Here Are Today’s Mortgage Refinance Rates

The rate on a 30-year fixed refinance climbed to 7.05% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 6.03%, and for 20-year mortgages, the average is 6.93%.

Related: Compare Current Refinance Rates

30-Year Fixed Refinance Interest Rates

At 7.05%, the average rate on a 30-year fixed-rate mortgage refinance is up 0.12 point from last week.

On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 7.09%, higher than last week’s 6.97%. 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.

At today’s interest rate of 7.05%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $669 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay approximately $140,792 in total interest over the life of the loan.

20-Year Refi Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 6.93%, compared to 6.77% last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.98%. It was 6.81% last week.

At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $771 per month in principal and interest – not including taxes and fees. That would equal about $85,065 in total interest over the life of the loan.

15-Year Fixed Refinance Rates

The average interest rate on the 15-year fixed refinance mortgage is 6.03%. A week ago, the 15-year fixed-rate mortgage was at 5.84%.

On a 15-year fixed refinance, the annual percentage rate is 6.09%. Last week, it was 5.9%.

At today’s interest rate, a 15-year fixed-rate mortgage would cost approximately $846 per month in principal and interest per $100,000 borrowed. You would pay around $52,225 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

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) rose week-over-week to 7.31%, versus 7.23% last week.

At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $686 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.4% on average, up 0.07 point 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 $55,821 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 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.

Is Now a Good Time To Refinance?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

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. 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.

Frequently Asked Questions (FAQs)