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The rate on a 30-year fixed refinance decreased to 6.79% today, according to the Mortgage Research Center. Rates averaged 5.65% for a 15-year financed mortgage and 6.58% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Drop 2.46%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.79%, compared to 6.96% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.82%, lower than last week’s 6.99%. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $651 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $135,149.
20-Year Refi Rates Drop 2.89%
The 20-year fixed mortgage refinance average rate stands at 6.58%, versus 6.77% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.62%. It was 6.81% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $750 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $80,580 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Drop 4.32%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.65%. Last week, the 15-year fixed-rate mortgage stood at 5.91%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.7%. Last week, it was 5.96%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $825 per month in principal and interest—not including taxes and fees. That would equal about $48,992 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates Drop 3.48%
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) declined week-over-week to 7.07%. Last week, the average rate was 7.33%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $670 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refinance Rates Drop 3.93%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.29%, down 3.93% from last week.
At today’s rate, a borrower would pay $859 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $54,975 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.
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 considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice.
When You Should Refinance Your Home
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or 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.
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. Mortgage refinance 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.
What To Know About 2025 Refinance Rate Trends
Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025.
If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable.
Since mortgage rates are expected to change little in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and paying down your loan balance will help you secure the lowest possible rate when you’re ready to explore refinancing options.
Frequently Asked Questions (FAQs)
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.
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.
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.