Current Mortgage Refinance Rates -- March 23, 2021: Rates Continue Rising

by Christy Bieber | Updated July 19, 2021 - First published on March 23, 2021

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Large home surrounded by greenery with Today's Mortgage Refinance Rates graphic.

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What rate would you pay if you refinanced your home loan today? Check out average mortgage interest rates for March 23 to help you find out.

On Tuesday March 23, 2021, mortgage refinance rates were up again. Rising rates have been a trend in recent weeks, which isn't a surprise after they repeatedly hit record lows last year. The good news is, they are still competitive by historical standards so many homeowners could still save by refinancing.

Check out today's average mortgage refinance rates to see how current rates compare to what you're paying on your existing home loan.

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.417%
20-year fixed refinance loan 3.137%
15-year fixed refinance loan 2.702%

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage refinance rate

The average 30-year mortgage refinance loan rate today is 3.417%, up 0.012% from yesterday's average of 3.405%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $444. Total interest costs would add up to $59,993 per $100,000 borrowed over the life of the loan.

20-year mortgage refinance rate

The average 20-year mortgage refinance loan rate today is 3.137%, up 0.014% from yesterday's average of 3.123%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $561 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $34,755 per $100,000 borrowed.

You'll notice that monthly payments are higher with the 20-year loan than with the 30-year refinance loan although your total interest costs are lower over the life of the loan. When you reduce the numbers of years you have to pay back your loan, you save because you pay less interest over time. But you make many fewer payments, so each one must be higher.

15-year mortgage refinance rate

The average 15-year mortgage refinance loan rate today is 2.702%, up 0.008% from yesterday's average of 2.694%. A refinance loan at today's average interest rate would cost you $676 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $21,741.

The 15-year mortgage refinance loan cuts another five years off compared with the 20-year loan. The result is even more interest saved over time, but an even higher monthly payment. If you'd rather be debt free faster, you may decide to take on these higher monthly payments. But that's a big financial commitment, so make sure it's the right move.

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.

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