Current Mortgage Refinance Rates -- September 30, 2021: Rates Up Across the Board

Did mortgage refinance rates go up or down on the last day of September?

On the last day of September, average mortgage refinance rates are up for all loans. If you are a current homeowner, check out today's average mortgage refinance rates to help you decide if it's a good time to refinance your home loan:

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 3.236%, up 0.027% from yesterday's average of 3.209%. At today's average rate, you'd pay $434 per month in principal and interest per $100,000 refinanced. Over the life of the refinance loan, your total interest costs would add up to $56,398 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.936%, up 0.056% from yesterday's average of 2.880%. A loan at today's average rate would cost you $551 per month in principal and interest for each $100,000 you refinance. Total interest costs would add up to $32,336 per $100,000 borrowed over the life of the refinance loan.

The length of your refinance loan term determines both monthly payments and total costs. Because the 20-year refinance loan has a shorter payoff timeline, each monthly payment is higher than with the 30-year loan but total costs are lower over time.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.473%, up 0.031% from yesterday's average of 2.442%. A refinance loan at today's average rate would come with a monthly principal and interest payment of $662 per $100,000 borrowed. You'd be looking at total interest costs of $19,793 per $100,000 in refinanced mortgage debt over the life of the loan.

This loan comes with the shortest payoff time and thus the lowest total costs. However, when you choose a loan with such a short payoff period, it can make your monthly payments very high. Consider whether committing to such high payments is a good financial decision for the long term.

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.