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The rate on a 30-year fixed refinance dropped to 6.53% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.43%. For 20-year mortgage refinances, the average rate is 6.28%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Drop 1.36%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.53%, compared to 6.62% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.55%, lower than last week’s 6.64%. 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 $634 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 $128,777.
20-Year Refi Rates Drop 1.20%
The 20-year fixed mortgage refinance average rate stands at 6.28%, versus 6.35% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.31%. It was 6.39% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $733 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $76,291 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Drop 1.99%
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 5.54%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.47%. Last week, it was 5.58%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $813 per month in principal and interest—not including taxes and fees. That would equal about $46,817 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates Drop 0.30%
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) fell week-over-week to 6.71%, versus 6.73% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $646 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Rates Drop 0.20%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.92%, down 0.20% from last week.
At today’s rate, a borrower would pay $840 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 $51,399 in total interest.
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.
Know When To Refinance Your Home
Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).
But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.
The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you 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.
What To Know About 2025 Refinance Rate Trends
National average mortgage rates have remained in the middle-to-high 6% range since the final quarter of 2024, and experts expect this trend to continue throughout the first half of 2025.
Although forecasting mortgage interest rates is challenging, economic indicators like inflation and unemployment rates can provide insights into the direction of the housing market. For example, if inflation slows and national unemployment levels remain stable or rise, the Federal Reserve may cut the federal funds rate, which could lead to lower mortgage rates. On the other hand, if inflation stays high and unemployment decreases, rates are likely to remain steady.
Since mortgage rates are expected to experience minimal movement 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 making on-time payments will allow you to secure the best possible rate when you begin shopping for refinance offers.
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 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.
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.