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Today's Mortgage Refinance Rates

January 16, 2021

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

If you feel you're paying too much interest on your mortgage, it makes sense to look into refinancing. By lowering your interest rate, you could make your home far more affordable. You might even pay it off more quickly. Here's what today's mortgage refinance rates look like.

Current Refinance Rates

Rates As of Jan 15, 2021
Product Interest Rate Average Points/Credits
Fixed 30 Year 2.857% 0.049
Fixed 20 Year 2.651% 0.067
Fixed 15 Year 2.267% -0.060
ARM 10/1 3.205% 0.207
ARM 7/1 2.839% 0.042
ARM 5/1 3.269% 0.314
Fixed 30 Year - FHA 2.891% 0.016
Fixed 30 Year - VA 2.657% 0.091
Fixed 30 Year - Jumbo 3.019% -0.258
Fixed 30 Year 2.935% 0.148
Fixed 20 Year 2.809% 0.042
Fixed 15 Year 2.403% 0.034
ARM 10/1 2.925% 0.061
ARM 7/1 3.002% 0.211
ARM 5/1 2.827% 0.008
Fixed 30 Year - FHA 2.760% 0.339
Fixed 30 Year - VA 2.534% 0.148
Fixed 30 Year - Jumbo 3.002% -0.025
The Ascent's Mortgage Rates Tracking Methodology

How does refinancing work?

Refinancing is the process of swapping one loan for another, and it's common in the context of mortgages. When you refinance a mortgage, your old home loan is replaced by a new one with different terms. Usually, that means a lower interest rate than the rate you've been paying. In some cases, refinancing might change the length of your repayment period. For example, you might go from a 15-year to a 30-year loan, or vice versa.

As is the case when signing a regular mortgage, you'll need good credit to refinance. You'll also be subject to closing costs, which come into play with a regular mortgage as well.

How to find the best refinance rates

Start by applying to refinance with a number of mortgage lenders. You may find that different lenders have different offers, or varying standards for qualifying for the best mortgage rates. For example, one lender may be more flexible with your credit score than another -- it pays to seek out multiple offers.

If you're going to apply to refinance with multiple lenders, do so within a 30-day period. Each time you apply to refinance, it's considered a hard inquiry, which can affect your credit score slightly. A single hard inquiry generally isn't a big deal, but multiple hard inquiries can have a larger negative impact on your credit score. Fortunately, if you apply to refinance with multiple lenders within the same short time frame, those various hard inquiries for the same purpose will be considered only a single inquiry.

When shopping around for a refinance offer, keep these things in mind:

  • The interest rate you're presented with
  • The closing costs you'll need to pay (you should be able to get an estimate up front)
  • The terms of your loan (for example, the number of years you have to pay it off, and what happens if you pay it off early)

How much house can I afford?

Use our mortgage calculator to estimate your monthly payment, including principal, interest, insurance, taxes, and PMI.

Is refinancing right for me?

Refinancing is a good way to reduce the interest rate you're paying on your mortgage, which can result in substantial savings over time. But remember, there's a cost associated with refinancing, so if you're going to swap your old mortgage for a new one, make sure you plan to stay in your home long enough to recoup that expense and come out ahead.

For example, imagine you're looking at a $200,000 mortgage refinance with closing costs of 3%, or $6,000. If refinancing lowers your mortgage payments by $150 a month, it will take you 40 months to break even, and you'll start reaping savings only then. If you don't plan to stay in your home for more than 40 months, refinancing doesn't make sense. Some of our favorite mortgage lenders for refinancing have below-average fees, but refinancing is still likely to cost you something.

Also, if your credit score isn't in great shape, refinancing may not be worthwhile, as you may not snag a rate you're happy with. On the other hand, if your credit score has improved substantially since you signed your original mortgage, you may be eligible for a much more favorable rate that saves you a lot of money in the long run.

Select the state you want to see mortgage rates for:

Alabama mortgage rates Alaska mortgage rates Arizona mortgage rates Arkansas mortgage rates California mortgage rates Colorado mortgage rates Connecticut mortgage rates Washington DC mortgage rates Delaware mortgage rates Florida mortgage rates Georgia mortgage rates Hawaii mortgage rates Idaho mortgage rates Illinois mortgage rates Indiana mortgage rates Iowa mortgage rates Kansas mortgage rates Kentucky mortgage rates Louisiana mortgage rates Maine mortgage rates Maryland mortgage rates Massachusetts mortgage rates Michigan mortgage rates Minnesota mortgage rates Mississippi mortgage rates Missouri mortgage rates Montana mortgage rates Nebraska mortgage rates Nevada mortgage rates New Hampshire mortgage rates New Jersey mortgage rates New Mexico mortgage rates New York mortgage rates North Carolina mortgage rates North Dakota mortgage rates Ohio mortgage rates Oklahoma mortgage rates Oregon mortgage rates Pennsylvania mortgage rates Rhode Island mortgage rates South Carolina mortgage rates South Dakota mortgage rates Tennessee mortgage rates Texas mortgage rates Utah mortgage rates Vermont mortgage rates Virginia mortgage rates Washington mortgage rates West Virginia mortgage rates Wisconsin mortgage rates Wyoming mortgage rates

Check out more mortgage rates:

15-year mortgage rates

20-year mortgage rates

Refinance mortgage rates

FHA mortgage rates

Jumbo mortgage rates

VA loan rates

5/1 ARM rates

7/1 ARM rates

FAQs

  • Refinancing a mortgage means obtaining a brand-new mortgage to replace your current one.

  • It's essential to shop around to find the best refinance rates. You may find that different lenders have offers that vary widely.

  • Yes. Homeowners can refinance as often as they'd like, but some lenders may have specific restrictions.

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