July 14, 2022 – Current Refinance Rates Are Rising – Forbes Advisor
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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 5.82%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 4.93%. The average rate on a 20-year refinance loan is 5.67% and the average rate on a 5/1 ARM is 4.15%.
Related: Compare current refinance rates
30-year fixed refinancing interest rate
Today, the average 30-year fixed rate mortgage refinance rate has risen to 5.82%. Last week, the 30-year fixed was 5.74%. Today’s rate is below the 52-week high of 6.12%.
The APR, or annual percentage rate, over a 30-year period is 5.83%. This time last week it was 5.75%. The APR is the overall cost of your loan.
At an interest rate of 5.82%, a 30-year fixed mortgage refi would cost $588 per month in principal and interest (excluding taxes and fees) on $100,000, according to mortgage calculator Forbes Advisor. In total interest, you would pay $111,690 over the life of the loan.
20-year fixed rate refinancing rate
The average interest rate on the 20-year fixed refinance mortgage is 5.67%. A week ago, the 20-year fixed rate mortgage was at 5.64%.
The APR on a 20-year fixed is 5.68%. Last week it was 5.65%.
A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 5.67% will cost $698 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $67,406 in total interest.
15-year mortgage refinance rate
Today, the 15-year fixed mortgage rate is at 4.93%, which is lower than it was a day ago. Last week it was 4.92%. Today’s rate is above the 52-week low of 4.56%.
On a 15-year fixed refinancing, the annual percentage rate of charge is 4.95%. Last week it was 4.94%.
A $100,000 15-year fixed rate mortgage refinance with a current interest rate of 4.93% will cost $787 per month in principal and interest. Over the term of the loan, you will pay $41,687 in total interest.
30-Year Jumbo Mortgage Refinance Rate
The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 5.83%. Last week, the average rate was 5.73%. The 30-year fixed rate on a jumbo mortgage is above the 52-week low of 5.26%.
Borrowers with a 30-year fixed rate jumbo mortgage refinance with a current interest rate of 5.83% will pay $589 per month in principal and interest per $100,000.
Jumbo Refi rate over 15 years
The average interest rate on the 15-year fixed rate jumbo mortgage refinance fell to 4.96%. Last week, the average rate was 4.92%. The 15-year fixed rate on a jumbo mortgage is above the 52-week low of 4.56%.
Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 4.96% will pay $789 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 $5,915, and you would pay approximately $314,761 in total interest over the life of the loan.
5/1 Adjustable Rate Mortgage Refinance Rate
On an ARM 5/1, the average rate fell to 4.15% from 4.16% yesterday. The average rate was 4.20% last week. Today’s rate is currently below the 52-week high of 4.21%.
Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 4.15% will pay $486 per month in principal and interest.
Know when to refinance your home
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.
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 get today’s 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 score
- Consider a shorter term loan
- Reduce your debt to income ratio
- Monitor mortgage rates
A strong credit score isn’t a guarantee that you’ll get your refinance approved or that you’ll get the lowest rate, but it could make your path 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.