Refinance Interest Rate

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What is the Best Re-finance Interest Rate

Refinancing could be a good thing for your pocketbook, but only if the gains stand to outweigh the potential risks. When you factor in the particular fees and the fines, you can wind up having a significant amount that refinancing will cost you. Naturally, which means you must calculate your refinance interest rate to ensure that, even after these outside costs, you still turn out ahead. So what is an excellent refinance interest rate Nicely, that depends.

The most beneficial refinance interest rate depends upon many things, from the size your loan to begin with, to your particular lender’s costs associated with refinancing, to the penalty clauses related to your loan. If you have a sizable loan, just 0.5% Interest can make a huge difference. Similarly, if your lender provides low fees, or even low (or low existant!) penalties, a smaller, reduce refinance interest rate could have large advantages.

If there are fees and penalties associated with refinancing, or even fees or charges, then the refinance rate of interest will have to be much better than it might have to be otherwise. (This doesn’t apply, of course, in order to variable-rate loans you are re-financing to fixed-rate loans at a low interest rate again, the difference in rates has to make up for any fees, but if the fixed-rate interest rates are low, then you’re nearly certain to come out ahead.)

And, for all in which, the refinance rate is only one of many, many things to take into account when refinancing a loan. If you are getting a good deal on your re-finance interest rate, but the loan an individual refinance with offers long-term costs that over-shadow the benefits of the risk, then you definitely end up on the quick end of the stay. Careful research is essential when you are thinking about refinancing. But when it all takes on together, when Interest and costs and penalties and fees all operate in harmony, and you come out saving money, that’s a excellent thing.

Comments: 30

  1. Lawrence February 24, 2013 at 5:19 am Reply

    I would like to refinance my jetta because my interest rate is 16%! it was my first car an i didn’t have any previous loans. I need to do it fast though… suggestions? I have fair credit and live in PA. I am looking for internet application sites for people with credit similar to mine. I would like a response by email within a week if possible.

    I don’t have alot of time to waste looking! Thank you in advance.

  2. Kori March 17, 2013 at 8:19 am Reply

    I heard of the HARP program for those who have their loans with or sold to Freddie Mac and Fannie Mae’s can refinance even if their home is not worth what they bought it for. I looked up my loan and it is not thru Freddie or Fannie. Is there any other refinance program out there for people like me who’s loan is not thru Freddie or Fannie? My home is not worth what I purchased it for, I would like to lower my interest rate to get a lower monthly payment.

  3. Hung April 20, 2013 at 10:09 am Reply

    yesterday the interest rate was cut by 3 quarters of a percent?
    about when will wells fargo show that rate cut to refinance? & about what should refinance rates be at when it happens?

  4. Dexter July 3, 2013 at 12:00 am Reply

    im planning to buy a house and it would take 6 months to finish building it , i heard that the Fed might increase interest rate to combat inflation, would this mean that the interest rate on the time i would closed the house would also increase?

  5. Rosenda July 15, 2013 at 11:09 pm Reply

    In last three years,I bought four houses for investment,they are all at 7.5% interest rate?
    now I want to refinance them,but I do not have work,credit score is only 680 because my high balance in my equity there any way I can get a lower interest rate like 6%?

  6. German July 17, 2013 at 9:20 am Reply

    I suspect my son has an ARM and has one more year to refinance before the interest rate changes. Is there normally a penalty involved if he refinances before the adjustable rates kick in?

  7. Leonel July 29, 2013 at 1:34 am Reply

    I am looking to refinance my 30 year mortgage in about 6 months and wanted to get some advice on how to get the best interest rate possible. Wanted to hear stories from people who have done this. Thanks,

  8. Leonardo August 5, 2013 at 11:03 am Reply

    I was wondering what is the best way (who to go to) to try and refinance your home with a lower interest rate. I have no clue where to go! The credit score is pretty low, but still need to lower monthly payments.

    Serious answers only please and thank you!
    It’s not ME that didn’t pay my debts…I got stuck with stuff from my ex husband…that’s why my credit isn’t what it used to be…thanks!

