Compare Today’s 15-Year Mortgage Refinance Rates
National Average Mortgage Rates
Rates data is based on a borrower with good credit, a conforming loan amount (at least $200,000 but less than the national conforming loan amount), and a loan-to-value ratio of less than 80% (For purchase loans, this corresponds to a down payment of 20% or more). © Zillow, Inc., 2006-2016. Use is subject to Terms of Use
View today’s mortgage rates for a wide variety of products and find the best rates for your needs. Save thousands of dollars over the life of your loan.
U.S. News Expert Insights, Week Ending July 15
Mortgage Rates Surge to Yearly Highs
“The average 30-year fixed mortgage rate is now hovering around 6.75%, compelling summer homebuyers to recalculate their purchase budgets. With mortgage rates now at their highest levels in about a year, and geopolitical uncertainty bleeding into the economy, prospective buyers may not feel motivated to jump into the market.
“New data substantiates this sense of unease as higher borrowing costs weigh on the housing sector. Mortgage applications have waned in recent weeks alongside rising rates, according to the Mortgage Bankers Association. Pending home sales decreased by 5.4% in June, per the National Association of Realtors.
“Today’s high mortgage rates are a result of the resurgence of the U.S. war in Iran. The Middle East conflict has led to higher oil prices, fueling inflation throughout the economy. Mortgage interest rates, which follow 10-year Treasury yields, are highly sensitive to price changes. The bottom line: mortgage rates will stay high due to the inflationary pressures of the war.”
– Erika Giovanetti, U.S. News Consumer Lending Analyst
Average Mortgage Rates, Daily
Product |
Interest Rate |
APR |
|---|---|---|
|
30 Year Fixed Refinance |
6.85% |
6.856% |
|
20 Year Fixed Refinance |
6.778% |
6.79% |
|
15 Year Fixed Refinance |
5.858% |
5.868% |
|
10 Year Fixed Refinance |
6.029% |
6.05% |
|
5 ARM Refinance |
6.273% |
6.281% |
|
VA 30 Year Fixed Refinance |
5.822% |
6.153% |
|
VA 15 Year Fixed Refinance |
5.508% |
6.054% |
|
FHA 30 Year Fixed Refinance |
5.99% |
6.721% |
|
FHA 15 Year Fixed Refinance |
5.51% |
6.282% |
|
Jumbo 30 Year Fixed Refinance |
6.601% |
6.601% |
Rates data is based on a borrower with good credit, a conforming loan amount (at least $200,000 but less than the national conforming loan amount), and a loan-to-value ratio of less than 80% (For purchase loans, this corresponds to a down payment of 20% or more). © Zillow, Inc., 2006-2016. Use is subject to Terms of Use
It’s important to explore both 30-year and 15-year rates when considering a refinance. Because a 15-year loan has a shorter term, you can expect a higher monthly payment – but you’ll save on your overall loan cost with a competitive interest rate.
“If you want to pay less interest over the length of the loan, look for the lowest interest rate at the shortest term,” says Shelby McDaniels, managing director of specialty sales and business development at J.P. Morgan Chase. For many people, a 15-year mortgage refinance fits the bill.
Fifteen-year mortgage rates run 0.5 to 1 percentage point lower than 30-year rates. Rates vary among providers, so it pays to shop aggressively. If your current lender isn’t competitive, contact other mortgage companies, banks or credit unions to see if they can do better.
“Shopping around for the right lender has the potential to save you money in the long run,” says McDaniels. She recommends comparing lender fees and interest rates to find a refinance option that best fits your goals.
Refinancing from a 30-year mortgage to a 15-year home loan can yield substantial savings, as long as you can comfortably afford the higher mortgage payment. The right candidates for a 15-year refinance qualify for a better rate than they’re currently paying, have sufficient and stable income, and plan to keep their homes for more than a few years.
- Explore your options. Compare rates from several mortgage lenders and choose a competitive offer. Decide if you want to pay your closing costs up front, roll them into your new loan or choose a “no closing cost” refinance. “Work with a home lending advisor to determine both your short- and long-term goals and gauge which mortgage product meets your needs,” says McDaniels.
- Submit an application. Once you’ve selected a lender, apply for your 15-year refinance loan. You’ll be asked to supply documents, like your ID, pay stubs, W-2 forms, bank statements and possibly tax returns.
- Go through the underwriting process. Your loan will most likely be underwritten by an automated underwriting service, or AUS. Within minutes, the AUS generates a decision and a list of items the lender needs to finalize your approval. Submit those items to your lender as quickly as you can to keep your loan moving. The lender will probably order a home appraisal to determine the value of your property and how much equity you have.
- Close and sign for the new loan. Just as when you purchased your home, you’ll sign your final set of documents and pay any closing costs that are due.
Pros
-
You can build equity and pay off your loan more quickly than you would with a 30-year refinance.
-
You’ll pay less interest over time.
-
The interest rate is typically lower than a 30-year refinance.
Cons
-
You’re locked into a higher monthly payment than you’d have with a 30-year refinance.
-
You’ll have less wiggle room in your budget should you face financial distress.
-
The closing costs are significant.
Although a 30-year mortgage refinance is the most common, moving to a 15-year loan may be a good idea in some circumstances:
- Your credit score has dramatically improved. If you’re paying a high rate because your credit was mediocre when you bought your home – but it’s in a much better place now – a competitive rate on a 15-year refinance might keep your monthly payments close to what you currently pay.
- You want to move into a conventional mortgage from an FHA loan. FHA loans can be excellent for some first-time buyers, but they require long-term mortgage insurance premiums. A 15-year refinance might remove that extra cost without much increase to your monthly bill.
- You’re preparing for early retirement. A 15-year refinance may help you enter retirement with no home debt.
Refinancing means paying off your existing home loan with a new loan. People typically refinance to get more favorable loan terms, such as a better interest rate or lower monthly payment, or to cash out some of their equity.
The main differences between a 15- and 30-year mortgage are the length of the loan term and the interest rate. Shorter terms typically offer lower rates, but your monthly payments will be higher. If you’re on the fence about which type of loan is better for you, here’s a tip: “You can effectively turn your 30-year into a 15-year mortgage by making bimonthly payments,” says McDaniels, “but you won’t be locked into the terms of a shorter-term mortgage in case you hit a rough patch.”
A fixed-rate mortgage applies the same interest rate for the life of the loan. With an adjustable-rate mortgage, the rate will fluctuate after a set period. There’s usually a cap on how high the rate can go, but adjustable-rate loans are seen as higher risk since you can’t count on your monthly payment to stay the same.
When it comes to refinancing your home mortgage, the most common option is a 30-year fixed rate loan – but a 15-year refinance may save you money in the long run. You can choose between a fixed- or adjustable-rate refinancing loan. Another option is a cash-out mortgage refinance, which lets you tap into your home’s equity and receive a lump sum payout.
