When to Consider Refinancing Your Mortgage
- Watch for Lower Mortgage Rates
If mortgage rates are decreasing, it may be a good time to consider refinancing. A trusted loan officer can help assess if refinancing makes sense financially. - Evaluate Your Debt Situation
Many homeowners today have accumulated revolving debt. Even a small drop in mortgage rates could provide significant savings if you opt for a cash-out refinance to consolidate high-interest debt. - Rate-and-Term Refinances
If you’re not consolidating debt and simply want a better interest rate, consider refinancing if the new rate is at least 0.25% to 0.50% lower than your current rate. This can lead to savings, as long as points and fees for the refinance are reasonable. - Consider the Costs
Make sure that the points and fees associated with refinancing are not too high, as they can offset the benefits of a lower interest rate.
What Are Today’s Average Mortgage Rates?
30-year fixed-rate mortgage:
- Today. The average APR for the benchmark 30-year fixed mortgage fell to 7.18%.
- Last week. 7.18%.
15-year fixed-rate mortgage:
- Today. The average APR on a 15-year fixed mortgage is 6.32%.
- Last week. 6.32%.
30-year fixed-rate jumbo mortgage:
- Today. The average APR on the 30-year fixed-rate jumbo mortgage is 7.24%.
- Last week. 7.04%.