Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.
If you’re looking to save money by refinancing your home loan, now is a good time to lock in low rates. Refinance rates rose today, but overall rates are at historic lows.
To date, the average rate on a 30-year fixed mortgage is 4.88% with an APR of 4.90%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.12% with an APR of 4.15%. The 20-year refinancing rate is 4.71%. The average rate on a 5/1 ARM is 3.18% with an APR of 4.25%.
Related: Compare current refinance rates
30-year fixed refinancing interest rate
The average 30-year fixed rate mortgage refinance rate increased slightly to 4.88%. This time last week, the 30-year fixed rate was 4.55%. The 52-week high is 4.88%.
The APR on a 30-year fixed is 4.90%. Last week it was 4.56%. The APR is the overall cost of your loan.
At the current interest rate of 4.88%, borrowers with a $100,000 30-year fixed rate refinance mortgage will pay $530 per month in principal and interest (taxes and fees not included), according to the calculator. Mortgage Advisor Forbes. In total interest, you would pay $90,624 over the life of the loan.
20-year refi rate
The average interest rate on the 20-year fixed refinance mortgage is 4.71%. A week ago, the 20-year fixed rate mortgage was at 4.44%.
The APR on a 20-year fixed is 4.74%. Last week it was 4.46%.
A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 4.71% will cost $644 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $54,570 in total interest.
15-Year Fixed Rate Mortgage Refinance Rate
The average interest rate on the 15-year fixed refinance mortgage remained at 4.12%. Last week, the 15-year fixed rate mortgage was at 3.80%. Today’s rate is above the 52-week low of 2.76%.
On a 15-year fixed refinance, the APR is 4.15%. Last week it was 3.83%.
With an interest rate of 4.12%, you would pay $746 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $34,229 in total interest.
30-Year Jumbo Mortgage Refinance Rate
The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 4.94%. A week ago, the average rate was 4.58%. The 30-year fixed rate on a jumbo mortgage is above the 52-week low of 3.52%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with a current interest rate of 4.94% will pay $3,999 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 $3,999, and you would pay approximately $689,534 in total interest over the life of the loan.
15-Year Jumbo Mortgage Refinance Rate
The average interest rate on the 15-year fixed rate jumbo mortgage refinance climbed to 4.22%. Last week, the average rate was 3.84%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 2.78%.
Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 4.22% will pay $751 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 $5,631 and you would pay approximately $263,527 in total interest over the life of the loan.
5/1 Adjustable Rate Mortgage Refinance Rate
The average interest rate on a 5/1 ARM is 3.18%, higher than the 52-week low of 2.83%. Last week, the average rate was 4.06%.
Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 3.18% will pay $431 per month in principal and interest.
When should you refinance your home
You might want to refinance your mortgage for a variety of reasons: to lower your interest rate, reduce your monthly payment, or pay off your loan sooner. You can also use a refinance loan to access equity in your home for other financial needs, such as a renovation project or to pay for your child’s college education. If you paid for private mortgage insurance (PMI), refinancing may also give you the option to waive that cost.
A home loan refinance can be a good idea, especially if you plan to stay in your home for a while. Even if you get a lower interest rate, you have to consider the cost of the loan. Calculate the break-even point where your savings from a lower interest rate exceeds your closing costs 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 get the best refinance rates
Just like when shopping for a mortgage when buying 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
- Reduce your debt to income ratio
- Monitor mortgage rates
A strong credit rating doesn’t guarantee your refinance will be approved or that you’ll get the lowest rate, but it might make your way easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You should also keep an eye on mortgage rates for different loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.
