Today’s Refinance Rates: June 13, 2024—Rates Dip

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

The average rate on a 30-year fixed mortgage refinance is 7.48%, according to Curinos, while the average rate on a 15-year mortgage refinance is 6.57%. On a 20-year mortgage refinance, the average rate is 7.12%.

Related: Compare Current Refinance Rates

Refinance Rates for June 13, 2024

LOAN TERM	RATE	CHANGE	RATE YESTERDAY
30-Year Fixed Refinance Rate	7.48%	-0.11	7.59%
20-Year Fixed Refinance Rate	7.12%	-0.28	7.40%
15-Year Fixed Refinance Rate	6.57%	-0.19	6.76%
30-Year Jumbo Refinance Rate	7.37%	-0.21	7.58%
15-Year Jumbo Refinance Rate	7.26%	+0.00	7.26%

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30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance decreased to 7.48% from yesterday. At this time last week, the 30-year fixed was 7.52%.

The APR, or annual percentage rate, on a 30-year fixed is 7.50%. This time last week, it was 7.54%. APR is the all-in cost of your loan.

At the current interest rate of 7.48%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $698 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay approximately $151,274 in total interest over the life of the loan.

20-Year Refinance Interest Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.12% compared to 7.27% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.15%. That compares to 7.29% at the same time last week.

At today’s interest rate of 7.12%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $783 per month in principal and interest—not including taxes and fees. That would equal about $87,833 in total interest over the life of the loan.

15-Year Refinance Interest Rates

The 15-year fixed mortgage refinance is currently averaging about 6.57%. That’s compared to the average of 6.61% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.60% versus 6.65% at this time last week.

At the current interest rate of 6.57%, a borrower using a 15-year, fixed-rate mortgage refinance of $100,000 would pay $875 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $57,493 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 7.37%. Last week, the average rate was 7.45%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.37% will pay $690 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 is 7.26%. Last week, the average rate was 7.21%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 7.26% will pay $913 per month in principal and interest per $100,000. That means that on a $750,000 loan, you’d pay around $482,745 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.

Know When To Refinance Your Home

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.

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 Qualify for Today’s Best Refinance Rates

Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing get a good mortgage rate:

• Improve your credit
• Consider a shorter loan term
• Lower your debt-to-income ratio
• Watch mortgage rates

There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other financial institutions are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.

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