Are you wanting to refinance your current mortgage, but don’t want to pay too much or miss out on an attractive rate? Understanding current refinance rates and choosing the best option for you will help you save money and ensure you get the best deal. Refinancing your mortgage can be an overwhelming process, but an understanding of the current interest rates can be a great help in your decision-making process.
What are Current Refinance Rates?
At the moment, the national average 30-year fixed APR rate is approximately 7.18%. The average 15-year fixed APR rate is currently 6.44%, according to recent surveys of the country’s major lenders. Many borrowers are finding that it is worthwhile to refinance even with these relatively high rates, since the current mortgage market offers some attractive options.
The amount you can save each month depends on the size of your mortgage and how much lower the new interest rate is when compared to your previous loan. Typically, it is suggested that refinancing is beneficial if you can find an interest rate that is two percent lower than your current rate.
How to Find the Best Refinance Rates
When it comes to finding the best refinance rates, it’s important to shop around with multiple lenders. Refinancing lenders may offer different terms, rates and fees, so it pays to compare options before settling on a loan. To find the best refinance rates, look at data from the nation’s 50 largest refinance lenders. This data can give you an idea of the average cost of refinancing, as well as the average terms and rates each lender has to offer.
When comparing lenders and interest rates, there are a few other factors to take into account. These include closing costs; most lenders charge a fee for their refinance services, so it’s important to compare these too. Some lenders also offer special deals for certain borrowers, such as discounts for those with excellent credit. Make sure to ask lenders about these deals and find out if you qualify.
How Much Does Refinancing Cost?
Refinancing your mortgage can be expensive, as lenders usually charge a fee for their services. The total cost of refinancing can vary from lender to lender, but typically, it will include closing costs, which are generally around three percent of the loan.
In addition to the cost of the loan itself, some lenders offer deals and discounts that can help you save money. For example, some lenders waive fees or provide discounts for certain borrowers who have excellent credit. Ask your lender if they offer any of these deals to see if they are available to you.
Should I Refinance?
Refinancing your mortgage is a decision that should not be taken lightly. Take the time to compare rates and terms from different lenders, and make sure to look at all the costs associated with refinancing before you make a final decision.
It’s also important to consider your personal financial situation when deciding if refinancing is the best option for you. Will refinancing help you reduce your monthly payments and save money in the long-term? If so, it may be worth considering.
Conclusion
Refinancing your mortgage can be a great way to potentially save money and lock in a lower interest rate. Before you decide to refinance, it’s important to understand the current refinance rates and shop around for the best deal. By taking the time to compare lenders, closing costs and other fees, you can make sure you get the best deal for you and your budget.
