Current Mortgage Refinance Rates -- Feb 2, 2021: Rates Are Mixed

by Christy Bieber | Updated July 19, 2021 - First published on Feb. 2, 2021

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Large, well-lit, modern-style home with Today's Mortgage Refinance Rates graphic.

Image source: Getty Images

Thinking of refinancing your home loan? Here's what happened to mortgage refinance rates on Feb. 2, 2021.

Mortgage refinance rates show mixed results on Feb. 2, 2021, with the 30-year and 20-year average rates rising slightly and 15-year rates falling. It's still a great time to refinance your mortgage as rates remain near record lows and many borrowers could realize substantial savings by securing a new home loan. Here's what you need to know about average mortgage refinance rates today.

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 2.888%
20-year fixed refinance loan 2.670%
15-year fixed refinance loan 2.360%

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 2.888%, up 0.002% from yesterday's average of 2.886%. At today's average rate, you'd pay $416 per month in principal and interest per $100,000 borrowed to refinance your loan. Over the life of the refinance loan, your total interest costs would add up to $49,612 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.670%, up 0.001% from yesterday's average of 2.669%. You'd be looking at a principal and interest payment of $538 per $100,000 borrowed at today's average rate. Total interest costs would add up to $29,174 per $100,000 borrowed over the life of the refinance loan.

A 20-year refinance loan provides a much lower total interest cost than a 30-year loan, but the tradeoff is that you face higher monthly payments since you're paying your loan off so much faster.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.360%, down 0.005% from yesterday's average of 2.365%. A refinance loan at today's average interest rate would cost you $660 per $100,000 borrowed. Total interest costs on your refinance loan would be $18,839.

A 15-year refinance loan also comes with higher monthly payments than the 30-year or 20-year alternatives, but even more interest savings. Remember, if you opt for the 15-year loan versus the 30-year mortgage, you'll be repaying your debt in half the 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. There are upfront fees 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 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.

The Ascent's Best Mortgage Lender of 2022

Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible.

That is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders).

Read our free review

About the Author