January 9, 2025—Rates Rise – Forbes Advisor – Technologist

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

Refinancing rates for a 30-year, fixed-mortgage are averaging 7.44%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.54%, and for 20-year mortgages, the average is 7.29%.

Related: Compare Current Refinance Rates

Refinance Rates for January 9, 2025

30-Year Fixed Refinance Interest Rates

Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 7.44%. That’s compared to 7.40% last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $695 per month for principal and interest at the current interest rate of 7.44%, 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 $150,166. 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 7.46% compared to 7.42% last week. The APR is essentially the all-in cost of the home loan.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.29% compared to 7.23% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.32%. That compares to 7.25% at the same time last week.

At today’s interest rate of 7.29%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $793 per month in principal and interest—not including taxes and fees. That would equal about $90,258 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 6.54% compared to 6.51% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.57%. That compares to 6.54% at this time last week.

Using the current interest rate of 6.54%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $873 per month in principal and interest—not including taxes and fees. That would equal about $57,215 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 7.37%. Last week, the average rate was 7.37%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.37% will pay $691 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Interest Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.89%, on average, compared to the average of 6.72% last week.

At today’s interest rate of 6.89%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,695 per month in principal and interest on a $806,500 loan—the 2025 conforming loan limit determined by the Federal Housing Finance Agency. Over the life of the loan, that borrower would pay around $489,337 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.

In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.

Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.

Know When To Refinance Your Home

There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI).

A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs by dividing your closing costs by the monthly savings from your new payment.

Our mortgage refinance calculator could help you determine if refinancing is right for you.

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 Qualify for 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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