Current Mortgage Refinance Rates -- April 2, 2021: Rates Tick Up

Thinking about refinancing? Here's what average mortgage refinance rates look like today.

On April 2, 2021, mortgage refinance rates ticked up again, continuing a trend that has been persisting for weeks. As April gets underway, homeowners may want to consider applying for a new refinance loan if they can reduce the interest costs compared with their current home loan.

Here's what you need to know about today's average rates so you can see if you might be able to save on interest by refinancing your home.

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 3.415%, up 0.01% from yesterday's average of 3.405%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $444. Total interest costs would be $59,953 per $100,000 in mortgage debt over the life of the refinance loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 3.127%, up 0.022% from yesterday's average of 3.105%. A mortgage refinance loan at today's average interest rate would cost you $561 per $100,000 borrowed. You'd be looking at total interest costs of $34,634 per $100,000 in refinanced mortgage debt over the life of the loan.

Your choice of refinance loan term is important because it affects the total amount saved as well as monthly payments. A longer loan term means higher costs over time but lower monthly payments. A shorter loan term means lower total interest expenses but each payment is higher. Think about what makes sense for your situation.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.692%, up 0.004% from yesterday's average of 2.688%. At today's average rate, the monthly principal and interest payment would add up to $676 per $100,000 in refinanced mortgage debt. Total interest costs would add up to $21,656 per $100,000 borrowed over the life of the refinance loan.

Again, the 15-year loan provides savings over time compared with loans that have longer payoff timelines. But as you can see, monthly payments are much higher than with the 20-year or 30-year loan. It's important to weigh the tradeoffs when deciding which loan is best.

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. These are the upfront fees you'll have to pay 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.