Today's Mortgage Refinance Rates -- September 3, 2021: Rates Down for All Loans

by Christy Bieber | Published on Sept. 3, 2021

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Large, modern-style home with Today's Mortgage Refinance Rates graphic.

Image source: Getty Images

If you haven't refinanced your mortgage recently, check out today's average refinance rates to see if refinancing could be right for you.

On Sept. 3, 2021, average mortgage refinance rates are down for all loans. While these rates are above recent record lows, they are still low by historical average, so many homeowners who haven't refinanced recently may wish to consider doing so.

Here's a look at today's average mortgage refinance rates:

Mortgage Type Today's Interest Rate
30-year fixed refinance loan 3.098%
20-year fixed refinance loan 2.784%
15-year fixed refinance loan 2.375%

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 3.098%, down 0.008% from yesterday's average of 3.106%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $427. During your entire loan repayment period, you'd pay total interest costs of $53,687 per $100,000 refinanced.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.784%, down 0.016% from yesterday's average of 2.800%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $544 per $100,000 borrowed. You'd be looking at total interest costs of $30,523 per $100,000 in refinanced mortgage debt over the life of the loan.

A 20-year refinance loan would be cheaper over time than a 30-year refinance loan because you have a lower interest rate and you don't pay interest for as long. But your monthly payments are higher on this loan since you aren't making as many payments.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.375%, down 0.014% from yesterday's average of 2.389%. If you refinance at today's average rate, your monthly principal and interest payment would be $661 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $18,966.

This loan comes with a very short payoff time and low interest rate, both of which combine to make the total costs over time very low. Of course, the big tradeoff for these low costs is that each monthly payment must be much higher to repay your entire mortgage balance in just 15 years.

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.

About the Author