Current Mortgage Refinance Rates, November 16, 2020 | Rates Slide

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Today numerous notable refinance rates sunk lower.

Both 15-year fixed and 30-year fixed refinances saw their mean rates trail off. At the same time, average rates for 10-year fixed refinances also went down.

Mortgage refinance rates are constantly shifting. However, they are still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this can be a great opportunity to reduce your interest rate.

Take a look at local refinance rates.

30-Year Fixed Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 3.06%, a decrease of 1 basis point from a week ago. Just last month a 30-year fixed refinance had a smaller average rate of 1.00%.

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

Right now average 15-year fixed refinance rates are 2.57%, a decrease of 14 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

The average 10-year fixed refinance rate is 2.56%, a decrease of 2 basis points from the rate observed over the previous 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 from across the nation supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
ProductRateA week agoChange
30-year fixed refi3.06%3.07%-0.01
15-year fixed refi2.57%2.71%-0.14
10-year fixed refi2.56%2.58%-0.02

Rates as of November 16, 2020.

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

Is This the Right Time to Refinance?

In many cases, now is the right time to look into refinancing your existing mortgage. Over the last few months we’ve seen rates drop to record lows. Keep in mind, you will need a high credit score to qualify for these ultra-low rates. One thing to keep in mind is the Federal Housing Finance Agency has enacted a new 0.5% refinancing fee as of Dec. 1, 2020. This extra cost will apply to conventional refinance loans worth $125,000 or more. You’re likely to find many mortgage lenders that will add the additional fee into their loan offers in one way or another.

Current Refinance Rate Market

Recently, lenders have been exceptionally busy thanks to the inundation of mortgage refinance applications propelled by the low interest rates. So while many homeowners can save with a refinance, the time it takes to close on a loan can be longer than under normal circumstances. 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.

Getting a lower 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 enough equity in your home, you could also do what is known as a cash-out refinance. With this particular refinance option, you’ll be taking out a bigger mortgage, but you’ll walk away with a chunk of cash. Because interest rates are so low, this is a decent opportunity to consolidate high-interest debt or finance a home improvement project.

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 reasonable 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. Your lender should be able to provide you with a checklist of the supporting documents you’ll need, so you can organize them 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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