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Today, a few closely followed refinance rates decreased.
Both 15-year fixed and 30-year fixed refinances saw their mean rates decline. And average rates for 10-year fixed refinances also went down.
Refinancing rates are constantly shifting. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this might be the perfect time to secure a record-low rate.
Here are the average rates for 30-year, 15-year, and 10-year refinance loans are:
- 30-year fixed refinance rates are averaging 3.12%
- The average 15-year fixed refinance rates is 2.40%
- Today, the average 10-year fixed refinance rate is 2.38%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.12%, a decrease of 2 basis points from what we saw last week.
You can use our mortgage calculator to price out your monthly mortgage payments and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Fixed-Rate Refinance Rates
For 15-year fixed refinances we’re seeing an average rate of 2.40%, a decrease of 2 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 Rates
The average 10-year, fixed refinance rate is 2.38%, a decrease of 4 basis points from a week ago.
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.
Mortgage Refinance Rate Trends
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.
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:
|30-year mortgage refinance rate||3.12%||3.14%||-0.02|
|15-year fixed refinance rate||2.40%||2.42%||-0.02|
|10-year fixed refinance rate||2.38%||2.42%||-0.04|
Rates as of June 8, 2021.
Is Now Still a Good Time to Refinance?
The past year was a historically excellent time to refinance because rates had never been lower. However, since January mortgage rates have crept up and crossed the 3% threshold for the first time since last summer.
Even though the days of record breaking refinance rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can lock in today’s rates that are just north of 3%, you are getting a deal with a close to all-time low rate.
So there is still time to save with a refinance, but that window is closing. Many experts are predicting rates to continue to increase as the economy returns to pre-pandemic levels over the next year.
How to Get the Best Refinance Rate
Refinance rates vary depending on your personal financial situation. Those with higher credit scores and better DTI ratios will usually be able to obtain better interest rates.
But your personal financial situation isn’t the only thing that will impact the refinance rate you qualify for. A better loan-to-value ratio (LTV) will help you secure a better refinance rate. So it’s better to have more equity. Having at least 20% equity in your property is ideal.
The type of mortgage loan can determine your mortgage refinance rate. A loan with a shorter repayment term generally has lower refinance rates than 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.