July 24, 2024

May 2, 2024—Rates Fall – Forbes Advisor

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

The average rate on a 30-year fixed mortgage refinance is 7.79%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.96%. On a 20-year mortgage refinance, the average rate is 7.71%.

Related: Compare Current Refinance Rates

Refinance Rates for May 2, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

The average rate for the 30-year fixed-rate mortgage refinance decreased to 7.79% from yesterday. Last week, the 30-year fixed was 7.75%.

The 30-year fixed mortgage refi APR (annual percentage rate) is 7.81%. At this time last week, it was 7.78%. APR is the all-in cost of your loan.

At an interest rate of 7.79%, a 30-year fixed mortgage refi would cost $719 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be about $158,879.

20-Year Refinance Interest Rates

The average interest rate on the 20-year fixed refinance mortgage is 7.71%. One week ago, the 20-year fixed-rate mortgage was at 7.58%.

The APR on a 20-year fixed is 7.74%. One week ago, it was 7.61%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.71% will cost $818 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $96,436 in total interest.

15-Year Refinance Interest Rates

The average interest rate on the 15-year fixed refinance mortgage slipped to 6.96%. Yesterday, it was 6.99%. This same time last week, the 15-year fixed-rate mortgage was at 6.90%.

On a 15-year fixed refinance, the annual percentage rate is 7.00%. Last week it was 6.93%.

With an interest rate of 6.96%, you would pay $897 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $61,417 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.69%. One week ago, the average rate was 7.72%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.69% will pay $712 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 7.38%, compared to an average of 7.20% last week.

At today’s rate of 7.38%, a borrower would pay $920 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $492,355 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

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 of private 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.

Is Now a Good Time To Refinance?

Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.

While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.

There are multiple mortgage refinance options to consider and some that let you tap your home equity.

Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.

How To Qualify for 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.

Frequently Asked Questions (FAQs)

How do you find the best refinancing lender?

You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.

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.

How much does it cost to refinance a mortgage?

Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.

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