Current Mortgage Refinance Rates -- March 11, 2021: Rates Keep Moving Upward

Mortgage refinance rates were up again on March 11, but they still present an opportunity for many homeowners to save.

On March 11, 2021, average mortgage refinance rates rose again. Despite the fact that rates are up from recent record lows, they are still competitive. If these rates are below the interest rate on your current mortgage, you may be able to save by refinancing.

Take a look at today's average interest rates to learn more:

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 3.296%, up 0.009% from yesterday's average of 3.287%. At today's average rate, you'd pay $438 per month in principal and interest per $100,000 in refinanced mortgage debt. Total interest costs would add up to $57,585 per $100,000 borrowed over the life of the loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.998%, up 0.025% from yesterday's average of 2.973%. If you refinance at today's average rate, your monthly principal and interest payment would be $554 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $33,079 per $100,000 borrowed.

The interest costs over time are lower on the 20-year loan than the 30-year loan. However, while you'll save money over time, you'd pay more each month than with the 30-year option because you're making many fewer payments. Each payment needs to be higher to get your loan paid off a decade sooner.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.623%, up 0.01% from yesterday's average of 2.613%. A refinance loan at today's average rate would cost you $673 per month in principal and interest for each $100,000 you borrow. During your entire loan repayment period, you'd pay total interest costs of $21,067 per $100,000 borrowed.

With the shortest repayment timeline among these refinance loan options, the 15-year loan comes with the highest monthly payment but the lowest total interest costs over time. Consider whether it's worth paying so much more each month to be debt free faster and benefit from the reduction in total interest paid.

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.