February 3, 2022 – No movement on refinancing rates – Forbes Advisor
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Mortgage refinance rates were unchanged today, giving homeowners an opportunity to grab some of the lowest rates on record.
Today, the average rate for a 30-year fixed mortgage refinance is 3.76%, according to Bankrate.com, while the average rate for a 15-year mortgage refinance is 3.12%. On a 20-year mortgage refinance, the average rate is 3.72% 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 remained at 3.76%. Last week, the 30-year fixed was 3.73%. The 52-week low is 3.19%.
On a 30-year fixed mortgage refi, the APR is 3.75%, compared to last week. The APR, or annual percentage rate, consists of the interest rate of a loan and the finance charges of a loan. This is the overall cost of your loan.
At the current interest rate of 3.76%, borrowers with a $100,000 30-year fixed rate refinance mortgage will pay $464 per month in principal and interest (taxes and fees not included), according to the calculator Mortgage Advisor Forbes. The total interest paid over the term of the loan will be approximately $66,926.
20-year refi rate
The average interest rate on the 20-year fixed refinance mortgage is 3.72%. A week ago, the 20-year fixed rate mortgage was at 3.57%.
The APR on a 20-year fixed is 3.70%. Last week it was 3.60%.
A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 3.72% will cost $591 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $41,919 in total interest.
15-Year Fixed Rate Mortgage Refinance Rate
Today, the 15-year fixed mortgage rate is at 3.12%, the same as a day ago. Last week it was 3.03%. Today’s rate is above the 52-week low of 2.46%.
The APR on a 15-year fixed is 3.18%. This time last week it was 3.10%.
With an interest rate of 3.12%, you would pay $696 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $25,346 in total interest.
Jumbo refinance rate over 30 years
The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 3.74%. Last week, the average rate was 3.73%. 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 3.74% will pay $3,469 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 $3,469, and you would pay approximately $498,881 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 remained unchanged at 3.15%. Last week, the average rate was 3.05%. 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 3.15% will pay $698 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 $5,234, and you would pay approximately $192,055 in total interest over the life of the loan.
5/1 ARM interest rate
On an ARM 5/1, the average rate rose to 2.87% from 2.86% yesterday. The average rate was 2.83% 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
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, lower their monthly payments, or pay off their home loan sooner. Refinancing can also help you access equity in your home or eliminate private mortgage insurance (PMI).
Refinancing your mortgage can be a good idea if you plan to stay in your home for several years. There is, after all, a refinancing cost that will take some time to recover. You will need to know the closing costs of the loan to calculate the break-even point where your savings through a lower interest rate exceeds your closing costs. You can calculate this 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.
How to get the best refinance rates
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.