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30-year fixed refinance rates fell today.
According to Curinos, current refinance rates for a 30-year fixed-rate mortgage average 7.54%, while refinance rates for a 15-year fixed-rate mortgage average 6.71%. Refinance rates for a 20-year mortgage average 7.31%.
Related: Compare current refinance rates
Refinance rate for July 8, 2024
Source: Curinos
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30-year fixed refinance rate
The average interest rate for refinancing a 30-year fixed-rate mortgage is 7.54%, up from 7.49% last week. A borrower for a $100,000, 30-year fixed-rate mortgage with a current interest rate of 7.54% would pay $702 per month in principal and interest, excluding taxes and fees, according to Forbes Advisor's mortgage calculator.
Over the life of the loan, the borrower will pay a total of about $152,581 in interest. Another way to look at interest rates is the annual percentage rate (APR). For a 30-year fixed-rate mortgage, the APR is 7.56%, compared to 7.51% last week. The APR is basically the total amount of the mortgage.
20-year refinance rate
The average interest rate on a 20-year fixed refinance mortgage is 7.31%. The average interest rate on a 20-year fixed mortgage for the same period last week was 7.26%.
The 20-year fixed rate annual interest rate is 7.34%. Last week it was 7.28%.
Refinancing a $100,000 20-year fixed-rate mortgage at the current interest rate of 7.31% would cost you $794 per month in principal and interest, not including taxes and fees. Over the life of the loan, you'd pay a total of about $90,593 in interest.
15-year refinance rate
The average interest rate on a 15-year fixed refinance mortgage is currently 6.71%, down from 6.71% at the same time last week.
The APR (annual percentage rate) on the 15-year fixed mortgage was 6.74%, up from 6.74% at the same time last week.
Using the current interest rate of 6.71%, refinancing a $100,000 15-year fixed-rate mortgage would cost $883 per month in principal and interest, excluding taxes and fees, which is the total interest paid over the life of the loan.
30-year jumbo refinancing interest rate
The average interest rate on a 30-year fixed-rate jumbo mortgage refinance is 7.40%. A week ago the average rate was 7.43%.
Refinancing a 30-year fixed-rate jumbo mortgage with a current interest rate of 7.40% would result in a borrower paying $692 in principal and interest per month per $100,000.
15-year jumbo refinancing interest rate
The average interest rate for a 15-year fixed-rate jumbo mortgage refinance is 7.12%, down from last week's average rate of 7.22%.
At current interest rates of 7.12%, a 15-year fixed-rate jumbo refinance would result in a borrower paying $906 in principal and interest per month per $100,000. Over the life of the loan, the borrower would pay a total of approximately $472,720 in interest.
Are refinance rates the same as mortgage rates?
Mortgage lenders charge different interest rates for purchase and refinance loans, and current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate loan than a purchase loan.
A no-closing-cost refinance loan can help you lower your interest rate by paying closing costs upfront rather than rolling them into the loan. Purchasing discount points can also help you avoid mortgage insurance.
Know when to refinance your mortgage
There are many reasons to refinance your mortgage, but for most homeowners, it leads to a lower interest rate, a lower monthly payment, or paying off your loan faster. Refinancing can also allow you to tap into some of your home's equity and eliminate private mortgage insurance (PMI).
It's important to keep in mind that refinancing comes with costs, which is why it makes more sense if you plan to stay in your home for a while. It's helpful to calculate your “break-even point” on potentially refinancing to see how long it would take before the savings of your new mortgage exceed your closing costs. Find out what those fees will be and divide it by the monthly savings of your new mortgage.
Check out our mortgage refinance calculator to help you decide if it's the right time to refinance your mortgage.
Is now a good time to refinance?
Refinancing your mortgage may be worthwhile for the following reasons:
Reduce your monthly payment. You may be able to reduce your monthly payment by extending your repayment term or qualifying for a better interest rate. Lower your interest rate. Switching a 30-year mortgage to a shorter term, such as 15 or 20 years, can get you a better interest rate and lower your total payment. Eliminate annual servicing fees. FHA and USDA loans may charge annual fees for the life of the loan. If you have at least 20% equity, switching to a traditional mortgage refinance can help you avoid mortgage insurance and guarantee fees. Switch to a fixed rate. You can also refinance your adjustable rate mortgage to a fixed rate to avoid increases in your monthly payments and total borrowing costs due to future interest rate increases. Borrow from your home equity. A cash-out refinance allows you to leverage your home equity to consolidate high-interest debt and pay personal expenses. Mortgage refinancing rates can be lower than unsecured personal loans.
Lenders offer multiple mortgage refinance options so you can quickly compare potential interest rates and monthly payments. Refinancing also gives you more flexibility with your repayments.
If you can't reduce your monthly payments, or if the potential benefits of a new rate and term are offset by closing costs, now isn't the right time to refinance.
How to get the best refinance rates today
Just like when searching for a mortgage to buy a home, here's how to find the lowest refinance rate when refinancing.
Maintain a good credit score Consider short-term loans Lower your debt-to-income ratio Monitor your mortgage interest rates
While a high credit score doesn't guarantee that you'll be approved for a refinance or get the lowest interest rate, it may make your refinance journey easier. Lenders are also more likely to approve you for a refinance if your monthly debt isn't too high. You should also be aware of mortgage interest rates for different loan terms. Interest rates change often, and loans that require you to pay off quickly tend to have lower interest rates.
Frequently Asked Questions (FAQ)
How much does it cost to refinance a mortgage?
Refinancing fees can range from 2% to 6% of the loan cost, so it's a good idea to ask your lender what fees you'll be charged before you commit to borrowing.
How much does it cost to refinance a mortgage?
Refinancing fees can range from 2% to 6% of the loan cost, so it's a good idea to ask your lender what fees you'll be charged before you commit to borrowing.
How quickly can you refinance your mortgage?
Most lenders will refinance your mortgage in about 45 to 60 days, but this will vary depending on the type of mortgage you choose and other factors. Ask your lender what the refinance period is before you commit to it to make sure it's right for you.