The rate on a 30-year fixed refinance jumped today.
The average rate for refinancing a 30-year fixed mortgage is currently 6.92%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 5.94%, and for 20-year mortgages, it’s 6.60%.
Refinance Rates for September 9, 2024
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance rose to 6.92% from yesterday. One week ago, the 30-year fixed was 7.00%.
The APR, or annual percentage rate, on a 30-year fixed is 6.94%. This time last week, it was 7.02%. APR is the all-in cost of your loan.
At today’s interest rate of 6.92%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $660 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 approximately $137,650.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.60%. One week ago, the 20-year fixed-rate mortgage was at 6.76%.
The APR on a 20-year fixed is 6.62%. Last week, it was 6.79%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.60% will cost $751 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $80,311 in total interest.
15-Year Refinance Interest Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.94% compared to 6.11% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.97%. That compares to 6.14% at this time last week.
Using the current interest rate of 5.94%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $841 per month in principal and interest—not including taxes and fees. That would equal about $51,292 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 6.87%. Last week, the average rate was 6.99%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.87% will pay $657 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.60%, compared to an average of 6.64% last week.
At today’s rate of 6.60%, a borrower would pay $877 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 $433,429 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.
You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.
When Refinancing Makes Sense
You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to eliminate private mortgage insurance (PMI).
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.
Our mortgage refinance calculator could help you determine if refinancing is right for you.
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
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.
Frequently Asked Questions (FAQs)
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