Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
30-year fixed refinance mortgage rates didn’t move at 6.38% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.21%. For 20-year mortgage refinances, the average rate is 6.05%.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Drop 1.98%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.38%, down 1.98% from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $624 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 $125,253.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.4%, lower than last week’s 6.53%. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates Drop 3.25%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.05%, compared to 6.25% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.08%. It was 6.29% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $719 per month in principal and interest – not including taxes and fees. That would equal about $73,109 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Drop 3.07%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.21%. A week ago, the 15-year fixed-rate mortgage stood at 5.38%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.26%. Last week, it was 5.42%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $802 per month in principal and interest—not including taxes and fees. That would equal about $44,755 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates Drop 0.85%
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) declined week-over-week to 6.63%, versus 6.68% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $640 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refi Rates Climb 0.29%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.91%, up 0.29% from last week.
At today’s rate, a borrower would pay $839 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 $51,273 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
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 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 loan term
- 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
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 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?
You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors – like the type of home loan you choose. Always check with your lender before committing to borrow.
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.