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The rate on a 30-year fixed refinance slipped today.

Refinancing rates for a 30-year, fixed-mortgage are averaging 7.51%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.65%, and for 20-year mortgages, the average is 7.27%.

Related: Compare Current Refinance Rates

Refinance Rates for July 9, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 7.51%, compared to 7.61% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.53%, compared to 7.63% last week. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.

At the current interest rate of 7.51%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $700 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $152,038.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.27%. That’s compared to the average of 7.41% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.29% compared to 7.43% at this time last week.

At the current interest rate of 7.27%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $791 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $89,952 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.65%. That’s compared to the average of 6.83% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.68% versus 6.86% at this time last week.

At the current interest rate of 6.65%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $879 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $58,277 in total interest over the 15-year life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.36%. Last week, the average rate was 7.51%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.36% will pay $690 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 7.07%. Last week, the average rate was 7.07%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.07% will pay $902 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $468,329 in total interest over the life of the loan.

Are Refinance Rates and Mortgage Rates the Same?

Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.

In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.

Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.

When Refinancing Makes Sense

You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.

A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs by dividing your closing costs by the monthly savings from your new payment.

Our mortgage refinance calculator could help you determine if refinancing is right for you.

Is Now a Good Time To Refinance?

Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.

While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.

There are multiple mortgage refinance options to consider and some that let you tap your home equity.

Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.

How To Qualify for Today’s Best Refinance Rates

Much like when you shopped for a mortgage when purchasing 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
  • Lower your debt-to-income ratio
  • Monitor mortgage rates

A solid credit score isn’t a guarantee that you’ll get your refinance approved or score 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 also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

Frequently Asked Questions (FAQs)

How do you find the best refinancing lender?

You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.

How much does it cost to refinance a mortgage?

Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.

How quickly can you refinance a mortgage?

Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.

Last Update: July 9, 2024