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If you’re looking to save money by refinancing your home loan, now is a good time to lock in low rates. Refinance rates fell today and remain at historic lows.
The average rate for a 30-year fixed mortgage is 4.85%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 4.13%. The average rate on a 20-year refinance loan is 4.76% and the average rate on a 5/1 ARM is 3.17%.
Related: Compare current refinance rates
30-Year Fixed Rate Mortgage Refinance Rate
Today, the average 30-year fixed-rate mortgage refinance rate fell to 4.85%. At this time last week, the 30-year fixed rate was 4.88%. The 52-week high is 4.93%.
The APR on a 30-year fixed is 4.86%. Last week it was 4.90%. The APR is the overall cost of your loan.
At an interest rate of 4.85%, a 30-year fixed mortgage would cost $528 per month in principal and interest (excluding taxes and fees) on $100,000, according to the Forbes Advisor mortgage calculator. You would pay approximately $89,969 in total interest over the life of the loan.
20-Year Fixed Rate Mortgage Refinance Rate
The average interest rate on the 20-year fixed refinance mortgage is 4.76%. Last week, the 20-year fixed rate mortgage was at 4.71%.
The APR on a 20-year fixed is 4.78%. Last week it was 4.74%.
A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 4.76% will cost $647 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $55,225 in total interest.
15-Year Fixed Rate Mortgage Refinance Rate
Today, the 15-year fixed mortgage rate is 4.13%, lower than it was yesterday. Last week it was 4.12%. Today’s rate is above the 52-week low of 2.88%.
The APR on a 15-year fixed is 4.16%. This time last week it was 4.15%.
With an interest rate of 4.13%, you would pay $746 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $34,319 in total interest.
Jumbo refinance rate over 30 years
The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 4.87%. A week ago, the average rate was 4.94%. The 30-year fixed rate on a jumbo mortgage is above the 52-week low of 3.57%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with a current interest rate of 4.87% will pay $3,967 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 $3,967, and you would pay approximately $678,043 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 fell to 4.18%. Last week, the average rate was 4.22%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 2.91%.
Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 4.18% will pay $749 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 $5,616, and you would pay approximately $260,800 in total interest over the life of the loan.
5/1 ARM Refinance Rate
The average interest rate on a 5/1 ARM is 3.17%, higher than the 52-week low of 2.83%. Last week, the average rate was 4.25%.
Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 3.17% will pay $431 per month in principal and interest.
When should you refinance your home
You may want to refinance your home, when you can lower your interest rate, lower your monthly payments, or pay off your mortgage sooner. You may want to use cash financing to access your home equity or take out a new loan to eliminate private mortgage insurance (PMI).
A home loan refinance can be a good idea, especially if you plan to stay in your home for a while. Even if you get a lower interest rate, you have to consider the cost of the loan. Calculate the break-even point where your savings from a lower interest rate exceeds your closing costs 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 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.