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The rate on a 30-year fixed refinance decreased today.
The average rate for refinancing a 30-year fixed mortgage is currently 6.66%, according to Bankrate. For refinancing a 15-year mortgage, the average rate is 5.91%, and for 20-year mortgages, it’s 6.39%. For 5/1 adjustable-rate mortgages, the average rate is 5.37%.
Related: Compare Current Refinance Rates
Refinance Rates for December 2, 2022
30-Year Fixed Refinance Interest Rates
Today, the average rate for the 30-year fixed-rate mortgage refinance slipped to 6.66% from yesterday. At this time last week, the 30-year fixed was 6.86%. Today’s rate is lower than the 52-week high of 7.44%.
On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.67%, lower 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, borrowers with a 30-year fixed-rate mortgage refi of $300,000 will pay $1,928 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 6.66%. The total interest paid over the life of the loan will be around $394,037.
20-Year Refi Rates
The average interest rate on the 20-year fixed refinance mortgage is 6.39%. Last week, the 20-year fixed-rate mortgage was at 6.67%.
The APR on a 20-year fixed is 6.40%. One week ago, it was 6.69%.
A 20-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 6.39% will cost $2,217 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $232,160 in total interest.
15-Year Mortgage Refinance Rate
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.91% compared to 6.16% at this time last week and the 52-week low of 5.75%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.93%. That compares to 6.18% at this time last week.
Using the current interest rate of 5.91%, a 15-year, fixed-rate mortgage refinance of $300,000 would cost $2,517 per month in principal and interest—not including taxes and fees. That would equal about $153,061 in total interest over the life of the loan.
30-Year Jumbo Mortgage Refinance Rates
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.67%. Last week, the average rate was 6.88%. The 52-week low is 6.40%.
Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.67% will pay $4,825 per month in principal and interest on a $750,000 loan.
15-Year Jumbo Refi Rates
A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.88%, compared to an average of 6.16% last week and the 52-week low of 5.71%.
At today’s rate of 5.88%, a borrower would pay $6,280 per month in principal and interest per $750,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $380,473 in total interest.
5/1 Adjustable-Rate Mortgage Refinance Rates
The average interest rate for a 5/1 ARM is currently 5.37%. That’s compared to the 52-week low of 4.83% and the average rate at this time last week of 5.39%.
VA Refinance Rates
The current average rate on a 30-year VA refinance loan is 5.92% compared to 6.10% the week prior.
The 52-week high for a 30-year VA refinance loan was 6.78% and the 52-week low was 5.65%.
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.
How to Qualify for 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.
Frequently Asked Questions (FAQs)
How Much Does it Cost to Refinance a Mortgage?
It can cost as much as 2% to 6% of the full cost of the loan to refinance a mortgage. Make sure to find out the exact closing costs from your lender.
How Do You Find the Best Refinancing Lender?
You should always shop around when you’re trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you’re able to communicate well with the lender you want to choose. In a bumpy housing market, you’ll probably be in touch with the lender more often than you realize.
How Quickly Can You Refinance a Mortgage?
Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.