Today, several notable refinance rates decreased.
Both the 15-year fixed and 30-year fixed saw their mean rates go down. The average rate on 10-year fixed refinance mortgages also trailed off.
Refinancing interest rates are constantly shifting. However, they’re currently very low. 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:
- Today, the average 30-year fixed refinance rate is 3.13%
- 15-year mortgage refinance rate: 2.44%
- The average 10-year fixed refinance rate is 2.42%
What These Refinance Rate Changes Mean for Homeowners
As refinance rates remain near 3%, there is still an opportunity to lock in a great rate for homeowners who haven’t refinanced in the last few years. However, the fees to refinance normally range from 3% to 6% of the loan balance. So be sure that you’re saving more in the long run than you’re paying upfront. And it’s important to be aware that even a “no-closing-cost” refinance still has fees, but instead of paying them upfront, they’re added to your loan.
30-Year Fixed Refi Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.13%, a decrease of 3 basis points over the previous week.
You can use our mortgage calculator to price out your monthly mortgage payments and find out how much less interest you’ll pay by making additional payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
Average 15-Year Fixed Refinance Rates
Right now, average 15-year fixed refinance rates are 2.44%, a decrease of 1 basis point from what we saw last week.
Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.
10-Year Refinance Rates
The average 10-year, fixed refinance rate is 2.42%, a decrease of 1 basis points from the rate observed over the previous week.
Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
Mortgage Refi Rate Trends
Mortgage and refi rates are exceptionally low compared to any other time in mortgage interest rate history. However, rates have risen from their all-time lows and that is forecast to be part of the long-term trend. In the near future, the Federal Reserve is expected to begin unwinding its pandemic-era economic support, including its low-rate policies.
In any case, refinance rates aren’t forecast to skyrocket in a short amount of time.. Rates are expected to gradually rise over time, but are likely to remain below 4% for quite some time. In other words, homeowners seeking a refinance will still have the option of favorable rates for the time being.
How we determine refinance rates
Our daily refi rates are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These overnight refinance interest rate averages are based on a consumer profile that meets these qualifications:
- At least 20%+ equity
- Owner occupied home
- FICO score of 740 or higher
- Single-family detached home
The information provided to Bankrate from lenders nationwide is provided in the table below:
|30-year mortgage refinance rate||3.13%||3.16%||-0.03|
|15-year fixed refinance rate||2.44%||2.45%||-0.01|
|10-year fixed refinance rate||2.42%||2.43%||-0.01|
Rates as of November 23, 2021.
Is Now Still a Good Time to Refinance?
Even though refinance rates are higher than the recent record lows, they are still historically favorable. A lower rate can reduce your mortgage payment, so if you haven’t refinanced in the past few years, today’s low interest rates can make now a good time to do so.
However, your interest rate isn’t the only factor to consider when determining if now is the right time for you to refinance. In addition to the number of years left on your existing mortgage, the new repayment term will have an impact on your decision. Those who have been paying on their current mortgage for 10 years may want to refinance to a 20 year loan so that they aren’t adding more years to the loan’s back end. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.
Make sure the overall deal makes sense before taking advantage of an today’s low refinance rates.
How to Ensure You Get the Best Refinance Rate
Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit score and lower loan-to-value (LTV) ratios will usually get a bigger markdown on their refinance interest rate.
Your situation isn’t the only consideration that affects the mortgage refinance rates you’re offered. Your property’s equity also factors into the decision. Having at least 20% equity in your property is ideal.
The type of mortgage loan has an affect on your refinance rate. A shorter-term refinance loan usually has lower refinance rates than a longer-term loan. 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.
Average Cost of Refinancing
How much it costs to refinance can vary widely depending on these factors:
- Where the property is located
- Type of the mortgage
- The lender
- Loan amount
- Credit score
- The equity you have in the home
In general, refinance closing costs are 3% to 6% of the loan balance. The type of the loan you are refinancing into can impact its cost in a few different ways. Certain government-backed refinance loans, like the FHA Streamline or VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but could come with hefty upfront fees to cover the mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to possibly get rid of the mortgage insurance requirement.