Mortgage refinancing rates today is lower across the board. Refinancing rates are generally slightly higher than the rates you will see for a new mortgage loan, but they are quite competitive right now from a historical point of view. This is what they look like on Wednesday July 21st:
Refinancing rates for a 30 year mortgage
The average 30-year refinancing rate today is 3.115%, down 0.053% from yesterday. At today’s rate, you will pay $ 428.00 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 2.879%, down 0.049% from yesterday. At today’s rates, you will pay $ 549.00 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 $ 22,452 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 2.432%, which is 0.050% lower than yesterday. At today’s rate, you will pay $ 664.00 in principal and interest for every $ 100,000 you borrowed. Compared to a 30-year loan, your monthly payment will be $ 236.00 more for every $ 100,000 of your mortgage principal. However, your interest savings will be $ 34,637.00 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 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 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 the higher your credit rating when you apply for refinancing, the more likely you are to significantly lower your interest rate.
If you are ready to get a new mortgage, contact others refinancing lenders and see what rates they offer you. Shopping is important, even if rates are generally low, especially when you consider that closing costs can vary from one lender to another. There is no need to get hung up on paying higher fees than necessary if a little research can prevent it.