, it was 5.76%.
At today's interest rate of 5.75%, a 15-year fixed-rate mortgage would cost approximately $831 per month in principal and interest per $100,000. You would pay around $49,512 in total interest over the life of the loan.
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.76%. Last week, the average rate was 6.75%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today's interest rate of 6.76% will pay $649 per month in principal and interest on a $100,000 loan.
A 15-year, fixed-rate jumbo mortgage refinance is 6.43%, on average, compared to the average of 6.52% last week.
At today's interest rate of 6.43%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,506 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $421,028 in total interest.
No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.
The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.
When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.
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.
Refinancing your mortgage can be worth it for reasons that include:
Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.
Now isn't a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.
Refinancing a mortgage isn't that different than taking out a mortgage in the first place, and it's always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:
Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You're also likely to look better to lenders if you don't have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates.