Today's Mortgage Refinance Rates -- June 25, 2021: Rates Fell for Most Loans

Did refinance rates move up or down on June 25? Find out here.

On June 25, 2021, average mortgage refinance rates are down for most loans, but not the 15-year fixed-rate refinance loan. To decide if getting a new home loan makes sense for you, compare today's average rates with the rates you're currently paying. Remember, though, your rate may deviate a bit from the average depending on your financial profile.

Here are today's average rates for Friday, June 25 so you can get an idea of what a refinance loan might cost:

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 3.328%, down 0.007% from yesterday's average of 3.335%. A mortgage refinance loan at today's average interest rate would cost you $439 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $58,220 per $100,000 refinanced.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.067%, down 0.011% from yesterday's average of 3.078%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $558 per $100,000 borrowed. You'd be looking at total interest costs of $33,910 per $100,000 in refinanced mortgage debt over the life of the loan.

The interest costs over time are lower with this loan than with the 30-year fixed-rate mortgage because you are not paying interest for as long. But with fewer payments to make, each one must be higher.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.646%, up 0.012% from yesterday's average of 2.634%. You'd be looking at a principal and interest payment of $674 per $100,000 refinanced at today's average rate and the total costs of interest would add up to $21,263 per $100,000 refinanced.

With such a short payoff time, this loan provides considerable interest savings -- especially since the rate is also very low. But you will have to make much higher monthly payments, which might be hard to work 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 to 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.