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Today’s 15-year refinance rates

Oct. 03, 2024

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On Thursday, October 03, 2024, the national average 15-year fixed refinance APR is 5.51%. The average 15-year fixed mortgage APR is 5.50%, according to Bankrate's latest survey of the nation's largest refinance lenders.

On Thursday, October 03, 2024, the national average 15-year fixed refinance APR is 5.51%. The average 15-year fixed mortgage APR is 5.50%, 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. 

Why compare 15-year refinance rates today

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Bankrate insight

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.

When to consider a 15-year refinance

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."

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

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