August 30, 2024—Rates Climb – Forbes Advisor – Technologist

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

The average rate for refinancing a 30-year fixed mortgage is currently 6.95%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.06%, and for 20-year mortgages, it’s 6.73%.

Related: Compare Current Refinance Rates

Refinance Rates for August 30, 2024

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 6.95%, compared to 7.02% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.97%, compared to 7.04% 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 6.95%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $662 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 $138,253.

20-Year Refinance Interest Rates

The average interest rate on the 20-year fixed refinance mortgage is 6.73%. Last week, the 20-year fixed-rate mortgage was at 6.79%.

The APR on a 20-year fixed is 6.75%. This time last week, it was 6.82%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.73% will cost $759 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $82,131 in total interest.

15-Year Refinance Interest Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.06% compared to 6.22% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.09%. That compares to 6.26% at this time last week.

Using the current interest rate of 6.06%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $847 per month in principal and interest—not including taxes and fees. That would equal about $52,488 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 6.92%. Last week, the average rate was 7.01%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.92% will pay $660 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.70%, on average, compared to the average of 6.59% last week.

At today’s interest rate of 6.70%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,617 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $440,963 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.

The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.

When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.

Know When To 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?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

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.

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