Current Mortgage Refinance Rates -- March 25, 2021: Rates Mostly Hold Steady

The average interest rates on refinance loans changed very little compared with yesterday.

On March 25, 2021, mortgage refinance rates saw slight changes for the 30-year and 20-year loan but remained the same for the 15-year. Rates have been rising slowly for weeks, but still remain low by historical averages. Rates hit new record lows repeatedly last year. So, even though they've been going up, many homeowners will still find them competitive.

Here's what you should know about today's average mortgage refinance rates:

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 3.429%, up 0.001% from yesterday's average of 3.428%. A refinance loan at today's average interest rate would cost you $445 per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $160,233 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.154%, down 0.008% from yesterday's average of 3.162%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $562 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $34,961per $100,000 borrowed.

Loans with shorter payoff times come with higher monthly payments since you don't make as many payments. That's why the 20-year loan costs more each month than the 30-year, even though the interest rate is lower. Your total interest savings over time is substantial, though.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.711%, unchanged from yesterday's average. For each $100,000 refinanced at today's average rate, your total monthly principal and interest payment would be $677 Over the life of the loan, your total interest costs would add up to $21,818 per $100,000 borrowed.

Interest saved is even greater with the 15-year loan compared with the 20-year since you're paying your loan off very quickly. But the shortened repayment timeline means monthly payments are much higher, as you can see. Make sure that's affordable for you before you choose this loan.

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.