June 18, 2024—Rates Remain Stable – Forbes Advisor – Technologist

Refinance rates remained unchanged today.

The current 30-year, fixed-rate mortgage refinance rate is averaging 7.51%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.63%. For 20-year mortgage refinances, the average rate is 7.26%.

Related: Compare Current Refinance Rates

Refinance Rates for June 18, 2024

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 7.51%, compared to 7.58% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.53%, compared to 7.60% 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 7.51%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $700 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 $151,988.

20-Year Refinance Interest Rates

The average interest rate on the 20-year fixed refinance mortgage is 7.26%. Last week, the 20-year fixed-rate mortgage was at 7.42%.

The APR on a 20-year fixed is 7.29%. This time last week, it was 7.45%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.26% will cost $791 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $89,879 in total interest.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.63%. That’s compared to the average of 6.77% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.67% versus 6.80% at this time last week.

At the current interest rate of 6.63%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $878 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $58,128 in total interest over the 15-year life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.35%. One week ago, the average rate was 7.54%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.35% will pay $689 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 7.30%, on average, compared to the average of 7.21% last week.

At today’s interest rate of 7.30%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,869 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $486,325 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.

In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.

Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.

Know When To Refinance Your Home

There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).

It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.

Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.

Is Now a Good Time To Refinance?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

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.

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