Today's Mortgage Refinance Rates -- February 11, 2021: Rates Fall

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How are mortgage refinance rates trending on Feb. 11? Find out here.

As we move toward the middle of February, mortgage refinance rates went down today. Here's what you need to know about average rates for mortgage refinance loans on Feb. 11, 2021.

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 2.924%
20-year fixed refinance loan 2.702%
15-year fixed refinance loan 2.362%

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 2.924%, down 0.001% from yesterday's average of 2.925%. If you refinance at today's average rate, you'd pay $418 per month in principal and interest per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $50,306 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.702%, down 0.007% from yesterday's average of 2.709%. At today's average rate, you'd pay $540 per month in principal and interest per $100,000 in debt you refinance. Over the life of the refinance loan, total interest costs would be $29,552 per $100,000 in mortgage debt.

When refinancing, your interest rate and loan term on the new loan will determine how much you save on monthly payments, as well as the total cost of your loan. A 20-year loan comes with higher monthly payments than a 30-year refinance loan, but lower total costs over time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.362%, down 0.003% from yesterday's average of 2.365%. For each $100,000 you refinance at today's average rate, your monthly principal and interest payment would be $660. You'd be looking at total interest costs of $18,856 per $100,000 in refinanced mortgage debt over the life of the loan.

With a 15-year loan, monthly payments are even higher than on the 30-year or 20-year loans because you're significantly reducing your payoff timeline. Of course, your total interest costs fall dramatically compared with either of those options since you pay interest for so much less time.

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 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.

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