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Today, a few closely followed refinance rates dropped off.
Both 15-year fixed and 30-year fixed refinances saw their mean rates trail off. And average rates for 10-year fixed refinances also saw a decrease.
Mortgage refinance rates are constantly fluctuating. However, they’re currently very low. For those looking to refinance their existing mortgage, this might be the right move to lock in a great deal on an interest rate.
Here are the average rates for 30-year, 15-year, and 10-year refinance loans are:
- The average 30-year fixed-rate refinance is 3.13%
- Currently, the average 15-year fixed-rate refinance is 2.40%
- Currently, the average 10-year fixed-rate refinance is 2.40%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.13%, a decrease of 1 basis point 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-Rate Refinance Rates
For 15-year fixed refinances we’re seeing an average rate of 2.40%, a decrease of 2 basis points over the previous week.
Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.
10-Year Fixed-Rate Refinance Rates
The average 10-year, fixed refinance rate is 2.40%, a decrease of 2 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
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. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.
The table below shows refinance rates trends from the past week. This information is provided by Bankrate, which compiles data collected from lenders across the country. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
|30-year mortgage refinance rate||3.13%||3.14%||-0.01|
|15-year fixed refinance rate||2.40%||2.42%||-0.02|
|10-year fixed refinance rate||2.40%||2.42%||-0.02|
Rates as of June 9, 2021.
Is Now 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 Qualify for the Best Refinance Rate
Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit score and better DTI ratios will usually get a bigger reduction on the mortgage refinance rates they are offered.
Your personal finances aren’t the only consideration that affects the refinance rate you qualify for. The equity you have in the property also comes into play. Having at least 20% equity in your property is ideal.
Even the mortgage itself can determine your mortgage refinance rate. A shorter-term refinance loan typically has lower interest rates than a loan with longer terms. Also, if you want to pull cash out of your home with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.