The rate on a 30-year fixed refinance slipped to 6.95% today, according to the Mortgage Research Center. Rates averaged 5.88% for a 15-year financed mortgage and 6.81% for a 20-year financed mortgage.

Related: Compare Current Refinance Rates

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30-Year Refinance Rates Drop 0.33%

The current 30-year, fixed-rate mortgage refinance average rate stands at 6.95%, compared to 6.97% last week.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.98%, lower than last week’s 7%. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.

At the current interest rate, borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $662 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $138,929.

20-Year Refinance Rates Drop 0.23%

The average interest rate on the 20-year fixed refinance mortgage is 6.81%. Last week, the 20-year fixed-rate mortgage was at 6.82%.

The APR on a 20-year fixed is 6.85%, compared to 6.86% last week.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $764 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $83,874 in total interest.

15-Year Mortgage Refinance Rates Drop 0.96%

The 15-year fixed mortgage refinance is currently averaging about 5.88%, compared to 5.94% last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage stands at 5.93%.

At the current interest rate, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $837 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $51,185 in total interest over the 15-year life of the loan.

30-Year Jumbo Refinance Rates Climb 0.08%

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) rose week-over-week to 7.63%. Last week, the rate was about the same.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $708 per month in principal and interest per $100,000 borrowed.

15-Year Jumbo Refi Rates Drop 0.72%

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.35%, down 0.72% from last week.

At today’s rate, a borrower would pay $863 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $55,536 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.

In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.

Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.

When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice.

Know When To Refinance Your Home

Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).

But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.

The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.

How To Get Today’s Best Refinance Rates

Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing to get a good mortgage rate:

• Improve your credit
• Consider a shorter loan term
• Lower your debt-to-income ratio
• Watch mortgage rates

There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other mortgage refinance lenders are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.

Refinance Rate Trends for 2025

National average mortgage rates have remained in the middle-to-high 6% range since the final quarter of 2024, and experts expect this trend to continue throughout the first half of 2025.

Although forecasting mortgage interest rates is challenging, economic indicators like inflation and unemployment rates can provide insights into the direction of the housing market. For example, if inflation slows and national unemployment levels remain stable or rise, the Federal Reserve may cut the federal funds rate, which could lead to lower mortgage rates. On the other hand, if inflation stays high and unemployment decreases, rates are likely to remain steady.

Since mortgage rates are expected to experience minimal movement in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and making on-time payments will allow you to secure the best possible rate when you begin shopping for refinance offers.

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