Rate increases for all loans


Should you refinance your home loan? It depends on how your current interest rate on your loan compares to the rate you might be entitled to if you refinanced. Check out today’s average mortgage refinance rates for August 12 to get an idea of ​​what rate you might expect to pay if you refinance your home loan:

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30-year mortgage refinancing rate

The 30-year average mortgage refinance rate today is 3.102%, up 0.025% from yesterday’s average of 3.077%. At today’s average rate, you would pay $ 427 per month in principal and interest for every $ 100,000 refinanced. You would have a total interest cost of $ 53,765 per $ 100,000 of mortgage debt refinanced over the term of the loan.

20-year mortgage refinancing rate

The 20-year mortgage refinance average rate today is 2.848%, up 0.029% from yesterday’s average of 2.819%. If you refinance at today’s average rate, you would have a monthly principal and interest payment of $ 547 for every $ 100,000 borrowed. Over the life of the refinance loan, your total interest charges would be $ 31,285 per $ 100,000 borrowed.

You will pay lower interest charges over time with this loan compared to the 30 year mortgage refinance loan. But each monthly payment must be higher because you have to pay off your loan a decade earlier.

15-year mortgage refinancing rate

The 15-year average mortgage refinance rate today is 2.363%, up 0.016% from yesterday’s average of 2.347%. At the current average rate, the monthly principal and interest payment would be $ 660 per $ 100,000 of mortgage debt refinanced. For every $ 100,000 you refinance at today’s average rate, the total interest charge would be $ 18,865.

If you are hoping to maximize the interest saved, this loan is an ideal option because you pay much less interest than with 30 or 20 year loans. The rate is also lower. But with only 15 years to pay off your entire refinance loan balance, each monthly payment must be considerably higher.

Should You Refinance Your Mortgage Now?

Refinancing your mortgage can be a smart financial move if you are able to lower your interest rate and monthly payments by getting a new home loan. However, there are a few key things to consider before refinancing.

First, if you extend your loan repayment term, you could end up paying higher total interest charges over time than with your current mortgage. This can happen even if you qualify for a lower interest rate since you would be paying interest over a longer period. You can avoid this problem by choosing a refinance loan with a shorter repayment term. Or you may decide that you are willing to pay more interest over the life of your loan in exchange for a lower monthly payment.

Second, you’ll need to factor in closing costs, which are the upfront costs you will be charged when you refinance your mortgage. Ascent’s research found that the closing costs for a refinance loan for a mid-value home are between $ 5,000 and $ 12,500. However, your closing costs will depend on your mortgage amount, location, and lender.

You might need to offset these closing costs because of your lower monthly payments, but it can take time. If you save $ 200 a month by refinancing and pay $ 6,000 in closing costs, it would take you 2.5 years to break even. It’s important to do the math and determine if you’ll be staying in your home long enough for the refinancing to pay off.

In general, it’s a good idea to refinance if you don’t plan to move in the next few years and can lower your mortgage interest rate by 1% or more. With mortgage refinancing rates nearing all-time lows, many borrowers will find it a good time to refinance. Compare the rates of the best mortgage refinance lenders for personalized offers and decide if getting a new mortgage is right for you now.


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