January 31, 2025 – Rates Decrease – Forbes Advisor


Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

The rate on a 30-year fixed refinance fell to 6.93% today, according to the Mortgage Research Center. Rates averaged 5.87% for a 15-year financed mortgage and 6.8% for a 20-year financed mortgage.

Related: Compare Current Refinance Rates

30-Year Fixed Refinance Interest Rates

Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.93%, down 0.16 point from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $661 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 $137,915.

Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.97%, lower than last week’s 7.12%. The APR is essentially the all-in cost of the home loan.

20-Year Refi Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 6.8%, compared to 6.95% last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.84%. It was 7% last week.

At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $763 per month in principal and interest – not including taxes and fees. That would equal about $83,144 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 5.87%. The same time last week, the 15-year fixed-rate mortgage was at 6.07%.

The annual percentage rate on a 15-year fixed is 5.92%. Last week, it was 6.13%.

A 15-year fixed-rate mortgage refinance of $100,000 at today’s interest rate would cost $837 per month in principal and interest. Over the life of the loan, you would pay $50,594 in total interest.

30-Year Jumbo Refinance Interest Rates

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) decreased week-over-week to 7.26%, versus 7.34% last week.

At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $683 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.34% on average, down 0.06 point from last week.

At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $862 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $55,181 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

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.

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

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 quickly can you refinance a mortgage?

Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.

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 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.

Leave a Reply

Your email address will not be published. Required fields are marked *