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This is a good time to lock in a low refinance rate. The average rate for a 30-year fixed mortgage refinance rose today, but rates are still at historic lows.
The average rate for a 30-year fixed mortgage is 5.21%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 4.41%. The average rate on a 20-year refinance loan is 5.12% and the average rate on a 5/1 ARM is 3.31%.
Related: Compare current refinance rates
30-year fixed refinancing interest rate
The average 30-year fixed-rate mortgage refinance rate rose to 5.21%. A week ago, the 30-year fixed was 4.88%. Today’s rate is the same as the 52-week high of 3.72%.
On a 30-year fixed mortgage refi, the APR is 5.23%, higher than it was last week. The APR, or annual percentage rate, consists of the interest rate of a loan and the finance charges of a loan. This is the overall cost of your loan.
At an interest rate of 5.21%, a 30-year fixed mortgage would cost $550 per month in principal and interest (excluding taxes and fees) on $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you would pay $97,902 over the life of the loan.
20-year refinancing rate
The average interest rate on the 20-year fixed refinance mortgage is 5.12%. Last week, the 20-year fixed rate mortgage was at 4.78%.
The APR on a fixed 20-year term is 5.15%. A week ago, it was 4.81%.
A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 5.12% will cost $667 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $59,985 in total interest.
15-year refinancing rate
Today, the 15-year fixed mortgage rate is at 4.41%, higher than it was yesterday. Last week it was 4.15%. Today’s rate is above the 52-week low of 3.11%.
The APR on a 15-year fixed is 4.44%. This time last week it was 4.18%.
At the current interest rate of 4.41%, a 15-year fixed rate mortgage would cost approximately $760 per month in principal and interest per $100,000. You would pay approximately $36,872 in total interest over the life of the loan.
Jumbo refinance rate over 30 years
The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 5.17%. Last week, the average rate was 4.87%. The 30-year fixed rate on a jumbo mortgage is above the 52-week low of 3.72%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with a current interest rate of 5.17% will pay $547 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $547, and you would pay approximately $97,013 in total interest over the life of the loan.
Jumbo Refi rate over 15 years
The average interest rate on the 15-year fixed rate jumbo mortgage refinance climbed to 4.42%. Last week, the average rate was 4.14%. The 15-year fixed rate on a jumbo mortgage is above the 52-week low of 3.15%.
Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 4.42% will pay $761 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $5,707 and you would pay approximately $277,230 in total interest over the life of the loan.
5/1 Adjustable Rate Mortgage Refinance Rate
On an ARM 5/1, the average rate rose to 3.31% from 3.24% yesterday. The average rate was 3.18% last week. Today’s rate is currently a 52-week high.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 3.31% will pay $439 per month in principal and interest.
When refinancing makes sense
You might want to refinance your mortgage for a variety of reasons: to lower your interest rate, reduce your monthly payment, or pay off your loan sooner. You can also use a refinance loan to access equity in your home for other financial needs, such as a renovation project or to pay for your child’s college education. If you paid for private mortgage insurance (PMI), refinancing may also give you the option to waive that cost.
Refinancing your mortgage can be a good idea if you plan to stay in your home for several years. There is, after all, a refinancing cost that will take some time to recover. You will need to know the closing costs of the loan to calculate the break-even point where your savings through a lower interest rate exceeds your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.
Our Mortgage Refinance Calculator can help you determine if refinancing is right for you.
How to qualify for the best refinance rates
Just like when shopping for a mortgage when buying your home, when you refinance, here’s how you can find the lowest refinance rate:
- Maintain a good credit rating
- Consider a shorter term loan
- Reduce your debt to income ratio
- Monitor mortgage rates
A strong credit rating doesn’t guarantee your refinance will be approved or that you’ll get the lowest rate, but it might make your way easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You should also keep an eye on mortgage rates for different loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.