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The rate on a 30-year fixed refinance rose to 6.96% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.95%, and for 20-year mortgages, the average is 6.81%.
Related: Compare Current Refinance Rates
30-Year Fixed-Rate Mortgage Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.96%, down 0.09 point from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $663 per month for principal and interest at the current interest rate, according to the Forbes Advisor mortgage calculator, not including taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $139,340.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.99%, lower than last week’s 7.08%. The APR is essentially the all-in cost of the home loan.
20-Year Fixed-Rate Mortgage Refinance Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.81%, compared to 6.88% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.85%. It was 6.93% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $764 per month in principal and interest – not including taxes and fees. That would equal about $83,917 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.95%. A week ago, the 15-year fixed-rate mortgage stood at 6.02%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6%. Last week, it was 6.07%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $841 per month in principal and interest—not including taxes and fees. That would equal about $51,933 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) dropped week-over-week to 7.42%, versus 7.49% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $694 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Mortgage Refinance Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.62% on average, down 0.26 point from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $878 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $58,248 in total interest.
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.
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
You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to eliminate private mortgage insurance (PMI).
A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs by dividing your closing costs by the monthly savings from your new payment.
Our mortgage refinance calculator could help you determine if refinancing is right for you.
Is Now a Good Time To Refinance?
Refinancing your mortgage can be worth it for multiple reasons:
- Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
- Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
- Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
- Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
- Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.
Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.
Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.
How To Qualify for Today’s Best Refinance Rates
Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing get a good mortgage rate:
- Improve your credit
- Consider a shorter loan term
- Lower your debt-to-income ratio
- Watch mortgage rates
There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other financial institutions are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.
Frequently Asked Questions (FAQs)
How much does it cost to 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 do you find the best refinancing lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
How quickly can you refinance a mortgage?
You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors – like the type of home loan you choose. Always check with your lender before committing to borrow.