Today's Mortgage Refinance Rates -- April 1, 2021 Rates See Little Change

by Christy Bieber | Updated July 19, 2021 - First published on April 1, 2021

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Large, modern-style home with Today's Mortgage Refinance Rates graphic.

Image source: Getty Images

Here's what you could expect if you refinance your home loan at today's average rates.

On the first day of April, mortgage refinance rates were up for some loans but declined for other loans. It's helpful to monitor average rates if you're thinking about refinancing your home loan. Keeping tabs on rates can help you decide if you'll be able to save enough to make refinancing worth it.

Here are today's average mortgage refinance rates for April 1, 2021:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.405%
20-year fixed refinance loan 3.105%
15-year fixed refinance loan 2.688%

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 3.405%, up 0.005% from yesterday's average of 3.400%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $444 per $100,000 borrowed. Over the life of the refinance loan, total interest costs would be $59,753 per $100,000 in mortgage debt.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.105%, up 0.007% from yesterday's average of 3.098%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $560. You'd be looking at total interest costs of $34,368 per $100,000 in refinanced mortgage debt over the life of the loan.

A 20-year loan has higher monthly payments than a 30-year. But the interest costs over time are lower. Both of these facts are explained by the shortened repayment timeline. You have less time to make payments, so each is higher. But you won't pay interest for as long, so total costs are lower.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.688%, down 0.002% from yesterday's average of 2.690%. If you refinance at today's average rate, your monthly principal and interest payment would add up to $676 per $100,000 borrowed. Over the life of the refinance loan, total interest costs would be $21,639 per $100,000 in mortgage debt.

With an even shorter payoff timeline than the 20-year loan, the interest savings is substantial over time with the 15-year refinance option. Of course, you will pay much higher monthly payments, as you can see. It's important to weigh the tradeoff to decide if a shorter payoff time makes sense for you.

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 want 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.

The Ascent's Best Mortgage Lender of 2022

Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible.

That is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders).

Read our free review

About the Author