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The rate on a 30-year fixed refinance increased to 6.61% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.58%, and for 20-year mortgages, the average is 6.35%.
Related:Compare Current Refinance Rates
30-Year Refinance Rates Climb 0.20%
At 6.61%, the average rate on a 30-year fixed-rate mortgage refinance is up 0.20% from this time last week.
The 30-year fixed mortgage refi APR (annual percentage rate) is 6.64%. At this time last week, it was 6.63%. The APR represents the all-in cost of your loan.
At the current interest rate of 6.61%, a 30-year fixed mortgage refi would cost $639 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $130,821 over the life of the loan.
20-Year Refinance Rates Drop 0.19%
The average interest rate on the 20-year fixed refinance mortgage is 6.35%. The same time last week, the 20-year fixed-rate mortgage was at 6.36%.
The APR on a 20-year fixed is 6.38%, compared to 6.4% last week.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $737 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $77,302 in total interest.
15-Year Mortgage Refinance Rates Climb 1.16%
The average interest rate on the 15-year fixed refinance mortgage is 5.58%. A week ago, the 15-year fixed-rate mortgage was at 5.51%.
On a 15-year fixed refinance, the annual percentage rate is 5.62%. Last week, it was 5.56%.
At today’s interest rate, a 15-year fixed-rate mortgage would cost approximately $821 per month in principal and interest per $100,000 borrowed. You would pay around $48,214 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates Climb 0.97%
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 up week-over-week to 6.74%. Last week, the average rate was 6.67%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $648 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Climb 1.30%
A 15-year, fixed-rate jumbo mortgage refinance is 5.94% on average, up 1.30% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $841 per month in principal and interest per $100,000 borrowed. 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 Refinancing Makes Sense
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 Get 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.
Refinancing Rate Outlook 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 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.
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.