Mortgage Refinance Rate Today – March 8, 2021: Rates Rather Stable
Here’s what refinance rates look like today. Should you apply for a new mortgage?
Mortgage refinancing rates haven’t changed much from Friday. While the refinance rates tend to be a bit higher than the rates you’ll see for a new mortgage purchase, they are still very competitive, despite the fact that they have increased recently. Here’s what today’s rates look like:
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30-year mortgage refinancing rate
The 30-year average refinancing rate today stands at 3.263%, down 0.004% from Friday. At today’s rate, you’ll pay principal and interest of $ 435.98 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.
20-year mortgage refinancing rate
The 20-year average refinancing rate today stands at 2.940%, up 0.008% from Friday. At today’s rate, you’ll pay principal and interest of $ 551.60 for every $ 100,000 you borrow. Although your monthly payment increases by $ 115.62 with a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 24,566.19 in interest over your repayment period for every $ 100,000 you borrow.
15-year mortgage refinancing rate
The 15-year average refinancing rate today stands at 2.596%, down 0.003% from Friday. At today’s rate, you’ll pay principal and interest of $ 671.13 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 235.15 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 36,146.74 over the duration of your repayment period per $ 100,000 of mortgage debt.
Should You Refinance Your Mortgage Now?
Refinancing your mortgage can be a smart financial move if you are able to lower your interest rate and monthly payments with a new home loan. However, there are a few important things to consider before refinancing.
First, if you extend your loan repayment term, you could end up paying a higher total amount of interest over time than with your current mortgage. This can happen even if you qualify for a lower interest rate since you would be paying interest over a longer period. You can avoid this by choosing a refinance loan with a shorter repayment term. Or you may decide that you are willing to pay more interest over the life of your loan in exchange for a lower monthly payment.
Second, you’ll need to factor in closing costs, which are the upfront fees you will be charged when you refinance a mortgage. Ascent’s research found that the closing costs for a refinance loan for a mid-value home are between $ 5,000 and $ 12,500. However, your closing costs will depend on your specific mortgage amount, location, and lender.
You might need to offset these closing costs because of your lower monthly payments, but it can take time. If you save $ 200 per month by refinancing and pay $ 6,000 in closing costs, it will take you 2.5 years to break even. It’s important to calculate the numbers and determine if you’ll be staying in your home long enough for the refinancing to pay off.
Generally speaking, refinancing can make a lot of sense if you don’t plan to move in the next few years and are able to reduce your mortgage interest rate by at least 1% ( or almost). Now, one thing to note is that refinance rates have risen a lot since mid-February, and we don’t know if they are going to continue to rise, so if you are considering getting a new home loan it might pay off. move as soon as possible. There is a good chance that you will qualify for a competitive rate on your refinance if you have a good credit rating and a low debt-to-income ratio.
If you’re ready to apply for a new mortgage, contact a handful of mortgage refinance lenders – don’t settle for the first offer you receive. Each lender sets their own rate and closing costs, and having different offers to compare could help you find the best deal.