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The rate on a 30-year fixed refinance inched up today.

The average rate on a 30-year fixed mortgage refinance is 7.54%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.73%. On a 20-year mortgage refinance, the average rate is 7.30%.

Related: Compare Current Refinance Rates

Refinance Rates for July 10, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 7.54%, compared to 7.61% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.56%, 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 7.54%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $702 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 $152,630.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.30%. That’s compared to the average of 7.42% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.33% compared to 7.44% at this time last week.

At the current interest rate of 7.30%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $793 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $90,418 in total interest over the life of the loan.

15-Year Refinance Interest Rates

Today, the 15-year fixed mortgage rate sits at 6.73%, higher than it was at this time yesterday. Last week, it was 6.84%.

On a 15-year fixed refinance, the annual percentage rate is 6.76%. Last week it was 6.87%.

A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.73% will cost $884 per month in principal and interest. Over the life of the loan, you would pay $59,034 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.38%. One week ago, the average rate was 7.50%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.38% will pay $691 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 7.09%. Last week, the average rate was 7.02%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.09% will pay $904 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $469,843 in total interest over the life of the loan.

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.

When You Should Refinance Your Home

Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).

But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.

The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.

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

Refinancing a mortgage isn’t that different than taking out a mortgage in the first place, and it’s always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:

  • Polish up your credit score
  • Lower your debt-to-income ratio
  • Keep an eye on mortgage rates
  • Consider a shorter loan

Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You’re also likely to look better to lenders if you don’t have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates.

Frequently Asked Questions (FAQs)

How soon can you refinance a mortgage?

Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure.

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?

It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.

Last Update: July 10, 2024