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30-year fixed refinance mortgage rates didn’t move at 6.91% today, according to the Mortgage Research Center. Rates averaged 5.84% for a 15-year financed mortgage and 6.78% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Drop 1.17%
At 6.91%, the average rate on a 30-year fixed-rate mortgage refinance is down 1.17% from this time last week.
The APR, or annual percentage rate, on a 30-year fixed is 6.94%. This time last week, it was 7.02%. The APR is the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage refi of $100,000 will pay $659 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 6.91%. You’d pay around $138,036 in total interest over the life of the loan.
20-Year Refinance Rates Drop 1.40%
The average interest rate on the 20-year fixed refinance mortgage is 6.78%. The same time last week, the 20-year fixed-rate mortgage was at 6.87%.
The APR on a 20-year fixed is 6.81%, compared to 6.91% last week.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $762 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $83,373 in total interest.
15-Year Mortgage Refinance Rates Drop 1.55%
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.84%. Last week, the 15-year fixed-rate mortgage stood at 5.93%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.89%. Last week, it was 5.98%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $835 per month in principal and interest—not including taxes and fees. That would equal about $50,788 in total interest over the life of the loan.
30-Year Jumbo Refinance Rates Drop 0.76%
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) declined week-over-week to 7.61%. A week ago, the average rate was 7.66%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $706 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Drop 1.81%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.28%, down 1.81% from last week.
At today’s rate, a borrower would pay $859 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $54,827 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 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).
A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs 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
Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing to get a good mortgage rate:
- Improve your credit
- Consider a shorter loan term
- Lower your debt-to-income ratio
- Watch mortgage rates
There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other mortgage refinance lenders are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.
Refinance Interest Rate Trends 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)
Are interest rates higher for refinancing?
Refinance interest rates can be higher or lower than your original loan rate. Your credit score, income, repayment history, and current national interest rates will determine whether you qualify for a lower rate. These factors may also lead a lender to offer you a higher rate.
Additionally, lenders may offer a higher rate if you plan to access your home equity. This increases your loan amount and, consequently, the lender’s risk.
Can you refinance a 30-year fixed mortgage?
Yes, you can refinance a 30-year fixed mortgage. Refinancing can help you lower your interest rate, reduce your monthly payments and save you money in the long run.
Refinancing also allows you to change your loan term. You can switch to another 30-year mortgage or choose a shorter term, like a 15-year mortgage.
How much equity do you need to refinance?
The amount of equity you need to qualify for refinancing depends on the lender, but most recommend having at least 20% equity, or a loan-to-value ratio of 80% or lower.
If you have less than 20% equity, you may still qualify for refinancing, but you could face higher interest rates or be required to pay additional fees, such as PMI.