December 10, 2021 – Refinancing rates stay the same – Forbes Advisor
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If you’re looking to save money by refinancing your home loan, now is a good time to lock in on a low rate. Refinancing rates are unchanged today, keeping rates at historically low levels.
Today, the average rate for a 30-year fixed mortgage refinance is 3.25%, according to Bankrate.com, while the average rate for a 15-year mortgage refinance is 2.51%. On a 20 year mortgage refinance, the average rate is 3.13% and the average rate on a 5/1 ARM is 2.86%.
Related: Compare Current Mortgage Rates
30-year refinancing rate
The average 30-year fixed-rate mortgage refinancing rate remained at 3.25%. A week ago, the 30-year fixed rate was 3.23%. The 52 week high is 3.25%.
The APR refi for the 30-year fixed mortgage is 3.33%. At the same date last week, it was 3.31%. The APR is the overall cost of your loan.
At the current 3.25% interest rate, borrowers with a 30-year fixed-rate mortgage refinance of $ 100,000 will pay $ 435 per month in principal and interest (taxes and fees not included), says loan calculator Forbes Mortgage Advisor. You would pay approximately $ 56,674 in total interest over the life of the loan.
20-year fixed-rate refinancing rate
The average interest rate on the 20-year fixed refinance mortgage is 3.13%. Last week, the 20-year fixed rate mortgage was at 3.10%.
The APR on a 20-year fixed rate is 3.20%. This time last week it was 3.17%.
A 20 year fixed rate mortgage refinance of $ 100,000 with a current interest rate of 3.13% will cost $ 561 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay approximately $ 34,671 in total interest.
Fixed refinancing rates over 15 years
Today, the 15-year fixed mortgage rate sits at 2.51%, lower than it was a day ago. Last week it was 2.51%. Today’s rate is above the 52-week low of 2.39%.
The APR on a 15-year fixed rate is 2.66%. This time last week it was 2.66%.
With an interest rate of 2.51%, you would pay $ 667 per month in principal and interest for every $ 100,000 borrowed. Over the life of the loan, you would pay $ 20,107 in total interest.
Giant refinancing rate over 30 years
The average interest rate on a 30 year fixed rate jumbo mortgage refinance is 3.29%. A week ago, the average rate was 3.26%. The 30-year fixed rate on a jumbo mortgage is lower than the 52-week low of 3.09%.
Borrowers with a 30-year fixed rate jumbo mortgage refinance with a current interest rate of 3.29% will pay $ 3,281 per month in principal and interest per $ 100,000. This means that on a $ 750,000 loan, the monthly principal and interest payment would be approximately $ 3,281 and you would pay approximately $ 430,993 in total interest over the life of the loan.
Giant refinancing rate over 15 years
The average interest rate on a 15 year fixed rate jumbo mortgage refinance is 2.51%. Last week the average rate was 2.52%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 2.37%.
Borrowers on a 15-year fixed-rate jumbo mortgage refinance with a current interest rate of 2.51% will pay $ 667 per month in principal and interest per $ 100,000. This means that on a $ 750,000 loan, the monthly principal and interest payment would be approximately $ 5,004, and you would pay approximately $ 150,801 in total interest over the life of the loan.
Variable rate mortgage refinancing rate 5/1
On a 5/1 ARM, the average rate remained at 2.86%. The average rate was 2.85% last week. Today’s rate is currently the 52 week high.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.86% will pay $ 414 per month in principal and interest.
When should you refinance your home
You may want to refinance your mortgage for a variety of reasons: to lower your interest rate, lower your monthly payments, or pay off your loan sooner. You can also use a refinance loan to access equity in your home for other financial needs, like a home improvement project or to pay for your child’s college. If you have purchased private mortgage insurance (PMI), refinancing may also give you the option of waiving that cost.
Refinancing your mortgage can make sense if you plan to stay in your home for several years. There is, after all, a cost of refinancing that will take some time to recover. You will need to know the loan closing costs to calculate the breakeven point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.
Our mortgage refinance calculator can help you determine if refinancing is right for you.
How To Qualify For The Best Refinance Rates
Just like when shopping for a mortgage when buying your home, here’s how you can find the lowest refinance rate when you refinance:
- Maintain a good credit rating
- Consider a shorter term loan
- Reduce your debt ratio
- Monitor mortgage rates
A strong credit rating doesn’t guarantee that your refinance will be approved or that you’ll get the lowest rate, but it might make it easier for you. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You should also keep an eye on the mortgage rates for the different loan terms. They fluctuate frequently, and loans that need to be repaid sooner tend to charge lower interest rates.