Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
The rate on a 30-year fixed refinance rose today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.35%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.58%, and for 20-year mortgages, it’s 7.12%.
Related: Compare Current Refinance Rates
Refinance Rates for March 12, 2024
| Loan term | Rate | Change | Rate Yesterday |
|---|---|---|---|
30-Year Fixed Refinance Rate | 7.35% | +0.03 | 7.32% |
20-Year Fixed Refinance Rate | 7.12% | +0.04 | 7.08% |
15-Year Fixed Refinance Rate | 6.58% | +0.07 | 6.51% |
30-Year Jumbo Refinance Rate | 7.30% | -0.15 | 7.45% |
15-Year Jumbo Refinance Rate | 7.18% | +0.00 | 7.18% |
30-Year Fixed Refinance Interest Rates
Today, the average rate for the 30-year fixed-rate mortgage refinance rose to 7.35% from yesterday. One week ago, the 30-year fixed was 7.50%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.40%. At this time last week, it was 7.55%. APR is the all-in cost of your loan.
At an interest rate of 7.35%, a 30-year fixed mortgage refi would cost $689 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be around $148,054.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.12% compared to 7.34% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.17%. That compares to 7.39% at the same time last week.
At today’s interest rate of 7.12%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $783 per month in principal and interest—not including taxes and fees. That would equal about $87,833 in total interest over the life of the loan.
15-Year Refinance Interest Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 6.58% compared to 6.74% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.57%. That compares to 6.72% at this time last week.
Using the current interest rate of 6.58%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $876 per month in principal and interest—not including taxes and fees. That would equal about $57,632 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 7.30%. One week ago, the average rate was 7.37%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.30% will pay $686 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance is 7.18%, on average, compared to the average of 7.12% last week.
At today’s interest rate of 7.18%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,815 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $476,740 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 Refinancing Makes Sense
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).
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.
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 Qualify for 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 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.
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 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.
