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The rate on a 30-year fixed refinance jumped today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.77%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.95%, and for 20-year mortgages, it’s 7.64%.
Related: Compare Current Refinance Rates
Refinance Rates for April 22, 2024
Source: Curinos
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance rose to 7.77% from yesterday. One week ago, the 30-year fixed was 7.66%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.79%. At this time last week, it was 7.68%. APR is the all-in cost of your loan.
At an interest rate of 7.77%, a 30-year fixed mortgage refi would cost $718 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be approximately $158,431.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.64%. This same time last week, the 20-year fixed-rate mortgage was at 7.52%.
The APR on a 20-year fixed is 7.67%. Last week, it was 7.55%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.64% will cost $814 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $95,461 in total interest.
15-Year Refinance Interest Rates
The average interest rate on the 15-year fixed refinance mortgage inched up to 6.95%. Yesterday, it was 6.90%. Last week, the 15-year fixed-rate mortgage was at 6.83%.
The annual percentage rate on a 15-year fixed is 6.98%. This time last week, it was 6.87%.
With an interest rate of 6.95%, you would pay $896 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $61,286 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.62%. Last week, the average rate was 7.63%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.62% will pay $707 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 7.19%, compared to an average of 7.04% last week.
At today’s rate of 7.19%, a borrower would pay $909 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 $477,576 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 Refinancing Makes Sense
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.
Check out our mortgage refinance calculator to help you decide if this is a good time 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 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.
How much does it cost to refinance a mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.