Mortgage refinancing rates are lower today. Refinance rates tend to be a bit higher than the rates you’ll see for a new mortgage purchase, but right now they’re pretty competitive, historically speaking. Here’s what they look like on Wednesday, June 30:
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30-year mortgage refinancing rate
The 30-year average refinancing rate today stands at 3.305%, down 0.014% from yesterday. At today’s rate, you’ll pay principal and interest of $ 438.00 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.
20-year mortgage refinancing rate
The 20-year average refinancing rate is 3.052% today, down 0.018% from yesterday. At today’s rate, you’ll pay principal and interest of $ 557.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 119.00 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 23,982.00 in interest over your repayment period for every $ 100,000 you borrow.
15-year mortgage refinancing rate
The 15-year average refinancing rate today is 2.625%, down 0.002% from yesterday. At today’s rate, you’ll pay principal and interest of $ 673.00 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 235.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 36,553.00 over the duration of your repayment period per $ 100,000 of mortgage debt.
Should You Refinance Your Mortgage Now?
Refinancing your mortgage can be a smart financial move if you are able to lower your interest rate and monthly payments with a new home loan. However, there are a few important things to consider before refinancing.
First, if you extend your loan repayment term, you could end up paying a higher total amount of interest over time than with your current mortgage. This can happen even if you qualify for a lower interest rate since you would be paying interest over a longer period. You can avoid this by choosing a refinance loan with a shorter repayment term. Or you may decide that you are willing to pay more interest over the life of your loan in exchange for a lower monthly payment.
Second, you’ll need to factor in closing costs, which are the upfront fees you will be charged when you refinance a mortgage. Ascent’s research found that the closing costs for a refinance loan for a mid-value home are between $ 5,000 and $ 12,500. However, your closing costs will depend on the specific amount of your mortgage, your location, and your lender.
You might need to offset these closing costs with your lower monthly payments, but it can take time. If you save $ 200 a month by refinancing and pay $ 6,000 in closing costs, it would take you 2.5 years to break even. It is important to calculate the numbers and determine if you will be staying in your home long enough for the refinancing to pay off.
Generally speaking, refinancing can make a lot of sense if you don’t plan to move in the next few years and are able to reduce your mortgage interest rate by at least 1% ( or almost). And if you have a higher credit score – one in the 700 or higher – then your chances of getting a low refinance rate are pretty good.
If you’re ready to get a new mortgage, contact different refinance lenders and see what rates they are offering you. Each lender sets their own rate and comparing offers will help you find the best one. But also watch out for closing costs. The lower they are, the sooner you will break even and start enjoying savings on your new loan.