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If you’re looking to save money by refinancing your home loan, it’s a good time to lock in a low rates. Refinance rates rose today, but rates overall are at historical lows.
The average rate on a 30-year fixed mortgage is 4.02%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 3.32%. The average rate on a 20-year refinance loan is 3.99%, and the average rate on a 5/1 ARM is 2.87%.
Related: Compare Current Refinance Rates
30-Year Refinance Rates
The average rate for the 30-year fixed-rate mortgage refinance rose to 4.02%. Last week, the 30-year fixed was 3.85%. Today’s rate is the same as the 52-week high of 3.19%.
The 30-year fixed mortgage refi APR is 4.01%. At this time last week, it was 3.85%. APR is the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage refi of $100,000 will pay $479 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 4.02%. You’d pay about $72,285 in total interest over the life of the loan..
20-Year Fixed-Rate Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 3.99%. This same time last week, the 20-year fixed-rate mortgage was at 3.90%.
The APR on a 20-year fixed is 3.97%. Last week, it was 3.88%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 3.99% will cost $605 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $45,309 in total interest.
15-Year Mortgage Refinance Rate
Today, the 15-year fixed mortgage rate is 3.32%, lower than it was one day ago. Last week, it was 3.22%.Today’s rate is higher than the 52-week low of 2.46%.
The APR on a 15-year fixed is 3.36%. This time last week, it was 3.28%.
With an interest rate of 3.32%, you would pay $706 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $27,094 in total interest.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 4.04%. One week ago, the average rate was 3.85%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 3.18%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 4.04% will pay $3,598 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $3,598, and you’d pay around $545,255 in total interest over the life of the loan.
15-Year Jumbo Refi Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance dropped to 3.37%. Last week, the average rate was 3.26%. The 15-year fixed rate on a jumbo mortgage is higher than to the 52-week low of 2.44%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 3.37% will pay $709 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $5,314, and you’d pay around $206,496 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Refinance Rates
On a 5/1 ARM, the average rate remained at 2.87%. The average rate was 2.87% last week. Today’s rate is currently the 52-week high.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.87% will pay $415 per month in principal and interest.
Know When to Refinance Your Home
You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.
A home loan refinance may make sense particularly if you plan to remain in your home for awhile. 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.
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.