January 8, 2025—Rates Hold Steady – Forbes Advisor – Technologist

Refinance rates remained unchanged today.

The current 30-year, fixed-rate mortgage refinance rate is averaging 7.41%, according to Curinos, while 15-year, fixed-rate refinance mortgages average of 6.51%. For 20-year mortgage refinances, the average rate is 7.29%.

Related: Compare Current Refinance Rates

Refinance Rates for January 8, 2025

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance stayed at 7.41% from yesterday. At this time last week, the 30-year fixed was 7.36%.

On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 7.43%, higher than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.

According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage refi of $100,000 will pay $693 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 7.41%. You’d pay around $149,527 in total interest over the life of the loan.

20-Year Refinance Interest Rates

The 20-year fixed mortgage refinance is currently averaging about 7.29%. That’s compared to the average of 7.23% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.31% compared to 7.25% at this time last week.

At the current interest rate of 7.29%, a 20-year, fixed-rate mortgage refinance of $100,000 would pay $793 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $90,214 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.51%. That’s compared to the average of 6.51% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.55% versus 6.54% at this time last week.

At the current interest rate of 6.51%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $872 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $56,928 in total interest over the 15-year life of the loan.

30-Year Jumbo Refinance Interest Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 7.38%. One week ago, the average rate was 7.37%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.38% will pay $691 per month in principal and interest per $100,000.

15-Year Jumbo Refinance Interest Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 6.81%. Last week, the average rate was 6.72%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 6.81% will pay $888 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $448,898 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?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

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.

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