Today’s 15-Year Refinance Rates

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ByChristopher Boston
Edited byVictoria Copans

Updated: August 26, 2023

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Homeowners often consider refinancing their mortgage to save money or optimize their current loan. There are several loan terms available for refinances, and the 15-year is a popular choice. However, there are many factors to take into consideration before taking the plunge, and 15-year refinance rates sit high on that list. We'll explore these rates to help you navigate this significant financial decision.

Current 15-Year Mortgage Refinance Rates

Today’s 15-year refinance mortgage rates average around 6.5% to 7%. Knowing the current rates provides a benchmark, helping you identify if it's a favorable time to refinance, which can potentially lead to significant savings on interest over the life of the loan. So, whether you're looking to lower monthly payments or reduce your loan term, staying updated on 15-year refinance mortgage rates is a smart move.

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What Are 15-Year Refinance Rates?

15-year refinance rates indicate the interest you'll pay when refinancing over a 15-year term and can differ from your original mortgage rates. When you first purchase a home, lenders set your rate based on factors specific to that time, like your credit score, the housing market and overall economic conditions. These factors change and evolve over time, and so do interest rates.

Refinancing offers homeowners a chance to tap into current, possibly lower rates. While 15-year refinance mortgage rates may be different from your original rate, they often offer the benefit of lower total interest over the loan's duration, given their shorter term. Deciding to refinance requires weighing these differences against your financial landscape and long-term plans.

15-Year Refinance Options

Armed with a clear understanding of 15-year refinance rates, you’re better positioned to explore different refinancing options. Familiarizing yourself with the options available allows you to tailor your mortgage journey and keep it aligned with your financial needs and goals. Remember, not all refinance types offer the same rates, and each comes with its unique advantages and ideal scenarios.

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Finding the right option for you involves research and a thorough understanding of your financial situation and needs to ensure that you capitalize on the best 15-year refinance opportunities.

What Affects 15-Year Refinance Rates?

15-year refinance rates aren't static — they move in response to different factors. Understanding what influences these rates can help you better anticipate rate shifts and make informed refinancing decisions. Here are some elements that drive fluctuations in refinance rates:

Global and National Events. Economic events, from trade wars to global recessions, can sway mortgage rates. For instance, a significant economic downturn might push rates lower as governments aim to stimulate borrowing.

Credit Profile. Your financial history plays a pivotal role. A strong credit score and financial reliability often secure better rates. Someone with a credit score of 780 is likely to get more favorable rates than someone with a score of 650.

Lender Specifics. Lenders have different overheads, profit goals and risk assessments. That means the rate one lender offers might vary from another. Shopping around can often help you find a better deal.

Knowing what influences 15-year refinance rates allows you to gauge when to refinance to secure the most beneficial rate possible.

Pros and Cons of a 15-Year Refinance

Securing a 15-year refinance isn’t something you decide overnight. You can better evaluate if this option aligns with your long-term financial goals if you consider the benefits and potential pitfalls.

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Choosing a 15-year refinance isn't just about the rates — it's about the bigger financial picture. By carefully weighing the pros and cons, you can make a choice that fulfills your current needs without sacrificing your future goals.

When to Consider a 15-Year Refinance

Let’s look at several scenarios where a 15-year refinance is the smart move. Recognizing these situations can help you evaluate your own situation and determine whether refinancing aligns with your goals.

Early Retirement Goals: Ella the Educator

Ella, a dedicated school principal, is eyeing early retirement. She wants to ensure she's free from mortgage payments by the time she's 60. By switching to a 15-year refinance, Ella can synchronize her mortgage payoff date with her retirement plans, giving her financial freedom as she dives into her golden years.

Equity Boost for Future Plans: Sam the Software Engineer

Sam dreams of starting a tech consultancy in a decade. For that, he'll need a substantial investment. Refinancing to a 15-year mortgage allows Sam to build equity faster. In ten years, he could leverage it to kickstart his dream venture.

Empty Nest Readiness: Maya and Raj the Restaurateurs

With their kids heading to college in a few years, Maya and Raj wish to downsize to a smaller home. Opting for a 15-year refinance will help them gain more equity, facilitating a smoother transition when they're ready to sell and move to that cozy condo downtown.

Stability Seeker: Liam the Librarian

Liam values consistency. The fluctuating rates of his current adjustable-rate mortgage give him unease. By choosing a 15-year refinance, Liam locks in a stable rate, ensuring predictability in his monthly expenses and shielding him from potential future rate hikes.

Financial Fresh Start: Zoe the Zookeeper

After a challenging period, Zoe is on a stable financial path and earns a comfortable salary. She wants to make the most of her fresh start. A 15-year refinance allows Zoe to save considerably on interest over time, making her hard-earned money work smarter for her.

Every homeowner's journey is unique, and recognizing when a 15-year refinance is the right tool for you can be instrumental in attaining your financial goals.

How to Refinance Into a 15-Year Loan

The path to a 15-year refinance becomes less overwhelming with a clear roadmap. Understanding the steps and requirements helps you visualize the process and effectively utilize 15-year refinance mortgage rates as a tool for a brighter financial future.

