Mortgage refinance rates stayed flat today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.39%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.54%. For 20-year mortgage refinances, the average rate is 7.17%.
Refinance Rates for July 16, 2024
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.39%, compared to 7.54% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.41%, compared to 7.56% last week. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate of 7.39%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $692 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $149,036.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.17% compared to 7.30% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.20%. That compares to 7.33% at the same time last week.
At today’s interest rate of 7.17%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $786 per month in principal and interest—not including taxes and fees. That would equal about $88,572 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate is 6.54%, the same as it was one day ago. Last week, it was 6.73%.
The annual percentage rate on a 15-year fixed is 6.57%. This time last week, it was 6.76%.
With an interest rate of 6.54%, you would pay $873 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $57,205 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.29%. Last week, the average rate was 7.44%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.29% will pay $685 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 7.09%. Last week, the average rate was 7.09%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.09% will pay $904 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $469,918 in total interest over the life of the loan.
Are Refinance Rates and Mortgage Rates the Same?
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.
When Refinancing Makes Sense
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 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.
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