The rate on a 30-year fixed refinance rose to 6.98% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.91%. For 20-year mortgage refinances, the average rate is 6.87%.
Related: Compare Current Refinance Rates
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30-Year Fixed Refinance Interest Rates Drop 0.61%
At 6.98%, the average rate on a 30-year fixed-rate mortgage refinance is down 0.61% from this time last week.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 7.01%, lower than last week’s 7.05%. 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 6.98%, a 30-year fixed mortgage refi would cost $664 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. You’d pay about $139,702 in total interest over the life of the loan.
20-Year Refi Rates Drop 0.20%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.87%, compared to 6.88% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.91%. It was 6.92% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $767 per month in principal and interest – not including taxes and fees. That would equal about $84,734 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Drop 1.27%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.91%. Last week, the 15-year fixed-rate mortgage stood at 5.98%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.95%. Last week, it was 6.03%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $839 per month in principal and interest—not including taxes and fees. That would equal about $51,438 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates Climb 0.38%
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) inched up week-over-week to 7.62%, versus 7.59% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $708 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Rates Drop 0.84%
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance fell to 6.35%, down 0.84% from last week.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $863 per month in principal and interest per $100,000 borrowed. They will pay about $55,496 in total interest over the life of the loan.
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
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.
What To Know About 2025 Refinance Rate Trends
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)
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?
Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure.
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.