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Mortgage refinance rates didn’t move today.
Refinancing rates for 30-year, fixed-mortgage is averaging 7.13%, according to Bankrate. For 15-year fixed mortgages, the average refinance rate is 6.34%, and for 20-year mortgages, the average is 7.13%. For 5/1 ARMs, the average rate is 5.51%.
Related: Compare Current Refinance Rates
Refinance Rates for February 24, 2023
30-Year Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.13%. That’s compared to 6.99% from last week. Borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $2,022 per month for principal and interest at the current interest rate of 7.13%, 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 $427,981. 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 7.15% compared to 7.00% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.13%. This same time last week, the 20-year fixed-rate mortgage was at 6.93%.
The APR on a 20-year fixed is 7.15%. One week ago, it was 6.95%.
A 20-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 7.13% will cost $2,349 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $263,847 in total interest.
15-Year Refinance Rates
Today, the 15-year fixed mortgage rate sits at 6.34%, higher than it was yesterday. Last week, it was 6.25%.
The annual percentage rate on a 15-year fixed is 6.37%. This time last week, it was 6.27%.
A 15-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 6.34% will cost $2,587 per month in principal and interest. Over the life of the loan, you would pay $165,661 in total interest.
30-Year Jumbo Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.18%. Last week, the average rate was 7.02%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.18% will pay $5,081 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance dropped to 6.37%. Last week, the average rate was 6.28%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.37% will pay $6,480 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $416,369 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 5.51%. That’s compared to the average rate at this time last week of 5.39%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.42% compared to 6.30% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.55%.
Know When to 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 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 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.
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 Do You Find the Best Refinancing Lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.