Current Mortgage Refinance Rates, November 8, 2020 | Rates decline

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 numerous closely followed refinance rates went down.

Both 15-year fixed and 30-year fixed refinances saw their mean rates sink. At the same time, average rates for 10-year fixed refinances remained unaltered.

Mortgage refinance 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 may possibly be the perfect time 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 3.07%, a decrease of 5 basis points 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 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 Fixed-Rate Refinance

Right now average 15-year fixed refinance rates are 2.71%, a decrease of 2 basis point over the previous week.

Monthly payments on a 15-year refinance 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 Fixed-Rate Refinance

The average 10-year fixed refinance rate is 2.58%, unmoved 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 nationwide supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
ProductRateLast weekChange
30-year fixed refi3.07%3.12%-0.05
15-year fixed refi2.71%2.73%-0.02
10-year fixed refi2.58%2.58%N/C

Rates as of November 8, 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 abnormally 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

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. Thanks to the economic downturn, some lenders tightened their lending standards. That means those with weaker financial profiles or less equity in their homes may find it difficult to qualify for a refinance loan.

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 term. 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 enough equity in your home, you could also do what is known as a cash-out refinance. With a cash-out refinance 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

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 that the fees you’re paying comparable fees with each other.

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.com Site Averages 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.

More of Our Articles About Home Loans:

Shopping for the right lender?