February 12, 2024—Rates Fall – Forbes Advisor – Technologist

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

Refinancing rates for 30-year, fixed-mortgage is averaging 7.37%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.61%, and for 20-year mortgages, the average is 7.19%.

Related: Compare Current Refinance Rates

Refinance Rates for February 12, 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 7.26% 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 $148,471. 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 7.43% compared to 7.33% 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 7.19% compared to 7.16% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.21%. That compares to 7.17% at the same time last week.

At today’s interest rate of 7.19%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $787 per month in principal and interest—not including taxes and fees. That would equal about $88,848 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 6.61% compared to 6.48% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.59%. That compares to 6.47% at this time last week.

Using the current interest rate of 6.61%, 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 $57,930 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.29%. Last week, the average rate was 7.21%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.29% will pay $685 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 6.91%. Last week, the average rate was 6.91%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.91% will pay $894 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $456,335 in total interest over the life of the loan.

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.

Know When to 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, 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?

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 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.

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