The rate on a 30-year fixed refinance climbed today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.12%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.11%. For 20-year mortgage refinances, the average rate is 6.97%.
Refinance Rates for October 8, 2024
30-Year Fixed Refinance Interest Rates
Today, the average rate for the 30-year fixed-rate mortgage refinance rose to 7.12% from yesterday. At this time last week, the 30-year fixed was 6.80%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.14%. At this time last week, it was 6.82%. APR is the all-in cost of your loan.
At the current interest rate of 7.12%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $673 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $142,417 over the life of the loan.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.97%. Last week, the 20-year fixed-rate mortgage was at 6.61%.
The APR on a 20-year fixed is 7.00%. One week ago, it was 6.63%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.97% will cost $774 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $85,683 in total interest.
15-Year Refinance Interest Rates
The 15-year fixed mortgage refinance is currently averaging about 6.11%. That’s compared to the average of 5.76% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.14% versus 5.79% at this time last week.
At the current interest rate of 6.11%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $850 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $52,937 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 6.98%. Last week, the average rate was 6.73%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.98% will pay $664 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.30%, compared to an average of 6.31% last week.
At today’s rate of 6.30%, a borrower would pay $860 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $411,203 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.
In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.
Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.
Know When To Refinance Your Home
Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).
But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.
The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.
Is Now a Good Time To Refinance?
Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.
However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.
The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.
How To Qualify for Today’s Best Refinance Rates
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:
- Polish up your credit score
- Lower your debt-to-income ratio
- Keep an eye on mortgage rates
- Consider a shorter loan
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.
Frequently Asked Questions (FAQs)
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