Check out the average mortgage refinancing rates as of June 15 to find out how much it will cost you to refinance your current mortgage.
When we move into the second half of June, mortgage refinancing rates declined today for 15-year refinancing and unchanged for others. When you have a mortgage, refinancing only makes sense if you can lower your interest rate and save enough to cover the upfront costs.
Check out the Average Size Mortgage Refinancing Loans as of June 15, 2021 to see if current rates can save you money through refinancing:
Refinancing rates for a 30 year mortgage
The average 30-year mortgage refinancing rate today is 3.235%, unchanged from yesterday’s average… For every $ 100,000 refinanced at today’s average rate, your monthly payment of principal and interest is $ 434. The total interest expense will be $ 56,378 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 3.033%, which is unchanged from yesterday’s average. If you refinance at today’s average rate, you will have a monthly principal and interest payment of $ 556 for every $ 100,000 borrowed. Over the life of your refinancing loan, your total interest expense is $ 33,500 for every $ 100,000.
When refinancing, the repayment schedule of your new loan will determine how it will affect your monthly payments and the total amount of interest you will save over time. A 20-year loan has higher monthly payments than a 30-year refinancing loan, but provides more interest savings.
Mortgage refinancing rates for 15 years
The average rate on a 15-year mortgage loan today is 2.511%, down 0.006% from the 2.517% average yesterday. A mortgage refinancing loan at today’s average interest rate will cost you $ 667 for every $ 100,000. For every $ 100,000 that you refinance at today’s average rate, the total interest expense is $ 20,115.
Due to its short repayment period, this loan is the cheapest over time, but has the highest monthly payments. Rest assured that you can afford them comfortably if you are considering a 15 year refinancing loan.
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 have to factor in closing costs, which are upfront payments that you will be charged when refinancing. 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.