The rate on a 30-year fixed refinance decreased today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.55%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.73%, and for 20-year mortgages, it’s 7.31%.
Related: Compare Current Refinance Rates
Refinance Rates for December 6, 2023
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.55%. That’s compared to 7.81% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $703 per month for principal and interest at the current interest rate of 7.55%, 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 $152,926. 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 7.60% compared to 7.89% last week. The APR is essentially the all-in cost of the home loan.
20-Year Fixed-Rate Mortgage Refinance Rates
The 20-year fixed mortgage refinance is currently averaging about 7.31%. That’s compared to the average of 7.61% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.34% compared to 7.67% at this time last week.
At the current interest rate of 7.31%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $794 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $90,549 in total interest over the life of the loan.
15-Year Fixed Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 6.73% compared to 7.00% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.71%. That compares to 6.99% at this time last week.
Using the current interest rate of 6.73%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $884 per month in principal and interest—not including taxes and fees. That would equal about $59,114 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.57%. Last week, the average rate was 7.80%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.57% will pay $704 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Rates
A 15-year, fixed-rate jumbo mortgage refinance is 7.20%, on average, compared to the average of 7.41% last week.
At today’s interest rate of 7.20%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,825 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $478,563 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.
In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.
Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.
When Refinancing Makes Sense
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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 Qualify for Today’s Best Refinance Rates
Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing get a good mortgage rate:
- Improve your credit
- Consider a shorter loan term
- Lower your debt-to-income ratio
- Watch mortgage rates
There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other financial institutions are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.
Frequently Asked Questions (FAQs)
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.
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?
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.
More From Advisor
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