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The rate on a 30-year fixed refinance declined 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 26, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance dropped to 7.47% from yesterday. One week ago, the 30-year fixed was 7.44%.

The APR, or annual percentage rate, on a 30-year fixed is 7.49%. This time last week, it was 7.46%. APR is the all-in cost of your loan.

At the current interest rate of 7.47%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $697 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $151,077 over the life of the loan.

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 7.35%. Last week, the average rate was 7.41%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.35% will pay $689 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 You Should Refinance Your Home

You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home’s equity or take out a new loan to 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

Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:

  • Maintain a good credit score
  • Consider a shorter-term loan
  • Lower your debt-to-income ratio
  • Monitor mortgage rates

A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

Frequently Asked Questions (FAQs)

How quickly can you refinance a mortgage?

You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors—like the type of home loan you choose. Always check with your lender before committing to borrow.

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 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 26, 2024