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The rate on a 30-year fixed refinance fell today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 7.35%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.51%, and for 20-year mortgages, the average is 7.14%.
Refinance Rates for July 25, 2024
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance slipped to 7.35% from yesterday. Last week, the 30-year fixed was 7.41%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.37%. At this time last week, it was 7.43%. APR is the all-in cost of your loan.
At today’s interest rate of 7.35%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $689 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay about $147,907 in total interest over the life of the loan.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 7.14%. That’s compared to the average of 7.13% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.16% compared to 7.16% at this time last week.
At the current interest rate of 7.14%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $784 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $88,065 in total interest over the life of the loan.
15-Year Refinance Interest Rates
The 15-year fixed mortgage refinance is currently averaging about 6.51%. That’s compared to the average of 6.58% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.55% versus 6.61% at this time last week.
At the current interest rate of 6.51%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $872 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $56,928 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.28%. Last week, the average rate was 7.32%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.28% will pay $684 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 7.07%, compared to an average of 7.09% last week.
At today’s rate of 7.07%, a borrower would pay $903 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 $468,935 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
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.
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
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 do you find the best refinancing lender?
How much does it cost to refinance a mortgage?
How quickly can you refinance a mortgage?
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