Mortgage

January 7, 2022—Rates Advance Higher – Forbes Advisor

Here Are Today’s Refinance Rates: January 7, 2022—Rates Advance Higher
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The 30-year fixed rate refinancing is up today, offering homeowners interested in refinancing an opportunity to lock in a historically low rate.

The average 30-year fixed rate mortgage is 3.46%, according to Bankrate.com. On a 15-year fixed-rate mortgage, the average rate is 2.65%. The average rate for a 20-year refinancing loan is 3%, and the average interest rate for a 5/1 ARM loan is 2.81%.

Related: Compare current refinancing rates

Fixed refinancing interest rates for 30 years

The average 30-year flat rate mortgage refinance rate increased to 3.46%. Last week, the 30-year flat rate was 3.27%. The 52-week low is 2.37%.

The 30-year fixed annual interest rate is 3.53%. This past week, it was 3.35%. The annual interest rate is the overall cost of your loan.

According to the Forbes Advisor mortgage calculator, home buyers with a 30-year fixed-reference mortgage of $100,000 will pay $447 per month in principal and interest (not including taxes and fees) at a today’s interest rate of 3.46%. You will pay approximately $60,853 in total interest over the term of the loan.

Fixed rate mortgage refinance rates for 20 years

The average interest rate on a 20-year fixed refinancing loan is 3%. Last week, the 20-year mortgage had a fixed interest rate of 3%.

The 20-year fixed annual interest rate is 3%. This time last week, it was 3%.

Refinancing a 20-year fixed rate mortgage of $100,000 with today’s 3% interest rate would cost $569 per month in principal and interest. Taxes and fees not included. Over the term of the loan, you will pay a total interest of approximately $36,614.

Fixed refinancing rates for 15 years

The average 15-year fixed-rate mortgage rate remained at 2.65%. A week ago, the 15-year mortgage was at a flat rate of 2.50%. Today’s rate is above a 52-week low of 2.39%.

The 15-year fixed annual interest rate is 2.79%. This time last week, it was 2.66%.

With an interest rate of 2.65%, you’ll pay $674 per month in principal and interest on every $100,000 borrowed. Over the term of the loan, you will pay a total interest of $21,297.

Jumbo 30 year mortgage refinance rates

The average interest rate for a jumbo 30-year fixed rate mortgage refinance is 3.48%. The average percentage last week was 3.27%. The 30-year flat rate on a jumbo mortgage is above a 52-week low of 2.37%.

Borrowers who refinance a jumbo 30-year fixed-rate mortgage at 3.48% today’s interest rate will pay $3,359 per month in principal and interest per $100,000. This means that on a $750,000 loan, your monthly principal and interest payments would be approximately $3,359, and you would pay approximately $459,408 in total interest over the life of the loan.

15 year jumbo mortgage refinance rates

The average interest rate on a jumbo 15-year fixed-rate mortgage refinance increased to 2.67%. Last week, the average rate was 2.50%. The 15-year fixed rate jumbo mortgage is above a 52-week low of 2.37%.

Borrowers who refinance a jumbo 15-year fixed-rate mortgage with an interest rate of 2.67% today will pay $675 per month in principal and interest for every $100,000. This means that on a $750,000 loan, your monthly principal and interest payment would be approximately $5,061 and you would pay approximately $161,009 in total interest over the life of the loan.

1/5 ARM interest rates

At 1/5 ARM, the average rate remained at 2.81%. The average rate was 2.86% last week. Today’s interest rate is lower than the 52-week high of 2.86%%.

Borrowers with 1/5 ARM of $100,000 at today’s 2.81% interest rate would pay $411 per month in principal and interest.

Know when to refinance your home

You may want to refinance your mortgage, for a number of reasons: to lower your interest rate, reduce your monthly payments or pay off your loan sooner. You may also be able to use a refinancing loan to gain access to your home ownership for other financial needs, such as a rebuilding project or to pay for your child’s college. If you pay private mortgage insurance (PMI), refinancing may also give you a chance to forgo this cost.

Refinancing a home loan may make sense especially if you plan to stay in your home for a while. Even if you score a lower interest rate, you need to take loan costs into account. Calculate the break-even point where your savings from the lower interest rate exceed your closing costs by dividing your closing costs by the monthly savings from your new payment.

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

How to get the best refinancing rates

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

  • Maintain a good credit score
  • Consider a short term loan
  • Lowering the debt-to-income ratio
  • Monitor mortgage rates

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

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