March 22, 2024—Rates Drop – Forbes Advisor – Technologist

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

The average rate on a 30-year fixed mortgage refinance is 7.38%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.59%. On a 20-year mortgage refinance, the average rate is 7.25%.

Related: Compare Current Refinance Rates

Refinance Rates for March 22, 2024

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance decreased to 7.38% from yesterday. Last week, the 30-year fixed was 7.44%.

The APR, or annual percentage rate, on a 30-year fixed is 7.43%. This time last week, it was 7.50%. APR is the all-in cost of your loan.

At the current interest rate of 7.38%, a 30-year fixed mortgage refi would cost $691 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 approximately $148,839.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.25%. That’s compared to the average of 7.25% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.28% compared to 7.26% at this time last week.

At the current interest rate of 7.25%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $790 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $89,690 in total interest over the life of the loan.

15-Year Refinance Interest Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.59% compared to 6.69% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.59%. That compares to 6.68% at this time last week.

Using the current interest rate of 6.59%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $876 per month in principal and interest—not including taxes and fees. That would equal about $57,701 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 7.39%. One week ago, the average rate was 7.38%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.39% will pay $692 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 7.15%.

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 $470,145 in total interest over the life of the loan.

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.

When Refinancing Makes Sense

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 ofprivate 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 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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