Current Mortgage Refinance Rates -- April 22, 2021: Rates Tick Down

Interested in refinancing your mortgage? Check out today's average mortgage refinance rates.

Average mortgage refinance rates are down a bit on April 22, 2021. Your rate will be based on your personal financial credentials, but it's still helpful to see whether average rates are trending up or down.

Check out today's average mortgage refinance rates to find out what the typical borrower would pay for a refinance loan:

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 3.276%, down 0.014% from yesterday's average of 3.290%. A loan at today's average rate would cost you $437 per month in principal and interest for each $100,000 you refinance. Over the life of the refinance loan, you'd pay total interest costs of $57,188 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.074%, down 0.015% from yesterday's average of 3.089%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $558 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $33,994 per $100,000 borrowed.

Loans with shorter payoff times come with higher monthly payments but lower total interest costs. That's why the 20-year loan will cost you more each month, even though the rate is a bit lower than on the 30-year refinance loan. Since you make so many fewer payments, each one must be for more money -- but you pay interest for a shorter period so you save over time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.575%, down 0.007% from yesterday's average of 2.582%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $670 per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $20,659 per $100,000 borrowed.

Since a 15-year refinance loan shortens your payoff time even more than a 20-year refinance loan, your interest savings is greater but your monthly payments are considerably higher as well.

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.

In general, it is a good idea to refinance if you don't plan to move in the next few years and you can reduce your mortgage interest rate by 1% or more. With mortgage refinance rates still not too far off record lows, many borrowers will find it's a good time to refinance. 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.