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The rate on a 30-year fixed refinance declined today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.50%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.69%. For 20-year mortgage refinances, the average rate is 7.34%.
Related: Compare Current Refinance Rates
Refinance Rates for March 20, 2024
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.50%. That’s compared to 7.37% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $699 per month for principal and interest at the current interest rate of 7.50%, 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 $151,791. 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 7.56% compared to 7.43% last week. The APR is essentially the all-in cost of the home loan.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.34%. This same time last week, the 20-year fixed-rate mortgage was at 7.17%.
The APR on a 20-year fixed is 7.38%. One week ago, it was 7.21%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.34% will cost $796 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $91,045 in total interest.
15-Year Refinance Interest Rates
The average interest rate on the 15-year fixed refinance mortgage slipped to 6.69%. Yesterday, it was 6.74%. One week ago, the 15-year fixed-rate mortgage was at 6.60%.
The annual percentage rate on a 15-year fixed is 6.69%. This time last week, it was 6.59%.
With an interest rate of 6.69%, you would pay $882 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $58,725 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.45%. Last week, the average rate was 7.35%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.45% will pay $696 per month in principal and interest on a $100,000 loan.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 7.14%. Last week, the average rate was 7.17%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.14% will pay $907 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $474,009 in total interest over the life of the loan.
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.
Know When To Refinance Your Home
You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to 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?
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 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 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 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.
