Current Mortgage Refinance Rates – March 19, 2021: Rates Keep Rising

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Mortgage refinance rates increased again on March 19, 2021. You need to compare current mortgage refinance rates with your home loan rate to decide if refinancing makes sense. While rates are not at the all-time low they hit last year, they remain competitive and many borrowers could still save money by refinancing.

Here’s what you need to know about today’s average mortgage refinance rates:

Mortgage type Interest rate of the day
30-year fixed refinancing loan 3.380%
20-year fixed refinancing loan 3.102%
15-year fixed refinancing loan 2.673%

The data source: The Ascent National Mortgage Interest Rate Tracker.

30-year mortgage refinancing rate

The 30-year average mortgage refinance rate today is 3.380%, up 0.027% from yesterday’s average of 3.353%. A mortgage refinance loan at the current average interest rate would cost you $ 442 per $ 100,000 borrowed. The total interest charge would be $ 59,254 per $ 100,000 borrowed over the term of the loan.

20-year mortgage refinancing rate

The 20-year mortgage refinance average rate today is 3.102%, up 0.051% from yesterday’s average of 3.051%. For every $ 100,000 refinanced at today’s average rate, your monthly principal and interest payment would be $ 560. Over the course of your loan repayment period, you would pay a total interest charge of $ 34,332 per $ 100,000 of debt refinanced.

A 20-year refinance loan comes with lower interest charges over time than a 30-year refinance loan. It’s not just because the interest rate is lower, it’s also because you make payments 10 years less. Unfortunately, your monthly payment is much higher because you have saved 10 years on the time you have to repay your loan.

15-year mortgage refinancing rate

The 15-year average mortgage refinance rate today is 2.673%, up 0.02% from yesterday’s average of 2.653%. Refinancing at today’s average rate would leave you with a monthly principal and interest payment of $ 675 per $ 100,000 of mortgage debt. You would have a total interest cost of $ 21,493 per $ 100,000 of mortgage debt over the term of the loan.

Since the 15 year loan has a shorter repayment term than the 20 or 30 year loan, you are considering even higher monthly payments. Of course, the total interest savings are even greater, especially since the interest rate on the 15-year loan is a bit lower than on loans with longer repayment terms.

Should You Refinance Your Mortgage Now?

Refinancing your mortgage can be a smart financial move if you are able to lower your interest rate and monthly payments by getting a new home loan. However, there are a few key things to consider before refinancing.

First, if you extend your loan repayment term, you could end up paying higher total interest charges over time than with your current mortgage. This can happen even if you qualify for a lower interest rate since you would be paying interest over a longer period. You can avoid this problem by choosing a refinance loan with a shorter repayment term. Or you may decide that you are willing to pay more interest over the life of your loan in exchange for a lower monthly payment.

Second, you will need to factor in closing costs, which are the upfront costs you will need to pay to refinance your mortgage. Ascent’s research found that the closing costs for a refinance loan for a mid-value home are between $ 5,000 and $ 12,500. However, your closing costs will depend on your mortgage amount, location, and lender.

You might need to offset these closing costs because of your lower monthly payments, but it can take time. If you save $ 200 per month by refinancing and pay $ 6,000 in closing costs, it would take you 2.5 years to break even. It’s important to do the math and determine if you’ll be staying in your home long enough for the refinancing to pay off.

In general, it’s a good idea to refinance if you don’t plan to move in the next few years and can lower your mortgage interest rate by 1% or more. With mortgage refinancing rates nearing all-time lows, many borrowers will find it a good time to refinance. Compare the rates of the best mortgage refinance lenders for personalized offers and decide if getting a new mortgage is right for you now.

A historic opportunity to potentially save thousands on your mortgage

There is a good chance that interest rates will not stay at multi-decade lows any longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger to buy a new home.

Ascent’s in-house mortgage expert recommends this company for finding a low rate – and in fact, he’s used them for refi himself (twice!). Click here to find out more and see your price. While this does not influence our opinions on the products, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full advertiser disclosure here.

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