  9. Rosy September 13, 2013 at 2:35 am Reply

    I have a double wide with over an acre with a lott of equity. I need to refinance for a lower interest rate. Who in Baton Rouge or surrounding areas refinances mobile homes?

  10. Royce October 12, 2013 at 10:29 am Reply

    I don’t have the greatest credit, but I have an opportunity to refinance my current vehicle. I would be continuing payments on the same remaining terms (not re-extending my loan), but I would be skipping one month, which would allow me to pay off a higher interest credit card. I was told by the new lender that it could actually help improve my score by paying off the existing lender and re-starting under a new one. Other than this, there is really no other benefit, especially since the interest rate is the same (high). Just wondering if it makes sense to do what I am thinking?

  11. Emely October 24, 2013 at 5:32 am Reply

    I am considering refinancing, but I am not really too sure yet. Is there any way that I could call my current lender and just negotiate a lower interest rate with them? This way I could possibly avoid all of the closing costs, etc that are associated with refinancing. Has anyone had any luck with this?

  12. Marcia November 18, 2013 at 2:52 pm Reply

    I am thinking about purchasing my new great niece an I bond for her birthday for $100. I know the interest rate now until May is like 4.7 %. What determines the interest rate in the I bond? Does the Feds raising and lowering the interest rate have any affect on the return? This I bond I plan to purchase will be for her future education.

  13. Kimberley December 4, 2013 at 2:07 am Reply

    The Demand for bonds
    an increase in the interest rate makes bonds more attractive, so its leads people to hold more of their wealth in bonds, as opposed to money.
    However, you also learned that an increase in the interest rate reduced the price of bonds.
    How can an increase in the interest rate make bonds more attractive and reduce their price?

  14. Annice December 10, 2013 at 6:17 am Reply

    I understand, but don’t see the point about the federal reserve lowering interest rates and making a big deal over it, when the 30 or 15 year interest rate on mortgages are still not going down. Mine is at 6.25 for 30 years but would like to have a 4.75 for 15 years. The cost is not worth it for much less change than that. What do you think?
    I know it doesn’t make a difference on mortgage but then why is the news acting like its going to save home owners?

  15. Rosann December 23, 2013 at 11:20 am Reply

    I just bought my first home about a year ago with no money down and want to refinance to a lower interest rate. I can save about 2% if I’m able.

    However, I’m noticing most banks won’t refinance but a certain percentage of the home’s value…ranging in the ball park from 80 to 95%.

    Since my home is only a year old, it’s only increased in value a couple thousand dollars at most.

    Is there any way around this?

  16. Carman December 26, 2013 at 8:12 am Reply

    I’d like to know when it makes sense to refinance a 1st mortgage? What interest rate difference is worthwhile? And if you refi with same bank, can you negotiate the closing costs? Maybe say you will take your mortgage elsewhere?

  17. Odell January 24, 2014 at 1:27 am Reply

    If I refinance my mortgage. Interest rate drops from 6 % to 4.23 % APR 15 years fixed on $180,000 loan. How much will I save totally?

  18. Jody February 2, 2014 at 6:33 am Reply

    We have a 6.5% 30y fixed interest rate, a $964 house payment which we have had no trouble paying monthly, owe $115,000 on a $150k appraisal….have no intention of moving. We are comsidering refinancing to cash out and do some home improvements like new windows (much needed) and doors, and insulating our crawl space. Is this a good idea? This would be the 2nd time refinancing in the 7 years we have been here.

  19. Phung February 9, 2014 at 4:40 pm Reply

    What do folks think about waiting until Mar 18 (for next potential Fed rate cut) or refinancing now. I know the mortgage rates aren’t directly tied to the Fed rates but some folks (including those that work at banks) think I should wait. I currently have a 6.0% interest only loan (no prepayment penalty) and the quotes I’ve received thus far range from 5.125% to 5.5% (for another 5/1 ARM interest only). Think I should wait or go for it?
    3 days ago – 4 days left to answer.
    Additional Details
    1 day ago

    No, it’s not ridiculous (my payback period on the closing costs is about a year so it doesn’t make sense NOT to – since I plan to be in the house 5 yrs)…the only reason my friend thinks I should wait is cause she thinks the rates will go down by 0.5% point by mid-late March. My question is – do folks think they will (not the Fed rate but the refi rates).

