Today's mortgage refinance rates recover: 20-year fixed fall below 3% | Dec. 23, 2021

• 30-year fixed-rate refinance: 3.190%, down from 3.375%, -0.185
• 20-year fixed-rate refinance: 2.875%, down from 3.000%, -0.125
• 15-year fixed-rate refinance: 2.375%, unchanged
• 10-year fixed-rate refinance: 2.375%, unchanged

Rates last updated on Dec. 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

After spiking to their highest levels of the year yesterday, fixed rates for 30-year and 20-year refinances slipped lower today. Thirty-year refinance rates have held at or above 3.000% for 31 straight days. With experts predicting further increases in 2022, it’s unlikely refinance rates will go much lower. Homeowners who hope to get ahead of higher rates may want to lock in one of today’s low refinance rates.

These rates are based on the assumptions shown here. Actual rates may vary.

Current 30-year fixed refinance rates

The current rate for a 30-year fixed-rate refinance is 3.190%. This is down from yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage could lower your interest rate, but may not have much effect on your total interest costs or monthly payment. Refinancing a shorter term mortgage into a 30-year refinance could result in a lower monthly payment but higher total interest costs.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed-rate refinance is 2.875%. This is down from yesterday. By refinancing a 30-year loan into a 20-year refinance, you could secure a lower interest rate and reduce total interest costs over the life of your mortgage. But you may get a higher monthly payment.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed-rate refinance is 2.375%. This is the same as yesterday. A 15-year refinance could be a good choice for homeowners looking to strike a balance between lowering interest costs and retaining a manageable monthly payment.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed-rate refinance is 2.375%. This is the same as yesterday. A 10-year refinance will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a bigger monthly mortgage payment.

Rates last updated on Dec. 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What is the average cost of a refinance?

Refinancing a mortgage can yield significant interest savings over the life of a loan. But all those savings don’t come for free. Generally, you’ll encounter costs — $5,000 on average, according to Freddie Mac — when refinancing your mortgage.

Your exact refinancing costs will depend on multiple factors, including the size of your loan and where you live. Typical refinancing costs include:

• The cost of recording your new mortgage
• Appraisal fees
• Attorney fees
• Lender fees, such as origination or underwriting
• Title service fees
• Credit report fees
• Mortgage points
• Prepaid interest charges

Keep in mind there’s no such thing as a truly no-cost refinance. Lenders who market "no-cost loans" typically charge a higher interest rate and roll the costs into the loan — which means you’ll pay more interest over the life of the loan.

How to get your lowest mortgage refinance rate

If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance so you can find the best rate for your situation.

Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac.

How does Credible calculate refinance rates?

The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.

Are refinance rates higher than purchase rates?

Refinance rates are generally higher than rates for new mortgages to buy a house. Here are some factors that influence the higher rates:

• Risk — A borrower who refinances into a shorter term to get a lower interest rate and pay off their loan sooner may end up with a higher monthly payment. That higher payment could translate into an elevated risk of default. Likewise, in cash-out refinances, the borrower’s debt-to-income ratio rises — and possibly their risk of defaulting.
• Revenue — A lender may be able to make more money off a purchase loan than a refinance. Many homebuyers choose longer terms for purchase mortgages, which come with higher interest rates. Refinancing into a shorter term and/or lower interest rate reduces the amount of interest the lender makes over the life of a loan.
• Costs — Refinancing a mortgage comes with many of the same closing costs you’ll face when you take out a new mortgage, such as an appraisal, attorney fees and more. Closing on a refinance also has costs for the lender. But whereas the lower interest rate and shorter term you get with a refinance benefits you financially, the lender will make less in interest over the life of the refinanced loan.
• Your credit — Hopefully, your credit continues to improve once you become a homeowner. But that’s not always the case for everyone. A homeowner whose credit score has actually fallen since they initially bought the house may look like a bigger risk to lenders — who may charge a higher interest rate to offset the perceived risk.

Rates last updated on Dec. 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

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As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.