November 14, 2024—Rates Drop – Forbes Advisor – Technologist
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The rate on a 30-year fixed refinance slipped today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.35%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.42%, and for 20-year mortgages, it’s 7.25%.
Related: Compare Current Refinance Rates
Refinance Rates for November 14, 2024
Source: Curinos
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.35%, compared to 7.41% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.37%, compared to 7.43% 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 7.35%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $689 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 $148,005.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.25% compared to 7.32% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.28%. That compares to 7.34% at the same time last week.
At today’s interest rate of 7.25%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $790 per month in principal and interest—not including taxes and fees. That would equal about $89,676 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate sits at 6.42%, lower than it was yesterday. Last week, it was 6.41%.
On a 15-year fixed refinance, the annual percentage rate is 6.45%. Last week it was 6.44%.
A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.42% will cost $867 per month in principal and interest. Over the life of the loan, you would pay $55,979 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.28%. One week ago, the average rate was 7.36%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.28% will pay $684 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 is 6.74%. Last week, the average rate was 6.64%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.74% will pay $885 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $444,179 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
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?
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.
Frequently Asked Questions (FAQs)
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.
How quickly can you refinance a mortgage?
You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors—like the type of home loan you choose. Always check with your lender before committing to borrow.
How soon can you refinance a mortgage?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.