  20. Robert February 17, 2014 at 4:32 pm Reply

    I think I would like to take advantage of the low interest rates…Should I do it now or wait a couple of months. What is the current rate on a 30 year fixed?

  21. Vince February 18, 2014 at 10:19 pm Reply

    Currently my parent is owning the house and paying month mortgage bill. Our monthly payment as of right now is $1400 monthly and fixed interest rate is 4.475%; the payoff amount(principal) is $82,000.

    I would like to change the title of the house under my name (I guess buying it from my parent). when doing so, I have to refinance it with a 30yrs, fixed interest rate of 5.474%, loan amount(principal) is $88,000. monthly payment is $737.77. the fee settlement for refinance and everything will be act as a gift so there will be no money out of pocket to refinance.

    The question is should I refinance?
    1. The reason the payment before refinance is $1400 is because the mortgage originally $126000 and it include the interest charge, escrows, taxes… monthly.

    2. after refinance, the monthly payment is $737.77 is because it includes the interest charges and…

    3. They said I’m not qualify for 15 years due to my income.

  22. Vernon February 21, 2014 at 10:36 pm Reply

    in jan next year i go from interest only to full repayment.what is the current interst rate please

  23. Chris February 21, 2014 at 10:46 pm Reply

    My wife purchased her house (10 years ago) before we were married (5 years ago). I sold mine and moved into hers. The mortgage is in her maiden name. The interest rate is 7%, with only about $100k left from a $300k mortgage. House is worth more than the $100k, so refinancing isn’t a problem.

    I see that most banks are giving better rates for mortgages than refianances. Credit wise, I don’t need her to co-sign, and I’m positive spouses can have different assets, even if they share legal responsibility for them together.

    Am I able to purchase the home from her to qualify for a preferred mortgage rate?

    Please post the link to your reference source if you plan to answer. I need something more concrete than “I don’t think so”.

  24. Clotilde February 22, 2014 at 3:39 am Reply

    Annual interest rate is .15% How do I find the nominal interest rate?

    If you deposit $2000 in this account, how much will be in the account after five years? Assuming that the current rate stays constant for the life of your deposit. Thank you.

  25. Casey February 22, 2014 at 7:35 am Reply

    I’m looking to refinance my home and am currently paying 6.25 on a 30 year FM. Which bank out there has the lowest mortgage interest rates?

  26. Tamie February 22, 2014 at 7:35 am Reply

    I took an out an FHA Loan about 3 years ago. My current rate is 5.5%. Currently I owe $250,000 with taxes of *about $3,700. We are not planning on selling until for a few years (3 or so) in hopes of appreciation or at least have enough paid off versus worth so we can put a major down payment on our next home. My wife and I have a credit score of near 800.

    -How much should I expect to pay in refinancing costs?
    -What current rate should I expect to get?

    My thinking, if I can drop the rate, but continue to pay what I am paying now, I can pay down my loan faster.

    My current payment (excluding taxes) is a touch under $1,400

    if you are in the know, please provide advice.

  27. Micah March 21, 2014 at 7:40 am Reply

    Why or why not?

  28. Ara March 21, 2014 at 7:41 am Reply

    The question is though is it smart to refinance and take out the $40-45000 that I need to pay off student debt? at least then I would just have to worry about paying off my home only. I think my student loans have an interest rate of a little over 4%. My mortgage was 186,000 originally and I owe $158,000 now but the house was appraised at a little over 200,000 recently. I guess I am just worried out what I will be paying after I am done with school (11 more classes to go). single parent and I own my house…… 1462.00/ note 211.00/mo.

  29. Mack May 23, 2014 at 9:32 am Reply

    How does raised percent work on home mortgages. Are they based on yearly rates or is it true that the first five years are solely done for paying back interest?

    Thanks in advance.

  30. Blaine June 24, 2014 at 12:57 pm Reply

    We are refinancing on the rate is locked for 30 years at 6.75. I could not get the Loan Offier to clarify what the APR would be. I have seen the APR a full half-point above the rate.

    Thank you,


    With a rate of 6.75, a reasonable APR woudld be what:

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