Several benchmark refinance rates sunk lower today.
Average rates nationwide for 30-year fixed and 15-year fixed refinances both ticked downwards. The average rate on 10-year fixed refis, meanwhile, also trended down.
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30-year fixed refinance
The average 30-year fixed-refinance rate is 4.08 percent, down 1 basis point compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 4 percent.
At the current average rate, you’ll pay $482.04 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $0.58 lower.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed refinance
The average rate for a 15-year fixed refi is 3.22 percent, down 3 basis points from a week ago.
Monthly payments on a 15-year fixed refinance at that rate will cost around $700 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out thousands of dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
10-year fixed refinance
The average rate for a 10-year fixed-refinance rate is 3.12 percent, down 5 basis points over the last week.
Monthly payments on a 10-year fixed-rate refi at 3.12 percent would cost $971.16 per month for every $100,000 you borrow. As you can see, the substantial savings in interest costs you’ll reap with that short 10-year term comes with the downside of a much larger monthly payment.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
RATE SEARCH: Want to see where rates are right now? See local mortgage rates.
Last updated 1/31/2017
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”