Today's Mortgage Refinance Rates -- March 30, 2021: Rates Tick Down Slightly
by Christy Bieber | Updated July 19, 2021 - First published on March 30, 2021
As March draws to a close, how are average mortgage refinance rates trending?
On March 30, 2021, mortgage refinance rates fell very slightly. If you are considering refinancing your home loan, you'll want to shop around and see what rate you can qualify for. If you can reduce the interest you're paying, you may be able to lower your payments and save money on interest over time.
Here's what you should know about today's average mortgage refinance rates:
|Mortgage Type||Today's Interest Rate|
|30-year fixed refinance loan||3.391%|
|20-year fixed refinance loan||3.098%|
|15-year fixed refinance loan||2.686%|
30-year mortgage refinance rates
The average 30-year mortgage refinance loan rate today is 3.391%, down 0.01% from yesterday's average of 3.401%. A mortgage refinance loan at today's average interest rate would cost you $443 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $59,474 per $100,000 borrowed.
20-year mortgage refinance rates
The average 20-year mortgage refinance loan rate today is 3.098%, down 0.015% from yesterday's average of 3.113%. At today's average rate, you'd pay $560 per month in principal and interest per $100,000 refinanced. The total costs of interest would add up to $34,284 per $100,000 refinanced at today's average rate.
The 20-year loan obviously has a much higher monthly payment than the 30-year. But while you pay more every month, the interest savings over time is substantial since you pay interest for a decade less time.
15-year mortgage refinance rates
The average 15-year mortgage refinance loan rate today is 2.686%, down 0.003% from yesterday's average of 2.689%. You'd be looking at a principal and interest payment of $676 per $100,000 refinanced at today's average rate. During your entire loan repayment period, you'd pay total interest costs of $21,604 per $100,000 refinanced.
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. These 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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