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The rate on a 30-year fixed refinance inched up today.
The average rate on a 30-year fixed mortgage refinance is 7.49%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.70%. On a 20-year mortgage refinance, the average rate is 7.32%.
Related: Compare Current Refinance Rates
Refinance Rates for March 18, 2024
| Loan term | Rate | Change | Rate Yesterday |
|---|---|---|---|
30-Year Fixed Refinance Rate | 7.49% | +0.05 | 7.44% |
20-Year Fixed Refinance Rate | 7.32% | +0.07 | 7.25% |
15-Year Fixed Refinance Rate | 6.70% | +0.01 | 6.69% |
30-Year Jumbo Refinance Rate | 7.42% | -0.04 | 7.46% |
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 increased to 7.49% from yesterday. Last week, the 30-year fixed was 7.32%.
The 30-year fixed mortgage refi APR (annual percentage rate) is 7.54%. At this time last week, it was 7.37%. APR is the all-in cost of your loan.
At today’s interest rate of 7.49%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $698 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be around $151,446.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 7.32%. That’s compared to the average of 7.08% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.35% compared to 7.14% at this time last week.
At the current interest rate of 7.32%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $795 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $90,739 in total interest over the life of the loan.
15-Year Refinance Interest Rates
The 15-year fixed mortgage refinance is currently averaging about 6.70%. That’s compared to the average of 6.51% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.69% versus 6.51% at this time last week.
At the current interest rate of 6.70%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $882 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $58,765 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.42%. One week ago, the average rate was 7.30%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.42% 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 is 7.18%, on average, compared to the average of 7.14% last week.
At today’s interest rate of 7.18%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,816 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $476,816 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
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 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.
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?
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?
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.
