August 22, 2024—Rates Inch Down – Forbes Advisor – Technologist

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

The average rate on a 30-year fixed mortgage refinance is 6.99%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.21%. On a 20-year mortgage refinance, the average rate is 6.76%.

Related: Compare Current Refinance Rates

Refinance Rates for August 22, 2024

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 6.99%, compared to 7.10% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.01%, compared to 7.12% 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 6.99%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $664 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 $139,171.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 6.76% compared to 6.79% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.79%. That compares to 6.82% at the same time last week.

At today’s interest rate of 6.76%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $761 per month in principal and interest—not including taxes and fees. That would equal about $82,630 in total interest over the life of the loan.

15-Year Refinance Interest Rates

Today, the 15-year fixed mortgage rate is 6.21%, lower than it was yesterday. Last week, it was 6.20%.

The annual percentage rate on a 15-year fixed is 6.24%. This time last week, it was 6.23%.

At today’s interest rate of 6.21%, a 15-year fixed-rate mortgage would cost approximately $855 per month in principal and interest per $100,000. You would pay around $53,915 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.95%. Last week, the average rate was 7.03%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.95% will pay $662 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 6.57%. Last week, the average rate was 6.86%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.57% will pay $875 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $430,973 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

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.

Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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 Get Today’s Best Refinance Rates

Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing get a good mortgage rate:

• Improve your credit
• Consider a shorter loan term
• Lower your debt-to-income ratio
• Watch mortgage rates

There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other financial institutions are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.

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