Mortgage refinance rates stayed flat at 6.63% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.62%. On a 20-year mortgage refinance, the average rate is 6.34%.
Related: Compare Current Refinance Rates
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30-Year Refinance Rates
The average rate for a 30-year fixed-rate mortgage refinance is 6.63%, down 0.2 point from this time last week.
The APR, or annual percentage rate, on a 30-year fixed is 6.66%. This time last week, it was 6.86%. The APR is the all-in cost of your loan.
At an interest rate of 6.63%, a 30-year fixed mortgage refi would cost $641 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. You’d pay around $130,655 in total interest over the life of the loan.
20-Year Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.34%. A week ago, the 20-year fixed-rate mortgage was at 6.56%.
The APR on a 20-year fixed is 6.38%, compared to 6.61% last week.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $736 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $76,614 in total interest.
15-Year Mortgage Refinance Rates
The 15-year fixed mortgage refinance is currently averaging about 5.62%, compared to 5.71% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.68%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $824 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $48,262 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Rates
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) declined week-over-week to 6.76%. A week ago, the average rate was 7.18%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $649 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.74%, up 0.59 point from last week.
At today’s rate, a borrower would pay $884 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 $59,194 in total interest.
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.
When Refinancing Makes Sense
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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.
Is Now a Good Time To Refinance?
Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.
However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.
The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.
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 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.
Frequently Asked Questions (FAQs)
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.
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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