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Today, several closely followed refinance rates slumped.
Both the 15-year fixed and 30-year fixed saw their average rates trail off. At the same time, average rates for 10-year fixed refinances moved up.
Refinancing rates are constantly fluctuating. However, they’re presently low, making them a potentially great deal for borrowers. For those looking to refinance their existing mortgage, this may be the perfect time to secure a record-low rate.
Take a look at today’s refinance rates:
- Today, the average 30-year fixed refinance rate is 2.99%
- 15-year mortgage refinance rate: 2.29%
- 10-year mortgage refinance rate: 2.26%
What this means for homeowners
If you haven’t refinanced in the past few years, rates are still low enough that it’s worth looking into. However, the fees to refinance normally range from 3% to 6% of the loan amount. 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 out of pocket, the refinance closing costs are typically rolled into your loan balance. So you’re paying for it one way or another.
30-Year Fixed Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 2.99%, a decrease of 2 basis points from what we saw last week.
You can use our mortgage calculator to price out your monthly mortgage payments and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Refi Rates
Currently, the average rate for a 15-year fixed refinance loan is 2.29%, a decrease of 3 basis points from what we saw last 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 save you thousands of dollars interest over the life of the loan.
10-Year Refinance Rates
The average 10-year, fixed refinance rate is 2.26%, an increase of 1 basis point from the rate observed over the previous week.
Monthly payments with a 10-year refinance term would cost a lot more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
Refinance 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 we determine refinance rates
The table below shows where refinance rates were headed in the last week.
These daily refinance rates are provided 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 personal situation doesn’t meet or exceed the guidelines of this survey, then you will likely qualify for higher refinance rates than those listed.
Bankrate is owned by Red Ventures, Nextadvisor’s parent company.
|30-year mortgage refinance rate||2.99%||3.01%||-0.02|
|15-year fixed refinance rate||2.29%||2.32%||-0.03|
|10-year fixed refinance rate||2.26%||2.25%||+0.01|
Rates as of September 13, 2021.
Does Refinancing Still Make Sense?
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 Best Refi Rate
Refinance rates are influenced by your personal finances. Having a healthier credit score and lower loan-to-value (LTV) ratios will generally qualify for a greater reduction on their interest rate.
Your situation isn’t the only consideration that affects your interest rate. Your house’s value compared to your loan balance 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 will impact your refinance rate. A loan with a shorter repayment term typically has lower rates than a longer-term loan. 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.
What Is the Average Cost of Refinancing?
How much it costs to refinance can vary widely depending on these factors:
- Where the property is located
- Type of the mortgage
- Your lender
- Loan balance
- Your credit score
- The property’s equity
In general, refinance closing costs are 3% to 6% of the loan balance. Your state and local regulations can influence what fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, secure a lower rate, and to get lenders to compete for your business.