January 3, 2023—Current Refinance Rates Hold Steady – Forbes Advisor

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Mortgage refinance rates remained unchanged today.

The current 30-year, fixed-rate mortgage refinance rate is averaging 6.82%, according to Bankrate, while 15-year, fixed-rate refinance mortgages average of 6.22%. For 20-year mortgage refinances, the average rate is 6.90%. For a 5/1 adjustable-rate mortgage, the average rate is 5.38%.

Related: Compare Current Refinance Rates

Refinance Rates for January 3, 2023

30-Year Fixed Refinance Interest Rates

The current 30-year, fixed-rate mortgage refinance is averaging 6.82%, compared to 6.76% last week and the 52-week low of 6.50%.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.83%, compared to 6.77% last week. The APR is the all-in cost of a home loan—the interest rate including any fees or extra costs.

At the current interest rate of 6.82%, borrowers with a 30-year, fixed-rate mortgage of $300,000 will pay $1,960 per month for principal and interest, according to the Forbes Advisor mortgage calculator. That doesn’t include taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $405,519.

20-Year Refinance Rates

The average interest rate on the 20-year fixed refinance mortgage is 6.90%. This same time last week, the 20-year fixed-rate mortgage was at 6.72%.

The APR on a 20-year fixed is 6.92%. Last week, it was 6.73%.

A 20-year fixed-rate mortgage refinance of $300,000 with today’s interest rate of 6.90% will cost $2,308 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $253,902 in total interest.

15-Year Fixed-Rate Mortgage Refinance Rates

The 15-year fixed mortgage refinance is currently averaging about 6.22%. That’s compared to the average of 6.13% at this time last week and the 52-week low of 5.86%.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 6.24% versus 6.15% at this time last week.

At the current interest rate of 6.22%, a borrower using a 15-year, fixed-rate mortgage refinance of $300,000 would pay $2,567 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $162,126 in total interest over the 15-year life of the loan.

30-Year Jumbo Mortgage Refinance Rates

The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance is 6.86%. Last week, the average rate was 6.80%. The 52-week low is 6.51%.

Borrowers with a 30-year, fixed-rate jumbo mortgage refinance with today’s interest rate of 6.86% will pay $4,919 per month in principal and interest on a $750,000 loan.

15-Year Jumbo Mortgage Refinance Rates

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.27%, compared to an average of 6.21% last week and the 52-week low of 5.86%.

At today’s rate of 6.27%, a borrower would pay $6,439 per month in principal and interest per $750,000 for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $408,993 in total interest.

5/1 ARM Interest Rates

The average interest rate for a 5/1 ARM is currently 5.38%. That’s compared to the 52-week low of 5.33% and the average rate at this time last week of 5.33%.

VA Refinance Rates

The current average rate on a 30-year VA refinance loan is 6.19% compared to 6.07% the week prior.

The 52-week high for a 30-year VA refinance loan was 6.78% and the 52-week low was 5.92%.

When You Should Refinance Your Home

There are lots of good reasons to  refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).

It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance—to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.

Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.

How to Qualify for Today’s Best Refinance Rates

Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing get a good mortgage rate:

  • Improve your credit
  • Consider a shorter loan term
  • Lower your debt-to-income ratio
  • Watch mortgage rates

There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other financial institutions are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.

Frequently Asked Questions (FAQs)

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.

How Much Does it Cost to Refinance a Mortgage?

Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.

How Quickly Can You Refinance a Mortgage?

You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors—like the type of home loan you choose. Always check with your lender before committing to borrow.


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