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The rate on a 30-year fixed refinance decreased to 6.45% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.33%, and for 20-year mortgages, the average is 6.21%.
Related: Compare Current Refinance Rates
30-Year Fixed Refinance Interest Rates Drop 0.72%
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.45%, down 0.72% from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $629 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 $126,906.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.47%, lower than last week’s 6.52%. The APR is essentially the all-in cost of the home loan.
20-Year Refi Rates Drop 0.10%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.21%, about the same as last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.25%, about the same as last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $729 per month in principal and interest – not including taxes and fees. That would equal about $75,353 in total interest over the life of the loan.
15-Year Fixed Refinance Rates Drop 1.19%
The average interest rate on the 15-year fixed refinance mortgage is 5.33%. The same time last week, the 15-year fixed-rate mortgage was at 5.39%.
The annual percentage rate on a 15-year fixed is 5.37%. Last week, it was 5.43%.
At the current interest rate, you would pay $808 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $45,827 in total interest.
30-Year Jumbo Refinance Interest Rates Climb 0.16%
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) rose week-over-week to 6.68%. Last week, the average rate was 6.67%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $644 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refinance Rates Climb 0.87%
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance climbed to 5.94%, up 0.87% from last week.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $841 per month in principal and interest per $100,000 borrowed. They will pay about $51,583 in total interest over the life of the loan.
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 Get 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 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 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?
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.