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The rate on a 30-year fixed refinance slipped to 6.75% 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 6.51%.
Related: Compare Current Refinance Rates
30-Year Fixed-Rate Mortgage Refinance Rates
At 6.75%, the average rate on a 30-year fixed-rate mortgage refinance is down 0.01 point from this time last week.
The 30-year fixed mortgage refi APR (annual percentage rate) is 6.78%. At this time last week, it was 6.79%. The APR represents the all-in cost of your loan.
At the current interest rate of 6.75%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $649 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan would be approximately $133,519.
20-Year Fixed-Rate Mortgage Refinance Rates
The 20-year fixed mortgage refinance average rate stands at 6.51%, about the same as last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.55%, about the same as last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $746 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $79,008 in total interest over the life of the loan.
15-Year Fixed-Rate 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 Mortgage 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) fell week-over-week to 7.13%. Last week, the average rate was 7.17%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $674 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Mortgage Refinance Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.11% on average, about the same as last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $850 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $52,956 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 You Should Refinance Your Home
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.
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?
Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.
While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.
There are multiple mortgage refinance options to consider and some that let you tap your home equity.
Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.
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 soon can you refinance a mortgage?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.
How much does it cost to refinance a mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.
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.