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The rate on a 30-year fixed refinance decreased today.
Refinancing rates for 30-year, fixed-mortgage is averaging 6.52%, according to Bankrate. For 15-year fixed mortgages, the average refinance rate is 5.77%, and for 20-year mortgages, the average is 6.42%. For 5/1 ARMs, the average rate is 5.33%.
Related: Compare Current Refinance Rates
Refinance Rates for January 19, 2023
30-Year Refinance Rates
The current 30-year, fixed-rate mortgage refinance is averaging 6.52%, compared to 6.65% last week.
The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.53%, compared to 6.65% 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 6.52%, borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,900 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 $384,055.
20-Year Refinance Rates
The 20-year fixed mortgage refinance is currently averaging about 6.42%. That’s compared to the average of 6.70% at this time last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.42% compared to 6.71% at this time last week.
At the current interest rate of 6.42%, a 20-year, fixed-rate mortgage refinance of $300,000 would pay $2,223 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $233,427 in total interest over the life of the loan.
15-Year Fixed Refinance Rates
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.77% compared to 5.99% at this time last week.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.79%. That compares to 6.01% at this time last week.
Using the current interest rate of 5.77%, a 15-year, fixed-rate mortgage refinance of $300,000 would cost $2,494 per month in principal and interest—not including taxes and fees. That would equal about $149,000 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.53%. Last week, the average rate was 6.65%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.53% will pay $4,755 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Mortgage Refinance Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.79%, compared to an average of 6.00% last week.
At today’s rate of 5.79%, a borrower would pay $6,244 per month in principal and interest per $750,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $373,947 in total interest.
5/1 Adjustable-Rate Mortgage Refinance Rates
A 5/1 ARM, or adjustable-rate mortgage, has an average interest rate of 5.33%. The average rate at this time last week was 5.41%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 5.87% compared to 6.02% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.58%.
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 Get 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 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 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.
How Do You Find the Best Refinancing Lender?
Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.
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