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The rate on a 30-year fixed refinance dropped to 6.54% today, according to the Mortgage Research Center. Rates averaged 5.43% for a 15-year financed mortgage and 6.31% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Drop 1.10%
The average rate for a 30-year fixed-rate mortgage refinance is 6.54%, down 1.10% from last week.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.57%, lower than last week’s 6.64%. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.
At the current interest rate of 6.54%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $635 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan would be about $129,109.
20-Year Refinance Rates Drop 0.52%
The 20-year fixed mortgage refinance average rate stands at 6.31%, versus 6.35% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.35%. It was 6.38% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $735 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $76,810 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Drop 2.55%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.43%. A week ago, the 15-year fixed-rate mortgage stood at 5.58%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.48%. Last week, it was 5.62%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $814 per month in principal and interest—not including taxes and fees. That would equal about $46,836 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates Drop 0.27%
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) decreased week-over-week to 6.72%. Last week, the average rate was 6.74%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $647 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Climb 0.02%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.94%, about the same as last week.
At today’s rate, a borrower would pay $841 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $51,603 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 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.
How To Qualify for 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. Mortgage refinance 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.
Trends in Refinance Rates for 2025
National average mortgage interest rates will have the most significant impact on refinancing trends throughout 2025, whether they rise or fall.
While predicting mortgage interest rates is challenging, experts expect them to remain in the middle-to-high 6% range during the first half of 2025, similar to the final quarter of 2024. However, rates could potentially decrease by the end of the year.
If inflation slows and national unemployment levels remain steady or increase, the Federal Reserve might cut the federal funds rate, leading to lower mortgage rates. On the other hand, if the opposite happens, average rates will likely see little movement.
Since experts anticipate minimal movement in average mortgage rates during the first half of the year, those looking to refinance at a lower rate may want to wait until later in the year to secure the best rate. In the meantime, improving your credit score, making on-time payments and paying down your loan amount will put you in the best position to secure a low rate when you begin shopping for a refinance offer.
Frequently Asked Questions (FAQs)
Are interest rates higher for refinancing?
Refinance interest rates can be higher or lower than your original loan rate. Your credit score, income, repayment history, and current national interest rates will determine whether you qualify for a lower rate. These factors may also lead a lender to offer you a higher rate.
Additionally, lenders may offer a higher rate if you plan to access your home equity. This increases your loan amount and, consequently, the lender’s risk.
Can you refinance a 30-year fixed mortgage?
Yes, you can refinance a 30-year fixed mortgage. Refinancing can help you lower your interest rate, reduce your monthly payments and save you money in the long run.
Refinancing also allows you to change your loan term. You can switch to another 30-year mortgage or choose a shorter term, like a 15-year mortgage.
How much equity do you need to refinance?
The amount of equity you need to qualify for refinancing depends on the lender, but most recommend having at least 20% equity, or a loan-to-value ratio of 80% or lower.
If you have less than 20% equity, you may still qualify for refinancing, but you could face higher interest rates or be required to pay additional fees, such as PMI.