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The rate on a 30-year fixed refinance dropped today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 7.10%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.16%, and for 20-year mortgages, the average is 6.90%.
Related: Compare Current Refinance Rates
Refinance Rates for December 9, 2024
30-Year Fixed Refinance Interest Rates
Today, the average rate for the 30-year fixed-rate mortgage refinance fell to 7.10% from yesterday. One week ago, the 30-year fixed was 7.22%.
The APR, or annual percentage rate, on a 30-year fixed is 7.12%. This time last week, it was 7.24%. APR is the all-in cost of your loan.
At the current interest rate of 7.10%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $672 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 will be around $141,834.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.90%. This same time last week, the 20-year fixed-rate mortgage was at 7.18%.
The APR on a 20-year fixed is 6.93%. Last week, it was 7.21%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.90% will cost $769 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $84,634 in total interest.
15-Year Refinance Interest Rates
The average interest rate on the 15-year fixed refinance mortgage decreased to 6.16%. Yesterday, it was 6.24%. One week ago, the 15-year fixed-rate mortgage was at 6.33%.
On a 15-year fixed refinance, the annual percentage rate is 6.19%. Last week it was 6.36%.
A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.16% will cost $852 per month in principal and interest. Over the life of the loan, you would pay $53,445 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.03%. One week ago, the average rate was 7.21%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.03% will pay $667 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.90%, on average, compared to the average of 6.83% last week.
At today’s interest rate of 6.90%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,701 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $456,184 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 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?
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
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 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.
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.