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

The current 30-year, fixed-rate mortgage refinance rate is averaging 7.54%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.71%. For 20-year mortgage refinances, the average rate is 7.31%.

Related: Compare Current Refinance Rates

Refinance Rates for July 8, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

The average rate for a 30-year, fixed-rate mortgage refinance is 7.54%, up from 7.49% last week. According to the Forbes Advisor mortgage calculator, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $702 per month for principal and interest at the current interest rate of 7.54%, not including taxes and fees.

Over the life of the loan, the borrower will pay total interest costs of about $152,581. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.56% compared to 7.51% last week. The APR is essentially the all-in cost of the home loan.

20-Year Refinance Interest Rates

The average interest rate on the 20-year fixed refinance mortgage is 7.31%. This same time last week, the 20-year fixed-rate mortgage was at 7.26%.

The APR on a 20-year fixed is 7.34%. Last week, it was 7.28%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.31% will cost $794 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $90,593 in total interest.

15-Year Refinance Interest Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.71% compared to 6.71% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.74%, the same as this time last week.

Using the current interest rate of 6.71%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $883 per month in principal and interest—not including taxes and fees. That would equal about $58,875 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate on a 30-year fixed-rate jumbo mortgage refinance is 7.40%. One week ago, the average rate was 7.43%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.40% will pay $692 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 7.12%, compared to an average of 7.22% last week.

At today’s rate of 7.12%, a borrower would pay $906 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $472,720 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.

You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.

Know When To Refinance Your Home

There are lots of good reasons to  refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).

It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.

Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.

Is Now a Good Time To Refinance?

Refinancing your mortgage can be worth it for reasons that include:

  • Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
  • Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
  • Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
  • Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
  • Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.

Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.

Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.

How To Get 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 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 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 8, 2024