Today's Mortgage Refinance Rates -- April 30, 2021: Rates Tick Up

If you're considering refinancing, check out today's average mortgage refinance rates.

On the last day of April, mortgage refinance rates are up a bit. Although rates have been trending up some days and down others, many homeowners will find that they can drop their interest cost compared with their current loan if they refinance.

If you're thinking about refinancing your home loan, check out today's average mortgage rates for April 30, 2021:

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 3.277%, up 0.009% from yesterday's average of 3.268%. A mortgage refinance loan at today's average interest rate would cost you $437 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $57,208 per $100,000 refinanced.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.078%, up 0.016% from yesterday's average of 3.062%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $559 per $100,000 borrowed. You'd be looking at total interest costs of $34,042 per $100,000 in refinanced mortgage debt over the life of the loan.

It's important to consider your loan payoff time when you refinance. If you choose a 20-year refinance loan, you'll have higher monthly payments than with a 30-year loan, but will save more over time. The best choice depends on your reasons for refinancing.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.571%, up 0.008% from yesterday's average of 2.563%. At today's average rate, the monthly principal and interest payment would add up to $670 per $100,000 in refinanced mortgage debt. Over the life of the refinance loan, total interest costs would be $20,625 per $100,000 in mortgage debt.

With such a short repayment time, the 15-year refinance loan could save you a lot of money over the life of your loan. Just make sure you can afford the higher monthly payment before you decide this option is better than the 30-year or 20-year loan.

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 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.