Today's Mortgage Refinance Rates -- September 29, 2021: Rates Continue to Rise

Average mortgage refinance rates continue to tick up. Could a refinance still be right for you?

Average mortgage refinance rates are all higher on Wednesday, Sept. 29. Rates have been trending steadily up over the past week or so, but some homeowners may still find that now is a good time to refinance.

If you could benefit from a lower mortgage rate, take a look at today's average mortgage refinance rates to see if refinancing might be right for you:

Data source: Motley Fool Money's national mortgage interest rate tracking.

30-year mortgage refinance rates

The average 30-year mortgage refinance loan rate today is 3.209%, up 0.028% from yesterday's average of 3.181%. For each $100,000 refinanced at today's average rate, your monthly principal and interest payment would add up to $433. You'd pay total interest costs of $55,766 per $100,000 refinanced throughout your loan repayment period.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.880%, up 0.028% from yesterday's average of 2.852%. If you refinance at today's average rate, you'd be looking at a monthly principal and interest payment of $549 per $100,000 borrowed. You'd have total interest costs of $31,666 per $100,000 in refinanced mortgage debt over the life of the loan.

The 20-year refinance loan costs you $116 more per month than the 30-year option, but in the long run you're looking at interest savings of $24,100 over the life of the loan. If you can swing the higher monthly payment, the substantial interest savings could be worth it.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.442%, up 0.021% from yesterday's average of 2.421%. If you refinance at today's average rate, your monthly principal and interest payment would be $664 per $100,000 borrowed. For each $100,000 you refinance at today's average rate, total interest costs would add up to $19,582.

This loan type boasts the smallest payoff time and lowest interest rate, but in exchange you must be prepared to make significantly higher monthly payments. If you can comfortably manage the monthly payment that comes with the 15-year refinance loan, you stand to save a total of $36,184 in interest by choosing to cut your payoff time in half compared to the 30-year.

Should you refinance your mortgage right now?

Refinancing your mortgage can be a smart financial decision if you're able to reduce your interest rate and lower your monthly payments by securing a new home loan. However, there are a few key things to think about before you refinance.

First, if you extend your loan repayment term, you could end up paying higher total interest costs over time than with your existing mortgage. This can occur even if you qualify for a lower interest rate since you'd be paying interest over a longer time. You can avoid this issue by choosing a refinance loan with a shorter repayment term. Or you may decide you're willing to pay more interest over the life of your loan in exchange for a reduced monthly payment.

Second, you will have to consider closing costs, which are the upfront fees you'll be charged when you refinance a mortgage. Motley Fool Money's research revealed that closing costs on a refinance loan for a median value home total anywhere from $5,000 to $12,500. However, your closing fees will depend on the amount of your home loan, your location, and your lender.

You should eventually make up for these closing costs due to your lower monthly payments -- but that can take time. If you save $200 per month by refinancing and pay $6,000 in closing costs, you would take 2.5 years to break even. It's important to do the math and consider whether you'll stay in your home long enough for refinancing to pay off.

If you can reduce your mortgage interest rate by 1% or more (or somewhere close) and don't plan to move within the next few years, then refinancing might be right for you. Despite mortgage refinance rates being up a bit this week, they're still hovering not far off record lows, so many borrowers could find it's an ideal time to refinance their mortgage loans. If you find yourself in this category, be sure to compare rates and closing costs from the best mortgage refinance lenders to get some personalized offers. Rates can vary quite a bit between lenders, so comparing multiple offers is the best way to ensure you'll walk away with a good deal.