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Refinance rates stayed flat 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 6.33%, and for 20-year mortgages, the average is 7.09%. For 5/1 ARMs, the average rate is 5.51%.
Related: Compare Current Refinance Rates
Refinance Rates for February 23, 2023
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.13%, compared to 6.96% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.14%, compared to 6.97% 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 7.13%, borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $2,022 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 $427,981.
20-Year Refi Rates
The 20-year fixed mortgage refinance is currently averaging about 7.09%. That’s compared to the average of 6.84% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.11% compared to 6.85% at this time last week.
At the current interest rate of 7.09%, a 20-year, fixed-rate mortgage refinance of $300,000 would pay $2,342 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $262,111 in total interest over the life of the loan.
15-Year Refinance Rates
The 15-year fixed mortgage refinance is currently averaging about 6.33%. That’s compared to the average of 6.21% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.36% versus 6.24% at this time last week.
At the current interest rate of 6.33%, a borrower using a 15-year, fixed-rate mortgage refinance of $300,000 would pay $2,585 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $165,366 in total interest over the 15-year life of the loan.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.17%. Last week, the average rate was 7.03%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.17% will pay $5,076 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Refi Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.38%, on average, compared to the average of 6.29% last week.
At today’s interest rate of 6.38%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,484 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $417,108 in total interest.
5/1 Adjustable-Rate Mortgage Refinance Rates
A 5/1 ARM, or adjustable-rate mortgage, has an average interest rate of 5.51%. The average rate at this time last week was 5.38%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.55% compared to 6.31% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.55%.
When Refinancing Makes Sense
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
Refinancing a mortgage isn’t that different than taking out a mortgage in the first place, and it’s always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:
- Polish up your credit score
- Lower your debt-to-income ratio
- Keep an eye on mortgage rates
- Consider a shorter loan
Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You’re also likely to look better to lenders if you don’t have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they 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 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.
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.