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

The average rate on a 30-year fixed mortgage refinance is 7.47%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.69%. On a 20-year mortgage refinance, the average rate is 7.25%.

Related: Compare Current Refinance Rates

Refinance Rates for June 27, 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 20-year fixed mortgage refinance is currently averaging about 7.25%. That’s compared to the average of 7.14% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.27% compared to 7.16% at this time last week.

At the current interest rate of 7.25%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $790 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $89,618 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.69%. That’s compared to the average of 6.55% at this time last week.

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

At the current interest rate of 6.69%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $882 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $58,715 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 7.38%. Last week, the average rate was 7.41%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.38% will pay $691 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 7.26%, on average, compared to the average of 7.27% last week.

At today’s interest rate of 7.26%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,850 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $482,974 in total interest.

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 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 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 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.

Last Update: June 27, 2024