June 9, 2022 – Current Funding Rates Rise – Forbes Advisor
Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.
The interest rate on a 30-year fixed refinance has skyrocketed today.
The average interest rate on a 30-year fixed-rate mortgage is 5.56%, according to Bankrate.com. The average interest rate for a 15-year fixed-rate mortgage is 4.78%. The average interest rate on a 20-year refinance loan is 5.55% and the average interest rate on a 5/1 ARM is 3.83%.
Related: Compare current refinancing rates
30-year refinancing rates
Today, the average 30-year fixed-rate mortgage refinance rate rose to 5.56%. Last week the 30-year fix was at 5.49%. Today’s price is below the 52-week high of 4.55%.
The annual percentage rate of charge (APR) on a 30-year fixed rate investment is 5.57%. This time last week it was 5.50%. APR is the total cost of your loan.
At the current interest rate of 5.56%, homebuyers with a $100,000 30-year fixed-rate refinance mortgage pay $572 a month in principal and interest (not including taxes and fees), according to the Forbes Advisor Mortgage Calculator. Total interest paid over the life of the loan is approximately $105,761.
20-year fixed rate refinancing rates
The average interest rate for the 20-year fixed refinance mortgage is 5.55%. Last week at the same time, the 20-year fixed-rate mortgage was at 5.41%.
The APR for a 20-year fixed deposit is 5.56%. This time last week it was 5.42%.
Refinancing a $100,000 20-year fixed-rate mortgage at today’s rate of 5.55% costs $691 per month in principal and interest. Taxes and fees are not included. You would pay a total of approximately $65,771 in interest over the life of the loan.
15-year fixed rate mortgage refinance rates
Today the 15-year fixed-rate mortgage rate is 4.78%, higher than yesterday. Last week it was 4.64%. Today’s rate is above the 52-week low of 4.12%.
The effective annual interest on a 15-year fixed interest investment is 4.80%. This time last week it was 4.66%.
Refinancing a $100,000 15-year fixed-rate mortgage at today’s rate of 4.78% costs $779 per month in principal and interest. You will pay a total of $40,289 in interest over the life of the loan.
30-year jumbo mortgage refinance rates
The average interest rate for the 30-year fixed-rate jumbo mortgage refinance is 5.56%. Last week the average rate was 5.52%. The 30-year fixed rate on a jumbo mortgage is above the 52-week low of 4.57%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance at today’s interest rate of 5.56% pay $572 per month in principal and interest per $100,000.
15-year jumbo mortgage refinance rates
The average interest rate for refinancing the 15-year jumbo fixed-rate mortgage rose to 4.81%. Last week the average rate was 4.68%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 3.85%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance and today’s interest rate of 4.81% pay $781 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be about $5,857 and you would pay a total of about $304,258 in interest over the life of the loan.
5/1 ARM Refinance Rates
The average interest rate for a 5/1 ARM is 3.83%, above the 52-week low of 2.83%. Last week the average rate was 4.83%.
Borrowers with a $100,000 5/1 ARM at today’s interest rate of 3.83% pay $468 per month in principal and interest.
When does refinancing make sense?
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing if they can lower their interest rate, reduce their monthly payments, or pay off their home loan sooner. Refinancing can also help you access your home’s equity or eliminate private mortgage insurance (PMI).
Refinancing a home loan can be particularly useful if you plan to stay in your home for a while. Even if you get a lower interest rate, you still need to consider borrowing costs. Calculate the break-even point at which your savings from a lower interest rate exceeds your closing costs 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 qualify for the best refinancing rates today
Similar to buying a mortgage when buying a home, when it comes to refinancing, here is the lowest refinancing rate:
- Maintain good credit
- Consider a shorter-term loan
- Lower your debt to income ratio
- Monitor mortgage rates
A solid credit history is no guarantee that you will approve your refinance or get the lowest interest rate, but it might make your journey 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 periods. They fluctuate frequently, and loans that require early repayment are usually charged at lower rates.