Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
The rate on a 30-year fixed refinance slipped today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 7.44%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.55%. For 20-year mortgage refinances, the average rate is 7.14%.
Related: Compare Current Refinance Rates
Refinance Rates for June 14, 2024
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance dropped to 7.44% from yesterday. One week ago, the 30-year fixed was 7.50%.
The APR, or annual percentage rate, on a 30-year fixed is 7.46%. This time last week, it was 7.52%. APR is the all-in cost of your loan.
At the current interest rate of 7.44%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $695 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be around $150,314.
20-Year Refinance Interest Rates
The 20-year fixed mortgage refinance is currently averaging about 7.14%. That’s compared to the average of 7.23% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.16% compared to 7.26% at this time last week.
At the current interest rate of 7.14%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $784 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $88,065 in total interest over the life of the loan.
15-Year Refinance Interest Rates
The average interest rate on the 15-year fixed refinance mortgage fell to 6.55%. Yesterday, it was 6.57%. Last week, the 15-year fixed-rate mortgage was at 6.61%.
On a 15-year fixed refinance, the annual percentage rate is 6.58%. Last week it was 6.64%.
With an interest rate of 6.55%, you would pay $874 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $57,285 in total interest.
30-Year Jumbo Refinance Interest Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.33%. Last week, the average rate was 7.45%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.33% will pay $687 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 7.27%. Last week, the average rate was 7.22%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.27% will pay $914 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $483,659 in total interest over the life of the loan.
Are Refinance Rates and Mortgage Rates the Same?
Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.
In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.
Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.
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 of private 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?
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
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 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 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.
