Today's Mortgage Refinance Rates -- July 23, 2021: Rates Continue to Slide

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Did mortgage refinance rates go up or down on July 23, 2021? Check out today's average rates to find out.

If you're thinking of refinancing, it's a good idea to keep tabs on mortgage refinance rates. A lower rate will help you save more money if you get a new home loan. Here are average mortgage refinance rates for Friday, July 23:.

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.073%
20-year fixed refinance loan 2.838%
15-year fixed refinance loan 2.378%

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 3.073%, down 0.014% from yesterday's average of 3.087%. A mortgage refinance loan at today's average interest rate would cost you $426 per $100,000 borrowed. Total interest costs would add up to $53,198 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 2.838%, down 0.014% from yesterday's average of 2.852%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $547 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $31,166 per $100,000 borrowed.

Your total interest costs aren't as high with the 20-year loan as with the 30-year, and that's not just because the rate is lower. You're also paying interest for a decade less time. But by making so many fewer payments, it becomes necessary for each one to be much higher than with the 30-year loan.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.378%, down 0.027% from yesterday's average of 2.405%. You'd be looking at a principal and interest payment of $661 per $100,000 refinanced at today's average rate. The total costs of interest would add up to $18,991 per $100,000 refinanced.

If your goal is to get the lowest total interest costs over time, and you don't mind making higher monthly payments, this loan is the best option for you.

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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