February 11, 2022—Rates Rise – Forbes Advisor

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If you’re looking to save money by refinancing your home loan, now is a good time to lock in low rates. Refinance rates rose today, but overall rates are at historic lows.

The average rate for a 30-year fixed mortgage is 4.02%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 3.32%. The average rate on a 20-year refinance loan is 3.99% and the average rate on a 5/1 ARM is 2.87%.

Related: Compare current refinance rates

30-year refinancing rate

The average 30-year fixed-rate mortgage refinance rate rose to 4.02%. Last week, the 30-year fixed was 3.85%. Today’s rate is the same as the 52-week high of 3.19%.

The 30-year fixed mortgage refi APR is 4.01%. At the same time last week, it was 3.85%. The APR is the overall cost of your loan.

According to the Forbes Advisor Mortgage Calculator, borrowers with a $100,000 30-year fixed rate mortgage will pay $479 per month in principal and interest (excluding taxes and fees) at the current interest rate of 4.02%. You would pay approximately $72,285 in total interest over the life of the loan.

20-year fixed rate refinancing rate

The average interest rate on the 20-year fixed refinance mortgage is 3.99%. At this time last week, the 20-year fixed rate mortgage was at 3.90%.

The APR on a 20-year fixed is 3.97%. Last week it was 3.88%.

A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 3.99% will cost $605 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $45,309 in total interest.

15-year mortgage refinance rate

Today, the 15-year fixed mortgage rate is 3.32%, lower than it was a day ago. Last week it was 3.22%. Today’s rate is above the 52-week low of 2.46%.

The APR on a 15-year fixed is 3.36%. This time last week it was 3.28%.

With an interest rate of 3.32%, you would pay $706 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $27,094 in total interest.

30-Year Jumbo Mortgage Refinance Rate

The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 4.04%. A week ago, the average rate was 3.85%. The 30-year fixed rate on a jumbo mortgage is above the 52-week low of 3.18%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with a current interest rate of 4.04% will pay $3,598 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $3,598, and you would pay approximately $545,255 in total interest over the life of the loan.

Jumbo Refi rate over 15 years

The average interest rate on the 15-year fixed rate jumbo mortgage refinance dropped to 3.37%. Last week, the average rate was 3.26%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 2.44%.

Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 3.37% will pay $709 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $5,314, and you would pay approximately $206,496 in total interest over the life of the loan.

5/1 Adjustable Rate Mortgage Refinance Rate

On a 5/1 ARM, the average rate remained at 2.87%. The average rate was 2.87% last week. Today’s rate is currently a 52-week high.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 2.87% will pay $415 per month in principal and interest.

Know when to refinance your home

You might want to refinance your mortgage for a variety of reasons: to lower your interest rate, reduce your monthly payment, or pay off your loan sooner. You can also use a refinance loan to access equity in your home for other financial needs, such as a renovation project or to pay for your child’s college education. If you paid for private mortgage insurance (PMI), refinancing may also give you the option to waive that cost.

A home loan refinance can make sense, especially if you plan to stay in your home for a while. Even if you get a lower interest rate, you have to consider the cost of the loan. Calculate the break-even point where your savings from a lower interest rate exceeds your closing costs by dividing your closing costs by the monthly savings from your new payment.

Our Mortgage Refinance Calculator can help you determine if refinancing is right for you.

Just like shopping for a mortgage when buying your home, when you refinance, here’s how you can find the lowest refinance rate:

  • Maintain a good credit rating
  • Consider a shorter term loan
  • Reduce your debt to income ratio
  • Monitor mortgage rates

A strong credit rating doesn’t guarantee your refinance will be approved or that you’ll get the lowest rate, but it might make your way easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You should also keep an eye on mortgage rates for different loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

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