Current Mortgage Refinance Rates -- June 11, 2021: Rates Fall

by Christy Bieber | Updated July 19, 2021 - First published on June 11, 2021

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

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What would the average homeowner pay to refinance? Find out here.

On June 11, 2021, mortgage refinance rates are down for all loans. If you are considering refinancing your current home loan, check out today's average rates to help see if this financial move makes sense for you:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.244%
20-year fixed refinance loan 3.045%
15-year fixed refinance loan 2.525%

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 3.244%, down 0.012% from yesterday's average of 3.256%. If you refinance at today's average rate, your monthly principal and interest payment would be $435 per $100,000 borrowed. Total interest costs would add up to $56,556 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 3.045%, down 0.014% from yesterday's average of 3.059%. For each $100,000 refinanced at today's average rate, your total monthly principal and interest payment would be $557. Over the life of the refinance loan, total interest costs would be $33,645 per $100,000 in mortgage debt.

There's always a tradeoff between total interest saved and monthly payments. While the 20-year loan costs less in interest compared with the 30-year, each monthly payment is higher. You should think about whether you want to reduce your monthly payments as much as possible or maximize the interest savings you get over time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.525%, down 0.009% from yesterday's average of 2.534%. A mortgage refinance loan at today's average interest rate would cost you $668 per $100,000 borrowed. The total costs of interest would add up to $20,234 per $100,000 refinanced at today's average rate.

This loan comes with the shortest payoff time, so the most interest saved over time but the highest monthly payments. Think carefully about whether committing to such a large monthly payment makes sense for 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 pay to 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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