The rate on a 30-year fixed refinance climbed to 6.99% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.96%, and for 20-year mortgages, the average is 6.87%.
Related: Compare Current Refinance Rates
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30-Year Fixed-Rate Mortgage Refinance Rates Climb 0.22%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.99%, up 0.22% from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $665 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 $139,920.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.02%, higher than last week’s 7.01%. The APR is essentially the all-in cost of the home loan.
20-Year Fixed-Rate Mortgage Refinance Rates Climb 0.85%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.87%, compared to 6.81% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.91%. It was 6.86% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $768 per month in principal and interest – not including taxes and fees. That would equal about $84,792 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Refinance Rates Climb 1.41%
The average interest rate on the 15-year fixed refinance mortgage is 5.96%. A week ago, the 15-year fixed-rate mortgage was at 5.88%.
On a 15-year fixed refinance, the annual percentage rate is 6.01%. Last week, it was 5.93%.
At today’s interest rate, a 15-year fixed-rate mortgage would cost approximately $842 per month in principal and interest per $100,000 borrowed. You would pay around $51,982 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates Climb 2.39%
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) rose week-over-week to 7.63%, versus 7.45% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $708 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Mortgage Refinance Rates Drop 1.75%
A 15-year, fixed-rate jumbo mortgage refinance is 6.41% on average, down 1.75% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $866 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $56,098 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.
In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.
Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.
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.
Know When To Refinance Your Home
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance – to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
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 to 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 mortgage refinance lenders 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.
Refinance Interest Rate Trends for 2025
National average mortgage rates have remained in the middle-to-high 6% range since the final quarter of 2024, and experts expect this trend to continue throughout the first half of 2025.
Although forecasting mortgage interest rates is challenging, economic indicators like inflation and unemployment rates can provide insights into the direction of the housing market. For example, if inflation slows and national unemployment levels remain stable or rise, the Federal Reserve may cut the federal funds rate, which could lead to lower mortgage rates. On the other hand, if inflation stays high and unemployment decreases, rates are likely to remain steady.
Since mortgage rates are expected to experience minimal movement 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 making on-time payments will allow you to secure the best possible rate when you begin shopping for refinance offers.
Frequently Asked Questions (FAQs)
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 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 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.
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