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The rate on a 30-year fixed refinance rose to 6.95% today, according to the Mortgage Research Center. Rates averaged 5.95% for a 15-year financed mortgage and 6.81% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.95%, down 0.03 point from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $662 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 $138,277.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.98%, lower than last week’s 7.02%. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates
The 20-year fixed mortgage refinance average rate stands at 6.81%, versus 6.83% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.86%. It was 6.87% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $764 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $83,402 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.95%, the same as a week ago.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6%. It was about the same last week.
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 $51,418 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) fell week-over-week to 7.21%. Last week, the rate was about the same.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $680 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.37% on average, down 0.05 point from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $864 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $55,516 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.
You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.
Know When To Refinance Your Home
You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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
Refinancing a mortgage isn’t that different than taking out a mortgage in the first place, and it’s always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:
- Polish up your credit score
- Lower your debt-to-income ratio
- Keep an eye on mortgage rates
- Consider a shorter loan
Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You’re also likely to look better to lenders if you don’t have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates.
Frequently Asked Questions (FAQs)
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?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.
How much does it cost to refinance a mortgage?
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.
