Mortgage Refinance Rates Rise on July 29, 2025

Current Refinance Rates Overview

The current average rate on a 30-year fixed-rate mortgage refinance has climbed to 6.78%, according to recent data. This is an increase of 0.71% from the previous week. For a 15-year fixed-rate mortgage refinance, the average rate stands at 5.68%, while a 20-year fixed-rate refinance averages 6.64%. These figures reflect ongoing trends in the housing market and can impact homeowners' financial planning.

Understanding APR and Loan Costs

When considering a mortgage refinance, it's essential to understand the Annual Percentage Rate (APR). The APR includes not only the interest rate but also other fees associated with the loan, such as origination fees and closing costs. For a 30-year fixed-rate refinance, the APR is currently 6.81%, up from 6.76% last week.

Using a mortgage calculator, a homeowner with a $100,000 refinance loan would pay approximately $651 per month in principal and interest at the current rate of 6.78%. Over the life of the loan, this would result in about $134,981 in total interest payments.

20-Year Fixed-Rate Mortgage Refinance Trends

The average interest rate for a 20-year fixed-rate mortgage refinance has increased by 1.70% compared to the previous week, now standing at 6.64%. The APR for these loans is 6.68%, up slightly from 6.57% the week before.

For a $100,000 refinance, the monthly payment would be around $754, leading to approximately $81,419 in total interest over the loan term. These figures highlight the importance of comparing different loan options to find the best fit for individual financial situations.

15-Year Fixed-Rate Mortgage Refinance Changes

The average interest rate on a 15-year fixed-rate mortgage refinance has seen a modest increase of 0.26%, reaching 5.68%. The APR for these loans is 5.73%, slightly higher than the previous week’s 5.72%.

With a $100,000 refinance, the monthly payment would be approximately $827, resulting in about $49,300 in total interest over the loan’s lifetime. Homeowners looking to shorten their loan term may find these rates beneficial, especially if they plan to stay in their home for a significant period.

Jumbo Mortgage Refinance Rates

Jumbo mortgages, which exceed the federal conforming loan limits, have shown mixed trends. The average interest rate for a 30-year fixed-rate jumbo mortgage refinance dropped slightly to 6.98%, while a 15-year fixed-rate jumbo mortgage saw a more substantial decrease of 3.01%, now averaging 6.12%.

For a $100,000 jumbo refinance, the monthly payment would be around $664 for a 30-year loan and $850 for a 15-year loan. Over the life of the 15-year loan, the total interest paid would be approximately $53,259. These rates can vary based on lender policies and market conditions.

Differences Between Refinance and Mortgage Rates

Refinance rates are typically higher than standard mortgage rates due to additional factors such as loan type and borrower equity. For example, cash-out refinances often come with higher rates because they involve borrowing against the home's equity.

Government-backed loans like FHA and VA mortgages may offer lower rates due to reduced risk for lenders. However, it's crucial to consider the APR when evaluating any refinance option, as it accounts for all fees and charges associated with the loan.

When Refinancing Makes Sense

Homeowners may choose to refinance for several reasons, including lowering their interest rate, reducing monthly payments, or paying off their mortgage sooner. Cash-out refinances allow access to home equity, while eliminating private mortgage insurance (PMI) can also be a motivator.

Refinancing is most beneficial if the homeowner plans to stay in their home for several years, as the initial costs of refinancing must be offset by long-term savings. Calculating the break-even point, where savings from a lower interest rate exceed closing costs, can help determine the optimal time to refinance.

Strategies for Securing the Best Refinance Rates

To secure the best refinance rates, homeowners should focus on improving their credit score, lowering their debt-to-income ratio, and monitoring mortgage rate fluctuations. Shorter loan terms often come with lower interest rates, making them an attractive option for those who can afford the higher monthly payments.

Refinance Rate Outlook for 2025

National average mortgage rates have remained in the middle-to-high 6% range since late 2024, with experts predicting similar trends for the first half of 2025. While forecasting rates is challenging, economic indicators like inflation and unemployment can provide insights into future movements.

If inflation slows and unemployment remains stable, the Federal Reserve may lower the federal funds rate, potentially leading to lower mortgage rates. Conversely, high inflation and low unemployment could keep rates steady. Homeowners looking to refinance may benefit from waiting until later in the year, while focusing on improving credit scores and making timely payments can help secure better rates.

Frequently Asked Questions

How soon can you refinance a mortgage? Most lenders allow refinancing six months after the initial loan, though some require a 12-month waiting period. It's best to check with your lender for specific requirements.

How do you find the best refinancing lender? Shopping around and comparing offers from different lenders is essential. Consider factors like closing costs, communication, and overall service quality when selecting a lender.

How much does it cost to refinance a mortgage? Refinancing costs can range from 2% to 6% of the loan amount. Always ask your lender for a detailed breakdown of closing costs before proceeding.