October 12, 2022 – Current Refinance Rates Are Rising – Forbes Advisor

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The rate for a 30-year fixed refinance rose slightly today.

The average rate on a 30-year fixed mortgage refinance is 7.15%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 6.35%. On a 20-year mortgage refinance, the average rate is 7.06% and the average rate on a 5/1 ARM is 5.31%.

Related: Compare current refinance rates

Refinancing rate on October 12, 2022

30-year fixed rate refinancing rate

Today, the average 30-year fixed rate mortgage refinance rate rose to 7.15% from yesterday. Last week, the 30-year fixed was 6.87%. The 52-week low is 5.26%.

The 30-year fixed mortgage refi (annual percentage rate) is 7.16%. At the same time last week, it was 6.89%. The APR is the overall cost of your loan.

At the current interest rate of 7.15%, homebuyers with a $100,000 30-year fixed rate refinance mortgage will pay $675 per month in principal and interest (taxes and fees not included), according to the Forbes Advisor Mortgage Calculator. You would pay approximately $143,146 in total interest over the life of the loan.

20-year refi rate

The average interest rate on the 20-year fixed refinance mortgage is 7.06%. A week ago, the 20-year fixed rate mortgage was at 6.85%.

The APR on a 20-year fixed is 7.08%. Last week it was 6.86%.

A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 7.06% will cost $779 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $86,937 in total interest.

15-year refinancing rate

The average interest rate on the 15-year fixed refinance mortgage increased slightly to 6.35%. Yesterday it was 6.26%. A week ago, the 15-year fixed rate mortgage was at 6.03%. Today’s rate is above the 52-week low of 4.57%.

The annual percentage rate of charge on a 15-year fixed term is 6.38%. This time last week it was 6.06%.

At the current interest rate of 6.35%, a 15-year fixed rate mortgage would cost approximately $863 per month in principal and interest per $100,000. You would pay approximately $55,319 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 7.20%. A week ago, the average rate was 6.86%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.20%.

Borrowers with a 30-year fixed rate jumbo mortgage refinance with a current interest rate of 7.20% will pay $679 per month in principal and interest per $100,000.

15-Year Jumbo Mortgage Refinance Rate

The average interest rate on the 15-year fixed rate jumbo mortgage refinance climbed to 6.42%. Last week, the average rate was 5.98%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 4.51%.

Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 6.42% will pay $867 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 $6,500, and you would pay approximately $420,066 in total interest over the life of the loan.

5/1 Adjustable Rate Mortgage Refinance Rate

The average interest rate on a 5/1 ARM is 5.31%, higher than the 52-week low of 2.83%. Last week, the average rate was 6.86%.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 5.31% will pay $556 per month in principal and interest.

When should you refinance your home

There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, lower their monthly payments, or pay off their home loan sooner. Refinancing can also help you access equity in your home or eliminate private mortgage insurance (PMI).

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 get today’s 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 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.

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