Today’s 15-year refinance rates

Written by
Jeff Ostrowski
Edited by
Suzanne De Vita
Reviewed by
Greg McBride, CFA
Edited by
Suzanne De Vita
Reviewed by
Greg McBride, CFA
Dec. 23, 2024

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Top offers on Bankrate vs. national average interest rates
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Top offers on Bankrate: 5.42%
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National average:  6.17%

For the week of December 22nd, top offers on Bankrate are X% lower than the national average. On a $340,000 30-year loan, this translates to $XXX in annual savings.

Today's national 15-year refinance rate trends

For today, Monday, December 23, 2024, the national average 15-year fixed refinance interest rate is 6.22%, up compared to last week's rate of 6.05%. The national average 15-year fixed mortgage interest rate is 6.20%, up compared to last week's rate of 6.04%.

Whether you're buying or refinancing, Bankrate often has offers well below the national average to help you finance your home for less. Compare rates here, then click "Next" to get started in finding your personalized quotes.

We've determined the national averages for mortgage and refinance rates from our most recent survey of the nation's largest refinance lenders. Our own mortgage and refinance rates are calculated at the close of the business day, and include annual percentage rates and/or annual percentage yields. The rate averages tend to be volatile, and are intended to help consumers identify day-to-day movement.

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Written by
Jeff Ostrowski
Edited by
Suzanne De Vita
Reviewed by
Greg McBride, CFA

On Monday, December 23, 2024, the national average 15-year fixed refinance APR is 6.29%. The average 15-year fixed mortgage APR is 6.27%, according to Bankrate's latest survey of the nation's largest refinance lenders.

On Monday, December 23, 2024, the national average 15-year fixed refinance APR is 6.29%. The average 15-year fixed mortgage APR is 6.27%, according to Bankrate's latest survey of the nation's largest refinance lenders.

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.

How to refinance into a 15-year loan

  1. Set a clear financial goal: There should be a solid purpose to the refinancing — whether it’s to reduce your monthly payment, shorten the term of your loan or pull out equity for home repairs or debt repayment. 
  2. Check your credit score and history: You’ll need to qualify for a refinance just as you needed to get approval for your original home loan. The higher your credit score, the better refinance rates lenders will offer you — and the better your chances of underwriters approving your loan. While there are ways to refinance your mortgage with bad credit, spend a few months boosting your score, if you can, before you start the process.
  3. Determine how much home equity you have: Your home equity is the total value of your home minus what you owe on your mortgage. You may be able to refinance a conventional loan with as little as a 5 percent equity stake, but you’ll get better rates and fewer fees (and won’t have to pay for private mortgage insurance or PMI) if you have at least 20 percent equity. 
  4. Shop multiple lenders: Getting quotes from at least three mortgage lenders can save you thousands. Bankrate’s refinance rate table allows you to comparison-shop loans, to help you find the best fit for your financial needs.
  5. Get your paperwork in order: Gather recent pay stubs, federal tax returns, bank/brokerage statements and anything else your mortgage lender requests. Your lender will also look at your credit and net worth, so disclose all your assets and liabilities upfront. Having all your documents ready before starting the refinancing process can make it go more smoothly and often more quickly.
  6. Prepare for your home appraisal: Mortgage lenders typically require a home appraisal (similar to the one done when you bought your house) to determine its current market value.
  7. Come to closing with cash if needed: The closing disclosure, as well as the loan estimate, will list how the extra expense in closing costs to finalize the loan. You may need to pay 3 to 5 percent of your total loan at closing. 
  8. Keep tabs on your loan: Store copies of your closing paperwork in a safe location and set up automatic payments to make sure you stay current on your mortgage. 
Learn more: Guide to refinancing your mortgage

Why compare 15-year refinance rates today

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Bankrate insight

While mortgage rates are higher now compared to recent years, 15-year mortgage rates are still lower than those on 30-year loans — though there’s variation from lender to lender.

Shopping around for quotes from multiple lenders is key for every mortgage applicant. When you shop, consider not just the interest rate you’re being quoted, but also all the other terms of the loan. Be sure to compare APRs, which include many additional costs of the mortgage not shown in the interest rate. Some institutions may have lower closing costs and fees than others, or your current bank or credit union may extend you a special offer.

Don’t be afraid to walk away from your current lender when you refinance. If you can find a better deal elsewhere, go for it. Consider quotes from both online and traditional brick-and-mortar banks. Alternatively, look into working with a mortgage broker, who will present loan offers from wholesale lenders.

