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The rate on a 30-year fixed refinance decreased today.
Refinancing rates for a 30-year, fixed-mortgage are averaging 7.74%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.95%, and for 20-year mortgages, the average is 7.64%.
Related: Compare Current Refinance Rates
Refinance Rates for April 18, 2024
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.74%, compared to 7.65% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.76%, compared to 7.63% last week. 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 of 7.74%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $716 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 $157,635.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.64%. Last week, the 20-year fixed-rate mortgage was at 7.52%.
The APR on a 20-year fixed is 7.66%. This time last week, it was 7.50%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.64% will cost $814 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $95,343 in total interest.
15-Year Refinance Interest Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 6.95% compared to 6.88% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.98%. That compares to 6.85% at this time last week.
Using the current interest rate of 6.95%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $896 per month in principal and interest—not including taxes and fees. That would equal about $61,286 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.61%. Last week, the average rate was 7.60%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.61% will pay $707 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 7.07%. Last week, the average rate was 7.04%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.07% will pay $903 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $468,481 in total interest over the life of the loan.
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
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or 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?
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 Get 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 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?
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?
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.