Current Mortgage Refinance Rates -- April 6, 2021: Rates Rise Again

Here's how mortgage refinance rates are trending today.

Mortgage refinance rates are up a bit for all loans today. It's important to pay attention to rates when thinking about refinancing because securing a new home loan makes sense only if you can reduce your current interest rate.

Here's what average mortgage refinance rates look like on April 6, 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 3.435%, up 0.012% from yesterday's average of 3.423%. At today's average rate, you'd pay $445 per month in principal and interest per $100,000 refinanced. Total interest costs would add up to $60,353 per $100,000 borrowed over the life of the refinance loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.148%, up 0.01% from yesterday's average of 3.138%. If you refinance at today's average rate, your monthly principal and interest payment would be $562 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $34,889 per $100,000 borrowed.

When you choose a 20-year refinance loan, you shorten the payoff time considerably compared with the 30-year. As you can see, this saves you a lot of money on interest because you pay it for less time. But it also makes all of your monthly payments higher since you're making many fewer payments.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.699%, up 0.002% from yesterday's average of 2.697%. Refinancing at today's average rate would leave you with a monthly principal and interest payment of $676 per $100,000 in mortgage debt. The total costs of interest would add up to $21,716 per $100,000 refinanced at today's average rate.

Since this repayment timeline is even shorter, the monthly payments are even higher but the total savings on interest is considerable. Think about whether you'd rather pay more each month after refinancing in order to be debt free much faster and for a much lower total cost.

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 have to pay 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 from 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.