This is what today’s refinancing rates look like. Should I get a new mortgage?
Mortgage refinancing rates today higher on 30- and 15-year mortgages. Refinancing rates tend to be slightly higher than the rates you’ll see for a new mortgage, but they’re pretty competitive right now, historically speaking.
Here’s what the average mortgage refinancing rates look like on Wednesday, June 16:
Refinancing rates for a 30 year mortgage
The average 30-year refinancing rate today is 3.240%, up 0.005% from yesterday. At today’s rate, you will pay $ 435.00 in principal and interest for every $ 100,000 you borrowed. This does not include additional costs such as property taxes and homeowner insurance premiums.
Mortgage refinancing rates for 20 years
The average 20-year refinancing rate today is 3.020%, down 0.013% from yesterday. At today’s rate, you will pay $ 556.00 in principal and interest for every $ 100,000 you borrowed. Although your monthly payment will increase by $ 121.00 on a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 23,084 in interest over the repayment period for every $ 100,000. which you borrowed.
Mortgage refinancing rates for 15 years
The average refinancing rate for 15 years today is 2.521%, which is 0.010% more than yesterday. At today’s rate, you will pay $ 668.00 in principal and interest for every $ 100,000 you borrowed. Compared to a 30-year loan, your monthly payment will be $ 233.00 more for every $ 100,000 of your mortgage principal. However, your interest savings will be $ 36,284 over the maturity period based on $ 100,000 in mortgage debt.
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 with a new home loan. However, there are a few important things to think about before refinancing.
First, if you extend the maturity of your loan, you may eventually pay a higher amount of interest than with your existing mortgage. This can happen even if you are eligible for a lower interest rate, as you will be paying interest over a longer period. You can avoid this 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 need to consider closing costs, which are the down payments 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 specific mortgage amount, your location, and your lender.
Ultimately, you will 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, it will take you 2.5 years to break even. It’s important to do the math and consider whether you will stay in your home long enough for the refinancing to pay off.
Generally speaking, refinancing can make a lot of sense if you are not going to move in the next few years and can lower your home loan interest rate by at least 1% (or somewhere else). And if you have a high credit rating in the mid-700 or higher, plus a low level of existing debt, you are even more likely to get an interest rate low enough to pay off your mortgage refinancing. Remember also that if you have a lot of home equity in your home, this may be the right time to cashing refinancing…
If you are ready to replace your current mortgage with a new one, contact the group refinancing lenders and see what offers they present. Be sure to look at the rates as well as closing costs when evaluating your choice, because both should play a role in your decision.