Today's Mortgage Refinance Rates -- February 9, 2021: Rates Are Mixed

Refinance rates were up on the 30-year refinance loan, down on the 20-year, and unchanged on the 15-year.

In recent days, mortgage refinance rates have stayed mostly steady. Today is no exception, with the 15-year average refinance rate remaining the same as yesterday while the 30-year ticked slightly up and the 20-year slightly down. Since rates remain extremely competitive, many homeowners can save on interest by refinancing. Check out today's average rates to see how they compare with your current loan.

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 2.921%, up 0.006% from yesterday's average of 2.915%. A refinance loan at today's average rate would cost you $417 per month in principal and interest for each $100,000 you borrow. You'd be looking at total interest costs of $50,248 per $100,000 in refinanced mortgage debt over the life of the loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.709%, down 0.006% from yesterday's average of 2.715%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $540 per $100,000 borrowed. Total interest costs would be $29,634 per $100,000 in mortgage refinance debt over the life of the loan.

A 20-year refinance loan would have higher monthly payments than if you chose the 30-year option. However, because your repayment timeline is much shorter, your total interest savings over time could be greater.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.367%, unchanged from yesterday's average. At today's average rate, you'd pay $661 per month in principal and interest per $100,000 refinanced. Your total interest costs over the life of the refinance loan would equal $18,898 per $100,000 borrowed.

With an even shorter repayment timeline, a 15-year refinance loan has higher monthly payments than the 30-year or 20-year loan options. but the interest savings are substantial. You'll need to decide if you'd prefer lower monthly payments or more total interest savings.

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. There are upfront fees 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.