Rates are falling on all loans



On the first day of July mortgage refinancing rates down in all directions. Homeowners should pay attention to the dynamics of refinancing rates and compare them with their current interest rate to see if it is a good time to get a new home loan.

Check out today’s average mortgage refinancing rates for Thursday July 1 to see how rates have changed today:

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Refinancing rates for a 30 year mortgage

The average 30-year mortgage refinancing rate today is 3.290%, down 0.015% yesterday’s average 3.305%. If you refinance at today’s average rate, you will have a monthly principal and interest payment of $ 437 for every $ 100,000 borrowed. The total interest expense will be $ 57,466 for every $ 100,000 borrowed over the term of the loan refinancing.

Mortgage refinancing rates for 20 years

The average 20-year mortgage refinancing rate today is 3.038%, down 0.014% from the 3.052% average yesterday. The refinancing loan at today’s average rate will be accompanied by a monthly principal and interest payment of $ 557 per $ 100,000. If you refinance at today’s average rate, you will have a monthly principal and interest payment of $ 33,560 for every $ 100,000 borrowed.

Choosing the right loan refinancing term is very important. A 20-year refinancing loan will allow you to pay off your mortgage loan ten years earlier than a 30-year loan, and you will save significantly on interest. However, you will have to make much higher monthly payments.

Mortgage refinancing rates for 15 years

The average rate on a 15-year mortgage loan today is 2.602%, down 0.023% from the 2.625% average yesterday. For every $ 100,000 refinanced at today’s average rate, your total monthly principal and interest payments will be $ 672. During the entire loan repayment period, you will pay $ 20,888 for every $ 100,000 refinanced.

If you choose this refinancing loan, you will significantly shorten the repayment time and your costs will be much lower than with a 30 or 20 year refinancing loan. Of course, you need to be prepared for much 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 need to consider closing costs, which are the upfront 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 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 unless you plan on moving 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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