Refinance Rates for Jan.  29, 2024: Rates Slide Down Again

Refinance Rates for Jan. 29, 2024: Rates Slide Down Again

The national rate average for a 15-year fixed-rate refinance saw growth this week, while 30-year fixed refinance rates followed suit. Average rates for 10-year fixed refinances have dropped.

  • 30-year fixed refinance: 6.99%
  • 15-year fixed refinance: 6.45%
  • 10-year fixed refinance: 6.17%

Refinancing rates remain relatively high, and millions of homeowners are keeping their original mortgages until rates ease. Although home loan rates have been declining since November, current rates are still higher than the 3.5% average on existing mortgages, according to Mark Zandi, chief economist at Moody’s Analytics. And, although refinancing activity has picked up recently, the overall level of refinancing applications is still very low compared to early 2021. refi activity will increase,” Zandi said.

With the Federal Reserve taking a third consecutive break from aggressive rate hike policy and promising interest rate cuts throughout the year, the opportunity to refinance may come sooner rather than later.

About these fees: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use to compare multiple mortgage rates.

Refinance rates for homeowners

In today’s high-rate environment, refinancing is less attractive. Current rates are between 6% and 7%, but your personal interest rate will depend on your credit history, financial profile and application.

Here are the average refinance rates reported by lenders across the US. We track refinance rate trends using data collected by Bankrate:

Average refinance interest rates

product Rate A week ago Renewal
30 year fixed refi 7.19% 7.22% -0.03
15 years fixed refi 6.45% 6.41% +0.04
10 year fixed refi 6.17% 6.25% -0.08

Rates since Jan. 29, 2024

Do you need to refinance?

When you refinance your mortgage, you take out another home loan that pays off your first mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you get your equity with a new loan that’s larger than your current mortgage balance, allowing you to pocket the difference in cash.

Refinancing can be a great financial move if you can get a lower rate or pay off your home loan in less time, but think about whether it’s the right option for you. Reducing your interest rate by 1% or more is an incentive to refinance, which allows you to cut your monthly payments significantly. But the current mortgage market conditions are not good. If you decide to refinance, compare fees, charges and the annual percentage rate — which reflects the total cost of borrowing — from different lenders to find the best deal.

30-year fixed-rate refinance

The average 30-year fixed refinance rate is now 7.19%, a decrease of 3 basis points from this time last week. (The basis point is equal to 0.01%.) A 30-year fixed refinance usually has a lower monthly payment than a 15-year or 10-year refinance, but it will take you longer to pay off and usually will cost you more interest. in the long term.

15-year fixed-rate refinance

The average 15-year fixed refinance rate is now 6.45%, an increase of 4 basis points from last week. Although a 15-year fixed refinance will likely increase your monthly payments compared to a 30-year loan, you’ll save more money over time because you’ll pay off your loan more quickly. Also, 15-year refinance rates are often lower than 30-year refinance rates, which can help you save more in the long run.

10-year fixed-rate refinance

The average 10-year fixed refinance rate today is 6.17%, a decrease of 8 basis points compared to a week ago. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your home faster and save on interest, but make sure you can afford the higher monthly payments.

Where will the refinance rates end?

When mortgage rates hit historic lows during the pandemic, there was an uptick in refinancing, as homeowners got lower interest rates on their loans. house But refinancing might not actually save you money right now. “Refinancing for some people may make sense if they have rates above 8%,” said Logan Mohtashami, lead analyst at HousingWire. “However, with all refinancing options, this is a personal financial option because of the cost associated with the loan process,” Mohtashami said.

If the economic data goes in the right direction, 2024 should bring lower rates. “The best bet is to keep an eye on daily rate changes and have a game plan for how to take advantage of a big drop,” says Matt Graham of Mortgage News Daily.

When to consider a mortgage refinance

Homeowners often refinance to save money, but there are other reasons for doing so. Here are the most common reasons homeowners refinance:

  • To get a lower interest rate: If you can get a rate that is at least 1% lower than the one on your current loan, it may make sense to refinance.
  • To change the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you can refinance to a fixed-rate mortgage.
  • To cancel mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance a conventional loan if you have 20% equity.
  • To change the length of a loan term: Refinancing to a longer loan term can lower your monthly payments. Refinancing for a shorter term will save you interest in the long run.
  • To tap your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in money to cover a large expense.
  • To get someone out of debt: In case of divorce, you can apply for a new home loan in your name and use the funds to pay off your existing debt.

How to find personal refinance rates

Rates advertised on the internet often require certain conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, low credit utilization ratio and a history of consistent and on-time payments will often help you get the best interest rates. To get the best refinance rate, make your application as strong as possible by arranging your finances, using credit responsibly and regularly monitoring your credit. And don’t forget to talk to multiple lenders and shop around.

Refinancing can be a great move if you can get a better rate or pay off your loan faster, but consider whether it’s the right option for you right now.

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