Today's Mortgage Refinance Rates -- September 17, 2021: Rates Down for All Loans

by Christy Bieber | Published on Sept. 17, 2021

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

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Are mortgage refinance rates trending up or down today? Find out here.

On Sept. 17, 2021, mortgage refinance rates fell for all loans. It may be a good time to refinance if you haven't done so recently and you can save on your current loan rate.

Check out today's mortgage refinance rates to see if refinancing makes sense for you:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.096%
20-year fixed refinance loan 2.771%
15-year fixed refinance loan 2.338%

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 3.096%, down 0.001% from yesterday's average of 3.097%. If you refinance at today's average rate, your monthly principal and interest payment would be $427 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $53,648 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.771%, down 0.018% from yesterday's average of 2.789%. You'd be looking at a principal and interest payment of $543 per $100,000 refinanced at today's average rate. Your total interest costs over the life of the refinance loan would equal $30,369 per $100,000 borrowed.

Choosing your payoff time is an important decision when refinancing. You could save more over time with the 20-year loan than the 30-year loan as interest costs are lower. But each monthly payment will be higher, so you need to weigh the tradeoffs.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.338%, down 0.002% from yesterday's average of 2.340%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $659 per $100,000 borrowed. The total costs of interest would add up to $18,654 per $100,000 refinanced at today's average rate.

This loan comes with high monthly payments but low total interest costs due to the short payoff time. Decide whether you prioritize reducing your payment or reducing the total costs of your mortgage so you can pick the repayment term that's right for you.

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 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 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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