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The rate on a 30-year fixed refinance rose to 6.78% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.64%. On a 20-year mortgage refinance, the average rate is 6.5%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.78%, versus 6.7% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.81%, higher than last week’s 6.73%. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $651 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $134,310.
20-Year Refi Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.5%, about the same as last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.55%. It was 6.54% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $746 per month in principal and interest – not including taxes and fees. That would equal about $78,994 in total interest over the life of the loan.
15-Year Fixed Refinance Rates
The average interest rate on the 15-year fixed refinance mortgage is 5.64%. A week ago, the 15-year fixed-rate mortgage was at 5.66%.
On a 15-year fixed refinance, the annual percentage rate is 5.69%. Last week, it was 5.71%.
At today’s interest rate, a 15-year fixed-rate mortgage would cost approximately $825 per month in principal and interest per $100,000 borrowed. You would pay around $48,425 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest 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) rose week-over-week to 7.12%. Last week, the average rate was 7.09%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $673 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refinance Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.09% on average, down 0.02 point from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $849 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $52,771 in total interest.
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
You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to eliminate private mortgage insurance (PMI).
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 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)
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 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 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.