Today's Mortgage Refinance Rates -- June 10, 2021: Rates Down for Most Loans

by Christy Bieber | Updated July 19, 2021 - First published on June 10, 2021

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

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Considering getting a new home loan? Check out today's average mortgage refinance rates.

Getting a new home loan to refinance your old one makes sense if you can reduce your interest rate and you'll remain in your home long enough for the savings to cover closing costs on your refinance loan. Whether refinancing is a smart move or not depends on the rate you're offered by lenders.

Here's what average mortgage refinance rates look like for June 10, 2021:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.256%
20-year fixed refinance loan 3.059%
15-year fixed refinance loan 2.534%

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 3.256%, down 0.011% from yesterday's average of 3.267%. At today's average rate, you'd pay $436 per month in principal and interest per $100,000 refinanced. Total interest costs would add up to $56,793 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 3.059%, up 0.003% from yesterday's average of 3.056%. A mortgage refinance loan at today's average interest rate would cost you $558 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $33,813 per $100,000 borrowed.

A 20-year refinance loan has higher monthly payments than a 30-year refinance loan since you make payments for 10 years fewer. You get the benefit of becoming debt free much faster if you choose this loan option, and you will save considerably on interest costs over time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.534%, down 0.012% from yesterday's average of 2.546%. You'd be looking at a principal and interest payment of $668 per $100,000 refinanced at today's average rate. For each $100,000 you refinance at today's average rate, total interest costs would add up to $20,310.

The 15-year loan provides the maximum interest savings and the shortest time to become debt free. But each monthly payment is much higher than with the 20-year or 30-year loan. Consider whether these payments fit comfortably into your budget.

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 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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