Current Mortgage Refinance Rates -- May 11, 2021: Mortgage Rates Down Slightly

by Christy Bieber | Updated July 19, 2021 - First published on May 11, 2021

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

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Average mortgage refinance rates fell slightly today. What does this mean for your ability to refinance?

Are you thinking about refinancing your current home loan? Doing so might be a smart financial choice if you can reduce your interest rate. Average mortgage refinance rates are down a bit today compared with yesterday.

Check out average mortgage refinance rates for May 11 to find out what interest rate you may be offered if you want to refinance your loan:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.224%
20-year fixed refinance loan 3.022%
15-year fixed refinance loan 2.542%

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 3.224%, down 0.009% from yesterday's average of 3.233%. At today's average rate, you'd pay $434 per month in principal and interest per $100,000 refinanced. Your total interest costs over the life of the refinance loan would equal $56,161 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.022%, down 0.014% from yesterday's average of 3.036%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $556 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $33,368 per $100,000 borrowed.

If you want to save more on interest and don't mind higher monthly payments, the 20-year loan option may be a better bet than the 30-year refinance loan. Loans with shorter payoff times reduce total costs, but require each payment to be larger.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.542%, down 0.009% from yesterday's average of 2.551%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $669. Total interest costs would be $20,378 per $100,000 in mortgage debt over the life of the refinance loan.

This loan option would save you more on interest than either the 30-year or 20-year refinance loan. Of course, since you cut your payoff time substantially, you'll need to make much larger monthly payments to be debt free on schedule.

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.

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