March 29, 2024—Rates Jump Up – Forbes Advisor – Technologist

The rate on a 30-year fixed refinance inched up today.

The average rate for refinancing a 30-year fixed mortgage is currently 7.37%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.52%, and for 20-year mortgages, it’s 7.20%.

Related: Compare Current Refinance Rates

Refinance Rates for March 22, 2024

30-Year Fixed Refinance Interest Rates

Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.37%. That’s compared to 7.38% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $690 per month for principal and interest at the current interest rate of 7.37%, 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 $148,447. 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 7.42% compared to 7.43% last week. The APR is essentially the all-in cost of the home loan.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.20% compared to 7.25% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.24%. That compares to 7.28% at the same time last week.

At today’s interest rate of 7.20%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $788 per month in principal and interest—not including taxes and fees. That would equal about $89,007 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.52%. That’s compared to the average of 6.59% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.51% versus 6.59% at this time last week.

At the current interest rate of 6.52%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $872 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $56,978 in total interest over the 15-year life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.38%. Last week, the average rate was 7.39%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.38% will pay $691 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 7.03%, compared to an average of 7.09% last week.

At today’s rate of 7.03%, a borrower would pay $901 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $465,759 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.

You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.

When You Should 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?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

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.

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