The decision to refinance a mortgage loan can be a complicated one, as it depends on a variety of factors such as current mortgage rates, the remaining term of the loan, and the borrower's current financial situation. However, one of the most important considerations is the mortgage rate on the current loan compared to the rates that are currently available on the market.
The best time to refinance a mortgage is typically when current mortgage rates are lower than the rate on your current mortgage. By refinancing to a lower rate, you can potentially save thousands of dollars over the life of the loan. For example, if a borrower has a 30-year fixed-rate mortgage at 4.5% and mortgage rates drop to 3.5%, the borrower can save over $20,000 in interest over the life of the loan.
Another factor to consider when determining the best time to refinance is the remaining term of the loan. If you have several years left on your current mortgage, it may not make sense to refinance, as the savings from a lower mortgage rate may not be enough to offset the costs of refinancing, such as closing costs and appraisal fees.
In addition to the mortgage and remaining term, the borrower's current financial situation also plays a role in determining the best time to refinance. For example, if a borrower's credit score has improved since taking out the original loan, they may be able to qualify for a lower mortgage rate, making refinancing a more attractive option.
Additionally, if the borrower has built up more equity in the property, they may be able to qualify for a cash-out refinance, which could provide the funds needed for home improvements, debt consolidation, or other expenses.
Good Reasons to Refinance a Mortgage
Another situation where refinancing may be a good option is when you have an adjustable-rate mortgage (ARM) that is about to reset to a higher rate. If you expect your rate to rise significantly, refinancing to a fixed-rate mortgage may be a good choice to protect against future rate increases.
Another reason to refinance is to shorten the loan term. By refinancing to a 15-year mortgage instead of a 30-year mortgage, the borrower can save a significant amount in interest over the life of the loan. Additionally, with a shorter loan term, the borrower will build equity in the property more quickly.
In conclusion, the best time to refinance a mortgage is when mortgage rates today are lower than the rate on your current mortgage, when you have enough equity in your property, and when you have a good credit score. It is important to review your situation and to do some calculations to see if refinancing would benefit you. It's also good to consult with a lender to discuss the options available to you and to determine whether refinancing is the right choice for you.
The lenders whose rates and other terms appear on this chart are ICBs advertising partners they provide their rate information to our data partner RateUpdatecom Unless adjusted by the consumer advertisers are sorted by APR lowest to highest For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart Advertising partners may not pay to improve the frequency priority or prominence of their display The interest rates annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums The actual payment obligation will be greater if taxes and insurance are included Although our data partner RateUpdatecom collects the information from the financial institutions themselves the accuracy of the data cannot be guaranteed Rates may change without notice and can change intraday Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders Please verify the rates and offers before applying for a loan with the financial institution themselves No rate is binding until locked by a lender
