Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
The rate on a 30-year fixed refinance inched up today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.80%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.90%, and for 20-year mortgages, it’s 7.60%.
Related: Compare Current Refinance Rates
Refinance Rates for May 3, 2024
*Source: Curinos
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.80%, compared to 7.80% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.82%, compared to 7.82% 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 7.80%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $720 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 $159,203.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.60% compared to 7.67% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.63%. That compares to 7.69% at the same time last week.
At today’s interest rate of 7.60%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $812 per month in principal and interest—not including taxes and fees. That would equal about $94,871 in total interest over the life of the loan.
15-Year Refinance Interest Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 6.90% compared to 6.98% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.94%. That compares to 7.01% at this time last week.
Using the current interest rate of 6.90%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $893 per month in principal and interest—not including taxes and fees. That would equal about $60,815 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 7.65%. Last week, the average rate was 7.77%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.65% will pay $710 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 7.45%, on average, compared to the average of 7.16% last week.
At today’s interest rate of 7.45%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,933 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $497,864 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
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
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)
How soon can you refinance a mortgage?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.
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 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.