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The rate on a 30-year fixed refinance declined 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 June 28, 2024

Source: Curinos

30-Year Fixed Refinance Interest Rates

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

The 30-year fixed mortgage refi APR (annual percentage rate) is 7.49%. At 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%, a 30-year fixed mortgage refi would cost $697 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be approximately $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%. This time last week, 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

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 for a 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 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?

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

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).

A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs 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?

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 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 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?

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.

Last Update: June 28, 2024