January 14, 2025—Rates Rise – Forbes Advisor – Technologist

The rate on a 30-year fixed refinance climbed today.

The average rate on a 30-year fixed mortgage refinance is 7.55%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.64%. On a 20-year mortgage refinance, the average rate is 7.41%.

Related: Compare Current Refinance Rates

Refinance Rates for January 14, 2025

30-Year Fixed Refinance Interest Rates

Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.55%. That’s compared to 7.41% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $702 per month for principal and interest at the current interest rate of 7.55%, according to the Forbes Advisor mortgage calculator, not including taxes and fees.

Over the life of the loan, the borrower will pay total interest costs of about $152,852. A different way of looking at interest rates is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 7.57% compared to 7.43% last week. The APR is essentially the all-in cost of the home loan.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.41%. That’s compared to the average of 7.24% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.44% compared to 7.27% at this time last week.

At the current interest rate of 7.41%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $800 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $92,024 in total interest over the life of the loan.

15-Year Refinance Interest Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.64% compared to 6.53% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.67%. That compares to 6.57% at this time last week.

Using the current interest rate of 6.64%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $879 per month in principal and interest—not including taxes and fees. That would equal about $58,158 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.50%. Last week, the average rate was 7.41%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.50% will pay $699 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance is 6.98%. Last week, the average rate was 6.80%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.98% will pay $898 per month in principal and interest per $100,000. That means that on a $806,500 loan—the 2025 conforming loan limit determined by the Federal Housing Finance Agency— you’d pay around $496,706 in total interest over the life of the loan.

Are Refinance Rates and Mortgage Rates the Same?

No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.

The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.

When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.

When Refinancing Makes Sense

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.

Is Now a Good Time To Refinance?

Refinancing your mortgage can be worth it for reasons that include:

• Lowering monthly payments. You might be able to reduce your monthly payment by extending your repayment period or qualifying for a better interest rate.
• Reducing your interest rate. Switching from a 30-year mortgage to a shorter term, like 15 or 20 years, can help you get a better interest rate and pay less interest overall.
• Ending annual service fees. FHA and USDA loans can charge annual fees for the life of the loan. If you have at least 20% equity, converting to a conventional mortgage refinance lets you avoid mortgage insurance premiums and guarantee fees.
• Switching to a fixed interest rate. You may also refinance an adjustable-rate mortgage into a fixed interest rate to avoid future rate hikes that increase your monthly payment and total borrowing costs.
• Borrowing your home equity. A cash-out refinance allows you to tap your home equity to consolidate high-interest debt and pay for personal expenses. The mortgage refinance interest rate can be lower than unsecured personal loans.

Lenders offer multiple mortgage refinance options to help you quickly compare your potential rate and monthly payment. Refinancing can also provide more repayment flexibility.

Now isn’t a good time to refinance if you cannot get a smaller monthly payment or the closing costs offset the potential benefits of having a new rate and term.

How To Get Today’s Best Refinance Rates

Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:

• Maintain a good credit score
• Consider a shorter-term loan
• Lower your debt-to-income ratio
• Monitor mortgage rates

A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

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