Current Mortgage Refinance Rates -- April 27, 2021: Rates Trend Down

How are mortgage refinance rates trending today? Read on to find out.

As April draws to a close, average mortgage refinance rates are down a bit. If you are considering refinancing your home loan to try to drop your interest rate, check out average refinance rates for April 27, 2021:

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 3.260%, down 0.003% from yesterday's average of 3.263%. If you refinance at today's average rate, your monthly principal and interest payment would be $436 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $56,872 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.056%, down 0.015% from yesterday's average of 3.071%. At today's average rate, the monthly principal and interest payment would add up to $557 per $100,000 in refinanced mortgage debt. Total interest costs would be $33,777 per $100,000 in mortgage debt over the life of the refinance loan.

There's a tradeoff you make when you choose a loan with a shorter repayment timeline. You save money over time, but monthly payments are higher. You can see that you'll pay more each month with the 20-year loan than the 30-year loan, but less total interest over the life of the loan.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.554%, down 0.008% from yesterday's average of 2.562%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $669 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $20,480.

The 15-year loan would save you the most on interest, but of course monthly payments would be much higher. If you want to be debt free in half the time, you'll need to commit to these larger payments.

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.