Today's Mortgage Refinance Rates -- September 21, 2021: Rates Up for 2 Popular Loans

Could you reduce your monthly mortgage payment by refinancing? Find out today's average mortgage refinance rates.

Average mortgage refinance rates are up for the 15-year and 30-year fixed-rate refinance loans today. Although your personal rate may differ slightly from the average, it's still smart to see what a typical borrower would pay for a refinance loan. This can help you decide if it makes sense to look into refinancing now to reduce your mortgage costs.

Here are today's average mortgage refinance rates for Sept. 21, 2021:

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 3.104%, up 0.003% from yesterday's average of 3.101%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $427. Your total interest costs over the life of the refinance loan would equal $53,804 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.762%, down 0.005% from yesterday's average of 2.767%. A refinance loan at today's average rate would come with a monthly principal and interest payment of $543 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $30,262 per $100,000 borrowed.

Loans with shorter payoff times, such as the 20-year versus the 30-year, always come with higher monthly payments but lower total costs over time. After all, when you shorten your payoff time you must pay more each month to become debt free on schedule, but you'll pay interest for a shorter period so you save over time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.347%, up 0.004% from yesterday's average of 2.343%. Refinancing at today's average rate would leave you with a monthly principal and interest payment of $660 per $100,000 in mortgage debt. Total interest costs would add up to $18,730 per $100,000 borrowed over the life of the refinance loan.

Since this loan has an even shorter payoff time than the 20-year loan, you can expect even lower total costs but even higher monthly payments. Just be sure that your quest to save over time doesn't make your loan unaffordable for you by pushing your payments too high.

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 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.