Today’s Mortgage Refinance Rates, November 12, 2020 | Rate rises

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Today a number of benchmark mortgage refinance rates saw growth.

The average rate for a 15-year fixed refinance saw a downtick, while 30-year fixed-rate refinances made gains. In addition, the average rate on 10-year fixed refinance moved up.

Refinancing rates are constantly fluctuating. However, they are exceptionally low right now. For those looking to refinance their existing mortgage, this can be the perfect time to secure a record-low rate.

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 3.16%, an increase of 10 basis points what we saw last 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 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

For 15-year fixed refinances we are seeing an average rate of 2.58%, a decrease of 14 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 save you thousands of dollars interest over the life of the loan.

10-Year Fixed-Rate Refinance

The average 10-year fixed refinance rate is 2.59%, an increase of 1 basis point what we saw last week.

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.

Where Are Rates Going

To determine refinance rate trends, we use 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:

Average refinance interest rates
ProductRateA week agoChange
30-year fixed refi3.16%3.06%+0.10
15-year fixed refi2.58%2.72%-0.14
10-year fixed refi2.59%2.58%+0.01

Rates as of November 12, 2020.

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

Is This 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%, that’s an exceptionally low interest rate. One caveat is that in order to be eligible for the historically low rates you’ll need a strong financial profile. Having a low debt-to-low income ratio, strong credit score, and a healthy down payment is essential. 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 Refinance Rate Market

The historically low interest rates we’ve experienced have helped fuel a hot market for mortgage refinancing. For many borrowers now is a good opportunity to refinance, but you should expect to have a longer wait than usual to close on your new mortgage. And as some mortgage lenders become more risk averse you’re more likely to run into stricter lending guidelines. So borrowers with blemishes on their credit report or who have recently changed jobs may find themselves unable to qualify for a refinance.

When Should You Refinance?

Refinancing a mortgage is a great way to cut your interest cost by getting a lower rate or opting for a shorter repayment term.

Obtaining a better interest rate can reduce your monthly payments and save you on interest in the long haul. You can also accomplish the same goal by changing your repayment terms. If you opt for a longer term, you could lower your monthly payments. The trade off to this strategy is you’ll end up paying more interest over the life of the loan. On the other hand, if you refinance to a shorter term loan, say a 15-year mortgage, you’ll pay off your loan sooner and end up paying less interest as a result. Of course, 15-year mortgages have noticeably higher monthly payments compared to 30-year loans. The historically low interest rates that are currently available may allow you to take advantage of a shorter repayment term without increasing your monthly payments by an unreasonable amount. It just depends on how much you’re able to reduce your interest rate by.

If you have a home improvement project you’ve finally got the time to finish, you may be able to fund it with a cash-out refinance. A cash-out refinance enables you to convert the equity you’ve built up in your home into cash. You’ll be taking out a bigger mortgage, but with interest rates where they are, it can be a low-cost way to fund a costly home upgrade.

How to Refinance Your Mortgage

Comparing offers from multiple lenders is essential to getting the best deal on a refinance. To compare offers from every lender you need to look at more than just the interest rate. You should carefully look at the Loan Estimate form each lender will provide after you apply and be sure you’re paying comparable fees.

What do You Need to Refinance?

Refinancing is a similar process to taking out a mortgage for a home purchase. During the underwriting process your lender will review your employment, check your credit, and you’ll be required to provide documents to verify your income. To avoid unnecessary delays communicate with your lender and have the documentation you need ready to go ahead of time.

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.

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