The rate on a 30-year fixed refinance increased today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 6.96%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 5.99%, and for 20-year mortgages, the average is 6.86%.
Refinance Rates for October 7, 2024
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 6.96%, compared to 6.80% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.98%, compared to 6.82% last week. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate of 6.96%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $662 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $138,446.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 6.86%. That’s compared to the average of 6.66% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.88% compared to 6.69% at this time last week.
At the current interest rate of 6.86%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $767 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $84,032 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate sits at 5.99%, higher than it was one day ago. Last week, it was 5.74%.
On a 15-year fixed refinance, the annual percentage rate is 6.02%. Last week it was 5.77%.
At today’s interest rate of 5.99%, a 15-year fixed-rate mortgage would cost approximately $843 per month in principal and interest per $100,000. You would pay around $51,826 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.87%. Last week, the average rate was 6.81%.
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 on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.30%, on average, compared to the average of 6.33% last week.
At today’s interest rate of 6.30%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,449 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $410,834 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.
When You Should Refinance Your Home
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?
Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.
However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.
The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.
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)
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