Current Mortgage Refinance Rates -- June 22, 2021: Rates Tick Up

Can you save money by refinancing? Check out today's average mortgage refinance rates to find out.

Mortgage refinance rates are up for all loans today. Before refinancing, consider whether you can reduce the interest rate on your current loan as well as how your monthly payments and total costs will change. You'll also need to think about how long it will take you to cover closing costs based on the amount refinancing can save you.

Check out today's average mortgage refinance rates for Tuesday June 22, to help you decide if refinancing could make sense for you:

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 3.316%, up 0.012% from yesterday's average of 3.304%. Refinancing at today's average rate would leave you with a monthly principal and interest payment of $439 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $57,981 per $100,000 refinanced.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.057%, up 0.014% from yesterday's average of 3.043%. A refinance loan at today's average rate would come with a monthly principal and interest payment of $557 per $100,000 borrowed. You'd be looking at total interest costs of $33,789 per $100,000 in refinanced mortgage debt over the life of the loan.

If your goal is to lower monthly payments as much as possible, you'd probably be better off with the 30-year loan than the 20-year loan. Since you're making a lot more payments, each one can be smaller. But as you can see, the 20-year loan would cost you less interest over time so it could be a better bet if you're hoping to save as much as you can by refinancing.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.613%, up 0.024% from yesterday's average of 2.589%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $672. The total costs of interest would add up to $20,982 per $100,000 refinanced at today's average rate.

This loan comes with the most savings over time, but because it has a short payoff time, you will need to make much higher monthly payments than with the 30-year or 20-year refinance loan. Decide if that makes sense for you before you decide to refinance to a 15-year mortgage.

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.