Today's Mortgage Refinance Rates -- May 27, 2021: Rates Are Mixed

by Christy Bieber | Updated July 19, 2021 - First published on May 27, 2021

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Large home surrounded by greenery with Today's Mortgage Refinance Rates graphic.

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Did mortgage refinance rates go up or down today? Find out here.

On May 27, 2021,mortgage refinance rates are mixed, with some up and others down. Refinance rates remain very competitive compared to historical averages, despite being up from some of the record-low rates that occurred last year.

Check out average mortgage refinance rates for Thursday, May 27, to see if you could save money by refinancing your home loan:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.258%
20-year fixed refinance loan 3.071%
15-year fixed refinance loan 2.555%

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 3.258%, down 0.015% from yesterday's average of 3.273%. If you refinance at today's average rate, your monthly principal and interest payment would be $436 per $100,000 borrowed. Total interest costs would add up to $56,832 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 3.071%, up 0.004% from yesterday's average of 3.067%. You'd be looking at a principal and interest payment of $558 per $100,000 refinanced at today's average rate. Over the life of the refinance loan, total interest costs would be $33,958 per $100,000 in mortgage debt.

Choosing the right refinancing term is crucial. A loan with a longer payoff term will provide you with lower monthly payments, but you'll pay interest for longer so your total costs are higher. A loan with a shorter payoff time -- such as the 20-year versus the 30-year -- can come with a higher monthly payment, but savings over time are considerable.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.555%, down 0.01% from yesterday's average of 2.565%. You'd be looking at a principal and interest payment of $669 per $100,000 refinanced at today's average rate. During your entire loan repayment period, you'd pay total interest costs of $20,489 per $100,000 refinanced.

With its short repayment timeline, a 15-year refinance loan may be able to save you a lot of money on interest. Just make sure the higher monthly payments are within 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 have to to 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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