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The rate on a 30-year fixed refinance slipped to 6.91% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.86%. On a 20-year mortgage refinance, the average rate is 6.74%.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Climb 0.04%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.91%, about the same as last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.94%, about the same as 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, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $659 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 $138,012.
20-Year Refinance Rates Drop 0.31%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.74%, compared to 6.76% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.78%. It was 6.8% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $760 per month in principal and interest – not including taxes and fees. That would equal about $82,887 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Climb 0.79%
The average interest rate on the 15-year fixed refinance mortgage is 5.86%. The same time last week, the 15-year fixed-rate mortgage was at 5.81%.
The annual percentage rate on a 15-year fixed is 5.9%. Last week, it was 5.85%.
A 15-year fixed-rate mortgage refinance of $100,000 at today’s interest rate would cost $836 per month in principal and interest. Over the life of the loan, you would pay $50,933 in total interest.
30-Year Jumbo Refinance Rates Drop 0.72%
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) inched down week-over-week to 7.28%. Last week, the average rate was 7.33%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $684 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Climb 2.89%
A 15-year, fixed-rate jumbo mortgage refinance is 6.52% on average, up 2.89% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $872 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $57,195 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 considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice.
When Refinancing Makes Sense
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.
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 mortgage refinance 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.
Trends in Refinance Rates for 2025
Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025.
If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable.
Since mortgage rates are expected to change little in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and paying down your loan balance will help you secure the lowest possible rate when you’re ready to explore refinancing options.
Frequently Asked Questions (FAQs)
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 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.