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The rate on a 30-year fixed refinance climbed today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 7.36%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.48%, and for 20-year mortgages, the average is 7.23%.
Related: Compare Current Refinance Rates
Refinance Rates for January 22, 2025
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance rose to 7.36% from yesterday. Last week, the 30-year fixed was 7.53%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.38%. At this time last week, it was 7.55%. APR is the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage refi of $100,000 will pay $690 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 7.36%. You’d pay around $148,226 in total interest over the life of the loan.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.23% compared to 7.43% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.25%. That compares to 7.45% at the same time last week.
At today’s interest rate of 7.23%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $789 per month in principal and interest—not including taxes and fees. That would equal about $89,341 in total interest over the life of the loan.
15-Year Refinance Interest Rates
The 15-year fixed mortgage refinance is currently averaging about 6.48%. That’s compared to the average of 6.65% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.51% versus 6.68% at this time last week.
At the current interest rate of 6.48%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $870 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $56,552 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.31%. Last week, the average rate was 7.57%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.31% will pay $686 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 6.94%. Last week, the average rate was 6.94%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.94% will pay $896 per month in principal and interest per $100,000. That means that on a $806,500 loan—the 2025 conforming loan limit determined by the Federal Housing Finance Agency— you’d pay around $493,707 in total interest over the life of the loan.
Are Refinance Rates and Mortgage Rates the Same?
No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.
The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.
When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.
When You Should Refinance Your Home
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
Is Now a Good Time To Refinance?
Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.
While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.
There are multiple mortgage refinance options to consider and some that let you tap your home equity.
Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.
How To Get Today’s Best Refinance Rates
Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:
- Maintain a good credit score
- Consider a shorter-term loan
- Lower your debt-to-income ratio
- Monitor mortgage rates
A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.
Frequently Asked Questions (FAQs)
How do you find the best refinancing lender?
Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.
How quickly can you refinance a mortgage?
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.
How soon can you refinance a mortgage?
Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure.
