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 termRateChangeRate Yesterday
30-Year Fixed Refinance Rate7.33% +0.07 7.26%
20-Year Fixed Refinance Rate7.24% +0.10 7.14%
15-Year Fixed Refinance Rate6.49% +0.03 6.46%
30-Year Jumbo Refinance Rate7.27% +0.00 7.27%
15-Year Jumbo Refinance Rate6.93% +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.

Using the current interest rate of 6.49%, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $871 per month in principal and interest—not including taxes and fees. That would equal about $56,720 in total interest over the life of the loan.

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 specialize in personal finance and mortgage matters, having extensively researched and analyzed various aspects of the financial industry, including mortgage rates, refinancing options, and lending practices. My expertise stems from years of studying market trends, analyzing data, and providing practical advice to individuals seeking to navigate the complex landscape of mortgages and refinancing.

In the realm of mortgages and refinancing, it's essential to understand the terminology, trends, and factors influencing interest rates and loan terms. Let's break down the key concepts mentioned in the article:

  1. Refinancing Rates: Refinancing rates refer to the interest rates offered to homeowners who wish to replace their existing mortgage with a new loan, often to secure a lower interest rate or adjust the loan term.

  2. 30-Year Fixed Refinance Rate: This indicates the interest rate for a 30-year fixed-rate mortgage refinance, which provides borrowers with a consistent interest rate and monthly payment over a 30-year term.

  3. 15-Year Fixed Refinance Rate: Similar to the 30-year fixed rate, but with a shorter term of 15 years, offering lower interest rates but higher monthly payments.

  4. 20-Year Fixed Refinance Rate: This represents the interest rate for a 20-year fixed-rate mortgage refinance, offering a balance between the 15-year and 30-year terms in terms of monthly payments and total interest paid.

  5. APR (Annual Percentage Rate): The APR reflects the total cost of borrowing, including the interest rate and additional fees, expressed as an annual percentage.

  6. Jumbo Refinance Rates: Refers to refinancing rates for loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac, often offering higher interest rates due to the increased risk for lenders.

  7. Closing Costs: Expenses incurred during the mortgage refinancing process, including appraisal fees, title insurance, and loan origination fees, typically ranging from 2% to 6% of the loan amount.

  8. Home Equity: The difference between the market value of a home and the outstanding balance of all liens on the property, often used as collateral for borrowing through a cash-out refinance.

  9. Cash-Out Refinance: A type of mortgage refinance where borrowers tap into their home's equity by borrowing more than they owe and receiving the difference in cash.

  10. Credit Score: A numerical representation of a borrower's creditworthiness, influencing the interest rate and terms offered by lenders.

Understanding these concepts empowers individuals to make informed decisions about mortgage refinancing, considering factors such as interest rates, loan terms, and closing costs to achieve their financial goals effectively.

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