The rate on a 30-year fixed refinance rose today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.50%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.61%, and for 20-year mortgages, it’s 7.36%.
Related: Compare Current Refinance Rates
Refinance Rates for January 13, 2025
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance rose to 7.50% from yesterday. This time last week, the 30-year fixed was 7.41%.
The APR, or annual percentage rate, on a 30-year fixed is 7.53%. This time last week, it was 7.43%. APR is the all-in cost of your loan.
At the current interest rate of 7.50%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $699 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $151,816 over the life of the loan.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.36% compared to 7.29% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.39%. That compares to 7.31% at the same time last week.
At today’s interest rate of 7.36%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $797 per month in principal and interest—not including taxes and fees. That would equal about $91,337 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate is 6.61%, higher than it was at this time yesterday. Last week, it was 6.47%.
The annual percentage rate on a 15-year fixed is 6.64%. This time last week, it was 6.50%.
At today’s interest rate of 6.61%, a 15-year fixed-rate mortgage would cost approximately $877 per month in principal and interest per $100,000. You would pay around $57,840 in total interest over the life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.43%. Last week, the average rate was 7.39%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.43% will pay $694 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.91%, compared to an average of 6.79% last week.
At today’s rate of 6.91%, a borrower would pay $894 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $490,793 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 Refinancing Makes Sense
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
Is Now a Good Time To Refinance?
Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.
While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.
There are multiple mortgage refinance options to consider and some that let you tap your home equity.
Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.
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 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.
More From Advisor
- Current Refinance Rates: January 10, 2025—No Movement On Rates
- Current Refinance Rates: January 9, 2025—Rates Rise
- Current Refinance Rates: January 8, 2025—Rates Hold Steady
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