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Mortgage refinance rates didn’t move today.
The current 30-year, fixed-rate mortgage refinance rate is averaging 6.82%, according to Bankrate, while 15-year, fixed-rate refinance mortgages average of 6.22%. For 20-year mortgage refinances, the average rate is 6.93%. For a 5/1 adjustable-rate mortgage, the average rate is 5.38%.
Related: Compare Current Refinance Rates
Refinance Rates for January 2, 2023
30-Year Fixed Refinance Interest Rates
The average rate for the 30-year fixed-rate mortgage refinance stayed at 6.82% from yesterday. One week ago, the 30-year fixed was 6.76%. Today’s rate is lower than the 52-week high of 7.44%.
The APR, or annual percentage rate, on a 30-year fixed is 6.84%. This time last week, it was 6.77%. APR is the all-in cost of your loan.
At an interest rate of 6.82%, a 30-year fixed mortgage refi would cost $1,960 per month in principal and interest (not accounting for taxes and fees) per $300,000, according to the Forbes Advisor mortgage calculator. You’d pay about $405,519 in total interest over the life of the loan.
20-Year Refinance Rates
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.93% compared to 6.70% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.95%. That compares to 6.72% at the same time last week.
At today’s interest rate of 6.93%, a 20-year, fixed-rate mortgage refinance of $300,000 would cost $2,313 per month in principal and interest—not including taxes and fees. That would equal about $255,194 in total interest over the life of the loan.
15-Year Mortgage Refinance Rate
Today, the 15-year fixed mortgage rate is 6.22%, higher than it was yesterday. Last week, it was 6.13%. Today’s rate is higher than the 52-week low of 5.86%.
On a 15-year fixed refinance, the annual percentage rate is 6.24%. Last week it was 6.15%.
With an interest rate of 6.22%, you would pay $2,567 per month in principal and interest for every $300,000 borrowed. Over the life of the loan, you would pay $162,126 in total interest.
30-Year Jumbo Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 6.86%. Last week, the average rate was 6.82%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 6.51%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.86% will pay $4,919 per month in principal and interest per $750,000.
15-Year Jumbo Mortgage Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance climbed to 6.27%. Last week, the average rate was 6.21%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.86%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.27% will pay $6,439 per month in principal and interest per $750,000. That means that on a $750,000 loan you’d pay around $408,993 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Refinance Rates
The average interest rate for a 5/1 ARM is currently 5.38%. That’s compared to the 52-week low of 5.33% and the average rate at this time last week of 5.35%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 6.19% compared to 6.07% 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%.
Know When to Refinance Your Home
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 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 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 financial institutions 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.
Frequently Asked Questions (FAQs)
How Much Does it Cost to Refinance a Mortgage?
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.
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 Do You Find the Best Refinancing Lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
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