February 3, 2022—No Movement On Refinance Rates – Forbes Advisor

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Mortgage refinance rates didn’t move today, giving homeowners an opportunity to grab some of the lowest rates on record.

Today, the average rate on a 30-year fixed mortgage refinance is 3.76%, according to Bankrate.com, while the average rate on 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 Refinance Rates

The average rate for the 30-year fixed-rate mortgage refinance stayed 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%, than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.

At today’s interest rate of 3.76%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $464 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be about $66,926.

20-Year Refi Rates

The average interest rate on the 20-year fixed refinance mortgage is 3.72%. One 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 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 3.72% will cost $591 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $41,919 in total interest.

15-Year Fixed-Rate Mortgage Refinance Rates

Today, the 15-year fixed mortgage rate sits at 3.12%, the same as it was one day ago. Last week, it was 3.03%.Today’s rate is higher than 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 life of the loan, you would pay $25,346 in total interest.

30-Year Jumbo Refinance Rates

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 higher than the 52-week low of 3.18%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 3.74% will pay $3,469 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 around $3,469, and you’d pay around $498,881 in total interest over the life of the loan.

15-Year Jumbo Refi Rates

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 to the 52-week low of 2.44%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 3.15% will pay $698 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 around $5,234, and you’d pay around $192,055 in total interest over the life of the loan.

5/1 ARM Interest Rates

On a 5/1 ARM, the average rate rose to 2.87% from 2.86% yesterday. The average rate was 2.83% last week. Today’s rate is currently the 52-week high.

Borrowers with a 5/1 ARM of $100,000 with today’s 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, 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).

Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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.

How to Get the 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.

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