December 21, 2021 — Rate declining – Forbes Advisor

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Now is the right time to lock in a low refinance rate. The average rate on a 30-year fixed mortgage refinance has dropped today, giving homeowners looking to refinance a chance to qualify for historically low rates.

Today, the average rate for a 30-year fixed mortgage refinance is 3.20%, according to Bankrate.com, while the average rate for a 15-year mortgage refinance is 2.46%. On a 20 year mortgage refinance, the average rate is 3.02% and the average rate on a 5/1 ARM is 2.86%.

Related: Compare Current Mortgage Rates

30-year fixed-rate refinancing rate

The average 30-year fixed-rate mortgage refinance rate has fallen to 3.20%. At the same time last week, the 30-year fixed rate was 3.23%. The 52 week low is 2.37%.

The APR on a 30-year fixed rate is 3.29%. Last week it was 3.31%. The APR is the overall cost of your loan.

According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed rate mortgage of $ 100,000 will pay $ 432 per month in principal and interest (excluding taxes and fees) at the current interest rate. by 3.20%. In total interest, you would pay $ 55,688 over the life of the loan.

20-year refinancing rate

The average interest rate on the 20-year fixed refinance mortgage is 3.02%. At the same time last week, the 20-year fixed rate mortgage was at 3.09%.

The APR on a 20-year fixed rate is 3.10%. This time last week it was 3.16%.

A 20 year fixed rate mortgage refinance of $ 100,000 with a current interest rate of 3.02% will cost $ 556 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay approximately $ 33,344 in total interest.

15-year fixed-rate mortgage refinancing rate

The average interest rate on the 15-year fixed refinance mortgage remained at 2.46%. Last week, the 15-year fixed rate mortgage was at 2.49%. Today’s rate is higher than the 52-week low of 2.39%.

On a 15-year fixed refinancing, the APR is 2.61%. Last week it was 2.63%.
At the current interest rate of 2.46%, a 15-year fixed rate mortgage would cost about $ 665 per month in principal and interest per $ 100,000. You would pay approximately $ 19,683 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 3.20%. A week ago, the average rate was 3.22%. 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 3.20% will pay $ 3,244 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 $ 3,244, and you would pay approximately $ 417,661 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 fallen to 2.44%. Last week, the average rate was 2.48%. 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 2.44% will pay $ 664 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 $ 4,980, and you would pay approximately $ 146,357 in total interest over the life of the loan.

5/1 ARM refinancing rate

The average interest rate on a 5/1 ARM is 2.86%, higher than the 52 week low of 2.83%. Last week, the average rate was 4.14%.

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

There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, lower their monthly payments, or pay off their home loan sooner. Refinancing can also help you gain equity in your home or eliminate private mortgage insurance (PMI).

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.

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.


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