Today's Mortgage Refinance Rates -- May 19, 2021: Rates Come Up

by Maurie Backman | Updated July 19, 2021 - First published on May 19, 2021

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Here's what today's refinance rates look like. Should you get a new mortgage?

Mortgage refinance rates are up today compared to yesterday's rates. While refinance rates tend to be a bit higher than the rates you'll see for a new purchase mortgage, they're still pretty competitive, historically speaking. Here's what refinance rates look like on Wednesday, May 19:

Mortgage Refinance Type Today's Interest Rate
30-year fixed refinance 3.286%
20-year fixed refinance 3.099%
15-year fixed refinance 2.577%

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage refinance rates

The average 30-year refinance rate today is 3.286%, up 0.013% from yesterday. At today's rate, you'll pay principal and interest of $437.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.

20-year mortgage refinance rates

The average 20-year refinance rate today is 3.099%, up 0.016% from yesterday. At today's rate, you'll pay principal and interest of $559.00 for every $100,000 you borrow. Though your monthly payment will go up by $122.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,168.00 in interest over the course of your repayment period for every $100,000 you borrow.

15-year mortgage refinance rates

The average 15-year refinance rate today is 2.577%, up 0.005% from yesterday. At today's rate, you'll pay principal and interest of $671.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $234.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $36,726.00 over the life of your repayment period per $100,000 of mortgage debt.

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 with a new home loan. However, there are a few important things to think about before you refinance.

First, if you extend your loan repayment term, you could end up paying a higher amount of total interest 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 period. You can avoid this 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'll need to consider closing costs, which are the upfront fees you'll be charged when you refinance a 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 specific amount of your mortgage, your location, and your lender.

You should eventually make up for these closing costs with your lower monthly payments -- but that can take time. If you save $200 per month by refinancing and pay $6,000 in closing costs, it would take 2.5 years to break even. It's important to run the numbers and consider whether you'll stay in your home long enough for refinancing to pay off.

Generally speaking, refinancing can make a lot of sense if you don't intend to move within the next few years and you're able to reduce the interest rate on your home loan by at least 1% (or somewhere close). And if you have a great credit score and a low debt-to-income ratio, then you'll be even more likely to qualify for a low rate on your new mortgage and reap savings -- both in terms of your monthly payments as well as the total interest you pay on your home loan.

If you're ready to swap your current mortgage for a new one, get in touch with a few different refinance lenders and see what rates and closing costs they have to offer. Each lender sets its own rate, and some closing costs may be negotiable, so the more offers you seek out, the better equipped you'll be to land the best deal.

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