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Two benchmark mortgage refinance rates went up today.
The national rate average for a 15-year fixed refinance stay the same, while 30-year fixed-rate refinances moved higher. The average rate on 10-year fixed refinance mortgages moved up, as well.
Mortgage refinance rates are constantly shifting. Rates have been hovering near historic lows for quite some time though, meaning it could be a great time for homeowners to lock in a great deal on a lower interest rate.
Refinance rates currently are:
- 30-year mortgage refinance rate: 3.01%
- The average 15-year fixed refinance rates is 2.30%
- Today, the average 10-year fixed refinance rate is 2.27%
What this means for homeowners
With refinance rates continuing to hover around 3%, homeowners who’ve been waiting to refinance still have a chance to secure an exceptional rate. However, refinance fees normally range from 3% to 6% of the loan amount. 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, they are just typically added to your loan balance instead of being paid out of pocket.
Average 30-Year Fixed Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.01%, an increase of 2 basis points from what we saw last week.
You can use our mortgage calculator to get an idea of what your monthly payments will be 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 Refi Rates
For 15-year fixed refinances we’re seeing an average rate of 2.30%, unmoved over the previous week.
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.
Average 10-Year Refinance Rates
The average 10-year, fixed refinance rate is 2.27%, an increase of 1 basis point from the rate observed 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.
Refi Rate Trends
Even if we saw refinance rates climb higher, borrowers are likely to still have access to advantageous rates. 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 refinance rates are calculated
Our refi rate trends are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These daily refi interest rate averages are based on a borrower profile that meets these qualifications:
- At least 20%+ equity
- Owner occupied home
- FICO score 740+
- Existing single-family detached home (not new construction)
The information supplied to Bankrate from lenders across the nation is displayed in the table below:
|30-year mortgage refinance rate||3.01%||2.99%||+0.02|
|15-year fixed refinance rate||2.30%||2.30%||N/C|
|10-year fixed refinance rate||2.27%||2.26%||+0.01|
Rates as of September 10, 2021.
Is Now 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 Qualify for the Lowest Refi Rate
Mortgage refinance rates are influenced by your personal finances. Having a healthier credit score and better loan-to-value (LTV) ratios will generally get a larger markdown on their interest rate.
Your situation isn’t the only consideration that affects the interest rate you qualify for. Your home’s equity also factors into the decision. 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 what your refinance interest rate will be. A shorter-term refinance loan usually has lower interest rates than loans with longer repayment terms, all else equal. 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
Refinancing a mortgage typically involves paying closing costs of 3% to 6% of the loan amount. For example, if you have a $300,000 mortgage, you can expect to pay between $9,000 and $18,000 in closing costs.
There are a number of factors that different lenders consider when assessing your situation. Compare your options and shop around. Everything from where the home is located to what loan type you’re refinancing into could impact your upfront costs.