30-year fixed refinance mortgage rates didn’t move at 6.76% today, according to the Mortgage Research Center. Rates averaged 5.66% for a 15-year financed mortgage and 6.54% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
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30-Year Refinance Rates Climb 0.77%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.76%, versus 6.71% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.79%, higher than last week’s 6.74%. 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 $649 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 $134,501.
20-Year Refinance Rates Climb 1.00%
The 20-year fixed mortgage refinance average rate stands at 6.54%, versus 6.47% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.58%. It was 6.51% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $748 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $80,027 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Climb 0.51%
The average interest rate on the 15-year fixed refinance mortgage is 5.66%. The same time last week, the 15-year fixed-rate mortgage was at 5.63%.
On a 15-year fixed refinance, the annual percentage rate is 5.71%. Last week, it was 5.68%.
A 15-year fixed-rate mortgage refinance of $100,000 at today’s interest rate would cost $826 per month in principal and interest. Over the life of the loan, you would pay $49,108 in total interest.
30-Year Jumbo Refinance Rates Drop 0.57%
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) decreased week-over-week to 7.03%. 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 $667 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Climb 0.30%
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance climbed to 6.38%, up 0.30% from last week.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $865 per month in principal and interest per $100,000 borrowed. They will pay about $55,881 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 You Should 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 Qualify for Today’s Best Refinance Rates
Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:
- Maintain a good credit score
- Consider a shorter-term loan
- Lower your debt-to-income ratio
- Monitor mortgage rates
A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Mortgage refinance lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge 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)
Are interest rates higher for refinancing?
Refinance interest rates can be higher or lower than your original loan rate. Your credit score, income, repayment history, and current national interest rates will determine whether you qualify for a lower rate. These factors may also lead a lender to offer you a higher rate.
Additionally, lenders may offer a higher rate if you plan to access your home equity. This increases your loan amount and, consequently, the lender’s risk.
Can you refinance a 30-year fixed mortgage?
Yes, you can refinance a 30-year fixed mortgage. Refinancing can help you lower your interest rate, reduce your monthly payments and save you money in the long run.
Refinancing also allows you to change your loan term. You can switch to another 30-year mortgage or choose a shorter term, like a 15-year mortgage.
How much equity do you need to refinance?
The amount of equity you need to qualify for refinancing depends on the lender, but most recommend having at least 20% equity, or a loan-to-value ratio of 80% or lower.
If you have less than 20% equity, you may still qualify for refinancing, but you could face higher interest rates or be required to pay additional fees, such as PMI.
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