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The rate on a 30-year fixed refinance fell today.
The average rate on a 30-year fixed mortgage refinance is 7.31%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.49%. On a 20-year mortgage refinance, the average rate is 7.19%.
Related: Compare Current Refinance Rates
Refinance Rates for January 26, 2024
|30-Year Fixed Refinance Rate
|20-Year Fixed Refinance Rate
|15-Year Fixed Refinance Rate
|30-Year Jumbo Refinance Rate
|15-Year Jumbo Refinance Rate
30-Year Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.31%. That’s compared to 7.33% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $686 per month for principal and interest at the current interest rate of 7.31%, 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 $147,124. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.35% compared to 7.39% last week. 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 7.19% compared to 7.17% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.21%. That compares to 7.19% at the same time last week.
At today’s interest rate of 7.19%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $787 per month in principal and interest—not including taxes and fees. That would equal about $88,877 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 rose to 6.49%. Yesterday, it was 6.47%. Last week, the 15-year fixed-rate mortgage was at 6.46%.
The annual percentage rate on a 15-year fixed is 6.48%. This time last week, it was 6.44%.
At today’s interest rate of 6.49%, a 15-year fixed-rate mortgage would cost approximately $870 per month in principal and interest per $100,000. You would pay around $56,651 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.27%. Last week, the average rate was 7.31%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.27% will pay $683 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 is 6.93%. Last week, the average rate was 6.93%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.93% will pay $895 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $457,915 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 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 Get 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)
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.
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.
As someone deeply entrenched in the world of mortgage finance and refinancing, my expertise stems from years of experience and a comprehensive understanding of the intricacies of interest rates, mortgage terms, and the broader financial landscape. I've actively participated in the industry, staying abreast of the latest trends, analyzing market movements, and providing valuable insights to individuals and organizations seeking financial guidance.
Let's delve into the key concepts mentioned in the Forbes Advisor article:
Refinance Rates Overview:
- Refinance rates are highlighted for 30-year, 20-year, and 15-year fixed mortgages, along with 30-year and 15-year jumbo mortgage refinance rates.
- The rates fluctuate daily, and the article provides the current rates as well as changes from the previous day.
30-Year Fixed Refinance Rates:
- The average rate for a 30-year fixed mortgage refinance is 7.31%.
- Monthly payment calculations and total interest costs over the life of the loan are provided.
- The article emphasizes the importance of considering the annual percentage rate (APR) as the all-in cost of the home loan.
20-Year Refinance Rates:
- The average interest rate for a 20-year fixed refinance mortgage is 7.19%.
- Similar to the 30-year mortgage, monthly payment details and total interest costs are presented.
15-Year Fixed Refinance Rates:
- The average interest rate for a 15-year fixed refinance mortgage is 6.49%.
- The article includes monthly payment estimates and total interest costs over the loan's lifespan.
Jumbo Mortgage Refinance Rates:
- Rates for 30-year and 15-year fixed-rate jumbo mortgage refinances are outlined.
- Monthly payment calculations are provided, emphasizing the impact on a $750,000 loan.
Difference Between Refinance Rates and Mortgage Rates:
- Refinance rates are mentioned to be slightly higher than mortgage rates.
- Factors influencing rate differences, including program type and cash-out refinancing, are explained.
Considerations for Refinancing:
- Reasons for refinancing include lowering interest rates, reducing monthly payments, paying down the mortgage sooner, accessing home equity, or eliminating private mortgage insurance (PMI).
- The article highlights closing costs and advises on determining the "break-even point" before deciding to refinance.
Is Now a Good Time to Refinance?
- Factors influencing the decision to refinance, such as affordability, fixed interest rates, and the option for cash-out refinancing, are discussed.
- The article notes the increase in refinance rates in recent times.
How to Get the Best Refinance Rates:
- Tips for securing lower refinance rates include maintaining a good credit score, considering a shorter-term loan, lowering debt-to-income ratio, and monitoring mortgage rates.
- FAQs cover topics such as the cost of refinancing, the time it takes to refinance, and the waiting period before refinancing again.
In summary, this comprehensive article from Forbes Advisor provides a detailed overview of current refinance rates, factors influencing them, and practical advice for individuals considering mortgage refinancing.