15-Year Refinance Rates: Check Out Today’s Rates and Trends

Title: Refinancing into a 15-Year Mortgage: How to Save on Interest and Pay Off Your Loan Faster

Are you a homeowner looking to save on interest and pay off your mortgage faster? Refinancing into a 15-year fixed-rate mortgage might be the solution for you. Check out today’s 15-year refinance rates to see if this option makes sense for your financial goals.

According to Zillow data, in May, 15-year refinance rates averaged 6.37%, which was four basis points down from the previous month. While refinance rates have been somewhat volatile in June, they are overall trending similarly to last month.

Current market conditions, influenced by record high inflation, have pushed mortgage rates up in recent years. However, as inflation slows down, there may be an opportunity for rates to decrease. Experts predict that while rates may go down later in 2024, significant drops are not expected until 2025 or later.

Understanding how 15-year refinance rates are determined is crucial for borrowers. These rates are largely influenced by investor demand, which is in turn affected by the broader US economy. Factors such as economic growth, inflation, and the borrower’s financial profile all play a role in determining the rate.

There are benefits and drawbacks to refinancing into a 15-year mortgage. While you can pay off your loan sooner, the drawback is that your monthly payments will be higher compared to a 30-year mortgage. It’s essential to consider your financial situation and ensure that you can afford the increased monthly payments.

To get the best 15-year refinance rate, it’s recommended to improve your credit score and shop around to compare offers from different lenders. Calculating savings and costs, including closing costs and break-even points, is also crucial before making a decision to refinance.

In conclusion, refinancing into a 15-year mortgage can help you save on interest, build equity faster, and pay off your loan sooner. However, it’s important to weigh the benefits and drawbacks, consider current market conditions, and calculate potential savings before making a decision.