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Refinance rates for Thursday, September 1

August 31, 2016
by admin

Jonathan Mark Ogden/Getty Images

Refinance rates mostly rose today. The average rate on 30-year fixed refinances rose, the average rate on 15-year refinances remained unchanged and the average rate on 10-year refinances rose.

While rates on mortgage refinances change daily, overall, they are currently near historical lows. Be sure to shop around for the best refinance rates.

30-year fixed refi

The average 30-year fixed-rate refi is 3.42%, up 1 basis point from a week ago.

At the current average rate, you’ll pay about $445 per month in principal and interest for every $100,000 you borrow.

You can use this mortgage calculator to estimate your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

Average Refinance Rates
Product Rate Change Last week
30 year fixed refi 3.42%  0.01 3.41%
15 year fixed refi 2.69% –0.00 2.69%
10 year fixed refi 2.7%  0.02 2.68%
Last updated: 7/12/2016

15-year fixed refi

The average 15-year fixed-rate refi is 2.69%, unchanged from a week ago.

Remember, shorter-term loans come with a trade-off. You’ll pay more per month, but you’ll also save thousands of dollars over the life of the loan.

For example, monthly payments on a 2.69%, 15-year loan would cost around $676 for every $100,000 borrowed.

Over a 15-year term, the total interest payments would be around $21,639. That’s about $38,414 less than what you’d pay in interest with a 30-year loan at today’s rate.

10-year fixed refi

The average 10-year fixed-rate refi is 2.7%, up 2 basis point from a week ago.

Monthly payments on a 10-year fixed-rate refi at 2.7% would cost about $952 per month. And you’d only pay around $14,219 in interest over the life of the loan.

But keep in mind that refinancing is all about the numbers. It makes sense when you can reduce the costs of the loan.

Use this mortgage refinance calculator to see if you’ll save by refinancing.

New program for stressed homeowners

The Federal Housing Finance Agency announced a new program last week that will help homeowners who owe more than their home is worth to refinance.

It’s a cousin to the fed’s HARP program and is scheduled to begin September 2017.

Follow me on Twitter: @MitchStrohm

You will see these rates listed on Bankrate site averages; these calculations are run after the close of the business day. Included there are rates and/or yields we have collected on the previous day for a specific banking product.

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