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The rate on a 30-year fixed refinance fell today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 7.63%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.82%, and for 20-year mortgages, the average is 7.42%.
Related: Compare Current Refinance Rates
Refinance Rates for May 13, 2024
*Source: Curinos
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.63%. That’s compared to 7.65% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $708 per month for principal and interest at the current interest rate of 7.63%, 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 $155,004. 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 7.65% compared to 7.67% 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 7.42%. One week ago, the 20-year fixed-rate mortgage was at 7.48%.
The APR on a 20-year fixed is 7.44%. One week ago, it was 7.50%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.42% will cost $801 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $92,126 in total interest.
15-Year Refinance Interest Rates
The 15-year fixed mortgage refinance is currently averaging about 6.82%. That’s compared to the average of 6.73% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.85% versus 6.76% at this time last week.
At the current interest rate of 6.82%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $889 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $60,003 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.49%. Last week, the average rate was 7.59%.
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 on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 7.39%. Last week, the average rate was 7.39%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.39% will pay $921 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $493,196 in total interest over the life of the loan.
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 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?
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
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)
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.
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.