October 7, 2022—Increase in Current Refinance Rates – 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 6.99%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 6.13%. On a 20-year mortgage refinance, the average rate is 6.97% and the average rate on a 5/1 ARM is 5.31%.
Related: Compare current refinance rates
Refinancing rate on October 7, 2022
30-year refinancing rate
Today, the average 30-year fixed rate mortgage refinance rate rose to 6.99% from yesterday. At the same time last week, the 30-year fixed rate was 6.95%. Today’s rate is below the 52-week high of 7.11%.
The 30-year fixed mortgage refi (annual percentage rate) is 7.01%. At the same time last week, it was 6.96%. The APR is the overall cost of your loan.
At the current interest rate of 6.99%, a 30-year fixed mortgage would cost $665 per month in principal and interest (excluding taxes and fees) on $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the term of the loan will be approximately $139,267.
20-year fixed rate refinancing rate
The average interest rate on the 20-year fixed refinance mortgage is 6.97%. A week ago, the 20-year fixed rate mortgage was at 6.98%.
The APR on a 20-year fixed is 6.99%. Last week it was 7.00%.
A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 6.97% will cost $774 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $85,640 in total interest.
15-year refinancing rate
Today, the 15-year fixed mortgage rate is 6.13%, higher than it was at the same time yesterday. Last week it was 6.14%. 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 6.17%. This time last week it was 6.17%.
At the current interest rate of 6.13%, a 15-year fixed rate mortgage would cost approximately $851 per month in principal and interest per $100,000. You would pay approximately $53,161 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 7.01%. Last week, the average rate was 6.94%. 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 7.01% will pay $666 per month in principal and interest per $100,000.
Jumbo refinance rate over 15 years
The average interest rate on the 15-year fixed rate jumbo mortgage refinance increased to 6.11%. Last week, the average rate was 6.12%. 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 6.11% will pay $850 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 $6,374, and you would pay approximately $397,245 in total interest over the life of the loan.
5/1 ARM interest rate
On an ARM 5/1, the average rate fell slightly to 5.31% from 5.32% yesterday. The average rate was 5.11% last week. Today’s rate is currently below the 52-week high of 5.32%.
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.
Know when to 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).
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.