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Refinance rates tick lower for Thursday

By Claes Bell · Bankrate.com
Thursday, July 13, 2017
Posted: 9 am ET

Several closely watched refinance rates slid lower today.

The average for a 30-year fixed-rate refinance were down, but the average rate on a 15-year fixed refinance held steady. Meanwhile, the average rate on 10-year fixed refis decreased.

Rates for refinancing are constantly changing, but they continue to represent a bargain compared to rates before the Great Recession. If you're in the market to refinance, it may make sense to go ahead and lock if you see a rate you like.

Compare refinancing rates in your area now.

30-year fixed refinance

The average 30-year fixed-refinance rate is 3.85 percent, down 5 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.76 percent.

At the current average rate, you'll pay $468.81 per month in principal and interest for every $100,000 you borrow. That's a decline of $2.86 from last week.

You can use Bankrate's mortgage calculator to figure out your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you'll pay over the life of the loan.

15-year fixed refinance

The average rate for a 15-year fixed refi is 3.08 percent, unchanged over the last seven days.

Monthly payments on a 15-year fixed refinance at that rate will cost around $693 per $100,000 borrowed. That's clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You'll come out thousands of dollars ahead over the life of the loan in total interest paid and build equity much faster.

10-year fixed refinance

The average rate for a 10-year fixed-refinance loan is 3.00 percent, down 2 basis points from a week ago.

Monthly payments on a 10-year fixed-rate refi at 3.00 percent would cost $966.53 per month for every $100,000 you borrow. As you can see, the substantial savings in interest costs you'll reap with that short 10-year term comes with the downside of a much larger monthly payment.

Where rates are headed

To see where Bankrate's panel of experts expect rates to go from here, check out our Rate Trend Index.

Want to see where rates are right now? See local mortgage rates.

Average mortgage rates
Product Rate Change Last week
30-year fixed refi 3.85% 0.05 3.90%
15-year fixed refi 3.08% -- N/C 3.08%
10-year fixed refi 3.00% 0.02 3.02%
Last updated July 12, 2017.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile -- they help consumers see the movement of rates day to day. The institutions included in the "Bankrate.com Site Average" tables will be different from one day to the next, depending on which institutions' rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."

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