The rate on a 30-year fixed refinance climbed today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.31%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.33%. For 20-year mortgage refinances, the average rate is 7.18%.
Related: Compare Current Refinance Rates
Refinance Rates for December 18, 2024
| LOAN TERM | RATE | CHANGE | RATE YESTERDAY |
|---|---|---|---|
30-Year Fixed Refinance Rate | 7.31% | +0.01 | 7.30% |
20-Year Fixed Refinance Rate | 7.18% | +0.02 | 7.16% |
15-Year Fixed Refinance Rate | 6.33% | +0.01 | 6.32% |
30-Year Jumbo Refinance Rate | 7.21% | -0.01 | 7.22% |
15-Year Jumbo Refinance Rate | 6.73% | +0.00 | 6.73% |
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 7.31%, compared to 7.13% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.33%, compared to 7.15% last week. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.
At the current interest rate of 7.31%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $686 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $147,001.
20-Year Refinance Interest Rates
The average interest rate on the 20-year fixed refinance mortgage is 7.18%. This same time last week, the 20-year fixed-rate mortgage was at 6.98%.
The APR on a 20-year fixed is 7.21%. This time last week, it was 7.01%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.18% will cost $786 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $88,717 in total interest.
15-Year Refinance Interest Rates
The 15-year fixed mortgage refinance is currently averaging about 6.33%. That’s compared to the average of 6.21% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.36% versus 6.24% at this time last week.
At the current interest rate of 6.33%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $862 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $55,093 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 7.21%. One week ago, the average rate was 7.10%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.21% will pay $679 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.73%, on average, compared to the average of 6.88% last week.
At today’s interest rate of 6.73%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,629 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $443,281 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).
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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?
Refinancing your mortgage can be worth it for reasons that include:
- Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
- Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
- Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
- Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
- Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.
Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.
Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.
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 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.
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 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.
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