Current Refinance Interest Rates Today

Digital News Report – Refinance rates fell again today (see chart below). The average 30-year refinance mortgage rate fell six basis points today to 4.8990%.

Banks charge a different rate to customers looking to refinance than they do for people looking to purchase a home. When a homeowner refinances their home, the old mortgages are paid off and a new one takes their place.

Currently rates are at historic lows. Data provided by the Mortgage Bankers Association (MBA) indicates that refinancing applications are trending higher. All of the rates in this article reflect the cost to refinance a home.

Citibank had a rate of 5.13% today. Their 15-year fixed rate mortgage (FRM) was 4.45% and their 5-year adjustable rate mortgage (ARM) was 3.37%.

PNC had 30-year rates of 4.94%. Their 15-year rates were 4.37%.

Bank of America had a rate of 4.91% on their 30-year mortgages for refinance. Their 5-year ARM rate was 3.176%.

Adjustable rate mortgages typically have 30-year terms, but they adjust after five years. Some may be set up to adjust after 3-years, 7-years or 10-years. The 5-year ARM is the most common.

With a 5/1 ARM rate, the mortgage will adjust after five years and will readjust every year after that. The adjustment is associated with another index like the LIBOR or 10-year Treasury Note.

Caps are also important. There are usually clauses in the loan that will limit the increase in the amount or interest rate increase or decrease. You don’t want to see your rate increase from 5% to 20% in one day.

Chase had a rate of 4.97% today. The bank provided 5/1 ARMs for 3.19%.

By Tina Brown