Mortgage Refinance Rates Down for Most Loans


As we near the end of the month, mortgage refinance rates are down for most loan types. Homeowners should compare current rates to what they are paying on their existing home loan to see if refinancing makes sense.

Here’s what you need to know about average mortgage refinance rates on April 20, 2021.

Data source: The Ascent’s national mortgage interest rate tracking.

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Secure access to The Ascent’s free guide that reveals how to get the lowest mortgage rate for your new home purchase or when refinancing. Rates are still at multi-decade lows so take action today to avoid missing out.

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30-year mortgage refinance rates

The average 30-year mortgage refinance loan rate today is 3.302%, down 0.016% from yesterday’s average of 3.318%. At today’s average rate, you’d pay $438 per month in principal and interest per $100,000 refinanced. Total interest costs would add up to $57,704 per $100,000 borrowed over the life of the refinance loan.

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20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.094%, up 0.006% from yesterday’s average of 3.088%. A loan at today’s average rate would cost you $559 per month in principal and interest for each $100,000 you refinance. Total interest costs would be $34,236 per $100,000 in mortgage debt over the life of the refinance loan.

Choosing a 20-year refinance loan will mean your monthly payments will be higher than with a 30-year loan. But you’ll be free of your debt faster and will pay less interest over time with this loan option.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.592%, down 0.006% from yesterday’s average of 2.598%. A mortgage refinance loan at today’s average interest rate would cost you $671 per $100,000 borrowed. You’d be looking at total interest costs of $20,803 per $100,000 in refinanced mortgage debt over the life of the loan.

Like the 20-year refinance loan, the 15-year comes with higher monthly payments and lower total interest costs. Any time you shorten the repayment timeline, this is the outcome.

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.

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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.

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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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