Today’s Mortgage Refinance Rates, July 21, 2021 | Rates Retreat

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Today, numerous benchmark refinance rates decreased.

Both the 15-year fixed and 30-year fixed saw their average rates slump. The average rate on 10-year fixed refinance mortgages also sank.

Refinancing rates are constantly fluctuating. However, rates have been hovering near historic lows for quite some time. For those looking to refinance their existing mortgage, this might be the perfect time to secure a record-low rate.

The average mortgage refinance rates are as follows:

You can discover the right refinance rate for you here.

What this means for homeowners

As refinance rates remain near 3%, there is still an opportunity to lock in a great rate for homeowners who haven’t refinanced in the last few years. But the decision to refinance isn’t just about the rate, there are closing costs to consider as well. So be sure that you plan on staying in your home long enough for the interest savings to outweigh the fees. And remember, even if you don’t pay anything upfront, the refinance closing costs are typically added to your loan balance. So you’re paying for it one way or another.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 2.96%, a decrease of 14 basis points over the previous week.

You can use our mortgage calculator to price out your monthly mortgage payments and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed Refi Rates

Currently, the average rate for a 15-year fixed refinance loan is 2.32%, a decrease of 11 basis points over the previous week.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

10-Year Refi Rates

The average 10-year, fixed refinance rate is 2.32%, a decrease of 13 basis points from 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.

Mortgage Refinance Rate Trends

The days of record-low mortgage rates could be over. In early March, mortgage rates inched above 3% for the first time since July, according to Freddie Mac’s weekly survey.

But rates should still remain favorable for borrowers throughout this year. Some experts predict mortgage rates will stay low, and will only start seeing consistent gains in the second half of the year. Whatever ends up happening with refinance rates in the long term will depend on broad factors, such as inflation and our economic recovery.

The table below shows how refinance rates have changed in the past week. This information is supplied by Bankrate, which compiles data collected from lenders nationwide. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate2.96%3.10%-0.14
15-year fixed refinance rate2.32%2.43%-0.11
10-year fixed refinance rate2.32%2.45%-0.13

Rates as of July 21, 2021.

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

Is It Still a Good Time to Refinance?

Record low refinance rates drove a surge in mortgage refinancing over the past year. But as interest rates have rebounded from all-time lows, the number of borrowers looking to refinance has begun to shrink.

However, even with the downturn, the interest in mortgage refinancing remains stronger than it was before the pandemic drove rates into the ground. This is because refinance rates are hovering at just over 3%, which is still a historically good deal, even if it’s higher than the recent lows.

So as we turn our backs on record-low interest rates, many borrowers are still able to save with a refinance. But many experts forecast that rates will continue to trend upward throughout 2021. So it’s reasonable to expect refinancing to get more expensive for borrowers as the year progresses.

How to Get the Lowest Refinance Rate

Your finances have a big effect on the refinance rate you get. Having a lower loan-to-value ratio for your home and a healthier credit score usually translates into a lower mortgage refinance rate.

Your personal finances aren’t the only thing that will impact your refinance interest rate. A better loan-to-value ratio (LTV) will help you secure a lower refinance rate. So it’s better to have more equity. Having at least 20% equity in your property is ideal.

Even the mortgage itself can determine what your mortgage refinance rate will be. A shorter-term refinance loan generally has better rates than refinance loans with longer repayment terms, all else equal. The type of refinance you need makes a difference in the refinance rate. Cash-out refinance loans typically have higher refinance interest rates than other loans.

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