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The rate on a 30-year fixed refinance climbed today.
The average rate on a 30-year fixed mortgage refinance is 6.87%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 6.12%. On a 20-year mortgage refinance, the average rate is 6.62%, and the average rate on a 5/1 ARM is 5.39%.
Related: Compare Current Refinance Rates
Refinance Rates for November 28, 2022
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.87%. That’s compared to 6.93% from last week and the 52-week low of 6.27%. Borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,970 per month for principal and interest at the current interest rate of 6.87%, 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 $409,122. 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 6.88% compared to 6.94% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates
The 20-year fixed mortgage refinance is currently averaging about 6.62%. That’s compared to the average of 6.73% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.63% compared to 6.75% at this time last week.
At the current interest rate of 6.62%, a 20-year, fixed-rate mortgage refinance of $300,000 would pay $2,258 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $241,911 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Refinance Rates
The average interest rate on the 15-year fixed refinance mortgage dropped to 6.12%. Yesterday, it was 6.16%. This same time last week, the 15-year fixed-rate mortgage was at 6.19%. Today’s rate is higher than the 52-week low of 5.58%.
On a 15-year fixed refinance, the annual percentage rate is 6.14%. Last week it was 6.21%.
At today’s interest rate of 6.12%, a 15-year fixed-rate mortgage would cost approximately $2,551 per month in principal and interest per $300,000. You would pay around $159,191 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 6.89%. Last week, the average rate was 6.95%. The 52-week low is 6.26%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.89% will pay $4,934 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 dropped to 6.11%. Last week, the average rate was 6.18%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.61%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.11% will pay $6,374 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $397,245 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Refinance Rates
The average interest rate on a 5/1 ARM is 5.39%, higher than the 52-week low of 2.83%. Last week, the average rate was 7.05%.
Borrowers with a 5/1 ARM of $300,000 with today’s interest rate of 5.39% will pay $1,683 per month in principal and interest.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.03% compared to 6.20% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.78% and the 52-week low was 5.53%.
When You Should Refinance Your Home
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time 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 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.
How Soon Can You Refinance a Mortgage?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.
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.