Current Mortgage Refinance Rates -- June 24, 2021: Rates Rise for All Loans

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Is now a good time to refinance your home loan? Find out by taking a look at today's average mortgage rates.

On June 24, 2021, average mortgage refinance rates are up slightly for all loans. Rates have been mixed lately, trending up some days and down on others. However, they remain close to historic lows so homeowners who haven't recently refinanced may be able to save money by doing so.

Check out today's average mortgage refinance rates to see if you may benefit financially from getting a new home loan:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.335%
20-year fixed refinance loan 3.078%
15-year fixed refinance loan 2.634%

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 3.335%, up 0.002% from yesterday's average of 3.333%. At today's average rate, you'd pay $440 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 $58,359 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.078%, up 0.002% from yesterday's average of 3.076%. You'd be looking at a principal and interest payment of $559 per $100,000 refinanced at today's average rate. Total interest costs would add up to $34,042 per $100,000 borrowed over the life of the refinance loan.

If you have been paying on your home loan for a while before refinancing, you may want to consider a 20-year refinance loan over a 30-year one. See, when you refinance to a 30-year, you're resetting the clock on your mortgage payoff timeline. That means even if you drop your interest rate and monthly payment compared with your current loan, it's possible you could end up paying more over time due to the fact you'll be paying interest for longer than if you'd kept your current loan.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.634%, up 0.009% from yesterday's average of 2.625%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $673 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $21,161 per $100,000 refinanced.

A 15-year loan could also be a good option if you're looking to maximize the total interest saved. Not only does it have a lower interest rate than either of the two longer-term refinance loan options, but it also allows you to pay interest for considerably less time. That saves you a lot of money over the long haul, even if each monthly payment is higher than with the other refinance loan options.

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 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

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