Today's Mortgage Refinance Rates -- August 10, 2021: Rates Up for All Loans

by Christy Bieber | Published on Aug. 10, 2021

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

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Check out today's average mortgage refinance rates to see if you could save.

For homeowners looking to save money on their mortgage, refinancing could provide the perfect opportunity -- if rates are low. Check out today's rates and see how they compare to your current loan rate. Here are today's average mortgage refinance rates for Aug. 10, 2021:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.048%
20-year fixed refinance loan 2.780%
15-year fixed refinance loan 2.333%

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 3.048%, up 0.023% from yesterday's average of 3.025%. A loan at today's average rate would cost you $424 per month in principal and interest for each $100,000 you refinance. Over the life of the refinance loan, total interest costs would be $52,711 per $100,000 in mortgage debt.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.780%, up 0.011% from yesterday's average of 2.769%. A mortgage refinance loan at today's average interest rate would cost you $544 per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $30,476 per $100,000 borrowed.

This loan has higher monthly payments than the 30-year loan because you make payments for a decade less time and so you don't make nearly as many of them. Since you spend so much less time paying interest, your total costs over time are much lower.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.333%, up 0.015% from yesterday's average of 2.318%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $659. Total interest costs would add up to $18,612 per $100,000 borrowed over the life of the refinance loan.

The monthly payments are very high on this loan compared with loans offering longer repayment timelines. But the cost savings over time is substantial, so you'll have to decide if that's a tradeoff worth making.

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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