Current Mortgage Refinance Rates -- September 16, 2021: Rates Fall for All Loans

How did mortgage refinance rates trend today? Find out average rates on Sept. 16, 2021 for fixed-rate refinance loans.

On Sept. 16, 2021, average mortgage refinance rates are down. Many homeowners will find these rates are below what they are paying on their current home loan, which means refinancing could provide the potential for savings.

Check out today's average refinance rates to see how they compare to your existing mortgage loan:

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 3.097%, down 0.011% from yesterday's average of 3.108%. Refinancing at today's average rate would leave you with a monthly principal and interest payment of $427 per $100,000 in mortgage debt. Over the life of the refinance loan, your total interest costs would add up to $53,667 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.789%, down 0.028% from yesterday's average of 2.817%. For each $100,000 refinanced at today's average rate, your total monthly principal and interest payment would be $544. Over the life of the refinance loan, your total interest costs would add up to $30,583 per $100,000 borrowed.

This loan will cost you less over time than the 30-year loan but more each month. A shortened payoff time always raises the amount of each payment due to the fact you aren't making as many. It also reduces total costs because you don't pay interest for as long.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.340%, down 0.011% from yesterday's average of 2.351%. A mortgage refinance loan at today's average interest rate would cost you $659 per $100,000 borrowed. You'd be looking at total interest costs of $18,671 per $100,000 in refinanced mortgage debt over the life of the loan.

This repayment time is even shorter, which means higher monthly payments than the 20-year but lower total costs. Before refinancing to a 15-year loan, make sure your new monthly payments will fit comfortably into your budget.

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 be charged when you refinance a 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.