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The rate on a 30-year fixed refinance climbed to 6.76% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.71%. For 20-year mortgage refinances, the average rate is 6.51%.

Related: Compare Current Refinance Rates

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30-Year Fixed-Rate Mortgage Refinance Rates

At 6.76%, the average rate on a 30-year fixed-rate mortgage refinance is down 0.06 point from last week.

The APR, or annual percentage rate, on a 30-year fixed is 6.79%. This time last week, it was 6.86%. The APR is the all-in cost of your loan.

At the current interest rate of 6.76%, a 30-year fixed mortgage refi would cost $649 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $133,783 over the life of the loan.

20-Year Fixed-Rate Mortgage Refinance Rates

The average interest rate on the 20-year fixed refinance mortgage is 6.51%. A week ago, the 20-year fixed-rate mortgage was at 6.56%.

The APR on a 20-year fixed is 6.55%, compared to 6.61% last week.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $746 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $79,065 in total interest.

15-Year Fixed-Rate Mortgage Refinance Rates

The 15-year fixed mortgage refinance is currently averaging about 5.71%, compared to 5.73% last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.77%.

At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $828 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $49,098 in total interest over the 15-year 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) fell week-over-week to 7.17%, unchanged from 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

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance declined weekly to 6.12%, about the same as last week.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $850 per month in principal and interest per $100,000 borrowed. They will pay about $53,044 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.

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.

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 Get 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. 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.

Frequently Asked Questions (FAQs)