Current Mortgage Refinance Rates -- September 14, 2021: Rates Down for All Loans

Did mortgage refinance rates go up or down on Sept. 14, 2021?

If you are thinking of refinancing your home loan, you may want to see how average mortgage refinance rates are trending. You can make a decision to refinance when rates are falling to save more compared with your current loan interest rate.

Check out today's average mortgage refinance rates for Tuesday, Sept. 14:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage refinance rates

The average 30-year mortgage refinance loan rate today is 3.117%, down 0.003% from yesterday's average of 3.120%. A loan at today's average rate would cost you $422 per month in principal and interest for each $100,000 you refinance. Over the life of the refinance loan, total interest costs would be $54,059 per $100,000 in mortgage debt.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.841%, down 0.002% from yesterday's average of 2.843%. Refinancing at today's average rate would leave you with a monthly principal and interest payment of $547 per $100,000 in mortgage debt. Total interest costs would be $31,201 per $100,000 in mortgage debt over the life of the refinance loan.

If you choose a 20-year refinance loan over a 30-year, you can expect to pay more each month because you aren't making as many payments. However, you will save more over time since you don't pay interest for as long of a period of time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.366%, down 0.007% from yesterday's average of 2.373%. A refinance loan at today's average rate would come with a monthly principal and interest payment of $661 per $100,000 borrowed. Over the life of the refinance loan, total interest costs would be $18,890 per $100,000 in mortgage debt.

The 15-year refinance loan shortens the repayment time of your new loan even further than the 20-year does. That means monthly payments are even higher, but your total amount of interest saved over time is considerable. Be sure to weigh the pros and cons of being debt free sooner and paying less over time with having to make higher monthly payments during the life of the loan.

Should you refinance your mortgage right now?

Refinancing your mortgage can be a smart financial decision if you're able to reduce your interest rate and lower your monthly payments by securing a new home loan. However, there are a few key things to think about before you refinance.

First, if you extend your loan repayment term, you could end up paying higher total interest costs over time than with your existing mortgage. This can occur even if you qualify for a lower interest rate since you'd be paying interest over a longer time. You can avoid this issue by choosing a refinance loan with a shorter repayment term. Or you may decide you're willing to pay more interest over the life of your loan in exchange for a reduced monthly payment.

Second, you will have to consider closing costs, which are the upfront fees you'll be charged when you refinance your mortgage. The Ascent's research revealed that closing costs on a refinance loan for a median value home total anywhere from $5,000 to $12,500. However, your closing fees will depend on the amount of your home loan, your location, and your lender.

You should eventually make up for these closing costs due to your lower monthly payments -- but that can take time. If you save $200 per month by refinancing and pay $6,000 in closing costs, you would take 2.5 years to break even. It's important to do the math and consider whether you'll stay in your home long enough for refinancing to pay off.

In general, it is a good idea to refinance if you don't plan to move in the next few years and you can reduce your mortgage interest rate by 1% or more. With mortgage refinance rates near record lows, many borrowers will find it's a good time to refinance. Compare rates from the best mortgage refinance lenders to get some personalized offers and decide whether securing a new home loan now is right for you.