Current Mortgage Refinance Rates -- September 2, 2021: Rates Down for Most Loans

by Christy Bieber | Published on Sept. 2, 2021

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

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Did mortgage refinance rates change on Sept. 2? Find out here.

On Sept. 2, 2021, mortgage refinance rates are down for the 30-year and 20-year refinance loans and unchanged for the 15-year.

Check out today's average mortgage refinance rates below. If they are lower than your current home loan rate, refinancing could make sense for you as long as you don't plan to move before your new loan saves you enough to cover upfront closing costs.

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.106%
20-year fixed refinance loan 2.800%
15-year fixed refinance loan 2.389%

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 3.106%, down 0.002% from yesterday's average of 3.108%. A loan at today's average rate would cost you $427 per month in principal and interest for each $100,000 you refinance. For each $100,000 you refinance at today's average rate, total interest costs would add up to $53,843.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.800%, down 0.007% from yesterday's average of 2.807%. A mortgage refinance loan at today's average interest rate would cost you $545 per $100,000 borrowed. Over the life of the refinance loan, total interest costs would be $30,713 per $100,000 in mortgage debt.

Interest rates are lower on this loan than on the 30-year loan, and you'll save more money over time if you choose to refinance to the 20-year loan. However, with a shortened repayment time and fewer monthly payments, each payment is higher.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.389%, unchanged from yesterday's average. If you refinance at today's average rate, your monthly principal and interest payment would be $662 per $100,000 borrowed. Total interest costs would be $19,084 per $100,000 in mortgage debt over the life of the refinance loan.

This loan has even higher monthly payments than the 20-year loan, despite the lower rate. That happens when you cut your repayment time down so much. However, you'll be debt free quickly with this loan and your total interest costs over time will be much lower than with a mortgage refinance loan that has a longer payoff timeline.

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 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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