Pros and cons of a 15-year mortgage refinance

Here are the main pros and cons of a 15-year mortgage refinance:

Pros

  • Lower mortgage rates: Lenders charge lower interest rates for 15-year loans, mainly because they’re taking on risk for a shorter amount of time.
  • Less total interest paid: Along with a lower interest rate, compressing the repayment period to 15 years means you’ll wind up paying less in interest overall than you would with a longer-term loan.
  • Faster equity growth: With a 15-year loan, it’ll take less time to build equity in your home because more of your initial mortgage payments go towards principal rather than interest.
  • Stability: If you refinance to another fixed-rate loan, you’ll have consistent principal and interest payments. This might help you better map out your housing expenses for the long term. (Keep in mind your overall monthly housing expenses will change as your homeowners insurance and property taxes go up or down.)

Cons

  • Higher monthly payment: Repaying a mortgage over 15 years means you’ll have higher monthly payments compared to 30-year mortgages.
  • Buy less house: With higher payments, you might qualify for a smaller loan amount.
  • Less financial flexibility:Higher monthly payments can make it harder to budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

Not sure whether to commit to the higher monthly payments? You can mimic the effect of refinancing to a 15-year loan by simply making extra payments on your existing 30-year loan. (This is an option with most every lender, but contact yours to confirm.) You’ll pay less interest and shorten the pay off time while still keeping some wiggle room. Should a financial emergency arise, you can revert to your original, lower payment amount for that month, or as long as you need to, without incurring any penalties.

Deciding between a 15-year refi and increasing payments on your existing loan? You can use our additional mortgage payment calculator to see how extra payments will shorten your pay-off time and lower your interest costs.

When to consider a 15-year refinance

If you currently have a 30-year mortgage and have room in your budget for a higher monthly mortgage payment, refinancing to a 15-year fixed-rate loan can make good financial sense. You’ll still have the stability of knowing that the monthly payment won’t change, while getting the benefit of a lower interest rate. Plus, you’ll pay off your home faster, freeing up money for other financial goals like saving for retirement when you do. Keep in mind that you need to show the lender that you have enough income to cover a higher payment in order to qualify for the new loan.

On the other hand, if your main goal is to achieve the lowest possible payment, you're better off refinancing to a 20- or 30-year mortgage. While starting fresh with a new long-term loan isn’t the right tactic for everyone, it is an option, especially if you need to trim monthly expenses.

It might be a good time to refinance into a 15-year loan if:

  • You’ve gotten a raise: Say you took a 30-year mortgage five years ago, but your income has risen considerably since then. In that case, it could make sense to refinance into a 15-year loan. Your payments will be higher compared to a 30-year loan, but your higher income could allow you to absorb the new cost and pay down your loan in half the time.

  • The monthly payments on a 15-year mortgage won’t be much higher than you’re already paying: This can be especially compelling if your credit score has improved significantly, or if you want to refinance out of an FHA mortgage and its steep mortgage insurance premiums.

  • You're halfway into a 30-year mortgage: Granted, not many borrowers keep loans this long, but if you’re at the halfway point of your 30-year loan, the time could be right for refinancing to a 15-year one. For one thing, your rate is likely much higher than what you’d pay today. For another, you’ll have a lower principal balance after all those years of repayment.

Bankrate's 30-year vs. 15-year mortgage calcultator

Your monthly mortgage payment will probably be the largest line item in your household budget. Impacting the size of those payments is the sort of mortgage you choose — particularly a 15-year vs. a 30-year mortgage.

Compare your payments

Should you refinance to a 15-year loan or another 30-year loan?

Glenn Brunker

President, Ally Home

"People typically refinance to lower their interest rate or extract cash from the equity in their home. With nearly 90 percent of U.S. homeowners locked in at a mortgage rate below 6 percent, refinancing is likely not applicable. Generally, if you have the opportunity to afford a higher monthly payment, refinancing to a 15-year loan is more advantageous and will reduce the number of payments made and overall interest."

Andrew Dehan

Writer, Home lending

"Generally, if you can refinance to a 15-year loan at a lower rate and not significantly increase your monthly payment, I’d say go for it. However, if the payment’s going up enough that it restricts your cash flow, you may want to consider a 30-year loan. Financial flexibility is incredibly valuable, even if it means you don’t pay off your mortgage as soon as you’d like."

15-year refinance mortgage FAQs

Additional resources on 15-year refinancing

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Suzanne De Vita, Senior Editor, Home Lending

I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.

Read more from Suzanne De Vita

Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate

Greg McBride is a CFA charterholder with more than a quarter-century of experience in personal finance, including consumer lending prior to coming to Bankrate. Through Bankrate.com's Money Makeover series, he helped consumers plan for retirement, manage debt and develop appropriate investment allocations. He is an accomplished public speaker, has served as a Wall Street Journal Expert Panelist and served on boards in the credit counseling industry for more than a decade and the funding board of the Rose Foundation’s Consumer Financial Education Fund.

Read more from Greg McBride

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