The rate on a 30-year fixed refinance dropped today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.34%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.47%. For 20-year mortgage refinances, the average rate is 7.07%.
Refinance Rates for July 30, 2024
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance decreased to 7.34% from yesterday. One week ago, the 30-year fixed was 7.39%.
The APR, or annual percentage rate, on a 30-year fixed is 7.36%. This time last week, it was 7.41%. APR is the all-in cost of your loan.
At today’s interest rate of 7.34%, 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 approximately $147,858 in total interest over the life of the loan.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.07% compared to 7.12% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.10%. That compares to 7.15% at the same time last week.
At today’s interest rate of 7.07%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $779 per month in principal and interest—not including taxes and fees. That would equal about $87,067 in total interest over the life of the loan.
15-Year Refinance Interest Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 6.47% compared to 6.54% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.50%. That compares to 6.57% at this time last week.
Using the current interest rate of 6.47%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $870 per month in principal and interest—not including taxes and fees. That would equal about $56,513 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 7.22%. Last week, the average rate was 7.34%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.22% will pay $680 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 6.98%. Last week, the average rate was 7.17%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.98% will pay $898 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $461,758 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.
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 Qualify for 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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