5.865%
15-Year Fixed
5.625%
$6,252
Includes 0.688 points for $2,752
Lender Fees: $3,500
6.312%
30-Year Fixed
6.125%
$8,000
Includes 1.000 points for $4,000
Lender Fees: $4,000
6.379%
15-Year Fixed
6.125%
$6,500
Includes 0.625 points for $2,500
Lender Fees: $4,000
6.878%
30-Year Fixed
6.750%
$5,252
Includes 0.438 points for $1,752
Lender Fees: $3,500
Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes or insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.
Mortgage Rates December 8, 2023
30-Year Fixed FHA
7.250%
9.002%
0.000
30-Year Fixed
8.375%
8.498%
0.000
30-Year Fixed
8.250%
8.411%
0.000
5/6M SOFR ARM
8.250%
8.361%
0.000
20-Year Fixed
8.150%
8.354%
0.000
1-Year ARM
6.750%
8.270%
0.000
5-Year Jumbo ARM
6.125%
8.217%
2.000
5Y/6M ARM
7.625%
8.178%
0.926
10-Year ARM
8.000%
8.174%
0.000
30-Year Fixed
8.000%
8.000%
0.000
5-Year ARM FHA
5.750%
7.995%
2.000
7Y/6M ARM
7.375%
7.983%
0.963
7-Year ARM
7.500%
7.959%
0.000
30-Year Fixed
7.875%
7.957%
0.250
10Y/6M ARM
7.500%
7.951%
0.864
20-Year Fixed
7.625%
7.929%
0.677
30-Year Jumbo Fixed
7.750%
7.911%
1.000
5/6 ARM
7.625%
7.884%
0.000
30-Year Fixed
7.750%
7.833%
0.000
5-Year ARM
6.250%
7.829%
2.000
30-Year Fixed Jumbo
7.750%
7.760%
0.000
20-Year Fixed
7.500%
7.747%
0.000
15-Year Fixed
7.500%
7.746%
0.000
30-Year Fixed
7.625%
7.740%
0.000
20-Year Fixed
7.500%
7.735%
1.000
5/1 ARM Jumbo
7.000%
7.705%
0.000
30-Year Fixed Jumbo
7.250%
7.700%
0.500
5/6 ARM
6.750%
7.700%
0.500
30-Year Fixed
7.500%
7.691%
0.000
30-Year Fixed
7.500%
7.682%
1.000
15-Year Fixed
7.500%
7.682%
0.000
30-Year Fixed
7.625%
7.669%
0.000
5/1 ARM
6.875%
7.668%
0.000
5/1 ARM
6.750%
7.643%
0.725
10/6 ARM
7.250%
7.640%
0.000
5/6 ARM Jumbo
6.750%
7.640%
0.500
7/6 ARM
7.000%
7.632%
0.000
15-Year Fixed
7.625%
7.625%
0.000
5/6 Month ARM
6.750%
7.623%
1.000
3-Year ARM
7.000%
7.605%
0.000
5-Year ARM
7.250%
7.600%
0.000
10-Year Fixed
7.250%
7.591%
0.000
30-Year Fixed
7.500%
7.577%
0.000
7/1 ARM
7.000%
7.577%
0.000
30-Year Fixed
7.500%
7.573%
0.000
7/1 ARM Jumbo
6.999%
7.570%
0.000
10/6 ARM
7.125%
7.560%
0.500
15-Year Fixed
7.375%
7.558%
0.000
30-Year Fixed
7.250%
7.554%
22.000
30-Year Fixed FHA
6.625%
7.525%
2.000
10-Year Fixed
7.125%
7.524%
1.000
30-Year Fixed
7.375%
7.524%
1.000
7/6 ARM
6.750%
7.520%
0.500
30-Year Fixed
7.500%
7.514%
0.000
30-Year Fixed
7.500%
7.512%
0.000
30 Year Fixed
7.250%
7.509%
0.939
15-Year Fixed
7.375%
7.505%
0.000
10/6 ARM Jumbo
7.125%
7.500%
0.500
30-Year Fixed
7.125%
7.489%
2.000
7/6 Month ARM
6.750%
7.484%
1.000
15-Year Fixed
7.250%
7.480%
0.000
7/6-Month ARM
6.500%
7.464%
1.000
30-Year Fixed
7.375%
7.462%
0.000
20-Year Fixed Jumbo
7.250%
7.462%
0.815
7/6 ARM Jumbo
6.750%
7.460%
0.500
15-Year Fixed
7.375%
7.444%
0.000
30-Year Fixed
3.375%
7.442%
0.000
30-Year Fixed FHA
6.625%
7.440%
1.000
30-Year Fixed
7.375%
7.424%
0.000
7/6 ARM
6.500%
7.419%
0.719
10/1 Jumbo ARM
6.875%
7.409%
0.840
30-Year Fixed Jumbo
7.250%
7.408%
1.000
30-Year Fixed Jumbo
7.250%
7.403%
0.640
30-Year Fixed
7.250%
7.393%
0.000
30-Year Fixed
7.250%
7.385%
0.000
30-Year Fixed
7.300%
7.381%
0.000
15-Year Fixed
7.350%
7.379%
0.000
5/1 ARM
6.125%
7.371%
0.000
30-Year Fixed
7.250%
7.361%
0.000
5/1 Jumbo ARM
6.750%
7.359%
0.690
7/1 Jumbo ARM
6.500%
7.359%
0.690
20-Year Fixed
7.250%
7.354%
0.000
20-Year Fixed
7.250%
7.343%
0.000
30-Year Fixed
7.125%
7.334%
1.000
30-year Fixed
7.250%
7.320%
0.500
7/6-Month ARM Jumbo
6.375%
7.317%
1.000
30-Year Fixed
7.125%
7.316%
0.000
