The rate on a 30-year fixed refinance slipped to 6.6% today, according to the Mortgage Research Center. Rates averaged 5.56% for a 15-year financed mortgage and 6.33% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.6%, down 0.14 point from a week ago. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $639 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 $129,870.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.63%, lower than last week's 6.76%. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.33%, compared to 6.53% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.37%. It was 6.57% last week.
At today's interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $736 per month in principal and interest - not including taxes and fees. That would equal about $76,530 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates
The 15-year fixed mortgage refinance is currently averaging about 5.56%, compared to 5.7% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.61%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $820 per month in principal and interest. That doesn't include taxes and fees. That borrower would pay roughly $47,630 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance 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) inched down week-over-week to 7.08%, versus 7.17% last week.
At today's interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $670 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refi Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance fell weekly to 6.09%, down 0.12 point from last week.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today's interest rate will pay $849 per month in principal and interest per $100,000 borrowed. They will pay about $52,751 in total interest over the life of the loan.
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 Refinancing Makes Sense
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 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 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 financial institutions 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.
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.
More From Advisor
- Here Are Today’s Mortgage Refinance Rates: March 6, 2025 – Rates Advance Higher
- Current Mortgage Refinance Rates: March 4, 2025 – Rates Advance Higher
- Here Are Today’s Mortgage Refinance Rates: March 3, 2025 – Rates Hold Steady
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