Today's Mortgage Refinance Rates -- August 12, 2021: Rates Up for All Loans

Thinking about refinancing? See how today's average mortgage refinance rates compare to recent trends.

Should you refinance your home mortgage? It depends on how your current interest rate on your loan compares to the rate you could qualify for if you refinanced. Check out today's average mortgage refinance rates for Aug. 12 to get an idea of what rate you might expect to pay if you refinanced 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 3.102%, up 0.025% from yesterday's average of 3.077%. At today's average rate, you'd pay $427 per month in principal and interest per $100,000 refinanced. You'd be looking at total interest costs of $53,765 per $100,000 in refinanced mortgage debt over the life of the loan.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.848%, up 0.029% from yesterday's average of 2.819%. If you refinance at today's average rate, you'd have a monthly principal and interest payment of $547 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $31,285 per $100,000 borrowed.

You will pay lower interest costs over time with this loan compared with the 30-year mortgage refinance loan. But each monthly payment must be higher because you need to pay off your loan a decade sooner.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.363%, up 0.016% from yesterday's average of 2.347%. At today's average rate, the monthly principal and interest payment would add up to $660 per $100,000 in refinanced mortgage debt. For each $100,000 you refinance at today's average rate, total interest costs would add up to $18,865.

If you're hoping to maximize interest saved, this loan is an ideal option because you pay interest for a much shorter time than with the 30-year or 20-year loans. The rate is also lower. But with only 15 years to pay off your entire refinance loan balance, each monthly payment must be considerably higher.

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.