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The rate on a 30-year fixed refinance tumbled today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.46%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.65%. For 20-year mortgage refinances, the average rate is 7.29%.
Related: Compare Current Refinance Rates
Refinance Rates for March 6, 2024
| Loan term | Rate | Change | Rate Yesterday |
|---|---|---|---|
30-Year Fixed Refinance Rate | 7.46% | (0.04) | 7.50% |
20-Year Fixed Refinance Rate | 7.29% | -0.05 | 7.34% |
15-Year Fixed Refinance Rate | 6.65% | -0.09 | 6.74% |
30-Year Jumbo Refinance Rate | 7.35% | -0.01 | 7.36% |
15-Year Jumbo Refinance Rate | 7.03% | +0.00 | 7.03% |
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.46%. That’s compared to 7.57% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $696 per month for principal and interest at the current interest rate of 7.46%, 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 $150,707. 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 7.51% compared to 7.58% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Interest Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 7.29% compared to 7.44% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.32%. That compares to 7.47% at the same time last week.
At today’s interest rate of 7.29%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $793 per month in principal and interest—not including taxes and fees. That would equal about $90,331 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate sits at 6.65%, lower than it was at this time yesterday. Last week, it was 6.76%.
The annual percentage rate on a 15-year fixed is 6.64%. This time last week, it was 6.74%.
A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.65% will cost $880 per month in principal and interest. Over the life of the loan, you would pay $58,327 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.35%. Last week, the average rate was 7.44%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.35% will pay $689 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 7.03%, compared to an average of 6.96% last week.
At today’s rate of 7.03%, a borrower would pay $900 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $465,532 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 Refinancing Makes Sense
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 ofprivate 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?
Now may be a good time to refinance if you can reduce your monthly payment by getting a better interest rate or adjusting your repayment period.
While refinance rates are at multi-year highs, you may qualify for a competitive rate if your credit has improved since getting your existing mortgage or by switching to a shorter loan term, such as a 15-year mortgage. Refinancing from a government-backed loan to a conventional loan with at least 20% equity helps you waive private mortgage insurance, FHA mortgage insurance premiums or the USDA guarantee fees.
There are multiple mortgage refinance options to consider and some that let you tap your home equity.
Consider avoiding refinancing if you can’t get a better rate or reduce your monthly payment. Additionally, you will need to pay closing costs and the application process can be lengthy. These hindrances may exceed the potential benefits of refinancing.
How To Get 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 much does it cost to refinance a mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.
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.
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.
