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The rate on a 30-year fixed refinance increased to 6.88% today, according to the Mortgage Research Center. Rates averaged 5.81% for a 15-year financed mortgage and 6.69% for a 20-year financed mortgage.

Related: Compare Current Refinance Rates

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30-Year Fixed-Rate Mortgage Refinance Rates Drop 0.81%

Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.88%, down 0.81% from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $658 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 $137,385.

Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.91%, lower than last week’s 6.97%. The APR is essentially the all-in cost of the home loan.

20-Year Fixed-Rate Mortgage Refinance Rates Drop 1.43%

For a 20-year fixed refinance mortgage, the average interest rate is currently 6.69%, compared to 6.79% last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.73%. It was 6.83% last week.

At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $757 per month in principal and interest – not including taxes and fees. That would equal about $82,174 in total interest over the life of the loan.

15-Year Fixed-Rate Mortgage Refinance Rates Drop 1.51%

The 15-year fixed mortgage refinance is currently averaging about 5.81%, compared to 5.9% last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.85%.

At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $834 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $50,478 in total interest over the 15-year life of the loan.

30-Year Jumbo Mortgage Refinance Rates Drop 2.37%

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) decreased week-over-week to 7.16%, versus 7.33% last week.

At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $676 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Mortgage Refinance Rates Drop 1.69%

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance dropped to 6.42%, down 1.69% from last week.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $867 per month in principal and interest per $100,000 borrowed. They will pay about $56,216 in total interest over the life of the loan.

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 Refinancing Makes Sense

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

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.

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