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 5.51%. On a 20-year mortgage refinance, the average rate is 6.32%.
Related: Compare Current Refinance Rates
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30-Year Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.63%, down 0.2 point from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $641 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 $130,726.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.66%, lower than last week’s 6.86%. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.32%. Last week, the 20-year fixed-rate mortgage was at 6.59%.
The APR on a 20-year fixed is 6.36%, compared to 6.63% last week.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $735 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $76,417 in total interest.
15-Year Mortgage Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.51%. The same time last week, the 15-year fixed-rate mortgage stood at 5.73%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.57%. Last week, it was 5.79%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $818 per month in principal and interest—not including taxes and fees. That would equal about $47,209 in total interest over the life of the loan.
30-Year Jumbo 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) inched down week-over-week to 7.08%, versus 7.23% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $671 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refi Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.09%, down 0.11 point from last week.
At today’s rate, a borrower would pay $849 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 $52,761 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 Refinancing Makes Sense
You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.
A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs 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
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 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.
How quickly can you refinance a mortgage
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.
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