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The rate on a 30-year fixed refinance decreased to 6.87% today, according to the Mortgage Research Center. Rates averaged 5.76% for a 15-year financed mortgage and 6.67% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Climb 0.75%
The average rate for a 30-year fixed-rate mortgage refinance is 6.87%, up 0.75% from this time last week.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.9%, higher than last week’s 6.85%. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage refi of $100,000 will pay $657 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 6.87%. In total interest, you’d pay $137,144 over the life of the loan.
20-Year Refi Rates Climb 0.94%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.67%, compared to 6.61% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.71%. It was 6.65% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $756 per month in principal and interest – not including taxes and fees. That would equal about $81,974 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Climb 0.72%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.76%. Last week, the 15-year fixed-rate mortgage stood at 5.72%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.81%. Last week, it was 5.77%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $831 per month in principal and interest—not including taxes and fees. That would equal about $50,024 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates Climb 2.46%
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) increased week-over-week to 7.28%, versus 7.11% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $684 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Rates Climb 1.50%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.42%, up 1.50% from last week.
At today’s rate, a borrower would pay $867 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 $56,325 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.
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 Refinancing Makes Sense
Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).
But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.
The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.
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.
Refinancing Rate Outlook for 2025
National average mortgage rates have remained in the middle-to-high 6% range since the final quarter of 2024, and experts expect this trend to continue throughout the first half of 2025.
Although forecasting mortgage interest rates is challenging, economic indicators like inflation and unemployment rates can provide insights into the direction of the housing market. For example, if inflation slows and national unemployment levels remain stable or rise, the Federal Reserve may cut the federal funds rate, which could lead to lower mortgage rates. On the other hand, if inflation stays high and unemployment decreases, rates are likely to remain steady.
Since mortgage rates are expected to experience minimal movement 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 making on-time payments will allow you to secure the best possible rate when you begin shopping for refinance offers.
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 much does it cost to refinance a mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.
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.