Current Mortgage Refinancing Rates – April 27, 2021: Downward Trend in Rates

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How are mortgage refinancing rates evolving today? Keep reading to find out.

As April draws to a close, average mortgage refinancing rates are down a bit. If you’re considering refinancing your home loan in an attempt to lower your interest rate, check out the average refinance rates for April 27, 2021:

The data source: The Ascent National Mortgage Interest Rate Tracker.

30-year mortgage refinancing rate

The 30-year average mortgage refinance rate today is 3.260%, down 0.003% from yesterday’s average of 3.263%. If you refinance at the current average rate, your monthly principal and interest payment would be $ 436 per $ 100,000 borrowed. Over the life of the refinance loan, your total interest charges would be $ 56,872 per $ 100,000 borrowed.

20-year mortgage refinancing rate

The 20-year mortgage refinance average rate today is 3.056%, down 0.015% from yesterday’s average of 3.071%. At the current average rate, the monthly principal and interest would be $ 557 per $ 100,000 of mortgage debt refinanced. The total cost of interest would be $ 33,777 per $ 100,000 of mortgage debt over the life of the refinance loan.

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There is a trade-off you make when choosing a loan with a shorter repayment term. You save money over time, but the monthly payments are higher. You can see that you will pay more each month with the 20 year loan than with the 30 year loan, but less total interest over the life of the loan.

15-year mortgage refinancing rate

The 15-year mortgage refinance average rate today is 2.554%, down 0.008% from yesterday’s average of 2.562%. If you refinance at the current average rate, you would have a monthly principal and interest payment of $ 669 per $ 100,000 borrowed. For every $ 100,000 that you refinance at the current average rate, the total interest charge would be $ 20,480.

The 15 year loan would save you the most on interest, but the monthly payments would of course be much higher. If you want to get out of debt in half the time, you’ll need to commit to those larger payments.

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 lower your monthly payments by getting a new home loan. However, there are a few key things to consider before refinancing.

First, if you extend your loan repayment term, you could end up paying higher total interest charges over time than with your current mortgage. This can happen even if you qualify for a lower interest rate because you will be paying interest over a longer period. You can avoid this problem 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 costs you will be charged when you refinance your mortgage. Ascent’s research found that the closing costs for a refinance loan for a mid-value home totaled between $ 5,000 and $ 12,500. However, your closing costs will depend on your mortgage amount, location, and lender.

You might have to offset those closing costs due to your lower monthly payments – but it can take time. If you save $ 200 a month by refinancing and pay $ 6,000 in closing costs, it would take you 2.5 years to break even. It’s important to do the math and determine if you’ll be staying in your home long enough for the refinancing to pay off.

In general, it’s a good idea to refinance if you don’t plan to move in the next few years and can lower your mortgage interest rate by 1% or more. With mortgage refinancing rates not yet too low, many borrowers will find it a good time to refinance. Compare the rates of the best mortgage refinance lenders for personalized offers and decide if getting a new mortgage is right for you.

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