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30-year fixed refinance mortgage rates didn’t move at 6.61% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.51%, and for 20-year mortgages, the average is 6.36%.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Drop 1.08%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.61%, down 1.08% from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $639 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 $130,845.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.64%, lower than last week’s 6.71%. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates Drop 1.85%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.36%, compared to 6.48% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.4%. It was 6.52% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $737 per month in principal and interest – not including taxes and fees. That would equal about $77,527 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Drop 1.78%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.51%. The same time last week, the 15-year fixed-rate mortgage stood at 5.61%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.56%. Last week, it was 5.66%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $818 per month in principal and interest—not including taxes and fees. That would equal about $47,610 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates Drop 4.45%
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) declined week-over-week to 6.68%. A week ago, the average rate was 6.99%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $644 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Drop 1.97%
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance dropped to 5.87%, down 1.97% from last week.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $837 per month in principal and interest per $100,000 borrowed. They will pay about $50,914 in total interest over the life of the loan.
Are Refinance Rates and Mortgage Rates the Same?
No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.
The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.
When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.
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
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.
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 to 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 mortgage refinance lenders 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.
Refinance Interest Rate Trends 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?
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.
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 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.