Loan rates for 15 years are slightly reduced

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Average mortgage refinancing rates Mostly stable today: 30-year stocks are unchanged, 20-year stocks are up slightly, and 15-year stocks are slightly lower. Homeowners who currently have a more expensive home loan may wish to consider refinancing, provided they plan to stay in their home loan sufficient to cover the final costs from their interest savings.

Here are today’s average mortgage rates for Thursday, August 19, so you can see if refinancing makes sense for you:

Data source:class = “small-caption”> National Ascent Mortgage Interest Rate Trackingclass = “small-caption”>class = “small-caption”>

Refinancing rates for a 30 year mortgage

The average refinancing rate for a 30-year mortgage loan today is 3.112%, unchanged from yesterday’s average. For every $ 100,000 refinanced at today’s average rate, your total monthly principal and interest payments are $ 428. For the entire repayment period, you must pay a general interest expense of $ 53,961 for every $ 100,000 refinanced.

Mortgage refinancing rates for 20 years

The average 20-year mortgage refinancing rate today is 2.852%, up 0.003% from yesterday’s average of 2.849%. A mortgage refinancing loan at today’s average interest rate will cost you $ 547 for every $ 100,000. The total interest expense is $ 31,330 for every $ 100,000 in mortgage debt over the life of the refinancing loan.

Although your monthly payments for refinancing are 20 years higher than refinancing for 30 years, you will save a lot of money over time. When you pay off the loan faster, you don’t pay that much interest because you don’t pay it that long – but each payment must be much higher to pay off the principal in full.

Mortgage refinancing rates for 15 years

The average rate on a 15-year mortgage today is 2.379%, down 0.001% from yesterday’s average of 2.380%. At today’s average rate, you will pay $ 661 a month in principal and interest for every $ 100,000 refinanced. For every $ 100,000 that you refinance at today’s average rate, the total interest expense is $ 18,999.

If you can afford higher monthly payments with such short maturities, you may decide that it makes financial sense for you to opt for a 15 year refinancing loan. Just make sure you factor in the opportunity cost of spending that amount of money on your mortgage every month.

Should you refinance your mortgage right now?

Refinancing your mortgage can be a smart financial decision if you can lower your interest rate and lower your monthly payments by getting a new home loan. However, there are a few key points to think about before refinancing.

First, if you extend the maturity of your loan, you can pay a higher overall interest expense over time than with your existing mortgage. This can happen even if you are eligible for a lower interest rate, as you will be paying interest for a longer time. You can avoid this problem by choosing a refinancing loan with a shorter maturity. Or, you may decide that you are willing to pay more interest over the life of the loan in exchange for a lower monthly payment.

Second, you will need to consider closing costs, which are the upfront payments that you will be charged when refinancing your mortgage. Ascent research found that closing expenses on refinancing loan for an average home value of $ 5,000 to $ 12,500. However, the closing fees will depend on the amount of your home loan, your location, and your lender.

You will eventually have to offset these closing costs with lower monthly payments, but this can take time. If you save $ 200 a month through refinancing and pay $ 6,000 to close the deal, it will take you 2.5 years to pay off. It’s important to calculate and consider whether you will stay in your home long enough for the refinancing to pay off.

In general, refinancing is recommended if you do not plan to move in the next few years and can lower your mortgage interest rate by 1% or more. With mortgage refinancing rates close to record lows, many borrowers will feel that now is a good time to refinance. Compare rates from best mortgage refinance lenders to get personalized offers and decide if a new home loan is right for you.

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