  1. Assess Your Financial Situation. Start by reviewing your finances. Look at your credit score, debt-to-income ratio and current home equity since these can impact your eligibility and the interest rates offered to you.

  2. Research Current Rates. Before diving in, get an idea of the current 15-year refinance mortgage rates, which will give you a benchmark to compare offers and ensure you're getting a competitive rate.

  3. Gather Necessary Documentation. Lenders typically require proof of income, employment, credit history and current home value. Collect recent pay stubs, tax returns, employment verification and other pertinent documents.

  4. Choose a Lender. Not all lenders are created equal. Research and select one that offers competitive rates, favorable terms and has a solid reputation. Consider both your current bank and new financial institutions.

  5. Get a Rate Quote. Once you’ve selected a lender, request a rate quote. This provides an estimate of the interest rate, monthly payments and total cost of the loan.

  6. Submit Your Application. With your chosen lender and rate quote in hand, fill out the refinance application. This might involve a hard credit check, so ensure all your details are accurate.

  7. Get a Home Appraisal. Lenders usually require an appraisal to determine the current value of your home. It affects how much you can refinance and the terms of the loan, making it a crucial step.

  8. Review and Close. Once approved, you'll receive a loan estimate and closing disclosure. Review these documents meticulously. If everything checks out, schedule a closing date to finalize your refinance.

Taking the reins on your financial journey means being proactive and informed, which will in turn help you get competitive 15-year refinance rates and have a positive refinance experience.

Costs Associated with 15-Year Refinances

A 15-refinance doesn’t come free. Similar to your original mortgage, there are several costs associated with it. Here are the more common ones:

  • Origination Fee: This is charged by the lender to process the new loan. It's typically a percentage of the loan amount.

  • Appraisal Fee: Since refinancing often requires a new appraisal of your home to determine its current value, you'll need to pay for this service.

  • Closing Costs: These are the various fees associated with finalizing the loan, such as title searches, title insurance and document recording.

  • Discount Points: These are optional fees that you can pay upfront to reduce your interest rate over the life of the loan.

  • Escrow and Title Fees: These fees cover the cost of managing the escrow account (where funds are held before they're disbursed) and ensuring the title is clear of any issues.

  • Prepayment Penalty: Some existing mortgages have penalties for paying off the loan early. While not common for many new loans, it's essential to check your current mortgage terms.

  • Private Mortgage Insurance (PMI): If you have less than 20% equity in your home, you might be required to pay PMI, which protects the lender in case you default on the loan.

It's important to understand these costs when considering a refinance because they can impact the overall savings of refinancing. Always ask your lender for a detailed list of fees and charges associated with the refinance so you can make an informed decision.

Strategies to Get the Best 15-Year Refinance Mortgage Rates

Making the most of your financial decision means finding the best rates for your 15-year refinance. More competitive rates can translate to significant savings over time, helping your financial wellbeing in the long run. Here are some strategies to help you secure the best rates:

  • Consider Paying Points: By paying mortgage points upfront, you can lower your interest rate. Each point typically costs 1% of your loan amount but can save you money in the long run if you plan to keep your house for more than a few years.

  • Watch the Market: Interest rates fluctuate based on various economic factors. Keeping an eye on market trends allows you to refinance when the 15-year refinance rates are favorable.

  • Opt for a Rate Lock: Once you've found a rate you're comfortable with, consider locking it in. A rate lock ensures it won't increase while your loan application is being processed. It can be particularly beneficial during times of market volatility.

  • Refinance With Your Current Lender: Sometimes, your current lender might offer you a streamlined refinance with fewer requirements and potentially better rates. It's worth checking with them before looking elsewhere.

  • Avoid Making Large Purchases: Avoid making large credit-dependent purchases like a car when considering a refinance. It can affect your credit score and debt-to-income ratio, potentially resulting in higher refinance rates.

By adding these strategies to your toolkit, you increase your chances of obtaining optimal 15-year refinance rates, further ensuring that you're making a financially sound decision.

Frequently Asked Questions

Understanding your refinance options is key to making the right financial decisions. These commonly asked questions provide quick insights into concerns other homeowners have about 15-year refinance rates.

Yes, especially if you prefer stable monthly payments. Switching protects you from potential rate hikes in an ARM, offering more predictability.

A 15-year loan often has lower interest rates but higher monthly payments. A 30-year loan spreads costs out, resulting in lower monthly payments but more interest over time.

Typically, 15-year refinance rates are lower than rates for longer terms, such as 30-year loans. This is because lenders take on less risk with shorter loan durations.

With a 15-year refinance, you'll usually pay less interest over the life of the loan compared to longer terms, leading to significant long-term savings.

Rates can change daily due to various economic factors, including decisions by the Federal Reserve, inflation data and broader economic news.

Yes, you can. If circumstances change, you can refinance to a longer or shorter term based on your needs and the prevailing rates.

About Christopher Boston


Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.


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