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The rate on a 30-year fixed refinance slipped today.
The average rate for refinancing a 30-year fixed mortgage is currently 6.65%, according to Bankrate. For refinancing a 15-year mortgage, the average rate is 5.96%, and for 20-year mortgages, it’s 6.47%. For 5/1 adjustable-rate mortgages, the average rate is 5.38%.
Related: Compare Current Refinance Rates
Refinance Rates for December 14, 2022
30-Year Refinance Rates
The current 30-year, fixed-rate mortgage refinance is averaging 6.65%, compared to 6.87% last week and the 52-week low of 6.62%.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.66%, compared to 6.88% last week. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate of 6.65%, borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,926 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $393,322.
20-Year Refinance Rates
The 20-year fixed mortgage refinance is currently averaging about 6.47%. That’s compared to the average of 6.57% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.49% compared to 6.59% at this time last week.
At the current interest rate of 6.47%, a 20-year, fixed-rate mortgage refinance of $300,000 would pay $2,231 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $235,542 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 5.96% compared to 6.05% at this time last week and the 52-week low of 5.91%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.99%. That compares to 6.08% at this time last week.
Using the current interest rate of 5.96%, a 15-year, fixed-rate mortgage refinance of $300,000 would cost $2,525 per month in principal and interest—not including taxes and fees. That would equal about $154,517 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 6.69%. Last week, the average rate was 6.89%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 6.61%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.69% will pay $4,835 per month in principal and interest per $750,000.
15-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance dropped to 5.98%. Last week, the average rate was 6.05%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.88%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 5.98% will pay $6,321 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $387,749 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Refinance Rates
The average interest rate for a 5/1 ARM is currently 5.38%. That’s compared to the 52-week low of 5.11% and the average rate at this time last week of 5.33%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.08% compared to 6.17% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.78% and the 52-week low was 5.92%.
When You Should Refinance Your Home
Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid ofprivate mortgage insurance (PMI).
But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.
The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you 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 Soon Can You Refinance a Mortgage?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.
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?
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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