Today, several notable refinance rates declined.
Both the 15-year fixed and 30-year fixed saw their mean rates slump. The average rate on 10-year fixed refinance mortgages also shrank.
Refinancing interest rates are constantly changing. However, they’re currently very low. For those looking to refinance their existing mortgage, this may be the perfect time to secure a record-low rate.
Refinance rates currently are:
- 30-year fixed refinance rates are averaging 3.13%
- Currently, the average 15-year fixed-rate refinance is 2.39%
- Today, the average 10-year fixed refinance rate is 2.35%
What this means 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. But the decision to refinance isn’t just about the rate, there are closing costs to consider as well. 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.
Average 30-Year Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.13%, a decrease of 2 basis points from a week ago.
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 Refinance Rates
Currently, the average rate for a 15-year fixed refinance loan is 2.39%, a decrease of 5 basis points from a week ago.
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 help you build up equity in your home much more quickly.
10-Year Fixed Refi Rates
The average 10-year, fixed refinance rate is 2.35%, a decrease of 3 basis points from what we saw last 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
Even with a moderate increase, rates could still remain favorable for borrowers. Some experts predict mortgage rates will stay low, and will only start seeing consistent gains in the second half of the year. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.
How our refi rates are calculated
Our refinance rate trends 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
- Principal residence
- Credit score of 740+
- Single-family detached home
The information provided to Bankrate from lenders across the country is provided in the table below:
|30-year mortgage refinance rate||3.13%||3.15%||-0.02|
|15-year fixed refinance rate||2.39%||2.44%||-0.05|
|10-year fixed refinance rate||2.35%||2.38%||-0.03|
Rates as of October 11, 2021.
Is It Still a Good Time to Refinance?
The past year was a historically excellent time to refinance because rates had never been lower. However, since January mortgage rates have crept up and crossed the 3% threshold for the first time since last summer.
Even though the days of record breaking refinance rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can lock in today’s rates that are just north of 3%, you are getting a deal with a close to all-time low rate.
So there is still time to save with a refinance, but that window is closing. Many experts are predicting rates to continue to increase as the economy returns to pre-pandemic levels over the next year.
How to Ensure You Get the Lowest Refinance Rate
Your finances have a big impact on the refinance rate you’ll be able to secure. Having a lower loan-to-value ratio for your home and a higher credit score ordinarily will get you a lower mortgage refinance rate.
Your personal finances aren’t the only thing that will impact the refinance interest rates you’re offered. A better loan-to-value ratio (LTV) will help you qualify for a reduced refinance rate. So the more equity you’ve built up, the better. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
The type of mortgage loan has an affect on your refinance rate. A shorter-term refinance loan typically has better interest rates than a loan with longer terms. 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.
How Much Does Refinancing Cost?
What you’ll pay to refinance your mortgage can vary widely depending on these factors:
- Type of the mortgage
- Your lender
- Loan amount
- Your credit score
- The property’s equity
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.