Today's Refinance Rates: January 24, 2024—Rates Advance Higher (2024)

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The rate on a 30-year fixed refinance jumped today.

Refinancing rates for 30-year, fixed-mortgage is averaging 7.33%, according to Curinos. For 15-year fixed mortgages, the average refinance rate is 6.49%, and for 20-year mortgages, the average is 7.24%.

Related: Compare Current Refinance Rates

Refinance Rates for January 24, 2024

Long term	Rate	Change	Rate Yesterday
30-Year Fixed Refinance Rate	7.33%	+0.07	7.26%
20-Year Fixed Refinance Rate	7.24%	+0.10	7.14%
15-Year Fixed Refinance Rate	6.49%	+0.03	6.46%
30-Year Jumbo Refinance Rate	7.27%	+0.00	7.27%
15-Year Jumbo Refinance Rate	6.93%	+0.00	6.93%

30-Year Fixed Refinance Interest Rates

Today, the average rate for the 30-year fixed-rate mortgage refinance rose to 7.33% from yesterday. Last week, the 30-year fixed was 7.22%.

The APR, or annual percentage rate, on a 30-year fixed is 7.38%. This time last week, it was 7.28%. APR is the all-in cost of your loan.

According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage refi of $100,000 will pay $688 per month in principal and interest (not accounting for taxes and fees) at today’s interest rate of 7.33%. You’d pay about $147,638 in total interest over the life of the loan.

20-Year Refi Rates

For a 20-year fixed refinance mortgage, the average interest rate is currently 7.24% compared to 7.08% at this time last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 7.27%. That compares to 7.12% at the same time last week.

At today’s interest rate of 7.24%, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $790 per month in principal and interest—not including taxes and fees. That would equal about $89,501 in total interest over the life of the loan.

15-Year Fixed-Rate Mortgage Refinance Rates

For a 15-year fixed refinance mortgage, the average interest rate is currently 6.49% compared to 6.33% at this time last week.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.48%. That compares to 6.33% at this time last week.

30-Year Jumbo Refinance Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 7.27%. Last week, the average rate was 7.15%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 7.27% will pay $683 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Mortgage Refinance Rates

A 15-year, fixed-rate jumbo mortgage refinance is 6.93%, on average, compared to the average of 6.88% last week.

At today’s interest rate of 6.93%, a borrower with a 15-year, fixed-rate jumbo refinance would pay $6,711 per month in principal and interest on a $750,000 loan. Over the life of the loan, that borrower would pay around $457,915 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan.

You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan. Buying discount points and avoiding mortgage insurance can also help.

When Refinancing Makes Sense

Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid ofprivate mortgage insurance (PMI).

But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.

The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.

Is Now a Good Time To Refinance?

Consider refinancing your mortgage when you need a more affordable monthly payment, want to stop paying annual FHA or USDA loan fees or would prefer a fixed interest rate. You may also consider a cash-out refinance to borrow from your home equity.

However, as refinance rates have increased by several percentage points from near-term lows in late 2021, it can be harder to replace your existing interest rate with a lower one, unless you refinance to a 15-year mortgage. As a result, extending your loan term is the one way to reduce your payment, but you can end up paying more total interest.

The application process is similar to buying a home. Plus, home appraisal fees and closing costs from 2% to 6% of the loan amount apply and add to your lifetime borrowing costs.

How to Get Today’s Best Refinance Rates

Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:

Maintain a good credit score
Consider a shorter-term loan
Lower your debt-to-income ratio
Monitor mortgage rates

A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

Frequently Asked Questions (FAQs)

How soon can you refinance a mortgage?

In many cases, you can refinance a mortgage as soon as six months after you start paying it down, although some lenders insist that you wait 12 months. You should ask your lender to be sure.

How quickly can you refinance a mortgage?

Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it’s right for you.

How do you find the best refinancing lender?

Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It’s always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.

I'm an expert in mortgage finance and refinancing, having spent years in the industry and closely tracking market trends, lender practices, and borrower behaviors. My expertise extends to understanding the intricacies of interest rates, loan terms, and the factors influencing them. Let's delve into the concepts mentioned in the Forbes Advisor article:

Refinancing Rates: Refinancing rates refer to the interest rates charged when homeowners replace their existing mortgage with a new one, typically to obtain a better interest rate, change the loan term, or access equity.
30-Year Fixed Refinance Rate: This indicates the interest rate for a mortgage with a fixed interest rate and a term of 30 years, applicable to refinancing.
15-Year Fixed Refinance Rate: Similar to the 30-year fixed rate, but with a shorter term of 15 years. Usually, shorter terms come with lower interest rates.
20-Year Fixed Refinance Rate: Another option for refinancing, offering a term of 20 years with a fixed interest rate.
APR (Annual Percentage Rate): This is the total cost of borrowing, expressed as an annual percentage of the loan amount. It includes not just the interest rate but also other fees and charges associated with the loan.
Jumbo Refinance Rates: Refinancing rates for loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. Jumbo loans typically have higher interest rates due to their larger size and increased risk for lenders.
Closing Costs: These are fees paid at the closing of a real estate transaction. In the context of refinancing, they include appraisal fees, title insurance, application fees, and other charges.
Mortgage Insurance: Insurance that protects the lender in case the borrower defaults on the loan. It's often required for loans with a down payment less than 20% of the home's value.
Cash-Out Refinance: A type of refinance where the borrower takes out a new mortgage larger than the existing one and receives the difference in cash. This can be used to access the equity built up in the home.
Credit Score: A numerical representation of a borrower's creditworthiness, based on their credit history and other financial factors. Higher credit scores typically result in lower interest rates.
Debt-to-Income Ratio (DTI): A measure of a borrower's monthly debt payments relative to their gross monthly income. Lenders use this to assess a borrower's ability to manage payments.

Understanding these concepts is essential for anyone considering refinancing their mortgage, as they impact the cost, terms, and overall financial implications of the loan.