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30-year fixed refinance mortgage rates didn’t move at 6.87% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.73%. For 20-year mortgage refinances, the average rate is 6.65%.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Drop 0.36%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.87%, down 0.36% from last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $657 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 $137,096.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.9%, lower than last week’s 6.92%. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates Drop 0.36%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.65%, compared to 6.68% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.69%. It was 6.72% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $754 per month in principal and interest – not including taxes and fees. That would equal about $81,661 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Drop 2.63%
The 15-year fixed mortgage refinance is currently averaging about 5.73%, compared to 5.88% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.78%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $829 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $49,753 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Rates Drop 1.95%
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 down week-over-week to 7.1%. A week ago, the average rate was 7.24%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $672 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Drop 2.26%
A 15-year, fixed-rate jumbo mortgage refinance is 6.36% on average, down 2.26% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $864 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $55,713 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
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.
Our mortgage refinance calculator could help you determine if refinancing is right for you.
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.
Refinance Interest Rate Trends for 2025
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 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.
How soon can you refinance a mortgage?
In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.
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.