Current Mortgage Refinance Rates -- June 1, 2021: Rates Are Mixed
by Christy Bieber | Updated July 19, 2021 - First published on June 1, 2021
Thinking of refinancing? Check out today's average rates for mortgage refinance loans.
Mortgage refinance rates are mixed today, with some trending up and others down. For homeowners considering refinancing, following changes in rates is important. Although each borrower's rates are shaped by their unique financial situation, prevailing average rates also have a big impact on the cost of a new refinance loan.
To see if you might be able to lower the rate you're paying on your home loan, check out average mortgage refinance rates for June 1, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed refinance loan||3.254%|
|20-year fixed refinance loan||3.072%|
|15-year fixed refinance loan||2.543%|
30-year mortgage refinance rates
The average 30-year mortgage refinance loan rate today is 3.254%, down 0.003% from yesterday's average of 3.257%. At today's average rate, you'd pay $435 per month in principal and interest per $100,000 refinanced. Over the life of the refinance loan, your total interest costs would add up to $56,753 per $100,000 borrowed.
20-year mortgage refinance rates
The average 20-year mortgage refinance loan rate today is 3.072%, up 0.005% from yesterday's average of 3.067%. A refinance loan at today's average rate would come with a monthly principal and interest payment of $558 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $33,970 per $100,000 refinanced.
If you choose the 20-year refinance loan, you will pay more interest over time than with the 15-year but less than the 30-year. Your monthly payment will also be lower than with the 15-year but higher than the 30-year.
Your loan repayment time affects both monthly payments and total interest because paying your loan for less time means you don't pay interest for as long but each of your monthly payments has to be larger.
15-year mortgage refinance rates
The average 15-year mortgage refinance loan rate today is 2.543%, down 0.007% from yesterday's average of 2.550%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $669. The total costs of interest would add up to $20,387 per $100,000 refinanced at today's average rate.
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 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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