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The rate on a 30-year fixed refinance decreased to 6.42% today, according to the Mortgage Research Center. Rates averaged 5.39% for a 15-year financed mortgage and 6.09% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
30-Year Refinance Rates Climb 0.19%
The current 30-year, fixed-rate mortgage refinance average rate stands at 6.42%, compared to 6.41% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.45%, higher than last week’s 6.44%. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $627 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $126,268.
20-Year Refinance Rates Drop 0.43%
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.09%, compared to 6.11% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.12%. It was 6.15% last week.
At today’s interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $721 per month in principal and interest – not including taxes and fees. That would equal about $73,609 in total interest over the life of the loan.
15-Year Mortgage Refinance Rates Drop 0.52%
The 15-year fixed mortgage refinance is currently averaging about 5.39%, compared to 5.42% last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.43%.
At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $811 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $46,426 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Rates Drop 0.49%
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) dropped week-over-week to 6.75%. Last week, the average rate was 6.79%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $649 per month in principal and interest per $100,000 borrowed.
15-Year Jumbo Refi Rates Drop 1.85%
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.77%, down 1.85% from last week.
At today’s rate, a borrower would pay $832 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 $49,937 in total interest.
Are Refinance Rates and Mortgage Rates the Same?
No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.
The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.
When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.
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.
When You Should 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
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.
Best Mortgage Refinance Lenders of 2025
Find the best Mortgage Refinance Lenders for your needs.
What To Know About 2025 Refinance Rate
TrendsNational 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)
Are interest rates higher for refinancing?
Refinance interest rates can be higher or lower than your original loan rate. Your credit score, income, repayment history, and current national interest rates will determine whether you qualify for a lower rate. These factors may also lead a lender to offer you a higher rate.
Additionally, lenders may offer a higher rate if you plan to access your home equity. This increases your loan amount and, consequently, the lender’s risk.
Can you refinance a 30-year fixed mortgage?
Yes, you can refinance a 30-year fixed mortgage. Refinancing can help you lower your interest rate, reduce your monthly payments and save you money in the long run.
Refinancing also allows you to change your loan term. You can switch to another 30-year mortgage or choose a shorter term, like a 15-year mortgage.
How much equity do you need to refinance?
The amount of equity you need to qualify for refinancing depends on the lender, but most recommend having at least 20% equity, or a loan-to-value ratio of 80% or lower.
If you have less than 20% equity, you may still qualify for refinancing, but you could face higher interest rates or be required to pay additional fees, such as PMI.