Today's Mortgage Refinance Rates -- April 15, 2021: Rates Trend Down

by Christy Bieber | Updated July 19, 2021 - First published on April 15, 2021

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

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Thinking about refinancing your mortgage? Here's how average mortgage refinance rates are trending today.

On April 15, 2021, average mortgage refinance rates are down for all loans. When you can reduce your interest rate substantially compared with your current loan, it can be a smart move to refinance. Although average rates are higher now than they were at the start of the year, many homeowners will still find refinancing makes sense.

Check out today's average mortgage refinance rates to decide if refinancing is right for you:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.362%
20-year fixed refinance loan 3.099%
15-year fixed refinance loan 2.631%

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 3.362%, down 0.016% from yesterday's average of 3.378%. At today's average rate, you'd pay $441 per month in principal and interest per $100,000 refinanced. Total interest costs would add up to $58,896 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 3.099%, down 0.005% from yesterday's average of 3.104%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $560. Over the life of the refinance loan, your total interest costs would add up to $34,296 per $100,000 borrowed.

Carefully consider the refinance term that makes sense for you, as there's a tradeoff between the total loan costs and the monthly payments. As you can see, the 20-year refinance loan would cost less over time than the 30-year, but each payment would be lower.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.631%, down 0.015% from yesterday's average of 2.646%. Over the life of the refinance loan, you'd pay total interest costs of $673 per $100,000 borrowed. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $21,135 per $100,000 borrowed.

With such a short payoff timeline, the 15-year loan will leave you free of your debt quickly. That short timeline, coupled with the low rate, will also make total payoff very affordable. Unfortunately, monthly payments will be very high since you are making so few of them.

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're 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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