Today’s Mortgage Refinance Rates, July 22, 2021 | Rates Tick Lower

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Today, a few closely followed refinance rates trailed off.

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

Refinancing interest rates are constantly shifting. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this might be a great opportunity to reduce your interest rate.

Refinance rates currently are:

Check out mortgage refinancing rates for your area here.

What this means for homeowners

If you haven’t refinanced in the past few years, rates are still low enough that it’s worth looking into. However, refinance fees normally range from 3% to 6% of the loan amount. So be sure that whatever you’re saving in interest payments will outweigh the fees you’ll pay. And it’s important to be aware that even a “no-closing-cost” refinance still has fees, they are just typically added to your loan balance instead of being paid out of pocket.

30-Year Refi Rates

Right now, the average 30-year fixed refinance has an interest rate of 2.96%, a decrease of 14 basis points from what we saw last week.

You can use our mortgage calculator to get an idea of what your monthly payments will be 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.

Average 15-Year Fixed Refinance Rates

For 15-year fixed refinances we’re seeing an average rate of 2.32%, a decrease of 11 basis points over the previous 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 Refinance Rates

The average 10-year, fixed refinance rate is 2.31%, a decrease of 13 basis points from the rate observed over the previous 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.

Refi Rate Trends

The days of all-time historically 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. Experts see rates staying low throughout 2021, and that during the back half of 2021 it’s more likely that rates will make steady gains. Where refinance rates move 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 rate2.31%2.44%-0.13

Rates as of July 22, 2021.

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

Should I Refinance Right Now?

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 Best Refi Rate

Mortgage refinance rates vary depending on your personal financial situation. Those with higher credit scores and lower loan-to-value (LTV) ratios will typically be able to secure lower refinance rates.

But your personal financial situation isn’t the only factor that impacts your mortgage refinance rate. Your property’s value compared to your loan balance also factors into the decision. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself has an affect on your refinance rate. A shorter-term refinance loan usually has better interest rates than loans with longer repayment terms, all else equal. Also, if you want to pull cash out of your home with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.

Mortgage Interest Rates by Loan Type

Mortgage Refi Rates

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