The rate on a 30-year fixed refinance inched up today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.67%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.76%, and for 20-year mortgages, it’s 7.48%.
Related: Compare Current Refinance Rates
Refinance Rates for May 9, 2024
| Loan Term | Rate | Change | Rate Yesterday |
|---|---|---|---|
|
30-Year Fixed Refinance Rate
|
7.67%
|
+0.01
|
7.66%
|
|
20-Year Fixed Refinance Rate
|
7.48%
|
+0.02
|
7.46%
|
|
15-Year Fixed Refinance Rate
|
6.76%
|
+0.04
|
6.72%
|
|
30-Year Jumbo Refinance Rate
|
7.49%
|
-0.23
|
7.72%
|
|
15-Year Jumbo Refinance Rate
|
7.39%
|
+0.00
|
7.39%
|
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance rose to 7.67% from yesterday. One week ago, the 30-year fixed was 7.79%.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 7.69%, lower than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.
At an interest rate of 7.67%, a 30-year fixed mortgage refi would cost $711 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $155,896 over the life of the loan.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 7.48%. That’s compared to the average of 7.71% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.51% compared to 7.74% at this time last week.
At the current interest rate of 7.48%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $805 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $93,108 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate is 6.76%, higher than it was yesterday. Last week, it was 6.96%.
The annual percentage rate on a 15-year fixed is 6.79%. This time last week, it was 7.00%.
A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.76% will cost $885 per month in principal and interest. Over the life of the loan, you would pay $59,334 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.49%. Last week, the average rate was 7.77%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.49% will pay $698 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 7.39%, compared to an average of 7.38% last week.
At today’s rate of 7.39%, a borrower would pay $921 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 $492,737 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
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?
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 Qualify for 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 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.
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 quickly can you refinance a mortgage?
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.
