Current Mortgage Refinance Rates -- May 13, 2021: Mortgage Rates Tick Up

by Christy Bieber | Updated July 19, 2021 - First published on May 13, 2021

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Large, modern-style home with Today's Mortgage Refinance Rates graphic.

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Thinking of refinancing your home? Here's what happened with mortgage refinance rates today.

Refinancing your home loan can sometimes save you money if you can qualify for a new loan at a lower rate. It's important to pay attention to mortgage refinance rates so you can decide if it's a good time to refinance.

Here's how average mortgage refinance rates are trending on May 13, 2021:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.230%
20-year fixed refinance loan 3.055%
15-year fixed refinance loan 2.545%

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 3.230%, up 0.005% from yesterday's average of 3.225%. If you refinance at today's average rate, your monthly principal and interest payment would be $434 per $100,000 borrowed. Total interest costs would add up to $56,279 per $100,000 borrowed over the life of the refinance loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.055%, up 0.024% from yesterday's average of 3.031%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $557. During your entire loan repayment period, you'd pay total interest costs of $33,765 per $100,000 refinanced.

Although you pay more each month for the 20-year refinance loan than the 30-year refinance loan, you will save money in interest over time. When you shorten your payoff period, this results in lower overall borrowing costs but each payment must be higher.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.545%, up 0.003% from yesterday's average of 2.542%. You'd be looking at a principal and interest payment of $669 per $100,000 refinanced at today's average rate. Your total interest costs over the life of the refinance loan would equal $20,404 per $100,000 borrowed.

With the 15-year mortgage refinance loan, you shorten your payment timeline even more than the 20-year loan. The result is higher monthly payments but even more savings over time. Consider whether you'd rather pay more each month to be debt free faster.

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 still not far off 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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