May 10, 2024—Rates Inch Up – Forbes Advisor – Technologist

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

The average rate for refinancing a 30-year fixed mortgage is currently 7.69%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.83%, and for 20-year mortgages, it’s 7.46%.

Related: Compare Current Refinance Rates

Refinance Rates for May 10, 2024

30-Year Fixed Refinance Interest Rates

Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.69%. That’s compared to 7.80% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $712 per month for principal and interest at the current interest rate of 7.69%, according to the Forbes Advisor mortgage calculator, not including taxes and fees.

Over the life of the loan, the borrower will pay total interest costs of about $156,467. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.71% compared to 7.82% last week. The APR is essentially the all-in cost of the home loan.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.46% compared to 7.60% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.49%. That compares to 7.63% at the same time last week.

At today’s interest rate of 7.46%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $803 per month in principal and interest—not including taxes and fees. That would equal about $92,785 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 6.83% compared to 6.90% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.86%. That compares to 6.94% at this time last week.

Using the current interest rate of 6.83%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $889 per month in principal and interest—not including taxes and fees. That would equal about $60,103 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 7.51%. One week ago, the average rate was 7.75%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.51% will pay $700 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 7.41%, on average, compared to the average of 7.45% last week.

At today’s interest rate of 7.41%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,912 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $494,190 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.

In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.

Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.

Know When To Refinance Your Home

You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.

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?

Refinancing your mortgage can be worth it for reasons that include:

• Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
• Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
• Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
• Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
• Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.

Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.

Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.

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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