Updated for July, 2025
If you’re thinking about refinancing your mortgage, here are a couple important things to consider:
- What is your current mortgage rate (APR)?
- How much do you still owe on your mortgage?
- How much will you save by refinancing
Although these are all important questions to ask when thinking about refinancing, by far, the most important factor is your mortgage interest rate.
Your mortgage interest rate is how much money you’re paying the bank to borrow money. And because interest rates are currently so low, if you can replace your current interest rate (for simplicity’s sake say it’s 6%) with a lower rare of 4%, you’ll automatically save money.
Refinance to Save Money
Simply put, if refinancing will save you money, you do it. It’s that simple. There are some other reasons to refinance your mortgage, but saving money is the primary reason.
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Average Annual Mortgage Rate Chart
| Year | Average 15-Year Mortgage Rate |
|---|---|
| 2021 | 2.20% |
| 2020 | 2.61% |
| 2019 | 3.39% |
| 2018 | 4.00% |
| 2017 | 3.38% |
| 2016 | 2.93% |
This table shows the annual average 15-year rate fixed mortgage for each of the following years dating back to 2016. Due to historically low mortgage rates, experts recommend locking in your rate soon, because rates can’t stay this low forever.
