Rates are falling on all loans

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Jul 27, 2021 mortgage refinancing rates down in all directions. Homeowners can see what rate they are eligible for and compare it to their current home loan rate to see if they can save money through refinancing.

Here are today’s average mortgage refinancing rates:

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 30-year mortgage refinancing rate today is 3.059%, down 0.003% yesterday’s average 3.062%. If you refinance at today’s average rate, your monthly principal and interest payment will be $ 425 for every $ 100,000. Your total interest expense over the life of your refinancing loan is $ 52,925 for every $ 100,000.

Mortgage refinancing rates for 20 years

The average 20-year mortgage refinancing rate today is 2.818%, down 0.009% from yesterday’s average of 2.827%. If you refinance at today’s average rate, you will have a monthly principal and interest payment of $ 546 for every $ 100,000 borrowed. You will be looking at a total interest expense of $ 30,927 on the $ 100,000 refinanced mortgage debt over the life of the loan.

Choosing a shorter maturity for your refinancing loan, such as a 20 year versus a 30 year one, will save you money over time because you have not been paying interest for that long. But you have to pay more every month since you don’t make that many payments.

Mortgage refinancing rates for 15 years

The average 15-year mortgage refinancing rate today is 2.355%, down 0.009% from the 2.364% average yesterday. A mortgage refinancing loan at today’s average interest rate will cost you $ 680 for every $ 100,000. For every $ 100,000 you refinance at today’s average rate, the total interest expense is $ 18,797.

This is the right option for refinancing your loan if your goal is to save as much as possible on interest. It has the lowest interest rate, and the short payout time also saves on interest. But you have to make much higher payments every month, so you need to get used to this trade-off.

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 consider 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 factor in 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 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 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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