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The rate on a 30-year fixed refinance climbed to 6.82% today, according to the Mortgage Research Center. The average rate on a 15-year mortgage refinance is 5.72%. On a 20-year mortgage refinance, the average rate is 6.61%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Drop 1.57%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.82%, compared to 6.93% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.85%, lower than last week’s 6.96%. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $653 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $135,941.
20-Year Refi Rates Drop 1.84%
The 20-year fixed mortgage refinance average rate stands at 6.61%, versus 6.73% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.65%. It was 6.77% 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 $81,049 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Drop 3.36%
The 15-year fixed mortgage refinance is currently averaging about 5.72%, compared to 5.92% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.77%.
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 $49,647 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates Drop 2.91%
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 7.11%. Last week, the average rate was 7.32%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $673 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refinance Rates Drop 3.17%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.33%, down 3.17% from last week.
At today’s rate, a borrower would pay $862 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 $55,388 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.
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 Qualify for 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.
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 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.
How quickly can you refinance a mortgage?
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.
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.