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The rate on a 30-year fixed refinance fell today.
The average rate on a 30-year fixed mortgage refinance is 6.60%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 6.13%. On a 20-year mortgage refinance, the average rate is 6.63%, and the average rate on a 5/1 ARM is 5.41%.
Related: Compare Current Refinance Rates
Refinance Rates for January 9, 2023
30-Year Fixed Refinance Interest Rates
Today, the average rate for the 30-year fixed-rate mortgage refinance dropped to 6.60% from yesterday. One week ago, the 30-year fixed was 6.82%. The 52-week high is 7.44%.
The APR, or annual percentage rate, on a 30-year fixed is 6.61%. This time last week, it was 6.84%. APR is the all-in cost of your loan.
At the current interest rate of 6.60%, a 30-year fixed mortgage refi would cost $1,916 per month in principal and interest (not accounting for taxes and fees) per $300,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $389,752 over the life of the loan.
20-Year Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.63%. One week ago, the 20-year fixed-rate mortgage was at 6.93%.
The APR on a 20-year fixed is 6.65%. This time last week, it was 6.95%.
A 20-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 6.63% will cost $2,260 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $242,337 in total interest.
15-Year Fixed-Rate Mortgage Refinance Rates
The average interest rate on the 15-year fixed refinance mortgage fell to 6.13%. Yesterday, it was 6.16%. One week ago, the 15-year fixed-rate mortgage was at 6.22%. Today’s rate is higher than the 52-week low of 5.86%.
The annual percentage rate on a 15-year fixed is 6.16%. This time last week, it was 6.24%.
At today’s interest rate of 6.13%, a 15-year fixed-rate mortgage would cost approximately $2,553 per month in principal and interest per $300,000. You would pay around $159,484 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 6.59%. Last week, the average rate was 6.86%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 6.51%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.59% will pay $4,785 per month in principal and interest per $750,000.
15-Year Jumbo Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance fell to 6.16%. Last week, the average rate was 6.27%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.86%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.16% will pay $6,394 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $400,909 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 5.41%. That’s compared to the 52-week low of 5.33% and the average rate at this time last week of 5.38%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 5.93% compared to 6.19% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.68% and the 52-week low was 5.92%.
When You Should 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).
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.
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 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?
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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