15-year refinancing rate for July 2021

We want to help you make better informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money.

What are the 15-year refinancing rates today?

On Thursday, July 15, 2021, according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the 15-year average refinancing rate is 2.430% with an APR of 2.650%.

Current 15-year refinancing rates

Product Interest rate APR
30-year fixed rate 3.100% 3.270%
30-year FHA rate 2.660% 3.550%
30-year VA rate 2.730% 2.960%
Jumbo fixed rate over 30 years 3.110% 3.200%
20-year fixed rate 3.010% 3.170%
15-year fixed rate 2.430% 2.650%
Jumbo fixed rate over 15 years 2.430% 2.510%
10-year fixed rate 2,440% 2.650%
ARM rate 5/1 2.740% 3.990%
Jumbo ARM rate 5/1 2.670% 3.620%
ARM rate 7/1 3.190% 4.080%
Jumbo ARM rate 7/1 3.510% 4.140%
ARM rate 10/1 3.560% 4.220%
Product Interest rate APR
30-year fixed rate 3.040% 3.260%
30-year FHA rate 2.630% 3.520%
30-year VA rate 2.700% 2.900%
Jumbo fixed rate over 30 years 3.040% 3.160%
20-year fixed rate 2.890% 3.080%
15-year fixed rate 2.380% 2.670%
Jumbo fixed rate over 15 years 2.380% 2.470%
10-year fixed rate 2.330% 2.560%
ARM rate 5/1 2.820% 3.960%
Jumbo ARM rate 5/1 2.850% 3.640%
ARM rate 7/1 3.100% 3.910%
Jumbo ARM rate 7/1 3.340% 3.860%
ARM rate 10/1 3.360% 4.050%

Prices as of Thursday July 15, 2021

What is a 15 Year Fixed Rate Refinance Mortgage?

A 15-year fixed mortgage refinance is a type of home loan designed to replace your existing mortgage. He has a fixed mortgage interest rate, so that the amount of interest you pay will not change during the life of the loan. And with a 15-year payment term, you’ll pay off your mortgage in half the time than with a 30-year mortgage refinancing.

A 15-year refinance usually has a lower interest rate than longer-term loans, but comes with a higher monthly payment.

When to consider refinancing over 15 years

A 15-year mortgage refinance can be a great way to pay off your mortgage sooner and save on interest. The best time to consider refinancing, therefore, is when the rates are low enough that your interest savings outweigh the original amount. closing costs associated with a refinance loan.

NextAdvisor contributor Suze Orman says you should never refinance into a loan with a longer repayment term than what’s left on your current mortgage. For homeowners with more than 15 years of maturity on their mortgage, a 15-year loan is a great way to potentially get a lower rate without adding more years to your repayment schedule.

Since the monthly payments on a 15-year mortgage are higher, refinancing for a shorter-term loan makes more sense if your income has increased since you bought your home. So, before you commit to larger monthly payments, make sure your current financial situation can support them.

Advantages and disadvantages of mortgage refinancing over 15 years


  • Lower interest rates
  • Shorter repayment period
  • Build equity faster
  • Pay much less long-term interest

The inconvenients

  • Higher monthly payments
  • Less money to invest each month
  • Less money available to save each month

When is the best time to refinance a 15 year mortgage?

The right time to refinance with a 15-year loan is when you can afford larger monthly payments, and that fits into your financial strategy. It’s an important commitment to go for a 15-year mortgage over a 30-year mortgage, but you pay off your mortgage sooner and potentially save tens of thousands of dollars in interest.

If you currently have a mortgage balance of $ 300,000, this is what you would pay for a 15- and 30-year refinance loan, according to NextAdvisor mortgage calculator.

term of the loan Loan balance Interest rate Monthly payment Total interest
30 years $ 300,000 3% $ 1,264 $ 155,513
15 years old $ 300,000 2.3% $ 1,972 $ 55,013

Even with the lower interest rate you might qualify for on a 15-year loan, the monthly payment is $ 700 more per month. But, over the life of the loan, you paid almost $ 100,000 less in interest. That’s a big monthly commitment with the potential for significant savings. So before you go for a 15 year loan, make sure you can afford it and that it doesn’t take anything away from other priorities, like retirement or building a home. emergency fund.

What is a good 15-year refinance rate?

In 2020, the 15-year average refinancing rate fell below 2.25% for the first time. However, this does not necessarily mean that it is the best refinancing rate you will be able to qualify. And that doesn’t mean it’s a good deal for you.

Sometimes a low advertised rate can have points of call. These points are additional fees that you can pay in exchange for a lower rate. So you need to pay attention not only to your interest rate, but also to the upfront fees you pay for the loan.

Ultimately, a good 15-year refinance rate is significantly lower than the current rate you’re paying, saving you money on interest over time with a new loan.

How to find the best 15-year refinance mortgage rates

Your mortgage refinance rate will depend on your financial situation (eg, credit score and income, etc.), the equity in your home, and even the type of refinance you are applying for. So, to get the best 15-year refinance rates, you’ll have to shop around and compare mortgage lenders.

To qualify for the lower rates, you will need a high credit score (700+) and at least 20% of your home equity. You can also expect to pay a higher rate with a refinancing of collection compared to other types of refinancing because lenders consider it to be a riskier type of refinance loan.

Alternatives to 15-year refinancing

A 15-year refinance is just one financial tool that can help you reach your goals, but it might not be the only answer to what you’re trying to do.

This type of refinancing can lock you into a large monthly payment. If you’re not sure you can afford a 15-year loan in the long term, you can just pay off a 30-year loan as if it were a 15-year loan. Just make sure your lender knows you are making additional payments. In this scenario, you won’t be able to get the lower interest rate that 15-year loans often have, but you will save interest by paying off your loan sooner.

You can also consider a loan between 15 and 30 years. Some lenders offer 20-Year Mortgage Refinance Loans, which could save you years over the life of your current loan while committing to a slightly lower monthly payment.

Here’s how the monthly payment and the overall cost of your loan could change based on different loan terms and rates.

term of the loan Loan balance Interest rate Monthly payment Total interest
30 years $ 300,000 3% $ 1,264 $ 155,513
20 years $ 300,000 2.8% $ 1,633 $ 92,215
15 years old $ 300,000 2.3% $ 1,972 $ 55,013

Going for a 20-year refinance would cost you around $ 339 less per month compared to a 15-year loan. But you would still save over $ 63,000 in interest over the life of the loan.

About Robert Wright

Check Also

IFC finances Banco Alfa’s initiative to foster the clean mobility market in Brazil

Press release IFC São Paulo, December 22, 2020—IFC, a member of the World Bank Group, …