Current Mortgage Refinance Rates -- September 22, 2021: All Rates Rise

Is now a good time to save money by refinancing? Check out today's current average refinance rates.

Average mortgage refinance rates are up across the board today. But that doesn't mean savings opportunities have disappeared. Depending on your current rate, you may still find that now is a good time to save money by refinancing.

Take a closer look at average mortgage refinance rates for Wednesday, Sept. 22 to run the numbers and see what you might stand to save:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage refinance rates

The average 30-year mortgage refinance loan rate today is 3.113%, up 0.009% from yesterday's average of 3.104%. For each $100,000 you refinance at today's average rate, your monthly principal and interest payment would add up to $427. Total interest costs over the life of the refinance loan would equal $53,883 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.772%, up 0.010% from yesterday's average of 2.762%. A refinance loan at today's average rate would come with a monthly principal and interest payment of $543 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $30,381 per $100,000 borrowed.

Ideally, when you refinance you don't want to extend your mortgage's length. So if you've already paid on your current mortgage for several years, a 20-year refinance may be your best bet to refinance without increasing your payoff time and total loan costs. The principal and interest payment on a 20-year refinance loan will cost you $116 more per month than on the 30-year today.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.358%, up 0.011% from yesterday's average of 2.347%. If you refinance at today's average rate, you can expect a monthly principal and interest payment of $660 per $100,000 in refinanced debt. Total interest costs would add up to $18,772 per $100,000 borrowed over the life of the refinance loan.

The 15-year refinance loan comes with the lowest rate and significantly lower total interest costs compared to the other two loan types. The tradeoff is that you'll have to be prepared to pay $233 more per month compared with the 30-year refinance loan. If this monthly payment fits comfortably within your budget, you'll pay your mortgage off in the shortest amount of time while saving a considerable $35,111 in total interest.

Should you refinance your mortgage right now?

Refinancing your mortgage can be a smart financial decision if you're able to reduce your interest rate and lower your monthly payments by securing a new home loan. However, there are a few key things to think about before you refinance.

First, if you extend your loan repayment term, you could end up paying higher total interest costs over time than with your existing mortgage. This can occur even if you qualify for a lower interest rate since you'd be paying interest over a longer time. You can avoid this issue by choosing a refinance loan with a shorter repayment term. Or you may decide you're willing to pay more interest over the life of your loan in exchange for a reduced monthly payment.

Second, you will have to consider closing costs, which are the upfront fees you'll be charged when you refinance your mortgage. The Ascent's research revealed that closing costs on a refinance loan for a median value home total anywhere from $5,000 to $12,500. However, your closing fees will depend on the amount of your home loan, your location, and your lender.

You should eventually make up for these closing costs due to your lower monthly payments -- but that can take time. If you save $200 per month by refinancing and pay $6,000 in closing costs, you would take 2.5 years to break even. It's important to do the math and consider whether you'll stay in your home long enough for refinancing to pay off.

It can be a great idea to refinance if you can reduce your mortgage interest rate by at least 1% (or somewhere close) and you plan to stay put long enough to recoup your closing costs and reap the benefits of your refinanced rate. With mortgage refinance rates still not far off record lows, many borrowers stand to benefit by refinancing. Compare rates from the best mortgage refinance lenders to get some personalized offers and decide whether securing a new home loan now is right for you.