Current Mortgage Refinance Rates, November 17, 2020 | Rates Tick Lower

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today several notable refinance rates dropped off.

Both 15-year fixed and 30-year fixed refinances saw their mean rates go down. In addition, the average rate on 10-year fixed refinance also trailed off.

Refinancing interest rates are constantly shifting. However, they are presently abnormally low, making them a potentially great deal for borrowers. 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 3.09%, a decrease of 12 basis points over the previous 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

Currently, the average rate for a 15-year fixed refinance loan is 2.56%, a decrease of 5 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 help you build up equity in your home much more quickly.

10-Year Fixed-Rate Refinance

The average 10-year, fixed refinance rate is 2.57%, a decrease of 2 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.

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
ProductRateLast weekChange
30-year fixed refi3.09%3.21%-0.12
15-year fixed refi2.56%2.61%-0.05
10-year fixed refi2.57%2.59%-0.02

Rates as of November 17, 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. 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 Landscape for Refinance Rates

Lenders have been unusually busy with refinance loans because of the low interest rates. 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?

Although there are a number of refinance loan types, the main reasons to refinance are to secure a lower interest rate or to adjust your loan’s 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. Thanks to the exceptionally low interest rates, you may be able to get the best of both worlds. If you can significantly reduce your interest rate with a refinance, you may be able to take out a shorter-term loan and still keep your payments around the same level.

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

The first step to refinancing your mortgage is to shop around with multiple lenders to find the best offer. 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. 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.

Other NextAdvisor Articles

Searching for the right mortgage lender?