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Mortgage refinance rates stayed flat today.
The average rate for refinancing a 30-year fixed mortgage is currently 6.56%, according to Bankrate. For refinancing a 15-year mortgage, the average rate is 5.76%, and for 20-year mortgages, it’s 6.44%. For 5/1 adjustable-rate mortgages, the average rate is 5.30%.
Related: Compare Current Refinance Rates
Refinance Rates for January 30, 2023
30-Year Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.56%. That’s compared to 6.66% from last week. Borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,908 per month for principal and interest at the current interest rate of 6.56%, according to the Forbes Advisor mortgage calculator, not including taxes and fees.
Over the life of the loan, the borrower will pay total interest costs of about $386,901. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.57% compared to 6.67% last week. The APR is essentially the all-in cost of the home loan.
20-Year Fixed-Rate Mortgage Refinance Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.44% compared to 6.57% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.45%. That compares to 6.58% at the same time last week.
At today’s interest rate of 6.44%, a 20-year, fixed-rate mortgage refinance of $300,000 would cost $2,226 per month in principal and interest—not including taxes and fees. That would equal about $234,272 in total interest over the life of the loan.
15-Year Fixed Refinance Rate
Today, the 15-year fixed mortgage rate is 5.76%, higher than it was one day ago. Last week, it was 5.75%.
The annual percentage rate on a 15-year fixed is 5.79%. This time last week, it was 5.77%.
A 15-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 5.76% will cost $2,493 per month in principal and interest. Over the life of the loan, you would pay $148,711 in total interest.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.60%. Last week, the average rate was 6.69%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.60% will pay $4,790 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance climbed to 5.84%. Last week, the average rate was 5.79%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 5.84% will pay $6,264 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $377,570 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Refinance Rates
On a 5/1 ARM, the average rate inched up to 5.30% from 5.29% yesterday. The average rate was 5.22% last week. Today’s rate is currently lower than the 52-week high of 5.45%.
Borrowers with a 5/1 ARM of $300,000 with today’s interest rate of 5.30% will pay $1,666 per month in principal and interest.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 5.80% compared to 5.96% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.30%.
When You Should Refinance Your Home
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
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.
Frequently Asked Questions (FAQs)
How Quickly Can You Refinance a Mortgage?
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.
How Much Does it Cost to Refinance a Mortgage?
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.
How Do You Find the Best Refinancing Lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
Source: news.google.com