Current Mortgage Refinance Rates -- August 3, 2021: Rates Down for All Loans

by Christy Bieber | Published on Aug. 3, 2021

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Large home surrounded by greenery with Today's Mortgage Refinance Rates graphic.

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Thinking of refinancing? Here are today's average rates so you can compare them to your current interest cost.

Average mortgage refinance rates are down for all loans today. Check out today's average rates and compare them to the rate on your current loan to help you decide if refinancing makes sense. Remember, you'll need your savings to cover your closing costs before you break even, and the more you can drop your rate, the faster that will occur.

Here are average mortgage refinance rates for Tuesday, Aug. 3:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.041%
20-year fixed refinance loan 2.797%
15-year fixed refinance loan 2.318%

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 3.041%, down 0.011% from yesterday's average of 3.052%. For each $100,000 refinanced at today's average rate, your total monthly principal and interest payment would be $424. Over the life of the refinance loan, your total interest costs would add up to $52,575 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.797%, down 0.014% from yesterday's average of 2.811%. A mortgage refinance loan at today's average interest rate would cost you $552 per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $32,851 per $100,000 borrowed.

This loan provides more interest savings than the 30-year loan because you won't pay interest for as long and the rate is lower. Since you aren't making as many payments, though, each one must be higher.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.318%, down 0.01% from yesterday's average of 2.328%. You'd be looking at a principal and interest payment of $658 per $100,000 refinanced at today's average rate. Over the life of the refinance loan, your total interest costs would add up to $18,486 per $100,000 borrowed.

The interest savings is the greatest on this loan because of the short payoff time and very low interest rate. But with just 15 years to repay your loan, you need to make very high monthly payments that could put a strain on your budget.

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 near 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.

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