October 17, 2024—Rates Increase – Forbes Advisor – Technologist

The rate on a 30-year fixed refinance inched up today.

Refinancing rates for a 30-year, fixed-mortgage are averaging 7.09%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.15%, and for 20-year mortgages, the average is 6.91%.

Related: Compare Current Refinance Rates

Refinance Rates for October 17, 2024

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 7.09%, compared to 7.15% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.11%, compared to 7.17% 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 7.09%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $672 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 $141,762.

20-Year Refinance Interest Rates

The average interest rate on the 20-year fixed refinance mortgage is 6.91%. Last week, the 20-year fixed-rate mortgage was at 6.96%.

The APR on a 20-year fixed is 6.93%. Last week, it was 6.98%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.91% will cost $770 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $84,706 in total interest.

15-Year Refinance Interest Rates

Today, the 15-year fixed mortgage rate is 6.15%, higher than it was one day ago. Last week, it was 6.11%.

On a 15-year fixed refinance, the annual percentage rate is 6.18%. Last week it was 6.15%.

With an interest rate of 6.15%, you would pay $852 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $53,308 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.02%. Last week, the average rate was 7.04%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.02% will pay $666 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 6.30%. Last week, the average rate was 6.28%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.30% will pay $860 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $411,056 in total interest over the life of the loan.

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 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.

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