Some prices increase a little


Mortgage refinancing rates were up slightly from yesterday on 30 and 15 year loans. They remained unchanged on the 20-year option. Here’s what you need to know about average refinancing rates as of January 7.

The data source: The Ascent National Mortgage Interest Rate Tracker.

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30-year mortgage refinancing rate

The 30-year average mortgage refinance rate today is 2.845%, up 0.009% from yesterday’s average of 2.836%. At today’s average rate, you would pay $ 413 per month in principal and interest for $ 100,000 borrowed. The total interest charge would be $ 48,785 per $ 100,000 borrowed over the term of the loan.

20-year mortgage refinancing rate

The 20-year mortgage refinance average rate today is 2.707%, unchanged from yesterday. A mortgage refinance loan at the current average interest rate would cost you $ 540 per $ 100,000 borrowed. Over the life of the loan, your total interest expense would be $ 29,611 per $ 100,000 borrowed.

Choosing a 20 year loan repayment term can save you a lot of money on interest over the life of the loan, but the monthly payments will be higher than if you had chosen the 30 year option due to the fact that you make payments for a full decade. less time.

15-year mortgage refinancing rate

The 15-year average mortgage refinance rate today is 2.329%, up 0.002% from yesterday’s average of 2.327%. If you refinance at today’s average rate, your monthly principal and interest payments would be $ 659 for every $ 100,000 borrowed. During the entire repayment period of your loan, you would pay a total interest charge of $ 18,579 per $ 100,000 borrowed.

A 15 year loan is obviously an even shorter repayment term than a 20 or 30 year loan, which means that the monthly payments are even higher if you select this option but your interest charges over the term of your loan is even lower.

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 will need to factor in the closing costs. There are upfront fees to pay 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 1.) you don’t plan to move in the next few years and 2.) you can reduce 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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