The rate on a 30-year fixed refinance decreased to 6.82% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.75%, and for 20-year mortgages, the average is 6.61%.
Related: Compare Current Refinance Rates
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30-Year Fixed Refinance Interest Rates Drop 0.26%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.82%, down 0.26% from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $653 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 $135,917.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.85%, lower than last week’s 6.87%. The APR is essentially the all-in cost of the home loan.
20-Year Refi Rates Drop 0.35%
The 20-year fixed mortgage refinance average rate stands at 6.61%, versus 6.63% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.65%. It was 6.67% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $752 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $81,006 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Climb 0.21%
The average interest rate on the 15-year fixed refinance mortgage is 5.75%. The same time last week, the 15-year fixed-rate mortgage was at 5.74%.
The annual percentage rate on a 15-year fixed is 5.79%. Last week, it was 5.78%.
At the current interest rate, you would pay $830 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $49,889 in total interest.
30-Year Jumbo Refinance Interest Rates Drop 2.23%
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 down week-over-week to 7.07%, versus 7.23% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $670 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Rates Climb 0.14%
A 15-year, fixed-rate jumbo mortgage refinance is 6.47% on average, up 1.21% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $869 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $56,720 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 Get 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
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 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.