Our experts answer readers' home-buying questions and write unbiased product reviews (here's how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
For borrowers considering a refinance, getting a good mortgage rate is vital. Refinancing your mortgage isn't cheap, but getting a low rate can help you earn back what you spend, in addition to freeing up space in your monthly budget for other financial goals.
The exact rates available to you will depend on your individual financial situation as well as what the mortgage lenders you apply with can offer you. To ensure you're getting a good deal, check out today's 30-year refinance rates.
30-year refinance rates
In November, 30-year refinance rates averaged around 7.42%, according to Zillow data. This is 31 basis points lower than they were the month before, and it's also 31 basis points above November's average 30-year mortgage rate for purchase mortgages.
Rates have dropped across the board in recent weeks, and 30-year refinance rates are now below 7%.
For those looking to refinance, mortgage rates should go down in 2024 and 2025. Borrowers who initially got their mortgages when rates were at their peak may have an opportunity to refinance into a lower monthly payment in the next year or two.
See how the today's 30-year refinance rates compare to other types of refinance loans.
Average 30-year refinance rates vs. 15-year refinance rates
The longer your term, the higher your mortgage refinance rate will be.
In the first half of 2023, the average 30-year fixed rate was 0.72 percentage points higher than the average 15-year fixed rate, according to Freddie Mac data. This means that over the life of the loan, 30-year borrowers could end up spending hundreds of thousands more in interest than 15-year borrowers.
However, the benefit of a 30-year mortgage is that it comes with lower monthly payments. A borrower with a 30-year mortgage may spend more in interest, but they'll also have a monthly mortgage payment that's hundreds of dollars cheaper than a comparable 15-year mortgage borrower.
Mortgage calculator
Use Insider's free mortgage calculator to see how a lower rate could impact your monthly payment.
How to find the best 30-year refinance rates
You don't necessarily need to work with your current lender when you refinance. The best thing you can do to ensure you get a low refinance rate is get preapproved with at least two or three mortgage lenders to compare offers.
Additionally, if you have room to improve your credit, doing things like paying down debt can help boost your score and get you a better rate.
Pros and cons: 30-year fixed-rate refinance
Pros
- Lower monthly payments. If you have less than 30 years left on your current mortgage, you could potentially lower your monthly mortgage payment by a significant amount when you refinance into a 30-year term.
- Predictable payments. Unlike adjustable-rate mortgages, fixed-rate mortgages keep your rate the same for the entire life of the loan, meaning your monthly payment won't change (other than adjustments for taxes or insurance).
- Flexibility. If you want a shorter term, like a 15-year mortgage refinance, but aren't sure you can handle a higher monthly payment, you can always get a 30-year refinance and treat it like a shorter-term mortgage. This way you can pay more toward your principal when you have extra cash, but you'll still have a lower payment just in case you need to use that money elsewhere.
"Almost all 30-years can be paid off early, and any additional payments you make over your monthly obligation can be directed toward principal only," says Shawn O'Regan, a real estate broker and owner of Vee Real Estate Brokers in Raleigh, North Carolina. "So you can quickly reduce you loan balance and interest, since interest is calculated monthly based on the remaining balance."
Cons
- Higher rates. Longer mortgage terms come with higher interest rates than shorter terms.
- Pay more in interest. The longer it takes you to pay off your mortgage, the more you'll pay in interest. If you're refinancing from a shorter term into a 30-year mortgage, you'll probably be significantly increasing the amount you'll pay over the life of the loan.
Is it a good time to refinance into a 30-year fixed-rate mortgage?
Whether or not it's a good time to refinance depends on your current rate and if it's higher or lower than today's average rates.
For most borrowers, now probably isn't a good time to refinance. Many homeowners already have mortgage rates that are significantly lower than current rates, so refinancing likely wouldn't save them any money.
Should I get a 30-year fixed-rate refinance?
If you're considering a refinance, it's important to think about your goals.
Typically, homeowners refinance when they want to decrease their monthly payment, lower their interest rate, or take cash out of their home. But doing so is only worth it if the benefits outweigh the costs.
Because you'll pay closing costs, it can cost a couple thousand dollars or more to refinance. If you plan to move soon or you can't get a lower rate, it could be difficult or impossible for you to recoup the cost of refinancing.
30-year cash-out refinance
If you want to take out some of the equity you have in your home while also replacing your current mortgage, you'll want to get a cash-out refinance. The cash you get at closing from one of these refinances can be used for whatever you want, though people commonly use it to fund home projects or repairs or to pay off other debt.
To get a 30-year cash-out refinance, you'll first want to make sure you have enough equity. Lenders will typically let you borrow up to 80% of your home's value.
30-year refinance rates frequently asked questions
What is the 30-year refinance rate today?
Mortgage rates have dropped in recent weeks. Average 30-year refinance rates were 7.42% in November, and they're even lower today.
Can a 30-year fixed mortgage be refinanced?
You can refinance a 30-year fixed-rate mortgage if you want to lower your rate, change your term, or take cash out of your home with a cash-out refinance.
When should I refinance my 30-year mortgage?
When you should refinance depends on your goals. If you want a lower rate on your mortgage, you may need to wait, since today's 30-year refinance rates are higher than they've been in recent years.