March 13, 2024—Rates Climb – Forbes Advisor – Technologist

The rate on a 30-year fixed refinance increased today.

The current 30-year, fixed-rate mortgage refinance rate is averaging 7.37%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.60%. For 20-year mortgage refinances, the average rate is 7.17%.

Related: Compare Current Refinance Rates

Refinance Rates for March 13, 2024

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance inched up to 7.37% from yesterday. One week ago, the 30-year fixed was 7.46%.

The 30-year fixed mortgage refi APR (annual percentage rate) is 7.43%. At this time last week, it was 7.51%. APR is the all-in cost of your loan.

At an interest rate of 7.37%, a 30-year fixed mortgage refi would cost $690 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $148,520 over the life of the loan.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.17%. That’s compared to the average of 7.29% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.21% compared to 7.32% at this time last week.

At the current interest rate of 7.17%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $786 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $88,529 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The average interest rate on the 15-year fixed refinance mortgage increased to 6.60%. Yesterday, it was 6.58%. Last week, the 15-year fixed-rate mortgage was at 6.65%.

The annual percentage rate on a 15-year fixed is 6.59%. This time last week, it was 6.64%.

A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.60% will cost $877 per month in principal and interest. Over the life of the loan, you would pay $57,820 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.35%. Last week, the average rate was 7.35%.

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 on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 7.17%, on average, compared to the average of 7.03% last week.

At today’s interest rate of 7.17%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,812 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $476,133 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.

You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.

When You Should 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 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.

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