Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
The rate on a 30-year fixed refinance fell today.
The average rate on a 30-year fixed mortgage refinance is 6.77%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 6.21%. On a 20-year mortgage refinance, the average rate is 6.80%, and the average rate on a 5/1 ARM is 5.40%.
Related: Compare Current Refinance Rates
Refinance Rates for January 4, 2023
30-Year Fixed Refinance Interest Rates
The current 30-year, fixed-rate mortgage refinance is averaging 6.77%, compared to 6.84% last week and the 52-week low of 6.50%.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.79%, compared to 6.85% last week. 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 of 6.77%, borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,950 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 $401,922.
20-Year Refi Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.80% compared to 6.81% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.82%. That compares to 6.83% at the same time last week.
At today’s interest rate of 6.80%, a 20-year, fixed-rate mortgage refinance of $300,000 would cost $2,290 per month in principal and interest—not including taxes and fees. That would equal about $249,604 in total interest over the life of the loan.
15-Year Mortgage Refinance Rate
The 15-year fixed mortgage refinance is currently averaging about 6.21%. That’s compared to the average of 6.18% at this time last week and the 52-week low of 5.86%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.23% versus 6.20% at this time last week
At the current interest rate of 6.21%, a borrower using a 15-year, fixed-rate mortgage refinance of $300,000 would pay $2,566 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $161,832 in total interest over the 15-year life of the loan.
30-Year Jumbo Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.80%. Last week, the average rate was 6.89%. The 52-week low is 6.51%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.80% will pay $4,889 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Refinance Rates
A 15-year, fixed-rate jumbo mortgage refinance is 6.26%, on average, compared to the average of 6.24% last week and the 52-week low of 5.86%.
At today’s interest rate of 6.26%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,435 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $408,257 in total interest.
5/1 ARM Interest Rates
A 5/1 ARM, or adjustable-rate mortgage, has an average interest rate of 5.40%. That’s compared to the 52-week low of 5.33%. The average rate at this time last week was 5.36%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.11% compared to 6.17% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.78% and the 52-week low was 5.92%.
When Refinancing Makes Sense
There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).
It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.
Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.
How to Qualify for Today’s Best Refinance Rates
Refinancing a mortgage isn’t that different than taking out a mortgage in the first place, and it’s always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:
- Polish up your credit score
- Lower your debt-to-income ratio
- Keep an eye on mortgage rates
- Consider a shorter loan
Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You’re also likely to look better to lenders if you don’t have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates.
Frequently Asked Questions (FAQs)
How Soon Can You Refinance a Mortgage?
Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure.
How Much Does it Cost to Refinance a Mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.
How Quickly Can You Refinance a Mortgage?
You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors—like the type of home loan you choose. Always check with your lender before committing to borrow.