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Refinance rates for 30-year fixed loans dropped today.
According to Curinos, the average refinance rate for a 30-year fixed mortgage is 7.41%. For a 15-year fixed mortgage, the average refinance rate is 6.57% and for a 20-year mortgage, it's 7.09%.
Related: Compare current refinance rates
Refinance rate for July 12, 2024
Source: Curinos
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30-year fixed refinance rate
The average interest rate for refinancing a 30-year fixed rate mortgage has dropped since yesterday to 7.41%. A week ago, the 30-year fixed rate was 7.54%.
The refinance APR (annual percentage rate) on a 30-year fixed mortgage is 7.43%, up from 7.56% at the same time last week. The APR is the total amount of the loan.
According to Forbes Advisor's mortgage calculator, at an interest rate of 7.41%, refinancing a 30-year fixed mortgage would cost $693 per month per $100,000 in combined principal and interest (not counting taxes and fees). In total, you'll pay $149,453 in interest over the life of the loan.
20-year refinance rate
Refinance rates on 20-year fixed mortgages currently average about 7.09%. This compares to an average of 7.37% at the same time last week.
The APR (annual percentage rate) on a 20-year fixed mortgage is 7.12%, compared to 7.40% at the same time last week.
With current interest rates at 7.09%, refinancing a $100,000 20-year fixed-rate mortgage would result in monthly payments of $781 in principal and interest. This does not include taxes and fees. The borrower would pay a total of approximately $87,428 in interest over the life of the loan.
15-year refinance rate
Refinance rates on 15-year fixed mortgages currently average about 6.57%. This compares to an average of 6.79% at the same time last week.
The APR (annual percentage rate) on the 15-year fixed mortgage is 6.60%, compared to 6.82% for the same period last week.
With current interest rates at 6.57%, a borrower refinancing a $100,000 15-year fixed rate mortgage would pay $875 per month in principal and interest, not including taxes and fees. This borrower would pay a total of approximately $57,473 in interest over the 15-year life of the loan.
30-year jumbo refinancing interest rate
The average interest rate for a 30-year fixed-rate jumbo mortgage refinance is 7.29%. A week ago the average rate was 7.45%.
Refinancing a 30-year fixed-rate jumbo mortgage with a current interest rate of 7.29% would result in a borrower paying $685 in principal and interest per month per $100,000.
15-year jumbo refinancing interest rate
The average interest rate for 15-year fixed-rate jumbo mortgage refinances remained unchanged at 7.09%, down from last week's average rate of 7.06%.
A borrower refinancing a 15-year fixed rate jumbo mortgage with a current interest rate of 7.09% would pay $904 in principal and interest per $100,000 per month, meaning that for a $750,000 loan, the total interest paid over the life of the loan would be about $469,994.
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 compared to 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.
When to refinance your mortgage
Refinancing your mortgage is a smart choice for a variety of reasons, including lowering your interest rate and monthly payments, and it can also help you pay off your mortgage faster, take advantage of the equity in your home, and eliminate private mortgage insurance (PMI).
But refinancing comes with costs, so if you plan to keep your home for a while, it might be wise to refinance. You can determine your “break-even point” for refinancing — how long it will take for the savings of your new mortgage to exceed your costs. Find out what your costs will be and divide it by the monthly savings you'll realize with your new mortgage.
Forbes Advisor's mortgage refinance calculator can help you do the math and determine if it's the right time to refinance.
Is now a good time to refinance?
If you need more affordable monthly payments, want to stop paying annual fees on an FHA or USDA loan, or prefer a fixed interest rate, consider refinancing your mortgage. You can also consider a cash-out refinance, where you borrow from your home's equity.
However, with refinance rates up several percentage points from short-term lows in late 2021, it may be harder to replace your existing interest rate with a lower rate unless you refinance to a 15-year mortgage. As a result, extending your loan term is one way to reduce your payments, but it could increase your total interest payments.
The application process is similar to buying a home, plus home appraisal fees and closing costs of 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.
How to get the best refinance rates today
Just like when searching for a mortgage when buying 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
Although 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 do you find the best refinance lender?
Our guide to the best lenders for refinancing your mortgage is a good starting point, but be sure to compare multiple lenders and get multiple quotes. It's always a good idea to find out what closing costs your lender charges and make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so having the ability to rely on your lender is crucial.
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.
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.