Today's Mortgage Refinance Rates -- June 29, 2021: Rates Down Across the Board

by Christy Bieber | Published on June 29, 2021

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

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Thinking about refinancing your home loan? Here's how average refinance rates trended today.

Mortgage refinance rates are down for all loans on Tuesday, June 29.

Check out today's average rates to see whether you could potentially save money by refinancing your current home loan:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.319%
20-year fixed refinance loan 3.070%
15-year fixed refinance loan 2.627%

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 3.319%, down 0.004% from yesterday's average of 3.323%. If you refinance at today's average rate, your monthly principal and interest payment would be $439 per $100,000 borrowed. Your total interest costs over the life of the refinance loan would equal $58,041 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.070%, down .003% from yesterday's average of 3.073%. You'd be looking at a principal and interest payment of $558 per $100,000 refinanced at today's average rate. Total interest costs would be $33,946 per $100,000 in mortgage debt over the life of the refinance loan.

This loan comes with higher monthly payments than the 30-year refinance loan but interest costs over time are lower. Since you are paying off your loan a decade sooner, you won't pay as much interest to the bank but each payment has to be larger.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.627%, down 0.008% from yesterday's average of 2.635%. For each $100,000 refinanced at today's average rate, your total monthly principal and interest payment would be $673. The total costs of interest would add up to $21,101 per $100,000 refinanced at today's average rate.

This loan has the lowest total costs over time but much higher monthly payments than the 30-year or 20-year loan. If you don't mind higher payments and want to maximize your savings, this is the best option.

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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