September 12, 2024—Rates Decline – Forbes Advisor – Technologist

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

Refinancing rates for a 30-year, fixed-mortgage are averaging 6.81%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 5.82%, and for 20-year mortgages, the average is 6.55%.

Related: Compare Current Refinance Rates

Refinance Rates for September 12, 2024

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 6.81%, compared to 6.97% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.83%, compared to 6.99% 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 6.81%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $652 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 $134,837.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 6.55%. That’s compared to the average of 6.67% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.58% compared to 6.70% at this time last week.

At the current interest rate of 6.55%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $749 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $79,687 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 slipped to 5.82%. Yesterday, it was 5.87%. One week ago, the 15-year fixed-rate mortgage was at 6.02%.

On a 15-year fixed refinance, the annual percentage rate is 5.85%. Last week it was 6.05%.

At today’s interest rate of 5.82%, a 15-year fixed-rate mortgage would cost approximately $834 per month in principal and interest per $100,000. You would pay around $50,149 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 6.73%. One week ago, the average rate was 6.95%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.73% will pay $647 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.56%, on average, compared to the average of 6.63% last week.

At today’s interest rate of 6.56%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,560 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $430,750 in total interest.

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

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?

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

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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