30-year fixed refinance mortgage rates stayed flat at 6.85% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.77%. On a 20-year mortgage refinance, the average rate is 6.67%.
Related: Compare Current Refinance Rates
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30-Year Refinance Rates Climb 0.62%
The average rate for a 30-year fixed-rate mortgage refinance is 6.85%, up 0.62% from last week.
The APR, or annual percentage rate, on a 30-year fixed is 6.88%. This time last week, it was 6.84%. The APR is 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 $655 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 6.85%. In total interest, you’d pay $136,567 over the life of the loan.The 20-year fixed mortgage refinance average rate stands at 6.65%, versus 6.74% last week.
20-Year Refinance Rates Climb 1.09%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.67%, compared to 6.6% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.71%. It was 6.64% 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 $81,889 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Climb 0.35%
The average interest rate on the 15-year fixed refinance mortgage is 5.77%. Last week, the 15-year fixed-rate mortgage was at 5.75%.
On a 15-year fixed refinance, the annual percentage rate is 5.81%. Last week, it was 5.79%.
A 15-year fixed-rate mortgage refinance of $100,000 at today’s interest rate would cost $831 per month in principal and interest. Over the life of the loan, you would pay $50,091 in total interest.
30-Year Jumbo Refinance Rates Climb 0.20%
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) rose week-over-week to 7.08%. A week ago, the average rate was 7.06%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $671 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Climb 0.78%
A 15-year, fixed-rate jumbo mortgage refinance is 6.44% on average, up 0.78% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $868 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $56,463 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.
Know When To Refinance Your Home
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
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 mortgage refinance 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.
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 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 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 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.
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