As of mid-June 2024, mortgage refinance rates have experienced slight increases. Here is an overview of the current landscape for refinancing options, based on recent data:

Current Refinance Rates

• 30-Year Fixed Refinance: The average rate for a 30-year fixed mortgage refinance stands at 7.59%. This means that for a $100,000 loan, borrowers would pay about $705 per month in principal and interest. Over the life of the loan, total interest costs amount to approximately $153,841.
• 20-Year Fixed Refinance: The average rate is 7.41%, slightly down from 7.44% last week. This would result in monthly payments of about $800 for a $100,000 loan, with total interest costs around $92,082.
• 15-Year Fixed Refinance: This rate currently sits at 6.79%, up from last week’s 6.85%. Monthly payments for a $100,000 loan would be approximately $887, with total interest costs amounting to about $59,663.

Factors Influencing Refinance Rates

Mortgage refinance rates generally move in line with purchase rates. They can be influenced by several factors including the Federal Reserve’s short-term interest rate changes, economic conditions, and lender-specific criteria such as the borrower’s credit score, debt-to-income ratio, and the amount of home equity​ (Investopedia)​​ (Nasdaq)​.

Benefits of Refinancing

Refinancing a mortgage can provide several financial benefits:

• Lower Monthly Payments: By securing a lower interest rate or extending the loan term, homeowners can reduce their monthly mortgage payments.
• Switching Loan Types: Homeowners might refinance to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage to gain payment stability.
• Shortening Loan Terms: Some homeowners opt to refinance to a shorter loan term to pay off their mortgage faster.
• Cash-Out Refinancing: This option allows homeowners to take out a new mortgage for more than what is owed on the current one, keeping the difference in cash. This can be useful for funding home improvements or other financial needs​ (Investopedia)​​ (Nasdaq)​.

Choosing the Right Lender

Different lenders offer various refinance programs and rates. Here are a few top choices:

• Guaranteed Rate: Known for its digital mortgage experience and a variety of refinance programs.
• Chase: Offers a robust online platform with updated rates and a variety of mortgage products.
• Zillow Home Loans: Provides extensive online rate information and a good selection of refinance options.
• Fairway Independent Mortgage: Known for a wide range of refinance products including FHA, VA, and USDA loans​ (LendingTree)​​ (Nasdaq)​.

When considering refinancing, it’s important to compare rates and fees across multiple lenders to ensure you get the best deal. Be mindful of the costs involved and calculate whether the potential savings outweigh these expenses.