Today, several closely followed refinance rates sunk lower.
Both the 15-year fixed and 30-year fixed saw their average rates trail off. And average rates for 10-year fixed refinances also trailed off.
Mortgage refinance rates are constantly shifting. However, rates have been hovering near historic lows for quite some time. For those looking to refinance their existing mortgage, this might be the right move to lock in a great deal on an interest rate.
Take a look at today’s refinance rates:
- 30-year mortgage refinance rate: 3.13%
- Currently, the average 15-year fixed-rate refinance is 2.44%
- 10-year mortgage refinance rate: 2.42%
What These Refinance Rate Changes Mean for Homeowners
If you haven’t refinanced in the past few years, rates are still historically low, so it’s worth considering. However, the fees to refinance normally range from 3% to 6% of the loan balance. So be sure that whatever you’re saving in interest payments will outweigh the fees you’ll pay. 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 Refinance 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 determine how much your mortgage will cost you every month and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Refinance Rates
For 15-year fixed refinances we’re seeing an average rate of 2.44%, a decrease of 1 basis point from a week ago.
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 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 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
Mortgage and refinance rates are exceptionally low compared to any other time in mortgage rate history. However, rates have risen from their all-time lows and that is believed to be the long-term trend. The Federal Reserve is expected to begin the process of unwinding its pandemic-era economic supports, including policies that have kept rates low.
While rising rates may be the long-term trend, they will not necessarily rise overnight. If you haven’t refinanced in a while, this is good news for you. Refinance rates move up and down from day to day, and week to week, but the increase we see in rates should be more gradual.
How we calculate our refi rates
The table below shows how refinance rates have changed in the past week.
These refinance interest rates are collected by Bankrate. The information is based on customers that meet specific criteria, such as a credit score of 740+ with a loan-to-value ratio of 80% or better. If your financial profile doesn’t meet or exceed the standards of Bankrate’s survey, then it’s likely you’ll end up with a refi rate higher than what’s listed..
Bankrate is owned by Red Ventures, Nextadvisor’s parent company.
|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 26, 2021.
Does Refinancing Still Make Sense?
Refinancing isn’t solely dependent on the numbers, like the refinance rate, your situation is also a big factor. Consider whether or not refinancing fits into your life plans and financial desires
Refinancing can be a good idea if you can cut your interest rate enough to offset the upfront closing costs. However, refinancing isn’t always about reducing your mortgage rate. With home values rising, many homeowners are choosing to turn their new found equity into cash with a cash-out refinance. A cash-out refi may not always get you the best rate, but it can be a smart way to consolidate debt or to affordably finance a home renovation.
If it makes sense for your situation, now is still a good time to refinance your mortgage.
How to Qualify for the Best Refinance Rate
Refinance rates vary depending on your personal financial situation. Those with higher credit scores and better loan-to-value (LTV) ratios will typically be able to secure better interest rates.
Your situation isn’t the only consideration that affects the mortgage refinance rate you qualify for. The amount of equity you have in the home also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
Even the mortgage itself can determine what your refinance rate will be. A loan with a shorter repayment term generally has better refinance rates than a longer-term loan. Also, if you want to pull cash out of your home with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.
How Much Does It Cost to Refinance?
If you refinance your mortgage, closing costs typically range from 3% to 6% of the loan amount. For a $300,000 loan that’s $9,000 to $18,000 in fees.
But, each lender will assess your personal situation differently. So it’s important to shop around and compare offers. Everything from where the property is located to the type of loan you’re refinancing into can change what you’ll pay to refinance.