July 12, 2024—Rates Decrease – Forbes Advisor – Technologist

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

Refinancing rates for a 30-year, fixed-mortgage are averaging 7.41%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.57%, and for 20-year mortgages, the average is 7.09%.

Related: Compare Current Refinance Rates

Refinance Rates for July 12, 2024

30-Year Fixed Refinance Interest Rates

The average rate for the 30-year fixed-rate mortgage refinance decreased to 7.41% from yesterday. One week ago, the 30-year fixed was 7.54%.

The 30-year fixed mortgage refi APR (annual percentage rate) is 7.43%. At this time last week, it was 7.56%. APR is the all-in cost of your loan.

At an interest rate of 7.41%, a 30-year fixed mortgage refi would cost $693 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $149,453 over the life of the loan.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.09%. That’s compared to the average of 7.37% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.12% compared to 7.40% at this time last week.

At the current interest rate of 7.09%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $781 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $87,428 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.57%. That’s compared to the average of 6.79% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.60% versus 6.82% at this time last week.

At the current interest rate of 6.57%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $875 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $57,473 in total interest over the 15-year life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.29%. One week ago, the average rate was 7.45%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.29% will pay $685 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 7.09%. Last week, the average rate was 7.06%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.09% will pay $904 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $469,994 in total interest over the life of the loan.

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?

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 Get Today’s Best Refinance Rates

Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:

• Maintain a good credit score
• Consider a shorter-term loan
• Lower your debt-to-income ratio
• Monitor mortgage rates

A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

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