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The rate on a 30-year fixed refinance slipped today.
The average rate for refinancing a 30-year fixed mortgage is currently 7.34%, according to Curinos. For refinancing a 15-year mortgage, the average rate is 6.58%, and for 20-year mortgages, it’s 7.17%.
Related: Compare Current Refinance Rates
Refinance Rates for March 8, 2024
| Loan Term | Rate | Change | Rate Yesterday |
|---|---|---|---|
30-Year Fixed Refinance Rate | 7.34% | -0.08 | 7.42% |
20-Year Fixed Refinance Rate | 7.17% | -0.1 | 7.27% |
15-Year Fixed Refinance Rate | 6.58% | -0.02 | 6.60% |
30-Year Jumbo Refinance Rate | 7.30% | -0.13 | 7.43% |
15-Year Jumbo Refinance Rate | 7.13% | 0.00% | 7.13% |
30-Year Fixed Refinance Interest Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.34%. That’s compared to 7.56% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $688 per month for principal and interest at the current interest rate of 7.34%, 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 $147,809. 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 7.41% compared to 7.63% 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 7.17% compared to 7.41% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.19%. That compares to 7.45% at the same time last week.
At today’s interest rate of 7.17%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $786 per month in principal and interest—not including taxes and fees. That would equal about $88,572 in total interest over the life of the loan.
15-Year Refinance Interest Rates
Today, the 15-year fixed mortgage rate sits at 6.58%, lower than it was yesterday. Last week, it was 6.73%.
On a 15-year fixed refinance, the annual percentage rate is 6.56%. Last week it was 6.71%.
A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 6.58% will cost $875 per month in principal and interest. Over the life of the loan, you would pay $57,572 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.30%. Last week, the average rate was 7.42%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.30% will pay $685 per month in principal and interest per $100,000.
15-Year Jumbo Refinance Interest Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 7.13%. Last week, the average rate was 6.97%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.13% will pay $906 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $473,478 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.
When Refinancing Makes Sense
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
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 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.
