The rate on a 30-year fixed refinance declined today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.37%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.51%. For 20-year mortgage refinances, the average rate is 7.13%.
Refinance Rates for July 29, 2024
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.37%. That’s compared to 7.43% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $690 per month for principal and interest at the current interest rate of 7.37%, according to the Forbes Advisor mortgage calculator, not including taxes and fees.
Over the life of the loan, the borrower will pay total interest costs of about $148,520. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.39% compared to 7.45% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 7.13%. That’s compared to the average of 7.19% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.16% compared to 7.21% at this time last week.
At the current interest rate of 7.13%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $783 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $87,978 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 6.53% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.54% versus 6.57% 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 $871 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $56,869 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 7.26%. Last week, the average rate was 7.33%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.26% will pay $683 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 7.05%, compared to an average of 7.20% last week.
At today’s rate of 7.05%, a borrower would pay $902 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 $467,422 in total interest.
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
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?
Refinancing your mortgage can be worth it for reasons that include:
- Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
- Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
- Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
- Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
- Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.
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.
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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