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The rate on a 30-year fixed refinance rose to 6.95% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.88%, and for 20-year mortgages, the average is 6.8%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Climb 1.05%
The average rate for a 30-year fixed-rate mortgage refinance is 6.95%, up 1.05% from last week.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.98%, higher than last week’s 6.9%. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s 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 $662 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 6.95%. The total interest paid over the life of the loan would be approximately $138,905.
20-Year Refi Rates Climb 1.92%
The 20-year fixed mortgage refinance average rate stands at 6.8%, versus 6.67% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.84%. It was 6.71% last week.
At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $763 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $83,731 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Climb 2.05%
The 15-year fixed mortgage refinance is currently averaging about 5.88%, compared to 5.76% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.93%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $837 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $51,166 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates Climb 4.67%
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) increased week-over-week to 7.62%. A week ago, the average rate was 7.28%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $708 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refinance Rates Climb 0.78%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.47%, up 0.78% from last week.
At today’s rate, a borrower would pay $870 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 $56,760 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).
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
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 much does it cost to refinance a mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.
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?
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.