August 1, 2022 – Current Refinance Rates Drop – Forbes Advisor

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Refinance rates did not move today.

The average rate on a 30-year fixed mortgage refinance is 5.26% with an APR of 5.27%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.57% with an APR of 4.59%. The 20-year refinancing rate is 5.22%. The average rate on a 5/1 ARM is 4.08% with an APR of 5.69%.

Related: Compare current refinance rates

30-year fixed rate refinancing rate

The average 30-year fixed-rate mortgage refinance rate remained at 5.26%. Last week, the 30-year fixed was 5.80%. The 52-week high is 6.12%.

The 30-year fixed mortgage refi (annual annual percentage rate) is 5.27%. At the same time last week, it was 5.81%. The APR is the overall cost of your loan.

According to the Forbes Advisor Mortgage Calculator, borrowers with a $100,000 30-year fixed rate mortgage will pay $553 per month in principal and interest (excluding taxes and fees) at the current interest rate of 5.26%. In total interest, you would pay $99,016 over the life of the loan.

20-year refinancing rate

The average interest rate on the 20-year fixed refinance mortgage is 5.22%. A week ago, the 20-year fixed rate mortgage was at 5.53%.

The APR on a 20-year fixed is 5.23%. Last week it was 5.54%.

A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 5.22% will cost $672 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $61,321 in total interest.

15-year mortgage refinance rate

Today, the 15-year fixed mortgage rate is at 4.57%, lower than it was yesterday. Last week it was 4.97%. Today’s rate is above the 52-week low of 4.56%.

The annual percentage rate of charge on a 15-year fixed term is 4.59%. This time last week it was 4.99%.

A $100,000 15-year fixed rate mortgage refinance with a current interest rate of 4.57% will cost $769 per month in principal and interest. Over the term of the loan, you will pay $38,344 in total interest.

Jumbo refinance rate over 30 years

The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 5.21%. A week ago, the average rate was 5.78%. The 30-year fixed rate on a jumbo mortgage is below the 52-week low of 5.20%.

Borrowers with a 30-year fixed rate jumbo mortgage refinance with a current interest rate of 5.21% will pay $550 per month in principal and interest per $100,000.

Jumbo Refi rate over 15 years

The average interest rate on the 15-year fixed rate jumbo mortgage refinance fell to 4.51%. Last week, the average rate was 4.98%. The 15-year fixed rate on a jumbo mortgage is below the 52-week low of 4.51%.

Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 4.51% will pay $766 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $5,741, and you would pay approximately $283,431 in total interest over the life of the loan.

5/1 ARM interest rate

On an ARM 5/1, the average rate rose slightly to 4.08% from 4.04% yesterday. The average rate was 4.20% last week. Today’s rate is currently below the 52-week high of 4.23%.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 4.08% will pay $482 per month in principal and interest.

When refinancing makes sense

There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, lower their monthly payments, or pay off their home loan sooner. Refinancing can also help you access equity in your home or eliminate private mortgage insurance (PMI).

Refinancing your mortgage can be a good idea if you plan to stay in your home for several years. There is, after all, a refinancing cost that will take some time to recover. You will need to know the closing costs of the loan to calculate the break-even point where your savings through a lower interest rate exceeds your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.

Our Mortgage Refinance Calculator can help you determine if refinancing is right for you.

How to get today’s best refinance rates

Just like when shopping for a mortgage when buying your home, when you refinance, here’s how you can find the lowest refinance rate:

  • Maintain a good credit rating
  • Consider a shorter term loan
  • Reduce your debt to income ratio
  • Monitor mortgage rates

A strong credit score isn’t a guarantee that you’ll get your refinance approved or that you’ll get the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You should also keep an eye on mortgage rates for different loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

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