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The rate on a 30-year fixed refinance dropped today.

Refinancing rates for a 30-year, fixed-mortgage are averaging 7.47%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.69%, and for 20-year mortgages, the average is 7.25%.

Related: Compare Current Refinance Rates

Refinance Rates for July 2, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 7.47%, compared to 7.44% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.49%, compared to 7.46% 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 7.47%, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $697 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 $151,077.

20-Year Refinance Interest Rates

The average interest rate on the 20-year fixed refinance mortgage is 7.25%. One week ago, the 20-year fixed-rate mortgage was at 7.14%.

The APR on a 20-year fixed is 7.27%. One week ago, it was 7.16%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 7.25% will cost $790 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $89,618 in total interest.

15-Year Refinance Interest Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.69% compared to 6.55% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.73%. That compares to 6.58% at this time last week.

Using the current interest rate of 6.69%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $882 per month in principal and interest—not including taxes and fees. That would equal about $58,715 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.43%. Last week, the average rate was 7.41%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.43% will pay $695 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 7.26%, compared to an average of 7.27% last week.

At today’s rate of 7.26%, a borrower would pay $913 per month in principal and interest per $100,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $482,974 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.

Know When To Refinance Your Home

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?

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 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 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 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.

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.

Last Update: July 2, 2024