The rate on a 30-year fixed refinance increased to 6.67% today, according to the Mortgage Research Center. Rates averaged 5.62% for a 15-year financed mortgage and 6.45% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
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30-Year Fixed-Rate Mortgage Refinance Rates
The average rate for a 30-year fixed-rate mortgage refinance is 6.67%, down 0.17 point from a week ago.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.7%, lower than last week’s 6.87%. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.
At the current interest rate of 6.67%, a 30-year fixed mortgage refi would cost $643 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan would be around $131,560.
20-Year Fixed-Rate Mortgage Refinance Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.45%, compared to 6.68% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.49%. It was 6.73% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $742 per month in principal and interest – not including taxes and fees. That would equal about $78,189 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.62%. A week ago, the 15-year fixed-rate mortgage stood at 5.82%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.68%. Last week, it was 5.87%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $824 per month in principal and interest – not including taxes and fees. That would equal about $48,253 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates
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) dropped week-over-week to 7.1%, versus 7.21% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $672 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance fell weekly to 6.14%, down 0.20 point from last week.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $851 per month in principal and interest per $100,000 borrowed. They will pay about $53,240 in total interest over the life of the loan.
Are Refinance Rates and Mortgage Rates the Same?
Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.
You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.
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.
Is Now a Good Time To Refinance?
Refinancing your mortgage can be worth it for multiple reasons:
- Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
- Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
- Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
- Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
- Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.
Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.
Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.
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 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 financial institutions 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.
Frequently Asked Questions (FAQs)
How do you find the best refinancing lender?
Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.
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 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.
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