Today's Mortgage Refinance Rates -- June 15, 2021: Rates Down for 15-Year Loans

Check out average mortgage refinance rates for June 15 to see what it could cost you to refinance your current mortgage.

Check out average mortgage refinance rates for June 15 to see what it would cost you to refinance your current mortgage.

As we move into the second half of June, mortgage refinance rates are down today for the 15-year refinance and unchanged for others. When you have an existing mortgage, refinancing makes sense only if you can reduce your interest rate and save enough to cover the upfront costs.

Check out average mortgage refinance loans for June 15, 2021 to see if current rates could save you money by refinancing:

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 3.235%, unchanged from yesterday's average. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $434. Total interest costs would add up to $56,378 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 3.033%, unchanged from yesterday's average. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $556 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $33,500 per $100,000 borrowed.

When refinancing, the repayment timeline of your new loan will determine how your monthly payments are affected and the total amount of interest you save over time. A 20-year loan has higher monthly payments than a 30-year refinance loan but offers more interest savings.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.511%, down 0.006% from yesterday's average of 2.517%. A mortgage refinance loan at today's average interest rate would cost you $667 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $20,115.

With its short payoff period, this loan is the cheapest over time but has the highest monthly payments. Be sure you can comfortably afford them if you're considering the 15-year refinance loan.

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. 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.