Today’s Refinance Rates: December 14, 2021—Rates Dip

If you’re looking to save money by refinancing your home loan, it’s a good time to lock in a low rate. Refinance rates fell today and remain at historical lows.

The average rate on a 30-year fixed mortgage is 3.23%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.49%. The average rate on a 20-year refinance loan is 3.09%, and the average rate on a 5/1 ARM is 2.86%.

Related: Compare Current Mortgage Rates

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance decreased to 3.23%. Last week, the 30-year fixed was 3.19%. The 52-week low is 3.06%.

The 30-year fixed mortgage refi APR is 3.31%. At this time last week, it was 3.27%. APR is 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 $434 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 3.23%. In total interest, you’d pay $56,279 over the life of the loan.

20-Year Refi Rates

The average interest rate on the 20-year fixed refinance mortgage is 3.09%. One week ago, the 20-year fixed-rate mortgage was at 3.06%.

The APR on a 20-year fixed is 3.16%. Last week, it was 3.14%.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 3.09% will cost $559 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $34,187 in total interest.

15-Year Fixed Refinance Rates

The average interest rate on the 15-year fixed refinance mortgage stayed at 2.49%. This same time last week, the 15-year fixed-rate mortgage was at 2.50%. Today’s rate is higher than the 52-week low of 2.39%.

On a 15-year fixed refinance, the APR is 2.63%. Last week it was 2.65%.

A 15-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 2.49% will cost $666 per month in principal and interest. Over the life of the loan, you would pay $19,937 in total interest.

30-Year Jumbo Mortgage Refinance Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 3.22%. One week ago, the average rate was 3.18%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 3.05%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 3.22% will pay $3,252 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $3,252, and you’d pay around $420,616 in total interest over the life of the loan.

15-Year Jumbo Refinance Rates

The average interest rate on the 15-year fixed-rate jumbo mortgage refinance fell to 2.48%. Last week, the average rate was 2.49%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 2.37%.

Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 2.48% will pay $666 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $4,994, and you’d pay around $148,895 in total interest over the life of the loan.

5/1 ARM Refinance Rates

The average interest rate on a 5/1 ARM sits at 2.86%, higher than the 52-week low of 2.83%. Last week, the average rate was 4.14%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.86% will pay $414 per month in principal and interest.

When Refinancing Makes Sense

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).

Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this 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.

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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