December 6, 2024—Rates Dip – Forbes Advisor – Technologist

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

The current 30-year, fixed-rate mortgage refinance rate is averaging 7.18%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.24%. For 20-year mortgage refinances, the average rate is 7.00%.

Related: Compare Current Refinance Rates

Refinance Rates for December 6, 2024

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance fell to 7.18% from yesterday. Last week, the 30-year fixed was 7.22%.

On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 7.20%, lower than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.

At today’s interest rate of 7.18%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $677 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be about $143,779.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.00% compared to 7.18% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.03%. That compares to 7.21% at the same time last week.

At today’s interest rate of 7.00%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $775 per month in principal and interest—not including taxes and fees. That would equal about $86,101 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 6.24%. Yesterday, it was 6.28%. One week ago, the 15-year fixed-rate mortgage was at 6.33%.

On a 15-year fixed refinance, the annual percentage rate is 6.27%. Last week it was 6.36%.

With an interest rate of 6.24%, you would pay $857 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $54,267 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.06%. Last week, the average rate was 7.21%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.06% will pay $669 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.89%, compared to an average of 6.83% last week.

At today’s rate of 6.89%, a borrower would pay $893 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $455,206 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

There are lots of good reasons to  refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).

It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.

Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.

Is Now a Good Time To Refinance?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

How To Qualify for 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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