The rate on a 30-year fixed refinance increased today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.59%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.79%, and for 20-year mortgages, it’s 7.41%.
Related: Compare Current Refinance Rates
Refinance Rates for June 10, 2024
| LOAN TERM | RATE | CHANGE | RATE YESTERDAY |
|---|---|---|---|
|
30-Year Fixed Refinance Rate
|
7.59%
|
+0.09
|
7.50%
|
|
20-Year Fixed Refinance Rate
|
7.41%
|
+0.18
|
7.23%
|
|
15-Year Fixed Refinance Rate
|
6.79%
|
+0.18
|
6.61%
|
|
30-Year Jumbo Refinance Rate
|
7.43%
|
-0.07
|
7.50%
|
|
15-Year Jumbo Refinance Rate
|
7.22%
|
+0.00
|
7.22%
|
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.59%. That’s compared to 7.63% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $705 per month for principal and interest at the current interest rate of 7.59%, 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 $153,841. 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 7.61% compared to 7.65% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.41%. This same time last week, the 20-year fixed-rate mortgage was at 7.44%.
The APR on a 20-year fixed is 7.44%. Last week, it was 7.47%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.41% will cost $800 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $92,082 in total interest.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate sits at 6.79%, higher than it was at this time yesterday. Last week, it was 6.85%.
The annual percentage rate on a 15-year fixed is 6.82%. This time last week, it was 6.89%.
A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.79% will cost $887 per month in principal and interest. Over the life of the loan, you would pay $59,663 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.43%. Last week, the average rate was 7.61%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.43% will pay $695 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 7.22%, on average, compared to the average of 7.14% last week.
At today’s interest rate of 7.22%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,833 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $479,931 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 You Should Refinance Your Home
You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.
A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs 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?
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
Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:
- Maintain a good credit score
- Consider a shorter-term loan
- Lower your debt-to-income ratio
- Monitor mortgage rates
A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.
Frequently Asked Questions (FAQs)
How much does it cost to refinance a mortgage?
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.
How soon can you refinance a mortgage?
Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure.
How do you find the best refinancing lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
