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The rate on a 30-year fixed refinance rose to 7.06% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 6.03%. For 20-year mortgage refinances, the average rate is 6.93%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Climb 1.45%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.06%, up 1.45% from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $670 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 $141,713.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.09%, higher than last week’s 6.99%. The APR is essentially the all-in cost of the home loan.
20-Year Refi Rates Climb 1.57%
The average interest rate on the 20-year fixed refinance mortgage is 6.93%. A week ago, the 20-year fixed-rate mortgage was at 6.82%.
The APR on a 20-year fixed is 6.97%, compared to 6.86% last week.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $771 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $85,625 in total interest.
15-Year Fixed Refinance Rates Climb 2.38%
The 15-year fixed mortgage refinance is currently averaging about 6.03%, compared to 5.89% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 6.07%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $845 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $52,586 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates Drop 0.31%
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 7.61%, versus 7.63% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $706 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Rates Drop 1.25%
A 15-year, fixed-rate jumbo mortgage refinance is 6.41% on average, down 1.25% from last week.
At today’s interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $866 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $56,088 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.
You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.
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
You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to 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.
Refinancing Rate Outlook 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 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?
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 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.