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Forbes
20 minutes ago
- Business
- Forbes
Here Are Today's Mortgage Refinance Rates: July 30, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The rate on a 30-year fixed refinance decreased to 6.77% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.69%. On a 20-year mortgage refinance, the average rate is 6.61%. Related: Compare Current Refinance Rates The average rate for a 30-year fixed-rate mortgage refinance is 6.77%, up 0.55% from last week. The 30-year fixed mortgage refi APR (annual percentage rate) is 6.8%. At this time last week, it was 6.77%. The APR represents the all-in cost of your loan. At today's interest rate of 6.77%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $650 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you'd pay $134,741 over the life of the loan. For a 20-year fixed refinance mortgage, the average interest rate is currently 6.61%, compared to 6.54% last week. The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.65%. It was 6.58% last week. At today's interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $752 per month in principal and interest – not including taxes and fees. That would equal about $81,035 in total interest over the life of the loan. The 15-year fixed mortgage refinance is currently averaging about 5.69%, compared to 5.67% last week. The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.73%. At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $827 per month in principal and interest. That doesn't include taxes and fees. That borrower would pay roughly $49,291 in total interest over the 15-year life of the loan. The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) declined week-over-week to 6.98%, unchanged from last week. At today's interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $664 per month in principal and interest on a $100,000 loan. A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.11%, down 3.01% from last week. At today's rate, a borrower would pay $850 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $53,220 in total interest. No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity. The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense. When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms. When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice. Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home's equity or get rid of private mortgage insurance (PMI). But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you'll be keeping your home for some time. You can determine the 'break-even point' for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you'll realize with the new mortgage. The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it's a good time for you to refinance. Refinancing a mortgage isn't that different than taking out a mortgage in the first place, and it's always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate: Polish up your credit score Lower your debt-to-income ratio Keep an eye on mortgage rates Consider a shorter loan Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You're also likely to look better to mortgage refinance lenders if you don't have too much debt relative to your income. You should keep a regular watch on mortgage rates , which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates. National average mortgage interest rates will have the most significant impact on refinancing trends throughout 2025, whether they rise or fall. While predicting mortgage interest rates is challenging , experts expect them to remain in the middle-to-high 6% range during the first half of 2025, similar to the final quarter of 2024. However, rates could potentially decrease by the end of the year. If inflation slows and national unemployment levels remain steady or increase, the Federal Reserve might cut the federal funds rate, leading to lower mortgage rates. On the other hand, if the opposite happens, average rates will likely see little movement. Since experts anticipate minimal movement in average mortgage rates during the first half of the year, those looking to refinance at a lower rate may want to wait until later in the year to secure the best rate. In the meantime, improving your credit score, making on-time payments and paying down your loan amount will put you in the best position to secure a low rate when you begin shopping for a refinance offer. Frequently Asked Questions (FAQs) It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender. Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure. You should always shop around when you're trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you're able to communicate well with the lender you want to choose. In a bumpy housing market, you'll probably be in touch with the lender more often than you realize.
Forbes
a day ago
- Business
- Forbes
Mortgage Rates Today: July 29, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Today's average mortgage rate on a 30-year fixed-rate mortgage is 6.72%, up 0.60% from the previous week, according to the Mortgage Research Center. Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, which will often have a lower rate than a 30-year, fixed-rate home loan. The average APR on a 15-year fixed mortgage is 5.74%. However, a 15-year mortgage means you are paying off the house in half the amount of time compared to a 30-year term, so your monthly payments will be higher. If you want to refinance your existing mortgage, check out the average refinance rate . Today's average rate on a 30-year mortgage (fixed-rate) slipped to 6.72% from 6.73% yesterday. One week ago, the 30-year fixed was 6.68%. The 30-year fixed mortgage APR moved up to 6.75%. At this time last week, it was 6.71%. Here's why APR is important. At today's interest rate of 6.72%, homebuyers will pay $647 per month in principal and interest (taxes and fees not included) for every $100,000 borrowed on their 30-year fixed-rate mortgage, the Forbes Advisor mortgage calculator shows. You'd pay around $133,567 in total interest over the life of the loan per $100,000 borrowed. Today's 15-year mortgage (fixed-rate) is 5.69%, up 0.30% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.67%. The APR on a 15-year fixed is 5.74%. It was 5.72% a week earlier. A 15-year, fixed-rate mortgage with today's interest rate of 5.69% will cost $827 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $49,368 in total interest. The current average interest rate on a 30-year, fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) is 6.93%—0.33% higher than last week. A 30-year jumbo mortgage at today's fixed interest rate of 6.93% will cost you $660 per month in principal and interest per $100,000. That adds up to roughly $138,205 in total interest over the life of the loan. Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024. Rates began to drop again in mid-January 2025, but experts don't forecast them falling by a significant amount in the near future. Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop . Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit. The Federal Reserve's decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows. A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens. The Federal Reserve's restrictive monetary policy – including its interest rate hikes, which it's using to restrain inflation – is the primary factor that's pushing long-term mortgage rates higher. The state of the economy and housing market also affects mortgage rates. As for what interest rate the lender might offer you, this depends on your debt-to-income (DTI) ratio and credit score, both of which indicate your risk as a borrower. Related: Mortgage Rates Forecast And Trends Shop around and talk to various lenders to get a sense of each company's mortgage loan offerings and services. Don't go with the first lender quote you receive; instead, compare the best mortgage rate quotes to get a deal. In particular, consider what fees they charge, what fees they're willing to waive and what closing assistance they might provide. Make sure any special offers or discounts don't come at the cost of a higher mortgage rate. Be sure to apply with each lender within a 45-day window. During this window, you can have multiple lenders pull your credit history without additional impact on your credit score. Mortgage rates remain elevated, and the nation's housing supply remains limited. The low inventory is preventing house prices from dropping. Meanwhile, the combination of high mortgage rates and appreciated home values will continue to present an obstacle for many prospective homebuyers seeking affordable housing. Mortgage interest rates are determined by several factors, including some that borrowers can't control: Federal Reserve. The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed's rate decision. The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed's rate decision. Bond market. Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets—specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa. Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets—specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa. Economic health. Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages. Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages. Inflation. Banks and lenders may increase rates during inflationary periods to slow the rate of inflation. Additionally, inflation makes goods and services more expensive, reducing the dollar's purchasing power. While the above factors set the base interest rate for new mortgages, there are several areas that borrowers can focus on to get a lower rate: Credit score. Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage. Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage. Debt-to-income (DTI) ratio. Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended. Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended. Loan-to-value (LTV) ratio. Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down. Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down. Loan term. Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term. Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term. Residence type. Interest rates for a primary residence can be lower than a second home or an investment property. This is because the lender of your primary mortgage receives compensation first in the event of foreclosure. As you compare lenders, consider getting rate quotes for several loan programs. In addition to comparing rates and fees, these programs can have flexible down payment and credit requirements that make qualifying easier. Conventional mortgages are likely to offer competitive rates when you have a credit score between 670 and 850, although it's possible to qualify with a minimum score of 620. This home loan type also doesn't require annual fees when you have at least 20% equity and waive PMI. Several government-backed programs are better when you want to make little or no down payment: FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with VA loans. Servicemembers, veterans and qualifying spouses don't need to make a down payment when the sales price is less than the home's appraisal value. VA loan credit requirements vary by lender. Servicemembers, veterans and qualifying spouses don't need to make a down payment when the sales price is less than the home's appraisal value. credit requirements vary by lender. USDA loans. Applicants in eligible rural areas can buy or build a home with no money down using a USDA loan . Moderate-income borrowers can qualify for a 30-year fixed-rate term through the Guaranteed Loan Program. Further, buyers with a very low or low income can receive a 33-year term and payment assistance is available through the agency's Direct Loans program. Credit requirements differ by lender. Frequently Asked Questions (FAQs) Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less. Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate. The Federal Reserve's efforts to stabilize the economy during the Covid-19 pandemic drove the historically low rates. As the economy recovers, the unemployment rate decreases and inflation is controlled, rates may dip below current levels, but they're unlikely to fall as low as 3% again anytime soon. A mortgage interest rate reflects what a lender is charging you on top of your loan amount in return for allowing you to borrow money. Annual percentage rate (APR) , on the other hand, is a calculation that includes both a loan's interest rate and finance charges, expressed as an annual cost over the life of the loan. In other words, it's the total cost of credit. APR accounts for interest, fees and time. Since APRs include both the interest rate and certain fees associated with a home loan, the APR can help you understand the total cost of a mortgage if you keep it for the entire term. The APR will usually be higher than the interest rate, but there are exceptions.
