Most loan rates have declined

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If you have a current home loan and can lower your interest rate by refinancing, it might be worth it. It depends on whether the savings from refinancing will cover the upfront closing costs before the home is sold. It is useful to see the current mortgage refinancing rates to see if you can save on interest.

Check out the average mortgage refinancing rates for Tuesday July 13th to see if getting a new loan is a good idea:

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Refinancing rates for a 30 year mortgage

The average 30-year mortgage refinancing rate today is 3,200%, up 0.002% yesterday’s average 3.198%. For every $ 100,000 refinanced at today’s average rate, your monthly payment of principal and interest is $ 432. Your total interest expense over the life of your refinancing loan is $ 55,688 for every $ 100,000.

Mortgage refinancing rates for 20 years

The average 20-year mortgage refinancing rate today is 2.934%, 0.004% higher than yesterday’s average of 2.930%. If you refinance at today’s average rate, you will have a monthly principal and interest payment of $ 551 for every $ 100,000. Over the life of your refinancing loan, your total interest expense is $ 32,312 for every $ 100,000.

This refinancing loan will cost less over time than a 30 year refinancing loan because you pay interest for a shorter period of time, so you do not pay as much general interest. Since you have fewer payments to pay off your loan balance, each monthly payment must be higher for a 20-year loan than for a 30-year loan.

Mortgage refinancing rates for 15 years

The average rate on a 15-year mortgage loan today is 2.524%, down 0.002% from the 2.526% average yesterday. At today’s average rate, the monthly principal and interest payments would be $ 668 per $ 100,000 of refinanced mortgage debt. The total interest cost is $ 20,226 per $ 100,000 refinanced at today’s average rate.

A 15 year refinancing loan saves more on interest than a 20 or 30 year loan because of the shorter repayment time, but it also comes with higher monthly payments.

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 you will pay 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 this 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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