February 6, 2024—Rates Jump Up – Forbes Advisor – Earn Charter

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

The current 30-year, fixed-rate mortgage refinance rate is averaging 7.39%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.62%. For 20-year mortgage refinances, the average rate is 7.25%.

Related: Compare Current Refinance Rates

Refinance Rates for February 6, 2024

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 7.39%, compared to 7.25% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.42%, compared to 7.32% 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 7.39%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $691 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 $148,913.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.25% compared to 7.13% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.28%. That compares to 7.17% at the same time last week.

At today’s interest rate of 7.25%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $790 per month in principal and interest—not including taxes and fees. That would equal about $89,618 in total interest over the life of the loan.

15-Year Refinance Interest Rates

Today, the 15-year fixed mortgage rate sits at 6.62%, higher than it was one day ago. Last week, it was 6.45%.

On a 15-year fixed refinance, the annual percentage rate is 6.61%. Last week it was 6.42%.

A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.62% will cost $878 per month in principal and interest. Over the life of the loan, you would pay $57,989 in total interest.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.29%. Last week, the average rate was 7.27%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.29% will pay $685 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.91%, on average, compared to the average of 6.88% last week.

At today’s interest rate of 6.91%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,704 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $456,711 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.

When You Should 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, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).

A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs by dividing your closing costs by the monthly savings from your new payment.

Our mortgage refinance calculator could help you determine if refinancing is right for you.

Is Now a Good Time To Refinance?

Refinancing your mortgage can be worth it for reasons that include:

  • Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
  • Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
  • Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
  • Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
  • Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.

Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.How to Get Today’s Best Refinance RatesMuch 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?

Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.

How soon can you refinance a mortgage?

In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.

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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