Today’s 15-year refinance rates

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• Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.

• “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.

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A 15-year, fixed-rate refinance mortgage replaces your current mortgage with a new one that has new terms — specifically, a 15-year repayment schedule. People look at 15-year refinances to save money by either securing a lower interest rate, lowering the repayment period or both. While you might save in the long run, 15-year refinances typically have higher monthly payments than 30-year loans. 

To refinance a home, you’ll need a strong credit score, typically 620 or higher for a conventional refinance. You’ll also need sufficient cash flow to support the new monthly payment, as well as expenses such as repairs, maintenance and emergencies.

One alternative is to try a different term. The 30-year and 15-year terms get all the attention, but they’re not the only games in town: A 20-year mortgage speeds up your repayment rate without bumping your payment as dramatically as a 15-year amortization. And if you really want to retire that debt, you can opt for a 10-year term. You can also keep your 30-year loan but make extra payments or put a little more toward the principal each month. Or you could set up automated biweekly payments — this strategy means you essentially make an extra monthly payment over the course of a year. (Make sure that your lender is applying your biweekly payments to your principal.) In any of these scenarios, you’ll pay down your principal faster than 30 years. 

Some people choose an ARM when they purchase their home, perhaps because they didn’t plan to stay in the home for long or needed a low monthly payment to get settled. Priorities can change over time, though. Refinancing to a 15-year, fixed-rate loan from your current, adjustable-rate mortgage could provide you with stability, predictability and significant savings. For example, with a 5/1 ARM, the interest rate would reset after five years. That means if the market rate rises, your interest rate and monthly payment would also rise.

Read more about refinancing from an ARM into a fixed-rate mortgage.

Refinancing comes with closing costs, just like original purchase mortgages. Closing costs vary, but they can range from 2 to 5 percent of the loan amount. On a $100,000 refinance, closing costs of 3 percent would be $3,000 — not an insignificant sum. Since the goal of refinancing is to save money, you’ll want to calculate how long it will take you to break even on the closing costs and start realizing actual savings. Our refinance calculator helps you quickly figure out how long it will take you to recoup closing costs so you can decide if refinancing is worthwhile.