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The rate on a 30-year fixed refinance slipped to 6.85% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.72%, and for 20-year mortgages, the average is 6.62%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Climb 0.88%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.85%, versus 6.79% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.88%, higher than last week’s 6.82%. 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 $655 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 $136,591.
20-Year Refi Rates Climb 0.68%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.62%, compared to 6.58% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.66%. It was 6.62% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $753 per month in principal and interest – not including taxes and fees. That would equal about $81,220 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Climb 1.26%
The 15-year fixed mortgage refinance is currently averaging about 5.72%, compared to 5.65% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.77%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $829 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $49,667 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates Climb 2.11%
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) inched up week-over-week to 7.22%. A week ago, the average rate was 7.07%.
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 Refinance Rates Climb 1.37%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.37%, up 1.37% from last week.
At today’s rate, a borrower would pay $864 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 $55,811 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.
In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.
Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.
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.
Know When To 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.
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 to get a good mortgage rate:
- Improve your credit
- Consider a shorter-term loan
- 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 mortgage refinance lenders 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.
Trends in Refinance Rates for 2025
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 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?
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.