October 23, 2024—Rates Rise – Forbes Advisor – Technologist

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

The average rate for refinancing a 30-year fixed mortgage is currently 7.20%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.30%, and for 20-year mortgages, it’s 7.08%.

Related: Compare Current Refinance Rates

Refinance Rates for October 23, 2024

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance increased to 7.20% from yesterday. Last week, the 30-year fixed was 7.08%.

On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 7.22%, higher than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.

At an interest rate of 7.20%, a 30-year fixed mortgage refi would cost $679 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be around $144,461.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.08% compared to 6.90% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.10%. That compares to 6.93% at the same time last week.

At today’s interest rate of 7.08%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $780 per month in principal and interest—not including taxes and fees. That would equal about $87,168 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The average interest rate on the 15-year fixed refinance mortgage increased to 6.30%. Yesterday, it was 6.22%. This same time last week, the 15-year fixed-rate mortgage was at 6.11%.

On a 15-year fixed refinance, the annual percentage rate is 6.33%. Last week it was 6.14%.

With an interest rate of 6.30%, you would pay $860 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $54,837 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.08%. Last week, the average rate was 7.09%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.08% will pay $671 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 remained unchanged at 6.32%. Last week, the average rate was 6.32%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.32% will pay $861 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $412,899 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.

Know When To 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, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).

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?

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 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.

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