Forbes
2 days ago
- Business
- Forbes
Today's Mortgage Refinance Rates: July 28, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. 30-year fixed refinance mortgage rates stayed flat at 6.78% today, according to the Mortgage Research Center. Rates averaged 5.7% for a 15-year financed mortgage and 6.64% for a 20-year financed mortgage. Related: Compare Current Refinance Rates Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.78%, the same as this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $650 per month for principal and interest at the current interest rate, according to the Forbes Advisor mortgage calculator , not including taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $134,813. Another way of looking at loan costs is the annual percentage rate, or APR . For a 30-year, fixed-rate mortgage, the APR is 6.81%, about the same as last week. The APR is essentially the all-in cost of the home loan. The average interest rate on the 20-year fixed refinance mortgage is 6.64%, about the same as last week. The APR on a 20-year fixed is 6.68%, about the same as last week. A 20-year fixed-rate mortgage refinance of $100,000 with today's interest rate would cost $754 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $81,533 in total interest. The average interest rate on the 15-year fixed refinance mortgage is 5.7%, unchanged from the prior week. On a 15-year fixed refinance, the annual percentage rate is 5.75%. It was about the same last week. At the current interest rate, you would pay $828 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $49,474 in total interest. The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) declined week-over-week to 6.98%, versus 7.04% last week. At today's interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $664 per month in principal and interest on a $100,000 loan. The average interest rate on the 15-year fixed-rate jumbo mortgage refinance dropped to 6.17%, down 2.68% from last week. Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today's interest rate will pay $853 per month in principal and interest per $100,000 borrowed. They will pay about $53,797 in total interest over the life of the loan. No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity. The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense. When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms. When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice. You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home's equity or take out a new loan to eliminate private mortgage insurance (PMI). Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You'll need to know the loan's closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment. Our mortgage refinance calculator could help you determine if refinancing is right for you. Refinancing a mortgage isn't that different than taking out a mortgage in the first place, and it's always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate: Polish up your credit score Lower your debt-to-income ratio Keep an eye on mortgage rates Consider a shorter loan Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You're also likely to look better to mortgage refinance lenders if you don't have too much debt relative to your income. You should keep a regular watch on mortgage rates , which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates. Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025. If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable. Since mortgage rates are expected to change little in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and paying down your loan balance will help you secure the lowest possible rate when you're ready to explore refinancing options. Frequently Asked Questions (FAQs) In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure. It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender. You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors – like the type of home loan you choose. Always check with your lender before committing to borrow.
Forbes
2 days ago
- Business
- Forbes
Mortgage Rates Today: July 28, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The current average mortgage rate on a 30-year fixed mortgage is 6.73% with an APR of 6.76%, according to the Mortgage Research Center. The 15-year fixed mortgage has an average rate of 5.71% with an APR of 5.76%. On a 30-year jumbo mortgage, the average rate is 6.92% with an APR of 6.94%. Today, the average rate on a 30-year mortgage is 6.73%, compared to last week when it was 6.73%. The APR on a 30-year, fixed-rate mortgage is 6.76%. The APR was 6.76% last week. APR is the all-in cost of your loan. With today's interest rate of 6.73%, a 30-year fixed mortgage of $100,000 costs approximately $647 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. Borrowers will pay about $133,806 in total interest over the life of the loan. Today, the 15-year mortgage rate rose to 5.71%, higher than it was yesterday. Last week, it was 5.7%. The APR on a 15-year fixed is 5.76%. It was 5.75% this time last week. A 15-year fixed-rate mortgage of $100,000 with today's interest rate of 5.71% will cost $828 per month in principal and interest. Over the life of the loan, you would pay $49,532 in total interest. The current average interest rate on a 30-year, fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) is 6.92%—0.40% lower than last week. A 30-year jumbo mortgage at today's fixed interest rate of 6.92% will cost you $660 per month in principal and interest per $100,000. That adds up to around $137,964 in total interest over the life of the loan. Although mortgage rates mainly fell after reaching a high in spring 2024, they surged again in October 2024. This is despite the Federal Reserve's cuts to the federal funds rate (its benchmark interest rate) in September, November and December 2024. While rates have fallen somewhat since mid-January 2025, experts don't expect them to drop significantly anytime soon. Various economic factors influence mortgage rates, making it challenging to forecast when rates will drop . The Federal Reserve's decisions significantly impact mortgage rates. In response to inflation or an economic downturn, the Fed may lower its federal funds rate, prompting lenders to reduce mortgage rates. Mortgage rates also track U.S. Treasury bond yields. If bond yields drop, mortgage rates typically follow suit. Finally, global events that cause financial disruptions can affect mortgage rates. For example, the Covid-19 pandemic led to record-low interest rates when the Fed cut rates. While a significant decrease in mortgage rates is unlikely in the near future, they may start to decline if inflation eases or the economy weakens. Before you look for a house, you should get to know your budget. This will give you an idea of the type of house you can afford. Start by using a mortgage calculator to get a rough estimate. Simply input the following information: Home price Down payment amount Interest rate Loan term Taxes, insurance and any HOA fees Multiple factors affect the interest rate for a mortgage, including the economy's overall health, benchmark interest rates and borrower-specific factors. The Federal Reserve's rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn't directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation. Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment. Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term. Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%. For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy. For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan. Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn't require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan. If you come from a qualifying military background, VA loans can be your best option. First, you don't need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don't pay an annual fee as the FHA and USDA loan programs require. Frequently Asked Questions (FAQs) Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less. Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate. Most rate locks last 30 to 60 days and your lender may not charge a fee for this initial period. However, extending the rate lock period up to 90 or 120 days is possible, depending on your lender, but additional costs may apply. Choosing between a fixed- or adjustable-rate mortgage (ARM) depends on your financial situation. A fixed-rate mortgage suits those who want consistent monthly payments throughout the loan term without worrying about fluctuations in their rate or payments in response to market changes. If mortgage rates are low, securing a fixed rate can save you money in the long run. An ARM , on the other hand, may appeal to those who want a lower initial rate and monthly payment. However, you also run the risk of ending up with higher payments if your rate fluctuates. If you expect your income to rise, you may feel confident handling these potential payment increases. These mortgages can also work well for those who plan to live in a home for only a few years, as you might sell or move before the rate adjusts.
Forbes
5 days ago
- Business
- Forbes
Today's Mortgage Refinance Rates: July 25, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The rate on a 30-year fixed refinance increased to 6.8% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.71%, and for 20-year mortgages, the average is 6.64%. Related: Compare Current Refinance Rates Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.8%, up 1.05% from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $652 per month for principal and interest at the current interest rate, according to the Forbes Advisor mortgage calculator , not including taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $135,461. Another way of looking at loan costs is the annual percentage rate, or APR . For a 30-year, fixed-rate mortgage, the APR is 6.83%, higher than last week's 6.76%. The APR is essentially the all-in cost of the home loan. For a 20-year fixed refinance mortgage, the average interest rate is currently 6.64%, compared to 6.53% last week. The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.68%. It was 6.57% last week. At today's interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $754 per month in principal and interest – not including taxes and fees. That would equal about $81,476 in total interest over the life of the loan. For a 15-year fixed refinance mortgage, the average interest rate is currently 5.71%. A week ago, the 15-year fixed-rate mortgage stood at 5.7%. The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.76%. Last week, it was 5.74%. Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $828 per month in principal and interest—not including taxes and fees. That would equal about $49,551 in total interest over the life of the loan. The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) jumped up week-over-week to 6.98%. A week ago, the average rate was 6.77%. Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today's interest rate will pay $664 per month in principal and interest per $100,000 borrowed. A 15-year, fixed-rate jumbo mortgage refinance is 6.17% on average, down 6.52% from last week. At today's interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $853 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $53,787 in total interest. Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders . In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you're borrowing from your available equity. Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan's annual percentage rate (APR), which includes all additional fees and determines the interest charges. When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice. You may want to refinance your home mortgage , for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home's equity for other financial needs, like a remodeling project or to pay for your child's college. If you've been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost. Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You'll need to know the loan's closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment. Our mortgage refinance calculator could help you determine if refinancing is right for you. Much like when you shopped for a mortgage when purchasing your home, when you refinance here's how you can find the lowest refinance rate : Maintain a good credit score Consider a shorter-term loan Lower your debt-to-income ratio Monitor mortgage rates A solid credit score isn't a guarantee that you'll get your refinance approved or score the lowest rate, but it could make your path easier. Mortgage refinance lenders are also more likely to approve you if you don't have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates. National average mortgage rates have remained in the middle-to-high 6% range since the final quarter of 2024, and experts expect this trend to continue throughout the first half of 2025. Although forecasting mortgage interest rates is challenging, economic indicators like inflation and unemployment rates can provide insights into the direction of the housing market. For example, if inflation slows and national unemployment levels remain stable or rise, the Federal Reserve may cut the federal funds rate, which could lead to lower mortgage rates. On the other hand, if inflation stays high and unemployment decreases, rates are likely to remain steady. Since mortgage rates are expected to experience minimal movement in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and making on-time payments will allow you to secure the best possible rate when you begin shopping for refinance offers. Frequently Asked Questions (FAQs) Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It's always a good idea to ask the lender what kind of closing costs they'll charge before you decide to borrow from them. Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure. Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it's right for you.
