December 31, 2021 – Rates increase – Forbes Advisor
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The rate on a 30-year fixed refinance has climbed today, giving homeowners interested in refinancing a chance to lock in to a historically low rate.
Today, the average rate for a 30-year fixed mortgage refinance is 3.27%, according to Bankrate.com, while the average rate for a 15-year mortgage refinance is 2.50%. On a 20 year mortgage refinance, the average rate is 3.10% and the average rate on a 5/1 ARM is 2.86%.
Related: Compare current mortgage refinancing rates
30-year refinancing rate
The average 30-year fixed-rate mortgage refinance rate climbed to 3.27%. Last week, the 30-year fixed rate was 3.19%. The 52 week low is 2.37%.
On a 30-year fixed rate mortgage, the APR is 3.35%, higher than last week. The APR, or annual percentage rate, includes the interest rate on a loan and the carrying charges on a loan. This is the overall cost of your loan.
At an interest rate of 3.27%, a 30-year fixed mortgage refi would cost $ 436 per month in principal and interest (not including taxes and fees) for $ 100,000, according to the loan calculator. Forbes Mortgage Advisor. The total interest paid over the term of the loan will be approximately $ 57,070.
20-year refi rate
The average interest rate on the 20 year fixed refinance mortgage is 3.10%. At the same time last week, the 20-year fixed rate mortgage was at 3.01%.
The APR on a 20-year fixed rate is 3.18%. Last week it was 3.10%.
A 20-year fixed rate mortgage refinance of $ 100,000 with a current interest rate of 3.10% will cost $ 560 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay approximately $ 34,308 in total interest.
15-year mortgage refinancing rate
The average interest rate on the 15-year fixed refinance mortgage is 2.50%. Last week, the 15-year fixed rate mortgage was at 2.46%. Today’s rate is higher than the 52-week low of 2.39%.
On a 15-year fixed refinancing, the APR is 2.66%. Last week it was 2.61%.
At the current interest rate of 2.50%, a 15-year fixed rate mortgage would cost about $ 667 per month in principal and interest per $ 100,000. You would pay around $ 20,022 in total interest over the life of the loan.
Giant 30-year mortgage refinancing rate
The average interest rate on a 30-year fixed rate jumbo mortgage refinance is 3.27%. A week ago, the average rate was 3.19%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 2.37%.
Borrowers on a 30-year fixed rate jumbo mortgage refinance with a current interest rate of 3.27% will pay $ 3,272 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 $ 3,272 and you would pay approximately $ 428,023 in total interest over the life of the loan.
Jumbo Refi rates over 15 years
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance has increased to 2.50%. Last week, the average rate was 2.44%. 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 2.50% 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 $ 5,001, and you would pay approximately $ 150,165 in total interest over the life of the loan.
5/1 ARM interest rate
On a 5/1 ARM, the average rate remained at 2.86%. The average rate was 2.86% 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 refinancing makes sense
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.
A home loan refinance can make sense, especially if you plan to stay in your home for a while. Even if you get a lower interest rate, you have to factor in the costs of the loan. 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 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.