The rate on a 30-year fixed refinance dropped to 6.86% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.84%. On a 20-year mortgage refinance, the average rate is 6.62%.
Related: Compare Current Refinance Rates
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30-Year Fixed-Rate Mortgage Refinance Rates Drop 1.42%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.86%, down 1.42% from last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $656 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 $136,952.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.89%, lower than last week’s 6.99%. The APR is essentially the all-in cost of the home loan.
20-Year Fixed-Rate Mortgage Refinance Rates Drop 2.73%
The average interest rate on the 20-year fixed refinance mortgage is 6.62%. A week ago, the 20-year fixed-rate mortgage was at 6.81%.
The APR on a 20-year fixed is 6.67%, compared to 6.85% last week.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $753 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $81,291 in total interest.
15-Year Fixed-Rate Mortgage Refinance Rates Drop 1.95%
The 15-year fixed mortgage refinance is currently averaging about 5.84%, compared to 5.95% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.89%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $835 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $50,798 in total interest over the 15-year life of the loan.
30-Year Jumbo Mortgage Refinance Rates Drop 2.66%
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) dropped week-over-week to 7.22%. Last week, the average rate was 7.42%.
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 Mortgage Refinance Rates Drop 2.93%
A 15-year, fixed-rate jumbo mortgage refinance is 6.42% on average, down 2.93% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $867 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $56,315 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
You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to 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
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.
Refinancing Rate Outlook for 2025
National average mortgage interest rates will have the most significant impact on refinancing trends throughout 2025, whether they rise or fall.
While predicting mortgage interest rates is challenging, experts expect them to remain in the middle-to-high 6% range during the first half of 2025, similar to the final quarter of 2024. However, rates could potentially decrease by the end of the year.
If inflation slows and national unemployment levels remain steady or increase, the Federal Reserve might cut the federal funds rate, leading to lower mortgage rates. On the other hand, if the opposite happens, average rates will likely see little movement.
Since experts anticipate minimal movement in average mortgage rates during the first half of the year, those looking to refinance at a lower rate may want to wait until later in the year to secure the best rate. In the meantime, improving your credit score, making on-time payments and paying down your loan amount will put you in the best position to secure a low rate when you begin shopping for a refinance offer.
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 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.
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