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The rate on a 30-year fixed refinance climbed today.
The average rate on a 30-year fixed mortgage refinance is 7.56%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.78%. On a 20-year mortgage refinance, the average rate is 7.36%.
Related: Compare Current Refinance Rates
Refinance Rates for May 23, 2024
Source: Curinos
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.56%, compared to 7.56% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.58%, compared to 7.58% 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 7.56%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $703 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 $153,149.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 7.36%. That’s compared to the average of 7.19% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.39% compared to 7.22% at this time last week.
At the current interest rate of 7.36%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $797 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $91,351 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate sits at 6.78%, higher than it was at this time yesterday. Last week, it was 6.64%.
On a 15-year fixed refinance, the annual percentage rate is 6.81%. Last week it was 6.67%.
At today’s interest rate of 6.78%, a 15-year fixed-rate mortgage would cost approximately $887 per month in principal and interest per $100,000. You would pay around $59,593 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.45%. One week ago, the average rate was 7.49%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.45% will pay $696 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 7.28%. Last week, the average rate was 7.40%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.28% will pay $915 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $484,649 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.
Know When To 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?
Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.
While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.
There are multiple mortgage refinance options to consider and some that let you tap your home equity.
Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.
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 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 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.