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The rate on a 30-year fixed refinance dropped today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 6.88%, according to Bankrate, while 15-year, fixed-rate refinance mortgages average of 6.17%. For 20-year mortgage refinances, the average rate is 6.71%. For a 5/1 adjustable-rate mortgage, the average rate is 5.42%.
Related: Compare Current Refinance Rates
Refinance Rates for November 24, 2022
30-Year Fixed-Rate Mortgage Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.88%. That’s compared to 6.91% from last week and the 52-week low of 6.15%. Borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,972 per month for principal and interest at the current interest rate of 6.88%, according to the Forbes Advisor mortgage calculator, not including taxes and fees.
Over the life of the loan, the borrower will pay total interest costs of about $409,844. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.89% compared to 6.92% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.71%. This same time last week, the 20-year fixed-rate mortgage was at 6.68%.
The APR on a 20-year fixed is 6.73%. This time last week, it was 6.69%.
A 20-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 6.71% will cost $2,274 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $245,751 in total interest.
15-Year Fixed Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 6.17% compared to 6.18% at this time last week and the 52-week low of 5.44%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.19%. That compares to 6.20% at this time last week.
Using the current interest rate of 6.17%, a 15-year, fixed-rate mortgage refinance of $300,000 would cost $2,559 per month in principal and interest—not including taxes and fees. That would equal about $160,657 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.90%. Last week, the average rate was 6.91%. The 52-week low is 6.15%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.90% will pay $4,940 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance fell to 6.17%. Last week, the average rate was 6.15%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.46%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.17% will pay $6,398 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $401,643 in total interest over the life of the loan.
5/1 ARM Refinance Rates
The average interest rate for a 5/1 ARM is currently 5.42%. That’s compared to the 52-week low of 4.54% and the average rate at this time last week of 5.45%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.14% compared to 6.14% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.78% and the 52-week low was 5.38%.
When Refinancing Makes Sense
Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).
But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.
The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.
How to Get Today’s Best Refinance Rates
Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:
- Maintain a good credit score
- Consider a shorter-term loan
- Lower your debt-to-income ratio
- Monitor mortgage rates
A solid credit score isn’t a guarantee that you’ll get your refinance approved or score 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 also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.
Frequently Asked Questions (FAQs)
How Do You Find the Best Refinancing Lender?
Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.
How Quickly Can You Refinance a Mortgage?
You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors—like the type of home loan you choose. Always check with your lender before committing to borrow.
How Much Does it Cost to Refinance a Mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.