Current National Refinance Rates: March 7, 2024—Rates Drop

The rate on a 30-year fixed refinance declined today.

Refinancing rates for a 30-year, fixed-mortgage are averaging 7.42%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.60%, and for 20-year mortgages, the average is 7.27%.

Related: Compare Current Refinance Rates

Refinance Rates for March 7, 2024

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance fell to 7.42% from yesterday. Last week, the 30-year fixed was 7.55%.

The APR, or annual percentage rate, on a 30-year fixed is 7.46%. This time last week, it was 7.56%. APR is the all-in cost of your loan.

At the current interest rate of 7.42%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $693 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be about $149,650.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.27% compared to 7.41% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.27%. That compares to 7.45% at the same time last week.

At today’s interest rate of 7.27%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $792 per month in principal and interest—not including taxes and fees. That would equal about $89,967 in total interest over the life of the loan.

15-Year Refinance Interest Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.60% compared to 6.78% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.60%. That compares to 6.76% at this time last week.

Using the current interest rate of 6.60%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $877 per month in principal and interest—not including taxes and fees. That would equal about $57,820 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.31%. One week ago, the average rate was 7.46%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.31% will pay $686 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 7.14%, on average, compared to the average of 6.98% last week.

At today’s interest rate of 7.14%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,799 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $473,782 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.

The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.

When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.

Know When To Refinance Your Home

You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.

A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. 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 could help you determine if refinancing is right for you.

Is Now a Good Time To Refinance?

Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.

While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.

There are multiple mortgage refinance options to consider and some that let you tap your home equity.

Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.

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 much does it cost to refinance a mortgage?

It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.

How soon can you refinance a mortgage?

Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure.

How do you find the best refinancing lender?

Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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