Multiple closely watched mortgage refinance rates ticked downward today.
Nationwide averages for 30-year fixed and 15-year fixed refinances both fell. Meanwhile, the average rate on 10-year fixed refis also dropped.
Refinancing rates are in a constant state of flux, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market to refinance, it could be a great time to lock in a rate.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.84 percent, down 18 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.90 percent.
At the current average rate, you’ll pay $468.24 per month in principal and interest for every $100,000 you borrow. That’s $10.33 lower, compared with last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed refinance
The average for a 15-year refi is currently running at 3.34 percent, down 8 basis points over the last week.
Monthly payments on a 15-year fixed refinance at that rate will cost around $702 per $100,000 borrowed. That’s obviously 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 save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 3.42 percent, down 15 basis points over the last week.
Monthly payments on a 10-year fixed-rate refi at 3.42 percent would cost $992.14 per month for every $100,000 you borrow. As you can see, the hefty 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? Lenders nationwide respond to Bankrateâ€™s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:
|30-year fixed refi||3.84%||4.02%||-0.18|
|15-year fixed refi||3.34%||3.42%||-0.08|
|10-year fixed refi||3.42%||3.57%||-0.15|
Rates as of April 8, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
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.”