Today, multiple closely followed mortgage refinance rates climbed.
Both the 15-year fixed and 30-year fixed saw their mean rates trend upward. And average rates for 10-year fixed refinances also made gains.
Mortgage refinance rates are constantly fluctuating. However, rates have been hovering near historic lows for quite some time. For those looking to refinance their existing mortgage, this can 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 3.17%
- Currently, the average 15-year fixed-rate refinance is 2.41%
- Currently, the average 10-year fixed-rate refinance is 2.37%
What this means for homeowners
As refinance rates remain near 3%, there is still an opportunity to to get a low 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 plan on staying in your home long enough for the interest savings to outweigh the fees. And remember, even if you don’t pay anything upfront, the refinance closing costs are typically added to your loan balance. So you’re paying for it one way or another.
30-Year Refi Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.17%, an increase of 5 basis points from a week ago.
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 Refi Rates
For 15-year fixed refinances we’re seeing an average rate of 2.41%, an increase of 3 basis points from a week ago.
Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. 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 2.37%, an increase of 5 basis points from a week ago.
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 Refi Rate Trends
Even with a moderate increase, rates could still remain favorable for borrowers. Experts see rates staying low throughout 2021, 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 daily refinance rates are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These overnight refi interest rate averages are based on a customer profile that meets these qualifications:
- At least 20%+ equity
- Owner occupied home
- Credit score of 740+
- Single-family home
The information provided to Bankrate from lenders across the nation is displayed in the table below:
|30-year mortgage refinance rate||3.17%||3.12%||+0.05|
|15-year fixed refinance rate||2.41%||2.38%||+0.03|
|10-year fixed refinance rate||2.37%||2.32%||+0.05|
Rates as of October 14, 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 Best Refinance Rate
Your finances have a big impact on the refinance rate you get. Having a lower loan-to-value ratio for your home and a higher credit score typically translates into a lower mortgage refinance rate.
But your personal financial situation isn’t the only consideration that affects the interest rates you’re offered. The equity you have in the property 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 will impact what your refinance rate will be. A shorter-term refinance loan generally has lower interest 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.
Average Cost of Refinancing
How much it costs to refinance can vary widely depending on these factors:
- Where the property is located
- Type of refinance loan
- Your lender
- Loan balance
- Your credit score
- Home’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.