Today’s Mortgage Refinance Rates, February 23, 2021 | Rates ratchet higher

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Today, a number of closely followed mortgage refinance rates made gains.

Both 15-year fixed and 30-year fixed refinances saw their average rates go up. At the same time, average rates for 10-year fixed refinances also saw an increase.

Refinancing interest rates are constantly fluctuating. However, they’re presently abnormally low, making them a potentially great deal for borrowers. For those looking to refinance their existing mortgage, this can be a great opportunity to reduce your interest rate.

Refinance rates currently are:

Take a look at local refinance rates.

30-Year Fixed Refinance Rates

Right now, the average 30-year, fixed refinance has an interest rate of 3.13%, an increase of 21 basis points over the previous week. Just last month, a 30-year fixed refinance had a smaller average rate of 1.00%.

You can use our mortgage calculator to price out your monthly mortgage payments and find out how much less interest you’ll pay by making additional payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed-Rate Refinance

Currently, the average rate for a 15-year fixed refinance loan is 2.52%, an increase of 12 basis points from what we saw last week.

Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Fixed-Rate Refinance

The average 10-year, fixed refinance rate is 2.53%, an increase of 15 basis points what we saw last week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How Mortgage Refinance Rates Are Changing

Last year, we saw the lowest average mortgage rate trends on record. This trend could continue, as some experts predict mortgage rates will stay low in 2021, with the possibility that they will climb a bit higher much later this year. Where rates are trending, will largely depend on broader economic factors, such as unemployment and inflation.

We determine refinance rate trends using data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders nationwide supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate3.13%2.92%+0.21
15-year fixed refinance rate2.52%2.40%+0.12
10-year fixed refinance rate2.53%2.38%+0.15

Rates as of February 23, 2021.

Take a look at mortgage refinance rates for a number of different loans.

Factors Behind Today’s Refinance Rates

Refinance rates are impacted by your finances and the direction of the economy. Beyond that, your home and the type of refinance also influence the rate.

Factors that influence refinance rates include:

  • Refinance loan type
  • Your loan-to-value ratio
  • Yields for 10-year Treasury bonds
  • Inflation
  • Personal financial situation: Credit history, and debt-to-income ratio
  • Strength of the economy

Is Now the Right Time to Refinance?

For many borrowers, now is an excellent time to refinance because rates have been near historic lows. While refinance rates change day-to-day, if you can lock in a rate near 3%, which is an exceptionally low interest rate, you can save a lot of money. Just remember, you’ll need a high credit score to qualify for these ultra-low rates. Another thing to keep in mind: The Federal Housing Finance Agency has enacted a new 0.5% refinancing fee as of Dec. 1, 2020. This extra cost will apply to conventional refinance loans worth $125,000 or more. You’re likely to find many mortgage lenders that will add the additional fee into their loan offers in one way or another.

Current Landscape for Refinance Rates

The historically low interest rates we’ve experienced have helped fuel a hot market for mortgage refinancing. So at the same time that many homeowners can save with a refinance, the time it takes to close on a loan can be longer than usual under normal circumstances. Because of the economic downturn, some lenders tightened their lending standards. That means those with weaker financial profiles or less equity in their homes may find it more difficult to qualify for a refinance loan.

How to Get the Lowest Refinance Rate

Refinance rates are influenced by your personal finances. Having a healthier credit score and better debt-to-income ratios will typically receive a bigger reduction on the mortgage refinance rates they are offered.

But your personal financial situation isn’t the only consideration that affects the refinance interest rate you qualify for. The equity you have in the property also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

The type of mortgage loan has an affect on your mortgage refinance rate. Shorter-term refinance loans typically have better interest rates than mortgage refinance loans with longer repayment terms, all else equal. Also, if you want to turn your equity into cash with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.

How We Got These Rates

The rates we have included are averages provided by Bankrate and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same every day.

Bankrate receives this mortgage rate information from lenders across the nation, but it is possible that the referenced rates have changed since publishing this article.

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