The rate on a 30-year fixed refinance increased to 6.92% today, according to the Mortgage Research Center. Rates averaged 5.84% for a 15-year financed mortgage and 6.79% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
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30-Year Fixed-Rate Mortgage Refinance Rates Drop 1.06%
At 6.92%, the average rate on a 30-year fixed-rate mortgage refinance is down 1.06% from this time last week.
The APR, or annual percentage rate, on a 30-year fixed is 6.95%. This time last week, it was 7.02%. The APR is the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage refi of $100,000 will pay $660 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 6.92%. In total interest, you’d pay $138,205 over the life of the loan.
20-Year Fixed-Rate Mortgage Refinance Rates Drop 1.15%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.79%, compared to 6.87% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.83%. It was 6.91% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $763 per month in principal and interest – not including taxes and fees. That would equal about $83,645 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Refinance Rates Drop 1.53%
The 15-year fixed mortgage refinance is currently averaging about 5.84%, compared to 5.93% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.89%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $835 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $50,807 in total interest over the 15-year life of the loan.
30-Year Jumbo Mortgage Refinance Rates Drop 4.27%
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) dropped week-over-week to 7.34%, versus 7.66% last week.
At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $688 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Mortgage Refinance Rates Drop 0.80%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.34%, down 0.80% from last week.
At today’s rate, a borrower would pay $863 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 $55,506 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 mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.
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
Refinancing a mortgage isn’t that different than taking out a mortgage in the first place, and it’s always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:
- Polish up your credit score
- Lower your debt-to-income ratio
- Keep an eye on mortgage rates
- Consider a shorter loan
Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You’re also likely to look better to mortgage refinance lenders if you don’t have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates.
Trends in Refinance Rates for 2025
Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025.
If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable.
Since mortgage rates are expected to change little 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 paying down your loan balance will help you secure the lowest possible rate when you’re ready to explore refinancing options.
Frequently Asked Questions (FAQs)
How do you find the best refinancing lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
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 much does it cost to refinance a mortgage?
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.