Today's Mortgage Refinance Rates -- July 27, 2021: Rates Fall for All Loans

Did mortgage refinance rates go up or down on July 27? You can see how rates are trending here.

On July 27, 2021, mortgage refinance rates are down across the board. Homeowners can see what rate they qualify for and compare it to the rate on their current home loan in order to see if they could save money by refinancing.

Here are today's average mortgage refinance rates:

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 3.059%, down 0.003% from yesterday's average of 3.062%. If you refinance at today's average rate, your monthly principal and interest payment would be $425 per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $52,925 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.818%, down 0.009% from yesterday's average of 2.827%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $546 per $100,000 borrowed. You'd be looking at total interest costs of $30,927 per $100,000 in refinanced mortgage debt over the life of the loan.

Choosing a shorter repayment time for your refinance loan, such as the 20-year versus the 30-year, will save you money over time because you aren't paying interest for as long. But you must pay more each month since you aren't making as many payments.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.355%, down 0.009% from yesterday's average of 2.364%. A mortgage refinance loan at today's average interest rate would cost you $680 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $18,797.

This is the right refinance loan option if your goal is to save as much on interest as possible. It has the lowest interest rate and the short payoff time also saves you on interest. But you must make much higher payments each month, so you'll need to be comfortable with that tradeoff.

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.