Current Mortgage Refinance Rates -- August 5, 2021: Rates Fall for All Loans

Large, modern-style home with Today's Mortgage Refinance Rates graphic.

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How much is the average interest rate on a mortgage refinance loan on Aug. 5? Find out here.

On Aug. 5, 2021, mortgage refinance rates are down for all loans. If you are a current homeowner, refinancing is a good financial decision if you can save on interest and your savings will cover closing costs before you would need to move.

Check out today's average mortgage rates to see how they compare to your current home loan to help you decide if refinancing makes sense for you:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.018%
20-year fixed refinance loan 2.769%
15-year fixed refinance loan 2.311%

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 3.018%, down 0.007% from yesterday's average of 3.025%. If you refinance at today's average rate, your monthly principal and interest payment would be $423 per $100,000 borrowed. Total interest costs would be $52,127 per $100,000 in mortgage debt over the life of the refinance loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.769%, down 0.011% from yesterday's average of 2.780%. A mortgage refinance loan at today's average interest rate would cost you $543 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $30,345.

The choice of your refinance loan repayment period impacts both monthly payments and total costs. The 20-year refinance loan, for example, results in a higher monthly payment than the 30-year refinance loan because you are making so many fewer payments. However, interest savings is considerable, so total costs over time are much lower.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.311%, down 0.006% from yesterday's average of 2.317%. A mortgage refinance loan at today's average interest rate would cost you $658 per $100,000 borrowed. Total interest costs would be $18,427 per $100,000 in mortgage debt over the life of the refinance loan.

This refinance loan provides the most interest savings, but your monthly payments will be higher than with the 30-year or 20-year options. When you refinance, you'll need to decide if you'd prefer to prioritize low monthly payments or saving the most over time.

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.

Our Research Expert