30-Year Fixed Jumbo
7.250%
7.298%
0.000
10/6 ARM
6.625%
7.294%
0.949
15-Year Fixed Jumbo
7.125%
7.270%
0.500
20-Year Fixed Jumbo
7.125%
7.260%
0.500
30-Year Fixed FHA
6.375%
7.257%
2.000
5/1 ARM
5.500%
7.250%
0.000
15-Year Fixed
7.125%
7.246%
0.000
15-Year Fixed Jumbo
7.000%
7.246%
0.650
15-Year Fixed
7.125%
7.240%
0.500
15-Year Fixed
7.000%
7.215%
0.000
30-Year Fixed
6.875%
7.204%
1.000
10/6 Interest Only Jumbo ARM
6.375%
7.204%
1.000
15-Year Fixed FHA
6.125%
7.202%
2.000
30-Year Fixed
7.125%
7.197%
0.000
15-Year Fixed
7.000%
7.188%
0.625
30-Year Fixed
7.125%
7.188%
0.000
10-Year Fixed
6.875%
7.187%
0.000
7/1 ARM
7.000%
7.186%
0.000
20-Year Fixed
7.000%
7.181%
0.000
30-Year Fixed
7.000%
7.177%
1.000
15-Year Fixed
6.875%
7.173%
1.375
30-Year Fixed
6.875%
7.167%
1.875
10-Year Fixed
7.000%
7.160%
0.500
30-Year Fixed
7.000%
7.145%
0.000
20-Year Fixed
7.125%
7.141%
0.000
20-Year Fixed
7.000%
7.139%
0.000
15-Year Fixed
6.875%
7.098%
0.000
30-Year Fixed
7.000%
7.084%
0.375
30-Year Fixed
6.875%
7.084%
0.875
15-Year Fixed
6.750%
7.084%
1.000
30-Year Fixed
7.000%
7.070%
0.000
15-Year Fixed
6.990%
7.067%
0.000
20-Year Fixed
6.875%
7.063%
0.000
30-Year Fixed
6.750%
7.050%
1.000
15-Year Fixed
6.875%
7.048%
0.000
30-Year Fixed
6.875%
7.031%
0.704
15-Year Fixed
6.750%
7.029%
1.000
30-Year Fixed
6.875%
7.020%
1.000
15-Year Fixed
6.875%
7.013%
0.000
20-Year Fixed
6.750%
7.010%
1.000
30-Year Fixed FHA
6.250%
6.998%
2.000
15-Year Fixed
6.875%
6.997%
0.000
30-Year Fixed
6.750%
6.996%
2.000
30-Year Fixed
6.875%
6.988%
0.000
15-Year Fixed
6.750%
6.984%
1.000
5-Year ARM
6.750%
6.983%
0.000
30-Year Fixed Jumbo
6.875%
6.978%
1.000
15-Year Fixed
6.875%
6.976%
0.000
20-Year Fixed
6.875%
6.970%
0.500
15-Year Fixed
6.375%
6.961%
2.125
30-Year Fixed
6.740%
6.924%
0.000
15 Year Fixed Jumbo
6.750%
6.924%
1.000
30-Year Fixed VA
6.375%
6.921%
2.125
15-Year Fixed
6.750%
6.917%
0.000
20-Year Fixed
6.500%
6.890%
2.000
30-Year Fixed
6.750%
6.875%
0.390
15-Year Fixed
6.500%
6.873%
0.875
15-Year Fixed
6.375%
6.871%
2.000
15-Year Fixed
6.750%
6.865%
0.000
20-Year Fixed
6.750%
6.839%
0.000
30-Year Fixed
6.625%
6.825%
1.000
15-Year Fixed
6.750%
6.803%
0.000
15-Year Fixed
6.500%
6.795%
0.000
30-Year Fixed Jumbo
6.625%
6.795%
1.250
30 Year Jumbo Fixed
6.625%
6.781%
1.125
15-Year Fixed
6.750%
6.772%
0.000
30 Year Fixed Jumbo
6.625%
6.756%
1.000
30-Year Fixed
6.650%
6.750%
0.000
30-Year Fixed Jumbo
6.625%
6.744%
1.250
30-Year Fixed Jumbo
6.500%
6.722%
2.000
30-Year Fixed VA
6.375%
6.710%
1.000
15-Year Fixed
6.625%
6.699%
0.000
20-Year Fixed
6.500%
6.696%
0.670
30-Year Fixed
6.625%
6.670%
0.000
30-Year Fixed
6.250%
6.647%
1.000
15-Year Fixed
6.375%
6.641%
0.802
15 Year Fixed
6.250%
6.631%
0.802
15-Year Fixed
6.125%
6.617%
2.000
15-Year Fixed
6.500%
6.609%
0.000
30-Year Fixed FHA
5.625%
6.567%
1.125
20-Year Fixed
6.500%
6.559%
0.000
30-Year Fixed
6.375%
6.495%
0.250
30-Year Fixed Jumbo
6.375%
6.495%
0.250
15-Year Fixed
6.000%
6.480%
1.000
15-Year Fixed Jumbo
5.875%
6.473%
2.000
15-Year Fixed Jumbo
6.250%
6.448%
0.250
15-Year Fixed
6.250%
6.397%
1.000
15-Year Fixed
6.125%
6.381%
0.765
15-Year Fixed
6.000%
6.279%
1.000
3/5 Jumbo ARM
5.000%
6.247%
0.250
3/5 Conforming ARM
5.000%
6.237%
0.250
7/1 ARM
6.500%
6.218%
0.000
15-Year Fixed
6.000%
6.197%
0.250
5/5 ARM
5.250%
6.139%
0.250
5/5 Jumbo ARM
5.250%
6.139%
0.250
3/1 ARM
6.000%
5.892%
0.000
The mortgage rates presented are solely intended for informational use. Please consult the mentioned lenders for up-to-date mortgage rates. The actual mortgage rates and other loan conditions depend on the lender's approval and are not guaranteed.
