Today, a few closely followed refinance rates went down.
We saw 15-year fixed-rate refinance averages remain the same, while 30-year fixed refinance rates trailed off. In addition, the average rate on 10-year fixed refinance shrank.
Refinancing rates are constantly changing. However, rates have been hovering near historic lows for quite some time. For those looking to refinance their existing mortgage, this may possibly be a great opportunity to reduce your interest rate.
Refinance rates currently are:
- The average 30-year fixed-rate refinance is 2.89%
- 15-year mortgage refinance rate: 2.39%
- 10-year mortgage refinance rate: 2.38%
Compare refinance rates for a wide range of different loans here.
30-Year Fixed Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 2.89%, a decrease of 1 basis point 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 determine how much your mortgage will cost you every month 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 2.39%, unmoved from a week ago.
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 2.38%, a decrease of 4 basis points what we saw last week.
Monthly payments with a 10-year refinance term would cost a massive amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
How Mortgage Refinance Rates Have Changed
Last year, we saw the lowest average historical mortgage rates 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. The direction rates end up going, will largely depend on broader economic factors, government policies, and decisions made by the Federal Reserve.
The table below shows refinance rates trends from the past week. This information is supplied by Bankrate, which aggregates data collected from lenders across the country. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year mortgage refinance rate | 2.89% | 2.90% | -0.01 |
| 15-year fixed refinance rate | 2.39% | 2.39% | N/C |
| 10-year fixed refinance rate | 2.38% | 2.42% | -0.04 |
Rates as of January 29, 2021.
Take a look at mortgage refinance rates for a number of different loans.
What Influences Today’s Refinance Rates?
While there is no single entity that sets refinance rates, the Federal Reserve has an outsized influence on them. When it decides to increase its purchase of mortgage-backed securities, you’ll normally see mortgage rates drop. The Federal Reserve decisions can also impact inflation, which can influence where rates are headed.
The good news is, there are things you can control when you’re shopping for the best refinance rate. Your home’s equity is important. Having at least 20% equity will help you to get the lowest possible rate. You also need to pay attention to your personal finances, the best refinance rates are usually available to those with better credit scores, and less debt.
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. Keep in mind, you will need a high credit score to qualify for these ultra-low rates. Also, if you’re closing on a refinance after Dec. 1, 2020, your loan might end up being more expensive. That’s when the Federal Housing Finance Agency is adding a new refinancing fee of 0.5% on conventional refinance loans of $125,000 or more.
Current Landscape for Refinance Rates
Lenders have been unusually busy with refinance loans because of the low interest rates. So while 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 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.
National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.
Mortgage Interest Rates by Loan Type
- 30 Year Fixed Refinance Rates
- 15 Year Fixed Refinance Rates
- VA Refinance Rates
- Jumbo Refinance Rates
- 30 Year Fixed Mortgage Rates
- 20 Year Fixed Mortgage Rates
- 15 Year Fixed Mortgage Rates
- 10 Year Fixed Mortgage Rates
