The rate on a 30-year fixed refinance fell today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 7.39%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.54%, and for 20-year mortgages, the average is 7.12%.
Refinance Rates for July 23, 2024
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance dropped to 7.39% from yesterday. Last week, the 30-year fixed was 7.39%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.41%. At this time last week, it was 7.41%. APR is the all-in cost of your loan.
At today’s interest rate of 7.39%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $692 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be around $149,085.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.12%. This same time last week, the 20-year fixed-rate mortgage was at 7.11%.
The APR on a 20-year fixed is 7.15%. Last week, it was 7.14%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.12% will cost $783 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $87,848 in total interest.
15-Year Refinance Interest Rates
The average interest rate on the 15-year fixed refinance mortgage rose to 6.54%. Yesterday, it was 6.53%. This same time last week, the 15-year fixed-rate mortgage was at 6.54%.
On a 15-year fixed refinance, the annual percentage rate is 6.57%. Last week it was 6.57%.
At today’s interest rate of 6.54%, a 15-year fixed-rate mortgage would cost approximately $873 per month in principal and interest per $100,000. You would pay around $57,166 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.30%. Last week, the average rate was 7.30%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.30% will pay $686 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 7.17%. Last week, the average rate was 7.11%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.17% will pay $908 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $475,981 in total interest over the life of the loan.
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.
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?
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
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)
How much does it cost to refinance a mortgage?
How quickly can you refinance a mortgage?
How soon can you refinance a mortgage?
Most Popular
Comments / 0